Mining giant BHP Group (BHP) won its bid to dismiss a UK contempt case on Monday, ending allegations it funded litigation to block Brazilian municipalities from suing over the 2015 Mariana dam disaster.
The Court of Appeal ruling eliminates a significant legal distraction as BHP awaits a crucial decision on whether it can challenge a High Court finding that it’s liable for Brazil’s worst environmental disaster 1.
Key Takeaways
- Court of Appeal overturned contempt proceedings against BHP
- Company still awaits appeal decision on $31.7 billion liability ruling
- Damages trial scheduled for October 2026 if appeal fails
Legal Victory Amid Broader Litigation
The contempt case accused BHP of funding Brazilian mining lobby group Ibram to prevent municipalities from pursuing claims in London courts. Lawyers for the claimants alleged this constituted interference with the administration of justice 1.
BHP welcomed the Court of Appeal’s decision to end the contempt proceedings, while claimants’ lawyers said their focus remained on the underlying litigation over the dam collapse 1. The ruling comes as hundreds of thousands of Brazilians, along with local governments and businesses, continue pursuing what could be one of the largest environmental lawsuits in English legal history.
Liability Ruling Under Appeal
Last November, the English High Court found BHP liable for the 2015 Fundão dam collapse under Brazilian environmental law and civil code provisions. The court rejected BHP’s limitation arguments and confirmed that claims remain open until at least September 2029 2.
BHP sought permission to appeal the liability ruling, with the Court of Appeal expected to rule on this application in the coming weeks. If the appeal is denied, a second trial beginning in April 2027 will determine damages owed to the claimants 1.
Massive Financial Stakes
The Mariana dam disaster killed 19 people and devastated communities along the Rio Doce river when over 40 million tonnes of toxic waste surged across the landscape. In Brazil, BHP, Vale, and their joint venture Samarco signed a definitive compensation agreement worth 170 billion reais ($31.94 billion) during the London trial’s first week 1.
However, the Brazilian settlement doesn’t cover all claimants in the UK case. Many victims represented in London litigation are ineligible for the Brazilian agreement, with 31 of 46 affected municipalities rejecting the compensation deal 3.
Company Position and Next Steps
“BHP has always denied liability and says the case duplicates legal proceedings and reparation and repair programs in Brazil,” the company has maintained throughout the litigation 1. The mining giant argues the UK case is unnecessary given existing Brazilian remediation efforts.
The case represents a landmark test of how English courts handle mass environmental claims against multinational corporations. If BHP’s appeal is unsuccessful, the October 2026 damages trial could result in compensation awards reaching tens of billions of dollars.
Not investment advice. For informational purposes only.
References
1Global Banking & Finance Review (March 16, 2026). “BHP wins bid to throw out UK contempt case linked to Brazil dam collapse”. Retrieved March 16, 2026.
2Pogust Goodhead (November 14, 2025). “‘A Victory for Justice’ as High Court rules BHP liable for dam disaster in landmark case”. Retrieved March 16, 2026.
3Business and Human Rights Centre (June 26, 2025). “London’s High Court rules that BHP faces a full contempt of court hearing for funding litigation to prevent Brazilian municipalities suing for environmental disaster”. Retrieved March 16, 2026.