Mariana, 18 more Brazil cities join Vale-BHP dam collapse compensation deal

The compensation agreement for the devastating 2015 Mariana dam collapse has gained significant traction, with 19 new cities, including the disaster's epicenter, joining the deal. This brings the total number of participating municipalities to 45 out of 49 eligible locations. The agreement allocates 6 billion reais to affected cities as part of a larger 170 billion reais reparation package for one of Brazil's worst environmental disasters.

The 2015 collapse, caused by a dam failure at an iron ore mine owned by Samarco (a Vale and BHP joint venture), resulted in 19 deaths, widespread homelessness, and extensive environmental damage along the Doce River. Despite the substantial compensation, many cities initially hesitated to sign, deeming the 170 billion-real sum inadequate for the immense damage.

This hesitation was partly influenced by a parallel lawsuit against BHP in London, which seeks potentially larger reparations. In November, London's High Court ruled BHP liable under Brazilian law for the collapse, with a damages trial anticipated in April 2027. The cities' participation is seen as crucial for Samarco to move past the lingering uncertainties from the disaster.

Mariana Mayor Juliano Duarte hailed the agreement as a "historic victory for the city," while acknowledging that some individuals and companies remain involved in the UK lawsuit. The court remains open to the four remaining cities – Ouro Preto, Governador Valadares, Resplendor, and Colatina – joining the agreement.

“

We consider this a historic victory for the city. We have several individuals and companies that are still involved in the UK lawsuit. We, as the city government, will continue to stand by these people.