BHP to pay $72.5M to settle Samarco class action over 2015 dam collapse

[Collapse of Fundao mining dam in Mariana]
josemoraes/iStock Unreleased via Getty Images

BHP (NYSE:BHP [https://seekingalpha.com/symbol/BHP]) said Tuesday it agreed to pay [https://www.bhp.com/news/media-centre/releases/2025/09/settlement-of-samarco-australian-securities-class-action] A$110M (~US$72.5M) to settle an Australian shareholder class action lawsuit related to the 2015 Fundao tailings dam collapse, with no admission of liability.

The dam failure at the iron ore operation owned by the Samarco 50-50 joint venture of BHP (NYSE:BHP [https://seekingalpha.com/symbol/BHP]) and Vale (VALE [https://seekingalpha.com/symbol/VALE]) near the city of Mariana killed 19 people and left hundreds of people homeless as mine waste rushed down one of southeast Brazil's main river systems, polluting more than 400 miles of waterways.

The class action was filed in the Federal Court of Australia in 2018 on behalf of shareholders who had acquired BHP (BHP [https://seekingalpha.com/symbol/BHP]) shares prior to the Fundao dam failure.

The company said it expects to recover the majority of the settlement amount from its insurers.

A Brazil federal court ruled last year that BHP (BHP [https://seekingalpha.com/symbol/BHP]), Vale (VALE [https://seekingalpha.com/symbol/VALE]) and Samarco were not criminally liable for the dam collapse.

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