Highlights

  • English High Court finds BHP liable under Brazilian law for 2015 dam disaster.
  • Valid releases for many compensated claimants may limit overall UK claim size.
  • Damages assessment to follow in later trials scheduled through 2028–2029.

BHP (ASX:BHP) has confirmed that the English High Court ruled the company liable under Brazilian law in relation to the 2015 Fundão dam failure. The finding follows a five-month first-stage trial in the UK group action brought by more than 600,000 claimants.

The ruling states that BHP is considered a “polluter” under Brazilian environmental law and at fault under the Brazilian civil code. However, the court did not find liability under Brazilian corporate law. The decision concerns events that occurred before November 2015.

BHP plans to appeal the ruling and continue defending the UK proceedings. Any damages assessment will only occur in the second and third stages of the action, expected to run through 2028 or 2029.

Impact of Releases and Next Steps in the Trial Process

The court upheld the validity of waivers and releases signed by individuals who have already received compensation in Brazil. This group includes around 240,000 of the UK claimants, reducing the expected size and value of the remaining claims.

A second-stage trial, currently scheduled from October 2026 to March 2027, will examine whether the losses claimed were caused by the dam failure. Depending on the outcomes and appeals, a third stage may be required for individual claimants to prove their damages. This is unlikely to begin before 2028.

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Compensation and Remediation Progress in Brazil

Since 2015, BHP Brasil, Vale and Samarco have contributed USD 13.4B toward compensation and reparation efforts in Brazil. Approximately USD 6.3B has been provided directly to more than 610,000 people, including the 240,000 claimants who signed releases for related claims.

Environmental remediation work has been reported as substantially complete, while resettlement of the Novo Bento Rodrigues and Paracatu communities is 98% finished.

Under the Brazil Agreement signed in October 2024, Brazilian authorities and public defenders reached a BRL 170B (USD 32B) settlement framework with BHP Brasil, Vale and Samarco covering reparation measures, public health, infrastructure, economic recovery and support for impacted communities.

Provision Update and Expected Cash Outflows

At 30 June 2025, BHP had recognised USD 5.8B in provisions for its obligations under the Brazil Agreement. Following updates to spending levels and assessments, the company now estimates an aggregate provision of USD 5.5B as of 31 October 2025. Approximately USD 1B has been spent since July 2025.

Expected cash outflows linked to Samarco remain aligned with earlier guidance of USD 2.2B for FY2026 and USD 0.5B for FY2027. As previously disclosed, BHP and Vale agreed in July 2024 to share equally any payments arising from the UK and Dutch group actions.

Share Performance of BHP

BHP was trading 3.48% lower at AUD 41.0 per share as of 18 November 2025.