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The
company said its unit BHP Brasil had not received a decision
from the court, adding that the group would review its
implication, potential for an appeal and any potential impact on
its provision related to the dam's collapse.
The court has issued an interlocutory decision ordering Vale,
BHP and Samarco to pay 47.6 billion reais ($9.67 billion) in
collective moral damages for the 2015 tailings dam burst that
killed 19 people and led to severe pollution of the Rio Doce
river.
This is one of the categories of damages sought in the $31.53
billion claim by the Federal Public Prosecution Office.
The parties have been in negotiations to seek a settlement of
obligations under a framework agreement since 2021, and the
talks are slated to resume in February this year.
BHP had set aside $3.7 billion in provision related to the
Samarco dam failure, according to its 2023 annual report.
BHP said its unit is "fully committed to supporting the
extensive ongoing remediation and compensation efforts in
Brazil" through a not-for-profit foundation that was established
following the dam failure.
"Although both companies' balance sheets should be able to
handle these outflows, we think this could drive lower capital
returns over time/push net debt in BHP's case through its $15bn
target ceiling," RBC analysts said in a note.
($1 = 4.9165 reais)
(Reporting by Archishma Iyer in Bengaluru; Editing by Rashmi
Aich and Subhranshu Sahu)
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