Update United Kingdom Group Action 15 July

BHP announces that it has reached an agreement with Vale SA (Vale) regarding a class action proceeding in the United Kingdom relating to the Fundão dam failure in Brazil.

The Fundão Dam was owned and operated by Samarco, a non-operating joint venture between BHP Billiton Brasil Ltda (BHP Brasil) (a subsidiary of BHP Group Limited) and Vale. BHP Brasil and Vale each own 50 percent of Samarco.

BHP Group Limited and BHP Group (UK) Limited (BHP) are defendants in a class action in the English High Court brought by over 600,000 claimants seeking damages in connection with the 2015 Fundão dam failure (the English Proceedings). BHP believes that it has no liability to the claimants in the English Proceedings and will continue to defend itself against the English Proceedings. BHP believes that the English Proceedings are unnecessary as they concern matters already covered by the existing and ongoing work of the Renova Foundation and legal proceedings in Brazil.

In March 2024, a new lawsuit was filed in the Netherlands against Vale and Samarco’s Dutch subsidiary on behalf of around 78,000 Brazilian plaintiffs to claim compensation related to the Fundão dam collapse (Dutch proceedings). BHP is not a defendant in the Dutch proceedings.

BHP, BHP Brasil and Vale have entered into an agreement whereby BHP and Vale will each pay 50% of all amounts potentially payable to the plaintiffs in the English proceedings, the Dutch proceedings and other proceedings in Brazil covered by the agreement, without admitting liability for those proceedings. The agreement reinforces the terms of the 2016 Framework Agreement requiring BHP Brasil and Vale to each contribute 50% to the financing of the Renova Foundation to compensate those affected by the Fundão dam collapse if Samarco is unable to provide such financing.

BHP brought a claim for damages against Vale in December 2022 as the English proceedings were not brought against Vale. The claim for damages states that if BHP’s defences are unsuccessful and the company is ordered to pay damages to the claimants in the English proceedings, Vale should contribute to any amount payable. BHP will withdraw the claim for damages against Vale as it is no longer necessary due to the agreement with Vale.

BHP Brasil will continue to support local recovery efforts in Brazil through the Renova Foundation. This effort has already provided approximately US$3.5 billion in compensation and direct financial assistance related to the dam failure to approximately 430,000 people through May 31, 2024.