BHP faces £5bn class action over 2015 Brazil dam collapse

BHP is facing a £5bn lawsuit after a class action was filed at the UK High Court over a 2015 dam collapse in Brazil that killed 19 people.

The action has been filed on behalf of 235,000 Brazilian individuals against the world's biggest miner, claiming it had been “woefully negligent” in failing to prevent the collapse of the Fundao dam, despite warnings that it was unstable.

BHP issued a brief statement on Wednesday saying it would defend the claim.

The collapse sent tonnes of water, mud and iron ore waste from the Samarco operation, owned by BHP and Brazil's Vale, onto the the village of Bento Rodrigues.

In January, another dam owned solely by Vale at Brumadinho, also in Minas Gerais province, collapsed, killing at least 232 people.

While a compensation scheme was agreed by Samarco, the UK claim alleges that while “some of the victims of the disaster have received some modest compensation . . . most have still received nothing”.

Tom Goodhead, partner at law firm SPG, which is representing the claimants, said repeated warnings and recommendations of dam safety experts “were acted upon too slowly, or sidestepped entirely”.

"Driven by concern for declining revenues amidst the falling market price of iron ore, the company took risks, increased production and turned a blind eye to dangers that ultimately claimed lives and destroyed communities," he said.