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Mariana, 18 more Brazil cities join Vale-BHP dam collapse compensation deal

Created at 20 Aug · 9:19 PM1 source↑ Market-relevant
IN SHORT

Nineteen Brazilian cities, including Mariana, have joined a compensation agreement with miners BHP, Vale, and Samarco for the 2015 dam collapse. This brings the total participating cities to 45 out of 49 eligible municipalities, with 6 billion reais earmarked for these cities.

Key Numbers

19new cities joining compensation deal
45cities now supporting the agreement
49municipalities eligible for funds
170 billion reaistotal compensation and reparation amount
6 billion reaisearmarked for affected cities
26cities initially joined the deal as of March 2025
19people killed in the 2015 dam collapse
April 2027expected start date for UK damages trial

Who's Involved

BHP
Miner involved in the Mariana dam collapse compensation deal
Vale
Miner involved in the Mariana dam collapse compensation deal
Samarco
Joint venture between Vale and BHP, owner of the collapsed dam
Mariana
City that was the epicenter of the 2015 dam collapse
Juliano Duarte
Mayor of Mariana, calling the deal a "historic victory"
Mariana, 18 more Brazil cities join Vale-BHP dam collapse compensation deal

↳ Why This Matters

The expansion of the compensation deal signifies progress in addressing one of Brazil's worst environmental disasters, potentially bringing closure to affected communities and allowing the involved mining companies to move past legal uncertainties, though parallel legal actions continue.

Key facts

  • 19 new Brazilian cities, including Mariana, have joined the compensation agreement for the 2015 dam collapse.
  • The deal now includes 45 out of 49 eligible municipalities.
  • The agreement provides 170 billion reais in compensation and reparations, with 6 billion reais allocated to cities.
  • BHP was previously ruled responsible for the collapse under Brazilian law by a London High Court.
  • A separate trial for damages in the UK is scheduled for April 2027.

The compensation agreement stemming from the 2015 dam collapse in Mariana, Brazil, has seen significant expansion, with 19 additional cities, including Mariana itself, joining the deal. This brings the total number of participating municipalities to 45 out of the 49 eligible. The agreement, ratified in October 2024, aims to provide 170 billion reais ($32.74 billion) in compensation and reparations for the environmental disaster, with 6 billion reais designated for the affected cities.

Initially, only 26 cities had joined the agreement as of March 2025, with many expressing dissatisfaction that the 170 billion-real sum was insufficient to cover the extensive damages. This resistance was partly fueled by ongoing parallel legal action against BHP in London, which could potentially result in higher compensation. In November, London's High Court affirmed BHP's responsibility under Brazilian law for the collapse, with a trial to determine damages anticipated for April 2027.

The participation of these cities is considered crucial for Samarco as it seeks to overcome the lingering uncertainties from the disaster. Mariana Mayor Juliano Duarte hailed the development as a "historic victory for the city," while acknowledging that individuals and companies remain involved in the UK lawsuit.

Frequently asked questions

The Mariana dam collapse occurred in 2015 at an iron ore mine owned by Samarco, a joint venture between Vale and BHP, near Mariana, Brazil. It resulted in 19 deaths, left hundreds homeless, and caused severe environmental pollution along the Doce River.

The agreement establishes 170 billion reais ($32.74 billion) in compensation and reparations for the disaster, with 6 billion reais specifically allocated for the affected cities.

The four cities that have not yet joined are Ouro Preto, Governador Valadares, and Resplendor in Minas Gerais state, and Colatina in Espirito Santo state.

London's High Court ruled in November that BHP is responsible under Brazilian law for the dam collapse. A trial to determine damages is expected to commence in April 2027.

What Happens Next

01The court remains open to future adherence by the four remaining cities: Ouro Preto, Governador Valadares, Resplendor, and Colatina.
02A trial to decide damages in the UK lawsuit against BHP is expected to begin in April 2027.

How It Developed

The compensation agreement for the 2015 Mariana dam collapse has been joined by 19 new cities.
Mariana, the epicenter of the disaster, is among the cities that have joined the deal.
The agreement, signed and ratified in October 2024, now has the support of 45 of the 49 eligible municipalities.
The 2015 dam collapse killed 19 people and caused extensive environmental damage.
The agreement establishes 170 billion reais in compensation and reparations, with 6 billion reais for affected cities.
As of March 2025, only 26 cities had initially joined, with many arguing the compensation was insufficient.
London's High Court ruled in November that BHP is responsible under Brazilian law for the dam collapse.
A further trial to determine damages in the UK lawsuit is expected to begin in April 2027.

Sources

T1
Mariana, 18 more Brazil cities join Vale-BHP dam collapse compensation dealReuters

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