**BHP and Vale Reach $30 Billion Settlement for 2015 Brazil Dam Disaster**

**BHP and Vale have finalized a significant settlement with the Brazilian government, aiming to address the consequences of the catastrophic dam collapse that occurred in 2015, leaving communities devastated and the environment severely damaged.**

The mining companies BHP and Vale have inked a deal worth nearly $30 billion (£23 billion) with the Brazilian government, addressing the consequences of the Mariana dam collapse which was recognized as the country’s worst environmental catastrophe. The agreement was formalized in the presence of Brazilian President Luis Inacio Lula da Silva on Friday.

The incident, which resulted in the release of toxic waste and mud, had dire effects, flooding numerous towns, rivers, and forests, claiming 19 lives, leaving hundreds homeless, and severely contaminating local water sources. President Lula expressed optimism that the mining giants have learned a vital lesson from the incident, noting that prevention would have been significantly less costly for the companies.

The dam was managed by Samarco, a partnership between Vale and BHP, and following the disaster, the two corporations established a foundation aimed at compensating affected individuals. They have already invested billions of dollars in community repairs, including the development of a new town to replace one that was lost. However, many local residents continue to assert that they have yet to receive adequate support or a sense of justice nearly a decade later.

In parallel to the legal proceedings in Brazil, a class-action suit initiated by over 620,000 individuals in the UK against BHP commenced earlier this week, seeking approximately $47 billion in damages. The initial phase of the trial will assess BHP's responsibility as a parent company, while around 70,000 complainants are pursuing claims against Vale in the Netherlands. Both companies maintain that they are not liable and suggest that these international actions are redundant in light of ongoing Brazilian processes.

Frustration over the slow pace of Brazilian legal proceedings has prompted some Mariana residents to pursue justice in the UK. As the international trial began, many speculated that the Brazilian settlement could be expedited due to increased global pressure. In 2016, BHP and Vale had agreed to a $3.5 billion compensation package, but negotiations resumed in 2021 amidst concerns over the progress of Brazil’s judicial system.

The latest agreement aims to cover both past and future obligations to support communities, victims, and ecosystems impacted by the 2015 disaster. This includes a commitment to disburse 100 billion reais ($17.5 billion) to local entities over a 20-year period, 32 billion reais for victim compensation and resettlement, and a declaration that the companies have already paid out 38 billion reais in compensation.

The Mariana catastrophe remains a critical case study in corporate responsibility and environmental law, highlighting the prolonged struggles communities face in the wake of industrial disasters.