BHP¹ acquired an initial shareholding in Brazilian iron ore pellet producer Samarco in the mid-1980s. Since 2000, BHP and Vale have been equal shareholders in a non-operated joint venture.  

Samarco is independently managed and operated and has its own governance framework. Samarco is a vital contributor to the economy in the states of Minas Gerais and Espírito Santo and a major employer in the country’s largest mining and minerals region. 

In 2015, the Fundão tailings dam at Samarco failed, resulting in the loss of 19 lives in the Mariana area and substantial downstream social and environmental impacts in the Doce River basin.  

Samarco immediately ceased production and only began a phased operational resumption in December 2020 once stringent safety conditions were satisfied. It now operates without a tailings dam at approximately 30 per cent of its original capacity, with a ramp up to 60 per cent expected by early 2025. 

The Renova Foundation was established in 2016 through an agreement between the government and Samarco, BHP and Vale (the companies) to rebuild communities and livelihoods of families affected by the dam failure, including resettlement solutions based on their individual preferences.  

Consistent with our commitment to full and fair reparation of the impacts, the Renova Foundation has made R$37 billion (approximately US$6.5 billion) in payments since 2016 and over 90 per cent of resettlement cases have been completed. 

Claims have been made on behalf of people impacted in Brazil in other countries, including the UK. The companies believe that Brazil is the appropriate jurisdiction to review and resolve compensation matters. 

For more information, visit the Samarco Reparations page. 

¹ In the context of this article, BHP refers to BHP Billiton Brasil Ltda (BHP Brasil), which is our registered entity in Brazil.