More municipalities join the Brazil Agreement through Brazil-led mediation

A further group of 19 Brazilian municipalities has adhered to the Brazil Agreement through a Brazilian court-supervised mediation process conducted by the Federal Regional Court of the 6th Region (TRF-6). The request to reopen discussions was presented by the Consórcio Público para Defesa e Revitalização do Rio Doce (Coridoce) who represent the municipalities in the Doce River basin, and the new adhesions follow the same criteria and conditions established under the Brazil Agreement.

The municipalities that recently adhered are Aimorés, Alpercata, Belo Oriente, Bom Jesus do Galho, Conselheiro Pena, Coronel Fabriciano, Galileia, Ipaba, Itueta, Mariana, Naque, Periquito, São Domingos do Prata, São José do Goiabal and Tumiritinga, in Minas Gerais; and Aracruz, Baixo Guandu, Marilândia and Sooretama, in Espírito Santo.

As a result of the adhesions, the municipalities will have access to approximately R$2.6 billion under the amounts allocated to municipal initiatives in the Brazil Agreement. These resources may be directed to local public policies and initiatives in areas such as health, education, infrastructure, economic development and quality of life, complementing the broader reparation and compensation measures already provided for under the Agreement.

The adhesions also consolidate the Brazil Agreement as the principal Brazil-led framework for resolving municipality claims arising from the Fundão dam failure. With the new adhesions, the Agreement now includes 45 of the 49 eligible municipalities. The 26 municipalities that had previously adhered by March 2025 are Córrego Novo, Iapu, Santana do Paraíso, Marliéria, Sobrália, Ponte Nova, Bugre, Caratinga, Pingo D'Água, Rio Doce, Santa Cruz do Escalvado, Rio Casca, Dionísio, São Pedro dos Ferros, Raul Soares, Barra Longa, Ipatinga, Timóteo, Sem Peixe, Fernandes Tourinho, Anchieta, Conceição da Barra, Fundão, São Mateus, Serra and Linhares.

The municipalities that adhered in this round are expected to receive their first payment within 30 days of the fulfilment of the conditions set out in the Adhesion and Commitment Instrument. This first payment corresponds to the first three instalments already made to municipalities that adhered in 2025, while future instalments will follow the original payment schedule under the Brazil Agreement.

By resolving the position of these municipalities through a Brazilian court-supervised process, the adhesions support greater legal certainty for public authorities, municipalities and companies and reduce the risk of parallel or duplicative claims in Brazil and abroad. Adherent municipalities are also expected to provide releases and take the necessary measures to discontinue relevant legal proceedings in Brazil or abroad, including the UK Group Action against BHP Group Ltd and BHP Group (UK) Ltd, subject to the applicable legal and procedural requirements.

About the Brazil Agreement

The Brazil Agreement was signed in October 2024 by Samarco, Vale, BHP Brasil, the Brazilian Federal Government, the state governments of Minas Gerais and Espírito Santo, public prosecutors, public defenders and other public institutions. It was ratified by the Brazilian Supreme Federal Court in November 2024 and is the principal framework for reparation and compensation related to the Fundão dam failure.

The Agreement has an estimated financial value of approximately R$170 billion (100% basis), including amounts already spent before its signature, obligations to pay over 20 years and obligations to be performed by Samarco. As of 30 June 2026, approximately R$34.2 billion had been paid in compensation and financial assistance to support approximately 632,000 people affected by the dam failure. [NR1] The Definitive Indemnification Program had resulted in payments in respect of approximately 310,000 claims, totalling R$11.4 billion.

BHP Brasil’s role remains to support Samarco, together with Vale, in the implementation of the commitments made under the Brazil Agreement. BHP Brasil holds a 50% interest in Samarco, a non-operated joint venture in Brazil. Samarco produces iron ore pellets through its operating units in Minas Gerais and Espírito Santo.

BHP Brasil holds a 50% interest in Samarco, a non-operated joint venture in Brazil. The company employs around 15,000 people directly and indirectly and produces iron ore pellets through its operating units in Minas Gerais and Espírito Santo states