The compensation agreement with miners BHP (BHP.AX), Vale (VALE3.SA) and Samarco for the Mariana dam collapse in 2015 has been joined by 19 new cities, including the one that was the epicenter of the disaster, a Brazilian court said on Thursday.
As a result, the deal, signed and ratified in October 2024, now has the support of 45 of the 49 municipalities eligible to receive funds.
The 2015 dam collapse in an iron ore mine owned by Samarco, a joint venture between Vale and BHP, near the city of Mariana in southeastern Brazil, killed 19 people, left hundreds homeless, flooded forests and polluted the length of the Doce River.
The agreement established the payment of 170 billion reais ($32.74 billion) in compensation and reparation for one of the country's worst environmental disasters, with some 6 billion reais earmarked for affected cities.
But as of March 2025, only 26 cities had joined the deal, with many cities arguing the 170 billion-real amount was not enough to compensate for the vast damage. The initial resistance to signing it was also influenced by parallel legal action against BHP in London, which also seeks reparations for the collapse that could yield an even higher compensation amount.
In November, London's High Court ruled BHP was responsible under Brazilian law for the dam collapse. A further trial to decide on any damages to be paid was expected to begin in April 2027.
The cities' participation in the agreement is viewed as important for Samarco, as it seeks to move beyond uncertainties stemming from the collapse.
"We consider this a historic victory for the city," Mariana Mayor Juliano Duarte said in a press conference. "We have several individuals and companies that are still involved in the UK lawsuit. We, as the city government, will continue to stand by these people."
The court said it remains available to accept any future adherence by the four cities that have yet to join the agreement: Ouro Preto, Governador Valadares and Resplendor, in Minas Gerais state, and Colatina, in Espirito Santo state.
($1 = 5.1925 reais)
