Vale Faces $3.8 Billion Dutch Lawsuit Over Brazilian Dam Collapse

Vale SA is set to face a fresh legal front over a catastrophic Brazilian dam collapse in 2015 after thousands of victims sued the company in a Dutch court in a claim that could cost the mining giant £3 billion ($3.8 billion).

Proceedings were started in the Netherlands against Vale and Samarco, law firm Pogust Goodhead said in a statement. Brazil’s worst environmental disaster unleashed a torrent of waste, killing 19 and polluting waterways in at least two Brazilian states.

The lawsuit is being brought on behalf of claimants including seven Brazilian municipalities, 77,000 victims and nearly 1,000 businesses and associations affected by the dam break.

Both companies said in emailed messages that they are committed to supporting full reparations for the damage caused by the collapse of the Fundao dam. Samarco said it has not been notified of the lawsuit.

“For too long the victims of the Mariana dam disaster have seen Vale and BHP continue to boast about their profits and shareholder dividends while the victims have yet to receive redress for their losses as they continue to live with the devastation the companies caused eight long years ago,” Tom Goodhead, Pogust Goodhead’s managing partner, said.

The move comes weeks before one of the largest London civil trials of the year starts. BHP Group Ltd. may face a £36 billion compensation payout if it loses a London class action lawsuit over its role in the deadly collapse of a Brazilian dam.

In February Vale set aside an additional $1.2 billion for settlements tied to the Samarco mine disaster, following a similar move by BHP, after a Brazilian judge ruled that the parent companies and Samarco iron ore venture must pay 47.6 billion reais ($9.7 billion) to cover the collective moral damages. The mining giants are also negotiating a settlement with Brazilian authorities that would cover all the compensation.