BHP) faces $65 billion in damages claims in Brazil mining accident

BHP said it is committed to working with Samarco and Vale to support local restoration efforts in Brazil through the Renova Foundation, which was established in 2016. BHP says the foundation has so far spent about $5.9 billion on restoration and compensation programs.

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A lower UK court previously ruled in favor of BHP and ruled that the case should not be allowed to proceed simultaneously in both countries.

But in July, a UK Court of Appeal overturned the previous ruling, ruling that the overlap between the class action and Brazilian legal proceedings was “relatively limited.” He also said that in many cases, compensation is being paid in Brazil. seemed inadequate to date.

Analysts on Thursday said the size of the potential class-action settlement poses risks to BHP’s cash position and continued cash flow, which may not yet be factored into market estimates. there is.

“The situation is difficult for BHP and will likely provide a string of negative headlines over the next few years or until this is denied or resolved by the courts,” said Tyler Broda, RBC Capital Markets analyst. said Kaan Peker.

“However, in our opinion, the chances of success in this case are limited. Given that.”

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