REG - BHP Group Limited - Response to media commentary regarding Samarco

BHPAnnouncement

26/01/2024 07:00

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RNS Number : 0410B  BHP Group Limited  26 January 2024

Exchange release

26 January 2024

 

Response to media commentary regarding Brazil Federal Court decision

BHP notes the recent media commentary regarding a decision by the Federal
Court of Brazil in relation to the BRL$155 billion (approximately US$32
billion) Federal Public Prosecution Office claim.

As previously disclosed in BHP's 2023 Annual Report, in May 2016, Brazil's
Federal Public Prosecution Office (and 18 other public entities) filed a
public civil claim against Samarco Mineração S.A. (Samarco), Vale S.A.
(Vale) and Billiton Brasil Ltda (BHP Brasil) seeking BRL$155 billion
(approximately US$43 billion at the time) for reparation, compensation and
collective moral damages in relation to the failure of the Fundão tailings
dam on 5 November 2015.

The Fundão tailings dam was operated by Samarco, a non-operated joint venture
owned by BHP Brasil (a subsidiary of BHP Group Limited) and Vale. BHP Brasil
and Vale each hold a 50 per cent interest in Samarco.

On 16 October 2023, an interlocutory motion was filed by the Brazilian Federal
Prosecutors in the Federal Prosecution Office claim seeking the early payment
of collective moral damages, which is one of the categories of damages sought
in the BRL$155 billion claim. The media commentary reports that the Federal
Court of Brazil issued an interlocutory decision quantifying collective moral
damages arising from the Fundão tailings dam failure in the amount of
BRL$47.6 billion (US$9.7 billion) (excluding interest and inflation from the
date of the dam failure) and ordering Samarco, Vale and BHP Brasil to pay
these damages, when any and all appeals are finally determined.

BHP Brasil has not been served with a decision by the Court and will review
the decision to assess its implications, the potential for an appeal and any
potential impact to the Group's provision related to the Samarco dam failure.
Since early CY2021, the parties have been engaging in negotiations to seek a
settlement of obligations under the Framework Agreement and BRL$155bn Federal
Public Prosecution Office claim and the negotiations are expected to resume in
February 2024.

As disclosed in BHP's 2023 Annual Report, the Group's provision related to the
Samarco dam failure is US$3.7 billion as at 30 June 2023.  Further details of
the Group's provisions and contingent liabilities related to the Fundão
tailings dam failure (including the Federal Public Prosecution Office claim)
are set out in the Group's financial statements for the year ended 30 June
2023.

BHP Brasil is fully committed to supporting the extensive ongoing remediation
and compensation efforts in Brazil through the Fundação Renova, which is a
not-for-profit, private foundation that was established following the Fundão
tailings dam failure to implement 42 remediation and compensatory programs in
Brazil.

Authorised for release by Stefanie Wilkinson, Group Company Secretary.

 Contacts
 Media                                        Investor Relations

 media.relations@bhp.com                      investor.relations@bhp.com
 Australia and Asia                           Australia and Asia

 Gabrielle Notley                             John-Paul Santamaria

 +61 411 071 715                               +61 499 006 018
 Europe, Middle East and Africa               Europe, Middle East and Africa

 Neil Burrows                                 James Bell

 +44 7786 661 683                             +44 7961 636 432
 Americas                                     Americas

 Renata Fernandaz                             Monica Nettleton

 +56 9 8229 5357                              +1 (416) 518-6293
 BHP Group Limited

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