REG - BHP Group Limited - Update – United Kingdom group action

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12/07/2024 12:15

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RNS Number : 2616W  BHP Group Limited  12 July 2024

BHP Group Limited
Exchange release

12 July 2024

 

Update - United Kingdom group action

BHP announces that it has entered into an agreement with Vale S.A (Vale) in
relation to group action proceedings in the United Kingdom in respect of the
Fundão Dam failure in Brazil.

The Fundão Dam was owned and operated by Samarco, a non-operated joint
venture between BHP Billiton Brasil Ltda (BHP Brasil) (a subsidiary of BHP
Group Limited) and Vale. Each of BHP Brasil and Vale holds 50 per cent of
Samarco.

BHP Group Limited and BHP Group (UK) Limited (BHP) are defendants to a group
action claim in the English High Court, brought by over 600,000 claimants
seeking damages in relation to the Fundão Dam failure in 2015 (the English
Proceedings). BHP does not consider that it is liable to the claimants in the
English Proceedings and will continue to defend the English Proceedings. BHP
believes the English Proceedings are unnecessary because they duplicate
matters already covered by the existing and ongoing work of the Renova
Foundation and legal proceedings in Brazil.

In March 2024 a new claim was filed against Vale and the Dutch subsidiary of
Samarco in the Netherlands on behalf of approximately 78,000 Brazilian
claimants for compensation relating to the Fundão Dam failure (the
Netherlands Proceedings).  BHP is not a defendant in the Netherlands
proceedings.

BHP, BHP Brasil and Vale have entered into an agreement for BHP and Vale to
each pay 50% of any amounts potentially payable to the claimants in the
English Proceedings, the Netherlands Proceedings and other proceedings in
Brazil covered by the agreement without any admission of liability for these
proceedings. The agreement reinforces the terms of the Framework Agreement
entered into in 2016 which require BHP Brasil and Vale to each contribute 50%
to the funding of the Renova Foundation for compensation of persons impacted
by the Fundão Dam failure where Samarco is unable to contribute that
funding.

BHP brought a contribution claim against Vale in December 2022 because the
English Proceedings were not brought against Vale. The contribution claim
contends that if BHP's defences are not successful and it is ordered to pay
damages to the claimants in the English Proceedings, Vale should contribute to
any amount payable. BHP will withdraw the contribution claim against Vale as
it is no longer necessary given the agreement with Vale.

BHP Brasil remains committed to continue supporting the local remediation
efforts in Brazil through the Renova Foundation. Those efforts have already
provided approximately US$3.5 billion in compensation and direct financial aid
in relation to the dam failure to approximately 430,000 people to 31 May 2024.

 

 

 

Authorised for release by Stefanie Wilkinson, Group General Counsel and Group
Company Secretary

 

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 Neil Burrows                                 James Bell

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 Americas                                     Americas

 Renata Fernandaz                             Monica Nettleton

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