REG - BHP Group Limited - Update - United Kingdom Group Action

BHPAnnouncement

14/11/2025 09:45

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RNS Number : 6048H  BHP Group Limited  14 November 2025

 

BHP Group Limited

Exchange release
 

14 November 2025

Update - United Kingdom group action

BHP confirms that the English High Court has found BHP liable under Brazilian
law for the 2015 Fundão dam failure. Any assessment of damages will be
determined in future second and third stage trials expected to complete in
2028 or 2029.

BHP intends to appeal the decision and will continue to defend the UK group
action.

BHP has supported extensive remediation and compensation efforts in Brazil
since 2015. In October 2024, BHP Billiton Brasil Ltda (BHP Brasil) (a
subsidiary of BHP Group Limited), Vale S.A. (Vale) and Samarco Mineração
S.A. (Samarco) entered into a US$32 billion comprehensive agreement with
Brazil public authorities and public defenders for a full and final settlement
of key claims in Brazil in relation to the dam failure (Brazil Agreement).

More than 610,000 people have already been compensated in Brazil, including
approximately 240,000 claimants from the UK group action who have provided
releases for related claims. The English High Court decision upholds the
validity of these releases which should reduce the size and value of the
claims in the UK group action.

BHP believes the UK group action is duplicative of remediation and
compensation that has already occurred in Brazil or which is available under
the Brazil Agreement.

Expected cash outflows relating to Samarco remain largely aligned with the
US$2.2 billion for FY2026 and US$0.5 billion for FY2027 included in BHP's
FY2025 results announcement. Approximately US$1 billion has been spent to date
in FY2026.

The Fundão dam failure and UK group action

The Fundão dam was owned and operated by Samarco, a non-operated joint
venture between BHP Brasil (a subsidiary of BHP Group Limited) and Vale. Each
of BHP Brasil and Vale holds 50 per cent of Samarco. As stated in BHP's 2025
Annual Report, these proceedings have been brought against BHP Group Limited
(the parent company of BHP Brasil) (BHP), and BHP Group (UK) Limited (the
former dual listed UK entity) in the English High Court by over 600,000
claimants seeking damages in relation to the Fundão dam failure in 2015.

The decision and next steps

The decision by the English High Court follows a five-month first stage trial
of the UK group action.

The English High Court has found that BHP is liable on the basis that it is a
'polluter' under Brazilian environmental law and at fault under the Brazilian
civil code. The English High Court rejected the argument that BHP is liable
under Brazilian corporate law. The decision relates to events that occurred in
the period before November 2015.

The English High Court also found that the waivers and releases signed by
claimants who have already received compensation in Brazil are valid. This
should reduce the size and value of the claims in the UK group action.

Subject to BHP's appeal, a second stage trial will decide whether losses
claimed by the claimants were caused by the dam failure. This trial is
currently scheduled for October 2026 to March 2027. Following any decision and
appeals in that trial, a stage 3 trial may also be required, where each
remaining claimant would need to prove their individual damages before BHP is
required to make any payments to them. This third trial is unlikely to occur
before 2028.

Remediation and compensation in Brazil

The Fundão dam failure at Samarco was a tragedy that should never have
happened.

Since 2015, BHP Brasil, Vale and Samarco have provided US$13.4 billion for
reparation and compensation to affected people and to Public Authorities in
Brazil. In total, compensation and financial aid has been paid to more than
610,000 people who have received approximately US$6.3 billion. This includes
approximately 240,000 claimants in the UK group action who have been
compensated in Brazil and signed releases for related claims. Additionally,
remediation of the environment affected by the dam failure is substantially
complete and resettlement of the communities of Novo Bento Rodrigues and
Paracatu is 98% complete.

Samarco, BHP Brasil and Vale continue to implement the agreement reached with
the Brazilian public authorities and public defenders in October 2024 which
provides R$170 billion (US$32 billion) for reparation of the impacts of the
dam failure, including water sanitation, the public health system, economic
recovery, local infrastructure, collective damages for affected Indigenous and
Traditional Communities and Brazilian Municipalities and income support for
the most vulnerable people in the affected regions.

BHP remains confident that the Brazil Agreement agreed with local Brazilian
authorities provides the quickest and most effective mechanisms to compensate
those impacted by the Samarco dam failure.

Provision for the Fundão dam failure

At 30 June 2025, the UK group action was disclosed as a contingent liability,
as the Group's liability was yet to be established. As a result of the
decision, BHP will update its existing provision to reflect this claim.

At 30 June 2025, BHP had recognised a provision in respect of its obligations
under the agreement reached with Public Authorities in Brazil of US$5.8
billion. BHP now estimates an aggregate provision of US$5.5 billion at 31
October 2025. This reflects approximately US$1B spent from 1 July 2025 to 31
October 2025 on implementing the Brazil Agreement, an updated assessment of
Brazil Agreement obligations, an assessment of the impact of the decision in
the UK group action, and the unwind of discounting and impact of foreign
exchange movements.

While the provision has been measured based on the latest information
available, changes in facts and circumstances are likely in the future and may
lead to material revisions to the provision. There is a risk that outcomes may
be materially higher or lower than amounts currently reflected in the
provision.

Expected cash outflows relating to Samarco remain largely aligned with the
US$2.2 billion for FY2026 and US$0.5 billion for FY2027, included in BHP's
FY2025 results announcement. Approximately US$1 billion has been spent to date
in FY2026.

As previously announced, BHP, BHP Brasil and Vale entered into an agreement in
July 2024 where BHP and Vale agreed to each pay 50% of any amounts payable to
the claimants in the UK group action and the separate Dutch group action.

 

Authorised for release by Stefanie Wilkinson, Group Company Secretary.

 

 

 Contacts
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 Gabrielle Notley                             John-Paul Santamaria

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 Europe, Middle East and Africa               Europe, Middle East and Africa

 Amanda Saunders                              James Bell

 +44 7887 468 926                             +44 7961 636 432
 North America                                Americas

 Megan Hjulfors                               James Bell

 +1 403 605 2314                              +44 7961 636 432

 Latin America

 Renata Fernandez

 +56 9 8229 5357

 BHP Group Limited

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 Registered in Australia

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 Victoria 3000 Australia

 Tel: +61 1300 55 4757 Fax: +61 3 9609 3015

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