BHP Group and Vale have reportedly proposed a $1.4bn settlement to resolve a class action lawsuit in the UK concerning the failure of the Mariana dam in Brazil, which occurred in 2015, according to a report by the Financial Times.
The Samarco joint venture (JV), operated by BHP and Vale, was responsible for the dam, leading to significant legal repercussions.
The London lawsuit against BHP has seen claimants' lawyers estimate potential damages of up to £36bn ($48.2bn).
The proposed settlement includes roughly $800m allocated for victim compensation and $600m intended to cover legal expenses related to the High Court proceedings, the report said.
The offer was reportedly disclosed during a meeting in New York in June with Pogust Goodhead, the law firm representing the claimants, and their main financial supporter, US hedge fund Gramercy.
In a contrasting stance, BHP, in October of the previous year, dismissed claims that prioritising profit over safety contributed to the disaster, calling such allegations “far-fetched and unjustified”.
In a separate development, BHP and Lundin are reportedly preparing to take advantage of Argentina's new Large Investment Incentive Regime (RIGI) for their Vicuna copper project.
Launched in October, the RIGI seeks to stimulate the mining sector with tax incentives and access to international dispute resolution courts for investments exceeding $200m until July 2026, with a potential extension of one year.
Furthermore, Vale has also reported a 4% year-on-year increase in iron ore production to 83.6 million tonnes (mt) in the second quarter of 2025.
However, pellet production decreased by 12% to 7.9mt compared to the previous year, in line with the revised production guidance for 2025, given the current market conditions.
