ASX-listed BHP Group Limited (AU:BHP) today faces its first hearing at the London High Court, UK, of the multi-billion dollar legal battle over the Mariana dam collapse tragedy in Brazil. The tragedy, which happened in 2015, was marked as one of Brazil’s worst environmental disasters. BHP shares gained 1.38% in today’s trading session.
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BHP is a global mining company with a diverse portfolio of commodities such as iron ore, coal, copper, nickel, etc.
BHP Contends with Landmark Lawsuit
In this landmark lawsuit, BHP will contend against claims from about 620,000 people affected in the accident. This includes over 600,000 Brazilians, 46 local governments, and 2,000 businesses.
In 2015, BHP’s dam containing waste material collapsed at an iron ore mine near Mariana. This released a deadly toxic sludge that claimed 19 lives, resulting in a long-awaited trial for compensation for the company. BHP operated the dam with Brazil-based mining company Vale SA (VALE) through their joint venture, Samarco.
The claimants are looking at a settlement proposal worth around $31.7 billion, divided equally among both parties. Meanwhile, BHP stated that it has already disbursed around $8 billion to those impacted by the disaster.
BHP is arguing that it is not responsible for the incident and stated that the London lawsuit is unnecessary because there are already legal actions and repair efforts happening in Brazil. Additionally, the Financial Times reported that BHP and Vale have revised their settlement proposal in Brazil to $23.8 billion, up from about $18 billion offered in April.
The London High Court hearing is expected to last up to 12 weeks.
Are BHP Shares a Good Buy?
According to TipRanks’ consensus, BHP stock has been assigned a Moderate Buy rating, backed by seven Buy and nine Hold recommendations. The BHP share price target is AU$43.77, which is 2.61% above the current trading price.
Year-to-date, BHP stock has lost 15.63% in trading.
