Forty-five Brazilian municipalities join dam payout scheme

A Brazilian reparations framework for the 2015 Mariana dam collapse, led by Samarco with BHP and Vale, has continued to attract municipalities, bringing the total to 45 of 49 eligible cities as 19 more joined the Brazilian scheme. The agreements, initially ratified in 2024, contemplate 170 billion reais in reparations over 20 years, with a portion earmarked for municipalities, while skeptics say the amount may not fully compensate for the disaster’s damages. The shift toward domestic compensation is viewed as strengthening local governance and providing a clearer path to funds, while also reducing the incentives for London-based litigation that has sought broader damages. London’s High Court recently held BHP liable under Brazilian law for the collapse, prompting ongoing English litigation for further damages, though participation in the Brazilian scheme requires withdrawal from the English class action for municipalities that join. Brazilian authorities characterized the new adoptions as a significant step toward reparation and sovereignty of the judiciary, with substantial support from local governments including Mariana itself. Overall, the developments reflect a dual track of arbitration: continued London claims for those not joining Brazil’s scheme, and a growing, self-contained Brazilian restitution program for those who choose to participate.