Nineteen additional Brazilian cities, including the municipality at the center of the 2015 Mariana dam collapse, have joined a multi-billion dollar compensation agreement with mining companies BHP, Vale, and Samarco. A Brazilian court announced the development on Thursday, bringing the total number of participating municipalities to 45 out of 49 eligible entities. The agreement stems from the failure of a dam at an iron ore mine owned by Samarco, a joint venture between BHP and Vale, which resulted in 19 deaths and extensive environmental damage to the Doce River.
The compensation deal was originally signed and ratified in October 2024, establishing a total payment of 170 billion reais ($32.74 billion). While the settlement was intended to address one of Brazil's most severe environmental disasters, initial participation was slow. As of March 2025, only 26 cities had signed on. According to reports, some local governments initially resisted the deal, arguing that the 170 billion-real figure was insufficient to cover the total scale of the damage.
Participation was also affected by ongoing parallel litigation in London. In November, the High Court in London ruled that BHP was responsible for the collapse under Brazilian law. That lawsuit involves various individuals and companies seeking reparations that could potentially exceed the amounts offered in the domestic Brazilian settlement. Mariana Mayor Juliano Duarte stated during a press conference that while the city government has now joined the domestic deal, it would continue to support local entities still involved in the UK legal action.
The decision by these municipalities to join the domestic settlement provides a degree of financial certainty for Samarco and its parent companies, Vale and BHP, as they attempt to resolve legal liabilities following the decade-old disaster. However, the legal environment remains complex because the domestic agreement does not halt the international litigation. A trial to determine specific damages in the London High Court case is currently scheduled to begin in April 2027, maintaining a second potential track for compensation for those who have not waived their rights through the Brazilian deal.
Four municipalities—Ouro Preto, Governador Valadares, and Resplendor in Minas Gerais, along with Colatina in Espirito Santo—have not yet joined the agreement. The Brazilian court stated on Thursday that it remains open to receiving future signatures from these remaining cities. The final resolution of these claims will determine the total domestic payout and the extent to which the mining companies can move past the legal uncertainties surrounding the 2015 event. moves past these uncertainties. Individuals and businesses in the region will continue to monitor both the distribution of the 170 billion reais and the outcome of the 2027 London trial.