In November 2015, Brazil had perhaps its worst-ever environmental disaster – from the collapse of a dam, holding back waste water, at the Samarco iron ore mine, which is owned by BHP Billiton
(ASX:BHP) and Vale SA. This incident resulted in a major river being polluted, the death of 19 people and hundreds of people being left homeless.
The companies responsible for this spill have commissioned an investigation, and the report has just been released. The investigation found that there was a change in the dam's design in 2011 and 2012. This resulted in less efficient drainage and the soil in the dam’s wall weakening and becoming structurally deficient.
The report also noted that a small earthquake earlier that day may have "accelerated" the failure of the dam.
Litigation by the Brazilian government, seeking compensation against BHP and Vale, remains pending.
BHP reported a net loss of $8.36 billion at 30 June 2016.
