Shares in BHP Group Limited (ASX:BHP) experienced a dip of 1.6 per cent in morning trade following a UK High Court ruling that found the company liable for the 2015 Samarco Fundão dam collapse. BHP is a leading global resources company, extracting and processing minerals, oil, and gas. The company operates across various countries, supplying commodities to global markets.
RBC Capital Markets analyst Kaan Peker has downplayed the immediate financial implications of the ruling, characterising it as largely symbolic at this stage. Peker anticipates that headline risk is likely to be the primary driver of media coverage. He also noted that the ruling does not necessarily translate into immediate financial repercussions for BHP.
BHP has already provisioned US$5.5 billion under the 2024 Brazil Agreement. Any further cash outflow resulting from the UK ruling is deferred until 2029 or later. The court has also stipulated that the 240,000 claimants previously compensated are excluded from making new claims, which limits incremental exposure. The Stage 2 and 3 trials, which will determine causation and damages, are scheduled for 2026-27 and post-2028, respectively.
BHP has indicated its intention to appeal the UK High Court’s decision. The company maintains its position that the UK action duplicates obligations that are already addressed under the Brazil settlement. Peker maintains that while the ruling confirms liability, the core financial impact is managed and extended over a long timeframe.
