
Remediation and compensation in Brazil
The Fundão dam failure at Samarco was a tragedy that should never have happened.
Since 2015, BHP Brasil, Vale and Samarco have provided US$13.4 billion for reparation and compensation to affected people and to Public Authorities in Brazil. In total, compensation and financial aid has been paid to more than 610,000 people who have received approximately US$6.3 billion. This includes approximately 240,000 claimants in the UK group action who have been compensated in Brazil and signed releases for related claims. Additionally, remediation of the environment affected by the dam failure is substantially complete and resettlement of the communities of Novo Bento Rodrigues and Paracatu is 98% complete.
Samarco, BHP Brasil and Vale continue to implement the agreement reached with the Brazilian public authorities and public defenders in October 2024 which provides R$170 billion (US$32 billion) for reparation of the impacts of the dam failure, including water sanitation, the public health system, economic recovery, local infrastructure, collective damages for affected Indigenous and Traditional Communities and Brazilian Municipalities and income support for the most vulnerable people in the affected regions.
BHP remains confident that the Brazil Agreement agreed with local Brazilian authorities provides the quickest and most effective mechanisms to compensate those impacted by the Samarco dam failure.
Provision for the Fundão dam failure
At 30 June 2025, the UK group action was disclosed as a contingent liability, as the Group’s liability was yet to be established. As a result of the decision, BHP will update its existing provision to reflect this claim.
At 30 June 2025, BHP had recognised a provision in respect of its obligations under the agreement reached with Public Authorities in Brazil of US$5.8 billion. BHP now estimates an aggregate provision of US$5.5 billion at 31 October 2025. This reflects approximately US$1B spent from 1 July 2025 to 31 October 2025 on implementing the Brazil Agreement, an updated assessment of Brazil Agreement obligations, an assessment of the impact of the decision in the UK group action, and the unwind of discounting and impact of foreign exchange movements.
While the provision has been measured based on the latest information available, changes in facts and circumstances are likely in the future and may lead to material revisions to the provision. There is a risk that outcomes may be materially higher or lower than amounts currently reflected in the provision.
Expected cash outflows relating to Samarco remain largely aligned with the US$2.2 billion for FY2026 and US$0.5 billion for FY2027, included in BHP’s FY2025 results announcement. Approximately US$1 billion has been spent to date in FY2026.
As previously announced, BHP, BHP Brasil and Vale entered into an agreement in July 2024 where BHP and Vale agreed to each pay 50% of any amounts payable to the claimants in the UK group action and the separate Dutch group action.
Authorised for release by Stefanie Wilkinson, Group Company Secretary.
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