BHP Faces A US$5 Billion Lawsuit Over Samarco Dam Failure

  • May 08, 2019 AEST
  • Team Kalkine
BHP Faces A US$5 Billion Lawsuit Over Samarco Dam Failure

BHP Billiton (ASX: BHP) or the BHP group, one of the world’s largest iron ore producer, jolted over a $5 billion lawsuit in England filed against the company by a Law Firm- SPG Law, concerning the Samarco dam failure in Brazil. The company is now facing a US$5 billion claim for the damages caused by the dam failure, and SPG law is representing claims of 235,000 Brazilian individuals and organizations.

Samarco was a joint venture between the world’s top significant iron ore miners, i.e., Vale and BHP, which constructed the Fundao tailings dam in 2015, the dam collapse killed around 19 people and left a trail of destruction for hundreds of kilometres in the states of Minas Gerais and Espirito Santo.

The Samarco venture, which was once the world’s second-largest iron-ore pellet operations, between the two behemoth iron ore producers, was closed after the incident. Now, the law firm has filed a case against BHP and mentioned that despite repeated warnings from independent experts and safety advisers regarding recommended safety improvements, the company failed to act upon it. As a result of such negligence, Brazil marked the worst ever environmental disaster.

SPG mentioned that the concern of decline in revenue driven by the fall in the market price of iron ore led the company to take a risk. The company ramped up the production, which in turn, led the company to turn a blind eye to dangers that ultimately claimed 19 lives and ruined communities.

BHP in its defence released an announcement and mentioned that the company is in the knowhow of the media reports related to the Samarco dam failure on 5th November 2015. Furthermore, in the same announcement made public by the company today, BHP mentioned that the group had been served with the legal proceedings filed against the company in the court of Liverpool, and the company intends to defend the claim.

The company recently released its quarterly update.

The shares of the company plunged on the Australian Stock Exchange over the news. The shares started the day’s session at A$37.130, down by approx. 0.35%, the prices soon plunged to make a low of A$36.770 (as on 8th May 2019, AEST: 01:07 PM), down by almost 1.43%.

The share of the company is currently trading around A$36.920 (as on 8th May 2019, AEST: 02:01 PM), down by around 1.019%, as compared to its previous close.

Stock Price Performance Metrics:

The share of the company returned a rate of 15.51% on YTD basis (as on 7th May Closing). The yearly rate of return on the shares of the company stands at 21.76%. The previous month upside in the iron ore prices boosted the share prices of the company, and the 6-month rate of return stands at 16.51%.

However, the recent drop in the value of the shares led the company to deliver a rate of return of -6.49% on a monthly basis and a return of -0.48% over the last five days.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK