[6-K] BHP Group Ltd Current Report (Foreign Issuer)
Rhea-AI Filing Summary
BHP Group Limited reported that the English High Court has found BHP liable under Brazilian law for the 2015 Fundão dam failure, following a five‑month first stage trial. BHP intends to appeal. The court also upheld waivers and releases signed by claimants compensated in Brazil, which should reduce the size and value of the UK group action claims.
BHP highlighted ongoing remediation in Brazil and the October 2024 Brazil Agreement providing R$170 billion (US$32 billion) for reparation. More than 610,000 people have received compensation totaling approximately US$6.3 billion, including about 240,000 claimants from the UK action who signed releases. BHP now estimates an aggregate provision of US$5.5 billion at 31 October 2025, versus US$5.8 billion at 30 June 2025, reflecting spend and updated assessments.
Expected cash outflows relating to Samarco remain largely aligned with US$2.2 billion for FY2026 and US$0.5 billion for FY2027; approximately US$1 billion has been spent to date in FY2026. A second stage trial on causation is scheduled for October 2026 to March 2027, with any third stage on individual damages unlikely before 2028.
Positive
- None.
Negative
- English High Court found BHP liable under Brazilian law for the 2015 Fundão dam failure
- Extended litigation timeline with second stage trial in Oct 2026–Mar 2027 and potential third stage unlikely before 2028
Insights
UK court finds liability; provision updated; long timeline ahead.
The English High Court found BHP liable under Brazilian law in the first stage of the UK group action regarding the 2015 Fundão dam failure. The court also upheld waivers/releases for claimants already compensated in Brazil, which should reduce the size and value of claims. BHP intends to appeal.
BHP estimates an aggregate provision of
The process continues: a second stage causation trial is scheduled for