The BHP Group Ltd (ASX: BHP) share price is sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $42.75. In morning trade on Monday, shares are changing hands for $42.05 apiece, down 1.6%.
For some context, the ASX 200 is down 0.4% at this same time.
This underperformance follows the English High Court's decision on Friday (after market close Aussie time) that BHP is liable under Brazilian law for the 2015 Fundao dam collapse.
"The risk of collapse of the dam was foreseeable," the judge noted in handing down the decision.
The class action suit has been undertaken by more than 600,000 claimants seeking damages in relation to the dam failure.
Friday's decision, which looks to be hampering the BHP share price today, follows a five-month first stage trial.
The ASX 200 miner noted that any assessment of damages in the decision will be determined in upcoming second and third stage trials. These are expected to complete in 2028 or 2029.
Here's what's happening.
Image source: Getty Images
BHP share price slips amid court ruling
As you likely recall, the Fundao Dam in Brazil was owned and operated by Samarco, a 50/50 joint venture between BHP Brazil and Vale.
In November 2015, disaster struck when the tailings dam collapsed. The resulting flood and mudslides caused the deaths of 19 people and vast environmental damage.
And, much less importantly, it also saw the BHP share price come under pressure at the time.
Over the weekend, BHP reiterated the extensive remediation and recompensation efforts it has already taken over the dam failure.
"The Fundao dam failure at Samarco was a tragedy that should never have happened," management said.
According to BHP:
BHP has supported extensive remediation and compensation efforts in Brazil since 2015. In October 2024, BHP Billiton Brasil Ltda, Vale S.A. and Samarco Mineracao S.A. entered into a US$32 billion comprehensive agreement with Brazil public authorities and public defenders for a full and final settlement of key claims in Brazil in relation to the dam failure (Brazil Agreement).
More than 610,000 people have already been compensated in Brazil, including approximately 240,000 claimants from the UK group action who have provided releases for related claims. The English High Court decision upholds the validity of these releases which should reduce the size and value of the claims in the UK group action.
The English High Court found that BHP is liable on the basis that the miner is a 'polluter' under Brazilian environmental law, and thus at fault under the Brazilian civil code. The court rejected the argument that BHP is liable under Brazilian corporate law.
BHP stressed that it will appeal the decision.
The miner also confirmed that the expected cash outflows relating to Samarco remain largely aligned with the US$2.2 billion for FY 2026 and US$500 million for FY 2027 it previously flagged. BHP has spent around US$1 billion so far in FY 2026.
With today's intraday retrace factored in, the BHP share price remains up 5.2% in 2025.
