BHP Billiton investors sue in U.S. over Brazil dam disaster

Jonathan Stempel – Reuters, 02/25/2016

BHP Billiton Ltd was sued in the United States by investors who accused the Anglo-Australian mining company of fraudulently overstating its ability to manage safety risks prior to November’s fatal dam burst at a Brazilian mine it co-owned and operated.

In a complaint filed on Wednesday in the U.S. District Court in Manhattan, investors led by the Jackson County Employees’ Retirement System in Michigan said BHP inflated the price of its American depositary receipts by ignoring safety risks and overstating its commitment to safety before the disaster.

Four BHP officials were also sued, including Chief ExecutiveAndrew Mackenzie and Chairman Jac Nasser.

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Brazil Alleges Environmental Crimes in Response to Fundão Dam Collapse

Paul Kiernan – The Wall Street Journal, 01/14/2016

Brazil’s Federal Police have accused seven people and three companies, including mining giant Vale SA and its joint-venture Samarco Mineração SA, of environmental crimes in response to a major dam collapse in November.

The move, which has no exact equivalent in the U.S. legal system, will trigger the beginning of a deeper investigation by police. It typically represents a step toward formal charges, which in Brazil can only be filed by prosecutors, often after police have presented their findings.

The accusations mark the latest response by Brazilian authorities to what some have called the country’s worst-ever environmental disaster. On Nov. 5, Samarco’s Fundão tailings dam suddenly collapsed, releasing a flood of sludge that buried rural villages, killed 19 people and polluted more than 400 miles of the Rio Doce basin.

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As Brazil Mine Spill Reaches Ocean, its Catastrophic Extent Becomes Clear

Vincent Bevins – Los Angeles Times, 12/20/2015

Since millions of gallons of mining waste burst from an inland iron ore mine a month ago, 300 miles of the Rio Doce stretching to the Atlantic Ocean has turned a Martian shade of bright orange, and the deadly consequences for residents and wildlife are just beginning to emerge.

At least 13 people died in the initial flooding, and many in communities along the river have suffered from diarrhea and vomiting as the toxic mud seeped into their water supply.

Eleven of the 90 native fish species in the river were already at risk of extinction prior to the spill, according to federal environmental officials, and experts believe that wide-ranging forms of animal and plant life will be wiped out as entire ecosystems are destroyed.

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