Law firm to drop London lawsuit against Brazil mining group over dam disaster

Law firm Pogust Goodhead will have to reimburse 811,000 pounds ($1.1 million) to Brazilian mining lobby group Ibram after it decided to drop a London lawsuit against the group over a 2015 dam disaster, Ibram told Reuters on Thursday.

The amount is related to the costs faced by Ibram as part of the lawsuit filed by 25 Brazilian cities represented by PG over the collapse of a dam owned by Samarco, a joint venture between Vale and BHP, which killed 19 people and polluted a major river.

On Friday, a London court is expected to announce its decision on BHP’s liability in the case.

The lawsuit was filed by cities and individuals impacted by the collapse who did not want to join the 170 billion real ($31.5 billion) compensation agreement the firms reached with Brazilian authorities last year.

The law firm did not respond immediately to a request for comment.

Ibram has accused the cities of violating Brazil’s constitution by filing lawsuits abroad to obtain compensation for the dam collapse, taking the dispute to the Brazilian Supreme Court.

In August, a Supreme Court justice determined that foreign legal decisions and laws must go through the country’s justice system to take effect domestically.

“It is essential that Brazil protects its sovereignty over mineral resources. Ibram’s actions have always sought to ensure that public policies and judicial decisions respect this right,” Ibram president Raul Jungmann said in a statement.

($1 = 0.7451 pounds)

($1 = 5.4039 reais)

(By Marta Nogueira and Fernando Cardoso; Editing by Leslie Adler and Stephen Coates)