BHP Group Ltd confirmed on Friday it had not received an order from a Brazilian court to pay billion of dollars in ‘moral damages’ following the 2015 Fundao dam disaster.

The tailings dam was operated by Samarco Mineracao SA, a 50-50 joint venture of BHP and Brazilian iron ore miner Vale SA.

The Melbourne-based miner noted media reports that the Federal Court of Brazil had ordered BHP and its partners to pay $9.7 billion in ‘collective moral damages’ arising from the Fundao trailings dam failure.

This come after an interlocutory motion was filed by the Brazilian prosecutors seeking the early payment of collective moral damages, which is one of the categories of damages sought in the R$155 billion, or around $43 billion at the time, claim, BHP said.

In May 2016, Brazil’s Federal Public Prosecution Office sued Samarco Mineracao, Vale and BHP, seeking R$155 billion, or around $43 billion at the time, for reparation, compensation and collective moral damages arising from the Fundao tailings dam disaster in November 2015.

BHP said on Friday the court in Brasil had not served it with the reported judgement, and will review the decision to assess its implications, the potential for an appeal and any potential impact on its provision related to the Samarco dam failure.

BHP has made dam-related provisions of $3.7 billion to cover claims.

Since early 2021, the parties have been engaging in negotiations to seek a settlement of obligations, BHP said, noting that talks are expected to resume next month.

Shares in BHP were down 1.0% at R 577.13 each in Johannesburg on Friday morning, and they lost 0.8% at 2,493.47 pence in London.

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