Mariana Dam Disaster

Jim Shannon Excerpts

Thursday 22nd June 2023 Westminster Hall

[Mrs Pauline Latham (in the Chair)]

Before I call the hon. Member for Strangford (Jim Shannon) to open the debate, I wish to make a short statement about the sub judice resolution. I have been informed that there is a group action in the High Court relating to the Mariana dam incident, so I remind hon. Members that they must not refer to any specific cases currently before the courts and that they should exercise caution with respect to any specific cases that might subsequently come before the courts in order not to prejudice these proceedings.

[Jim Shannon (Strangford) (DUP)]

I beg to move,

That this House has considered the Mariana dam disaster.

I spoke to the Clerks beforehand and I understand the issue very well. I will not refer to specific cases and I am sure that others will not either.

I thank the Backbench Business Committee for granting today’s debate and say that it is a pleasure to serve under your chairship, Mrs Latham. I am grateful to have the opportunity to lead this debate and to raise my concerns about the ongoing situation in the Brazilian state of Minas Gerais. It is deeply concerning and requires urgent attention by the United Kingdom Government and the wider international community.

The debate is about how British companies conduct themselves around the world and whether they should implement the high environmental and safety standards overseas that we expect of them at home. It is also about how we hold companies headquartered in London to account when they do not live up to the standards that they claim to uphold, as well as accountability and the process in relation to a disaster that happened many years ago, and how we can help the people who are still seeking justice.

I am pleased to see the Minister in his place. I understand that today’s matter is not in his portfolio and that he is filling in because the relevant Minister is overseas, but it is always a pleasure to see him. I know that he, his Department and the officials who are here will carry back the questions that we ask. I am sure that all those who participate will have their questions answered directly by the relevant Minister on his return. Even though this issue is not in this Minister’s portfolio, I know that he shares my passion for doing the right thing by our neighbours and using resources in the best way.

I want to bring to the House’s attention the 2015 collapse of the Fundão tailings dam at the Samarco Mariana mine complex in the state of Minas Gerais, which killed 19 people and released 40 million cubic metres of tailings that polluted waterways, spanning an area the length of Portugal—more than 600 km. That puts it into perspective when we think of the distance of the impact and the people affected. It is more than the distance between where we are sitting in Westminster Hall and my Strangford constituency, and my journey from Belfast City airport to Heathrow on Monday and returning tonight. I travel on that plane at massive speed and the flight takes an hour, from Northern Ireland across the south-east of England.

The Mariana dam disaster was the biggest environmental disaster ever inflicted on the people of Brazil. One company, BHP, was headquartered in London at the time and played a key role in the dam disaster.

I thank the Library for its information—I realise that it is not always easy to prepare for these debates—and I wish to quantify the serious ecological damage that the disaster produced. There were mass die-offs among fish: once the mud reached the open ocean, a total of some 29,000 fish carcases were collected and recorded by the federal police. The death of the fish also resulted in hundreds of birds dying from starvation, and probably also from eating infected fish. A Wilson Centre article explains that, in addition to the loss of native fauna,

“80 percent of the native vegetation located near the tributaries and main channel of the Doce River was destroyed, leaving the river with only 13 percent of the Atlantic forest’s original vegetation.”

Reuters reported in November 2021 that a study undertaken by a company contacted by the Brazilian prosecutor to measure the cost of the disaster estimated the “socio-environmental” damage to be between US$6.73 billion—or 37.6 billion reais—and US$10.85 billion. That gives some idea of the impact and shows that it affected not only people’s lives and jobs, but the environment.

The disaster severely affected the indigenous communities, including the Krenak, by irreparably damaging their river source—the communities’ lifeblood—the Rio Doce. Like others, I had the privilege of meeting victims from the Krenak indigenous community earlier this year in Parliament. With the help of global law firm Pogust Goodhead, they are bringing a case against BHP in London, alongside more than 700,000 victims affected by the Mariana dam disaster. The claimants include individuals, Brazilian municipalities and local churches, all of whom suffered loss as a result. Those human beings lost all they own, their schools, their education, where they worship and their normal lives. The disaster has changed their lives forever.

Right hon. and hon. Members may ask why this disaster should be debated in this House. It is for a simple reason: this is an important step in bringing real justice for the victims of the Mariana dam disaster, and it will create a precedent for victims abroad to initiate claims against UK-based parent companies for environmental damage and human rights abuses before English courts. That would make the companies accountable and responsible, and that is the way it should be.

The tailings dam that collapsed was owned and operated by Samarco, a Brazilian company jointly owned by Vale and the Anglo-Australian mining company, BHP. At the time of the accident, BHP was dual-listed in London and Sydney—a fact that allowed the victims the necessary legal standing to begin proceedings here in London. After all those years, it is only right that the matter should be spoken about.

Moreover, as representatives of the Krenak community told me, this case is not just about BHP and the disaster; it is a more general story. For too long, some multinational corporations based in the UK, the EU and the US have damaged the environment and communities in other parts of the world without providing full compensation. I cannot help but feel that if British or Australian communities had been impacted by such a disaster, they would not have been treated in the same way. Indeed, it would have been sorted a long time ago.

[Mrs Pauline Latham (in the Chair)]

Order. We have to be very careful about taking about specific cases. They are going to the courts, or are in the courts, and therefore we must not talk about them.

[Jim Shannon]

I believe it is important not just to highlight the legal case but to fully recognise the victims. Nineteen people lost their lives, and as I said to the officials before the debate, I want to read out their names to honour the victims of the Mariana dam disaster. You will have to forgive me, Mrs Latham, because my Ulster Scots accent means that the pronunciation may be a challenge for me, but it is only right to do this. I will just mention their first and last names; the names in between are a challenge, and I want to be respectful. I hope hon. Members see past my stumbling and hear what is meant to be heard. These are people whose families are grieving at this very moment in Brazil.

The names are: Cláudio Fiúza, 40 years old; Sileno de Lima, 47 years old; Waldemir Leandro, 48 years old; Emanuely Vitória, five years old; Thiago Santos, seven years old; Marcos Xavier, 32 years old; Marcos Moura, 34 years old; Samuel Albino, 34 years old; Mateus Fernandes, 29 years old; Edinaldo de Assis; Daniel Carvalho, 53 years old; Maria Lucas, 60 years old; Maria Celestino, 64 years old; Claudemir Santos, 40 years old; Pedro Lopes, 56 years old; Antônio de Souza, 73 years old; Vando dos Santos, 37 years old; Ailton dos Santos, 55 years old; and Edmirson Pessoa, 48 years old.

I thank the Backbench Business Committee for granting this debate and for speaking to those who petitioned us earlier this year. I thank Members for listening and recognising those names for the record. For the people of Brazil and around the world, such disasters must never be forgotten, lest we are doomed to repeat the mistakes of the past.

The people of Brazil believe that the disaster could have been avoided. The London Mining Network’s 2017 report, “The River is Dead”, states:

“Since the beginning of the operation, in 2008, the Fundão Dam had presented several anomalies related to drainage defects, upwelling, mud and water management errors and saturation of sandy material. In some cases, emergency measures had been required.”

But the project continued and production levels were kept high until the disaster.

This lawsuit is one of the largest of its kind in terms of the damages to the victims in Brazil, but so far, only £2.8 billion has been ringfenced to cover the liability for the disaster. In the past three years, there have been a further 12 incidents at mining sites around the world involving the collapse of tailings or waste facilities. Progress has been made in setting a global industry standard for tailings management, but only a third of companies with tailings dams have committed to implementing it. This is while the industry continues to make ambitious sustainability commitments and claims over environmental, social and governance credentials.

A report by the Local Authority Pension Fund Forum, after some of its members visited Brazil, registered concern about appropriate levels of “accountability and responsibility” and “affected communities” and how the companies deal with local people, including those affected by tailings dams. The report also said:

“Nearly seven years after the dam collapse, the end of these reparations and compensation is nowhere in sight.”

I know the Minister cannot answer this directly, but I am hopeful that he will be able to help the victims and ensure that, after seven years, the issue of cost, reparations and compensation can be addressed. I am also pleased to see both shadow Ministers—the hon. Member for Falkirk (John Mc Nally) and the hon. Member for Leeds North East (Fabian Hamilton)—here and I look forward to their contributions.

Companies running large operations worldwide need to be accountable, including through subsidiaries. My first question to the Minister is this: does he agree that the handling of the Mariana dam disaster is a model for company crisis management? If the Minister cannot answer that, I am happy for him to write to me. Many of the companies refer to social value as bringing people and resources together to build a better world. The continued reluctance of some companies to provide compensation for this disaster and for other disasters across the world must be rectified. We are asking for that through this debate. This has a clear impact on the lives of those people and on the environment of the country. As I said, the impacts of the disaster travelled an area equivalent to the length of Portugal.

I believe that the UK has an important role here. It can lead the way by including stronger accountability mechanisms for UK corporations operating both domestically and internationally to help protect against human rights abuses and protect our fragile environment. We all love our environment and wish to see it retained. It is also imperative that, as the host country to large companies, investors and markets relevant to mining and metals, the United Kingdom enshrines in law the global industry standard for tailings management.

It is vital that changes are enforced to prevent such terrible disasters from happening again and causing such devastation to the world’s natural environment. The after-effects will remain for a long time; indeed, some are changed forever. Will the Government recognise that the UK has a vital role in stopping such disasters ever happening again? Will my Government and my Minister take action to crack down on British companies that fail to live up to their social and environmental credentials at home and abroad?

[Mrs Pauline Latham (in the Chair)]

I remind Members that they need to bob if they wish to be called in the debate.

--- Later in debate ---

[Jim Shannon]

I thank all right hon. and hon. Members who have made contributions. If we were to put together all our thoughts, they would be that regulation is needed across the world, not just for companies here in the United Kingdom but globally. Hon. Members referred to the need to speak up for those who have no voice, and it is important to ensure that that happens; the hon. Member for Slough (Mr Dhesi) outlined that very well. The right hon. Member for Hayes and Harlington (John McDonnell), in an intervention, said that the UK can lead; we could and we should, and we look for that to be the case. The hon. Member for Falkirk (John Mc Nally) reiterated the important issue of how we can work better together on behalf of people who have been maligned and affected by this. As always, the hon. Member for Leeds North East (Fabian Hamilton) encapsulated the issue very simply but directly. We must stand up for the indigenous people. The world must also get together, and we must work in tandem.

I thank the Minister, who was standing in but has understood what we are requesting. I have written down what we are looking for. He reminded us that this was one of the worst disasters in the world, but that others have taken place as well. He told us about the effect on livestock, animals, people, houses and the environment. He referred to how safe management must be the conclusion we wish to have, and said that there must be a new global standard across the world. He referred to a satellite system as well, which is another way of monitoring what is going on and keeping better track of it. He also reminded us, at the end, that it must never be forgotten. The reason we are here today is simply that it will not be forgotten. We have asked our Government and the Minister to take forward the issue where they can to help and assist those people—we met them in January or February this year—who sometimes think that nobody knows about them. Well, today in this House we have ensured that the world knows about them and their quest, and the role that our Government can perhaps play in that.

Question put and agreed to.

Resolved,

That this House has considered the Mariana dam disaster.