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Iron: Social and political problems

What problems does it cause between people, and who carries them?

Two dam failures at Brazilian iron ore mines killed 289 people and led to large settlements and court cases. Iron ore miners pay most of Western Australia's royalties. Steel trade has led to tariffs, a WTO case and a dispute over the sale of US Steel.

Last updated 3 October 2026.

Conflict and disputes

War has cut supply. After Russia invaded Ukraine in 2022, Ukrainian exports of bulk iron ore by sea stopped1. Metinvest lost two steel plants in Mariupol, almost half of its steelmaking capacity2.

In April 2018 China took the US steel and aluminium duties to the WTO. China said that the duties broke WTO rules on tariffs and on safeguards3. The United States said that the duties were necessary to protect its essential security interests3. In December 2022 a WTO panel found that the duties were above the US bound tariff rates. The panel did not find that the duties were taken in a time of war or other emergency. The United States appealed in January 20233.

The Fundão failure led to court cases. In England, more than 600,000 claimants from Brazil sued BHP. In November 2025 the High Court found BHP liable, both as a polluter and for fault4. BHP said it would appeal. It said it had supported repair and compensation in Brazil, and had paid more than 610,000 people5. On 6 May 2026 the Court of Appeal refused BHP permission to appeal6. In September 2026 a Brazilian federal appeal court, the TRF6, convicted Samarco and three former managers. It found them guilty of causing a flood that led to deaths, and of environmental crimes. The appeal court reversed the acquittal by a lower court7. A further appeal is possible8.

Workers and communities

The deadliest harm from iron mining in recent years came from tailings dams in Brazil. The Fundão dam failed near Mariana on 5 November 2015. The flow killed 19 people and destroyed the village of Bento Rodrigues4. In 2024 BHP, Vale and Samarco agreed to pay R$170 billion to settle the claims of Brazilian authorities, over 20 years9.

On 25 January 2019 a Vale tailings dam at Brumadinho failed and killed 270 people10. In 2021 Vale agreed to pay R$37.7 billion to the state of Minas Gerais and prosecutors. Families of victims were not part of the talks11.

In May 2020 Rio Tinto destroyed the Juukan rock shelters in the Pilbara region of Western Australia12. The shelters held evidence of human life going back 46,000 years. Their Traditional Owners are the Puutu Kunti Kurrama and Pinikura people13. In its board review, Rio Tinto said that the company had legal approval but “fell short” of its own standards12.

Brazil banned new upstream tailings dams in 2019 and ordered the old ones taken out of use. Of 74 such dams listed in 2019, 15 had been decommissioned and removed from the national register by September 202314.

In July 2021 Brazilian labour inspectors freed 11 workers from conditions like slavery at a charcoal facility in Maranhão. In 2025 the news site Repórter Brasil linked the facility to Viena, a pig iron maker and the largest charcoal buyer in the region15. Viena said it does not deal with suppliers that break labour laws15.

Who gains and who loses

In 2024-25 iron ore miners paid A$8.6 billion in royalties to Western Australia. This was 87% of the state’s royalty receipts16. China bought 86% of the state’s iron ore exports by value16.

Brazil charges a royalty, the CFEM, of 3.5% on iron ore17. When Fundão failed, the towns along the river lost tax income and income from water and power services7.

BSG Resources (BSGR) says in an arbitration filing that Guinea took Blocks 1 to 4 from Rio Tinto in July 2008. BSGR says it got a permit for Blocks 1 and 2 in December 200818. In 2014 Guinea took the rights back. A state committee said it had evidence that they were obtained through corrupt practices1920. BSGR denies any wrongdoing. It calls the action a taking of its rights without justification2018. In 2025 a Swiss court upheld Steinmetz’s conviction for bribery. He says he is innocent21. Today Guinea holds 15% of each of the two mine companies and of the rail and port company. Rio Tinto and a Chinalco-led group own the rest of the southern mine. Winning International Group, Weiqiao Aluminium and Baowu Resources own the northern one2223.

China Mineral Resources Group (CMRG) buys for close to 80% of Chinese steel mills. It restricted purchases of some BHP ore from late 2025 until a new sales agreement in April 202624. The Australian government says that CMRG wants to change how ore is priced, to reduce costs for Chinese steel mills24.

Public debate

In Australia, people disagreed about how much of mining profits should go to the public. The Minerals Resource Rent Tax started on 1 July 2012 at an effective rate of 22.5% of mining profit25. It raised A$245 million net in 2012-13. The government elected in 2013 had promised to repeal it. It said that the tax reduced confidence in Australia as a place to invest. It also said that the tax was complex and raised too little money for its costs25. The ACTU, the national union body, and the Australia Institute opposed the repeal. They said that the public should get a fair return from mining25. The law that repealed the tax received assent in September 201426.

In the United States, two presidents decided differently on the purchase of US Steel by Nippon Steel. In January 2025 President Biden blocked it. In his order, he said that Nippon Steel might take action that threatens US national security27. Some analysts said that a rejection could harm relations with Japan and US openness to foreign investment28. In June 2025 President Trump allowed it under a national security agreement. The agreement gives the US government a “golden share”, with some rights over the company28. Labour unions asked about the 14,000 US workers the company employs28.

Sources

  1. 1

    NPR, 2022. Ukraine's iron and steel industry is in rough shape because of war .

    Ukrainian iron ore exports by sea stopped after the 2022 invasion.

    • Exports of bulk iron ore, for instance, that are shipped by the ton in massive cargo vessels have stopped entirely from Ukrainian ports
  2. 2

    Metinvest, 2025. A Steel Giant of Independence .

    Metinvest's account of its losses since 24 February 2022, including the Mariupol plants.

    • Metinvest lost control of two key enterprises Azovstal and Ilyich Steel Plant in occupied Mariupol, which together accounted for almost half of its steelmaking capacity
  3. 3

    World Trade Organization, 2023. DS544: United States — Certain Measures on Steel and Aluminium Products , Summary of the dispute to date.

    China's complaint against the US steel and aluminium tariffs, the panel findings and the US appeal.

    • On 5 April 2018, China requested consultations with the United States concerning certain duties that the United States had imposed on imports of steel and aluminium products. China claimed that the measures appear to be inconsistent with
    • The United States invoked Article XXI(b) of the GATT 1994 in relation to the measures at issue as any action which it considers necessary for the protection of its essential security interests
    • On 9 December 2022, the panel report was circulated to Members … The Panel found that the duties on steel and aluminium were inconsistent with Article II:1 of the GATT 1994 as they exceeded the bound tariff rates … the Panel did not find that the measures at issue were taken in time of war or other emergency in international relations … On 26 January 2023, the United States notified the DSB of its decision to appeal
  4. 4

    High Court of England and Wales, Technology and Construction Court (O'Farrell J), 2025. Municipio de Mariana and others v BHP Group: summary of the judgment ([2025] EWHC 3001 (TCC)) , Paragraphs 1 to 3 and 9 to 12.

    The court's own summary of the liability judgment of November 2025 on the Fundão dam failure. The summary is not part of the reasons.

    • There are over 600,000 claimants … As a polluter, BHP are strictly liable … giving rise to fault-based liability on the part of BHP
    • On 5 November 2015, the Fundão Dam in Brazil collapsed … The flow of tailings killed 19 people, destroyed the village of Bento Rodrigues
  5. 5

    Business & Human Rights Resource Centre (reporting Sydney Morning Herald, Le Monde, BBC Brasil, Deutschlandfunk), 2025. UK: BHP found liable in Brazil dam collapse disaster .

    High Court judgment of 14 November 2025 on BHP's liability for the Fundão failure, and BHP's response.

    • The mining giant said it intended to appeal … BHP had supported extensive remediation and compensation efforts in Brazil since 2015, including compensating more than 610,000 people
  6. 6

    Court of Appeal of England and Wales (Lewison LJ, Fraser LJ), 2026. Municipio de Mariana v BHP Group (UK) Ltd [2026] EWCA Civ 502 , Paragraphs 1 and 143; date 6 May 2026.

    The Court of Appeal refused BHP permission to appeal on liability and limitation.

    • Date: 6/05/2026 … I would refuse permission on each element of Ground 1, strict liability; refuse permission on each element of Ground 2, fault-based liability
  7. 7

    Ministério Público Federal (Brazil's federal prosecution service, which brought the appeal), 2026. TRF6 condena Samarco e três ex-gerentes por rompimento de barragem em Mariana (MG) .

    The TRF6 appeal ruling of September 2026 against Samarco and three former managers, as reported by the prosecutor (in Portuguese). Deaths, harm to the Rio Doce basin and losses of the towns.

    • condenou a empresa Samarco Mineração e três de seus ex-gerentes … foram responsabilizados pelo crime de provocar inundação com resultado morte, além de condenação por crimes ambientais … reformou a sentença da Justiça Federal em Minas Gerais que havia absolvido os réus
    • Os municípios também tiveram prejuízos, tanto os decorrentes da diminuição na arrecadação tributária … perda de receita de alguns serviços, como o de abastecimento de água, esgotamento sanitário e produção de energia elétrica
  8. 8

    O Tempo (Belo Horizonte), 2026. Justiça condena gerentes da Samarco à prisão, 11 anos após tragédia de Mariana .

    Sentences and penalties in the TRF6 ruling, and that an appeal is still possible (in Portuguese).

    • Ainda há possibilidade de recurso contra a decisão
  9. 9

    Business & Human Rights Resource Centre (reporting Alliance News and Agência Brasil), 2024. Brazil: BHP & Vale reach $31.7 billion settlement over 2015 Fundão dam collapse .

    The R$170 billion settlement of October 2024 over the Fundão dam failure, and its payment period of 20 years.

    • committing to pay R$170 billion, or $31.7 billion … for a total of 20 years
  10. 10

    Zhu F., Zhang W., Puzrin A.M. (Communications Earth & Environment), 2024. The slip surface mechanism of delayed failure of the Brumadinho tailings dam in 2019 , Abstract; Introduction.

    Brumadinho dam failure on 25 January 2019, 270 deaths, and the link to the 2015 Fundão failure.

    • On 25 th January 2019, a tailings dam at the Córrego do Feijão iron ore mine, in the Brumadinho city, Brazil, failed suddenly, killing 270 people
  11. 11

    Business & Human Rights Resource Centre (reporting Reuters), 2021. Brazil: Vale to pay US$7 billion for Brumadinho dam collapse; families of the victims weren't involved in the negotiations .

    The R$37.7 billion Brumadinho settlement of February 2021.

    • families of the victims weren’t involved in the negotiations … reached a 37.7 billion real ($7 billion) agreement with prosecutors and the state of Minas Gerais
  12. 12

    Rio Tinto, 2020. Rio Tinto publishes board review of cultural heritage management .

    Rio Tinto's own finding that it had legal approval but fell short of its standards at Juukan.

    • following the destruction of the Juukan rockshelters in May 2020
    • while Rio Tinto had obtained legal authority to impact the Juukan rockshelters, it fell short of the Standards and internal guidance
  13. 13

    Australian Government, 2022. Australian Government response to the Joint Standing Committee on Northern Australia's reports on the destruction of Indigenous heritage sites at Juukan Gorge , Minister's foreword; background.

    Age of the Juukan rock shelters and the government's response to the parliamentary inquiry.

    • Juukan Gorge in the Pilbara region of Western Australia … The rock shelters contain evidence of human life going back 46,000 years … the Puutu Kunti Kurrama and Pinikura people, the Traditional Owners of the Juukan Gorge
  14. 14

    Agência Nacional de Mineração (Brazil), 2023. Report trimestral: barragens de mineração alteadas pelo método a montante (setembro de 2023) .

    The 2019 ban on upstream tailings dams and progress in removing them (in Portuguese).

    • motivaram a proibição desse método construtivo, por meio da Resolução ANM n° 4/2019, substituída pela Resolução ANM n° 13/2019 … exigiu o descomissionamento … Em comparação ao ano de 2019, quando 74 estruturas constavam como método construtivo a montante, 15 já foram descaracterizadas e descadastradas do banco de dados do SIGBM
  15. 15

    Business & Human Rights Resource Centre (reporting Repórter Brasil, with company responses), 2025. Brasil: Foto de trabalhador amarrado em carvoaria expõe elo com a Toyota (inclui comentários) .

    Labour inspection of charcoal camps in 2021, the link to pig iron maker Viena, and Viena's response.

    • a worker assaulted in a Maranhão charcoal facility and the steel company Viena … an inspection by Ministry of Labor officials in July 2021. When the inspection concluded, 11 workers were freed from conditions amounting to modern-day slavery … Viena is the region’s largest charcoal buyer
    • repudiates any form of worker exploitation and does not do business with suppliers who breach labor laws
  16. 16

    Western Australian Treasury Corporation, 2026. Western Australia Iron Ore Profile: January 2026 .

    Western Australia's iron ore royalties, jobs, exports and buyers, world imports, and the output of Rio Tinto, BHP and Fortescue.

    • The Western Australian Government’s iron ore royalty receipts fell 17% to $8.6 billion in 2024-25 … iron ore royalties accounted for 87% of Western Australia’s royalty receipts
    • China was $102.7 billion (86% of the total)
  17. 17

    Agência Nacional de Mineração (Brazil), 2023. Contribuição Financeira pela Exploração Mineral (CFEM): perguntas frequentes .

    The CFEM royalty rate of 3.5% on iron ore (in Portuguese).

    • Alíquota de 3,5% para: ferro
  18. 18

    BSG Resources Limited (Mishcon de Reya), published by italaw, 2015. BSG Resources Limited v. Republic of Guinea (ICSID Case No. ARB/14/22): Claimant's Memorial , paras. 4-5, 59-61, 147.

    A pleading by one party (BSGR). Used only for dates of government orders (July 2008, December 2008, April 2014), the words of the 2014 order, and BSGR's own position.

    • On 28 July 2008, the Republic of Guinea withdrew the mining rights on Simandou Blocks 1 to 4 from Rio Tinto’s subsidiary Simfer S.A … On 9 December 2008, the Minister of Mines at the time, Dr Loucény Nabé, issued a decree granting BSGR Guinea a prospecting permit over Simandou Blocks 1 and 2
    • The expropriation of those rights was without justification
  19. 19

    SBS News (source AAP), 2014. Guinea to cancel BSG Resources-Vale mining .

    20 April 2014: the Guinean government says it will follow a state committee's recommendation to cancel the rights, because of evidence of corrupt practices.

    • A committee reviewing mining deals in the west African country has said it has evidence the exploitation rights were obtained through corrupt practices and recommended they be cancelled
  20. 20

    Out-Law News (Pinsent Masons), 2014. BSGR prepares arbitration case against Guinea government over revoked Simandou iron ore licence .

    BSGR denies wrongdoing; the government committee's finding of corrupt practices (as reported by the Financial Times).

    • Guinea revoked BSGR and Vale’s rights to part of Simandou after a government committee last month concluded
    • BSGR, which is headed by Beny Steinmetz, has denied any wrong-doing
  21. 21

    Swissinfo (Keystone-SDA), 2025. Swiss federal court upholds Beny Steinmetz's bribery conviction .

    The Swiss Federal Court upheld the bribery conviction linked to the Simandou rights; Steinmetz maintains he is innocent.

    • has upheld the conviction of French-Israeli mining magnate Beny Steinmetz for bribery of foreign public officials … Steinmetz maintains his innocence
  22. 22

    Rio Tinto, 2025. Simandou partners celebrate start of operations (media release) .

    Simandou start of operations on 11 November 2025, export capacity, owners and rail line.

    • with the Government of Guinea holding the remaining 15% … owned by the Government of Guinea (15%) and Simfer Jersey Limited (85%) … a joint venture between the Rio Tinto Group (53%) and Chalco Iron Ore Holdings (47%) … WCS is a consortium between Winning International Group and Weiqiao Aluminium (part of the China Hongqiao Group) (collectively 51%) and Baowu Resources (49%)
  23. 23

    Rio Tinto, 2026. Rio Tinto releases second quarter 2026 production results , Simandou production table; Iron ore projects; notes 4 to 6.

    Simandou output and 2026 sales guidance, construction progress, ramp-up date and ownership.

    • WCS is the holder of Simandou North Blocks 1 & 2 (with the Government of Guinea holding a 15% interest in the mining vehicle and WCS holding 85%)
  24. 24

    Australian Government, Department of Industry, Science and Resources (Office of the Chief Economist), 2026. Resources and Energy Quarterly: June 2026 , Chapter 3 Iron ore: sections 3.1, 3.2, 3.3; Table 3.3 Iron ore outlook.

    Second price source (US$87/t FOB in 2025), 2026 price forecast, Australian iron ore export earnings, shipments to China, the CMRG restriction on BHP, and the steel output forecast to 2031.

    • Mineral Resources Group (CMRG), Beijing’s central buying desk which represents close to 80 per cent of Chinese steel mills, lifted its months-long restriction on BHP iron ore purchases after BHP executives visited China and the two parties signed a new long-term sales agreement in April 2026 … restrictions imposed on some BHP products in the last quarter of 2025
    • The CMRG has sought to drive changes in pricing mechanisms among miners, with the aim of reducing costs for Chinese steel mills
  25. 25

    Australian Government (The Treasury), 2013. Repeal of the Minerals Resource Rent Tax: Regulation Impact Statement .

    Start, rate and revenue of the MRRT, the government's reasons for repeal, and the views of those who opposed repeal.

    • The Minerals Resource Rent Tax (MRRT) commenced operation on 1 July 2012 … levied at an effective rate of 22.5 per cent of the mining profit
    • $245 million net MRRT revenue collected for the 2012-13 year … The Government has an election commitment to repeal the MRRT, which it has consistently opposed on the grounds that it undermines confidence in Australia as an investment destination … The regulatory burden is exacerbated by the complex design of the tax … The failure of the MRRT to generate sufficient revenue in comparison with the additional expense of the measures associated with its introduction
    • The ACTU opposed the MRRT repeal … some of the return that the Henry review panel had thought fair and legitimate for the community to expect … The Australia Institute also opposed the MRRT repeal … appropriate that the Australian community receive an appropriate return for resources extracted
  26. 26

    Federal Register of Legislation (Australian Government), 2014. Minerals Resource Rent Tax Repeal and Other Measures Act 2014 (No. 96, 2014): details , Details: assent date.

    The Act that repealed the MRRT received assent on 5 September 2014.

    • Minerals Resource Rent Tax Repeal and Other Measures Act 2014 No. 96, 2014 … Assent date 05 September 2014
  27. 27

    The White House (President Biden), 2025. Order Regarding the Proposed Acquisition of United States Steel Corporation by Nippon Steel Corporation (3 January 2025) .

    The order that prohibited the purchase on national security grounds.

    • might take action that threatens to impair the national security of the United States … The proposed acquisition of U.S. Steel by the Purchasers (Proposed Transaction) is prohibited
  28. 28

    Congressional Research Service, 2026. Nippon Steel's Acquisition of U.S. Steel (R48872) , Introduction.

    The approval of June 2025 under a national security agreement with a golden share, and the concerns of unions and steel buyers.

    • several analysts argued that a rejection of the deal by the U.S. government could have negative impacts on bilateral relations and potentially undermine U.S. openness to foreign investment
    • On June 13, 2025, President Donald Trump approved the acquisition … under the terms of a confidential national security agreement … The agreement terms include a
    • arrangement under which the U.S. government is to have certain rights with respect to USS, including those
    • Questions from labor unions centered on USS’s current role as the direct employer of over 14,000 workers in the United States