A federal court in Brazil has exonerated mining giants Vale, BHP Group and their joint venture Samarco from criminal liability in the 2015 Fundao tailings dam collapse incident, which claimed 19 lives and caused extensive environmental damage, Reuters has reported, citing a statement from the court.

The collapse, which occurred at an iron-ore mine near Mariana in south-eastern Brazil, not only resulted in fatalities but also left hundreds homeless, devastated surrounding forests and severely polluted the Doce River.

Judge Patricia de Carvalho of the federal court ruled that there was insufficient evidence to establish direct criminal responsibility for the disaster on the part of the three companies or the 21 individuals, including former executives, who were also cleared of charges.

The Federal Prosecutors Office of Brazil, which had brought forward the criminal charges, expressed its intent to challenge the court's decision.

This legal development is distinct from the civil proceedings, where a $31.7bn settlement agreement was disclosed in late October this year.

This agreement addresses the obligations and claims associated with the dam failure and could potentially resolve more than 100 lawsuits against the mining companies within Brazil, as well as possibly curtail legal actions in other jurisdictions.

Internationally, BHP is facing a lawsuit in the UK related to the Samarco dam disaster, where it could face claims amounting to $47bn (A$72.61bn) in damages.

Commenting on the court’s verdict, Vale spokesperson said: “The court's decision reinforces that the company acted within the law and in compliance with environmental standards.” Samarco stated that the ruling affirmed it had consistently operated in compliance with current legislation.