Vale S.a. · BMFBOVESPA:VALE3
Vale — Corporate Update (June 2019)
26 slides from Vale's corporate update, Jun 19, 2019
Slide 1: Disclaimer
“This presentation may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct
Slide 2: Since 2015 Vale has taken several steps to improve safety at its operations
3 Since 2015 Vale has taken several steps to improve safety at its operations Investments in dam management, R$ million Investments in dam management¹ +178% • Reinforced continuously since the Samarco dam failure in 2015 Applied mainly in maintenance, monitoring, improvements, audits, risk analysis
Slide 3: Vale is accelerating the decommissioning of 9 upstream iron ore tailings dams in Brazil
4 Vale is accelerating the decommissioning of 9 upstream iron ore tailings dams in Brazil US$ 1.9 billion already provisioned to decommission upstream dams 2 will be completely decommissioned by February 2020 • 5 will be transformed into downstream prior to decommissioning, out of which 1 will be co
Slide 4: Several measures to increase safety standards are being taken
5 Several measures to increase safety standards are being taken Additional 626 piezometers to measure water level and 234 inclinometers to measure angles of inclination and elevation are being purchased Geotechnical Monitoring Center launched at the end of February, 24 professionals monitoring infor
Slide 5: Safety and operational excellence area reinforces our risk governance
6 Safety and operational excellence area reinforces our risk governance and brings safety to a new level New Executive Office focused on three key pillars Carlos Medeiros: new Executive Officer as of July 1st VPS1 standards and procedures ¹ Vale Production System • Define technical parameters, focus
Slide 6: Three lines of defense to support safety conditions and risk mitigation
7 Three lines of defense to support safety conditions, management and mitigation of risks related to dams Responsibility of the asset owner: the operational and technical team in charge of the operation has the duty to treat imminent risks and stop the operation in case of critical deviations from t
Slide 7: Three Extraordinary Independent Committees: Dam Safety
8 Three Extraordinary Independent Committees addressing key issues in response to the dam rupture Extraordinary Independent Consulting Committee for Dam Safety • Interacts closely with the Compliance and Risk Committee and Vale’s geotechnical, engineering and operations departments • Assists the Com
Slide 8: Three Extraordinary Independent Committees: Investigation
9 Three Extraordinary Independent Committees addressing key issues in response to the dam rupture Extraordinary Independent Consulting Committee for Investigation • More than 30 thousand documents reviewed • Hiring of a specialized geotechnical engineering company to compose the Assessment Team ongo
Slide 9: Three Extraordinary Independent Committees: Support and Recovery
10 Three Extraordinary Independent Committees addressing key issues in response to the dam rupture Extraordinary Independent Consulting Committee for Support and Recovery • 26 recommendations: i. Diagnosis and evaluation of resources and needs ii. Strategy of communication with the communities affec
Slide 10: Vale will not rest until every damage from Brumadinho is repaired
11 Vale will not rest until every damage from Brumadinho is repaired or compensated for • Directly reporting to the CEO • Over 400 staff allocated to the structure From emergency to permanent recovery • • Actions of recovery to be carried out in Brumadinho and along the Paraopeba river Availability
Slide 11: Vale is committed to the full and effective reparation
12 Vale is committed to the full and effective reparation Full reparation • Health • Living standards ¹ International Finance Corporation How to restore the means and ways of life Systemic view taking into account: •Psychological assistance •Culture •Work •Sources of income •Bonds with the community
Slide 12: Key immediate response indicators
14 Key immediate response indicators • R$ 100 thousand donations to the families of the fatalities: i. 276 donations made ii. Totaling R$ 28 million • US$ 29 million in donations¹ to Fire Department, Civil Defense and Police Force • R$ 2.6 million transferred to the Municipality of Brumadinho for th
Slide 13: A structured plan to last: Alliance for Brumadinho program
15 A structured plan to last: “Alliance for Brumadinho” program • Inauguration of “Estação da Cidadania" (with wifi, sports activities, playground, outdoor spaces, public events, library and multimedia room) Investment in the campaign “Abrace Brumadinho” Health Cycle project by the Vale Foundation i
Slide 14: Preliminary Agreements for indemnifications with the Brazilian authorities
16 Vale is advancing with the Preliminary Agreements for indemnifications with the Brazilian authorities ¹ Payments to all residents of Brumadinho and those who resided within a 1km radius of the Paraopeba riverbed, between Brumadinho and the city of Pompéu, at the Retiro de Baixo dam ² Expedited in
Slide 15: Other agreements covering infrastructure, health, environmental and social initiatives
17 Other 10 agreements have been signed covering infrastructure, health, environmental and social initiatives Infrastructure Health Environmental Social •Full remediation of damages in the community NAÔ XOHÃ •Health support and emergency payments to Pataxó Indigenous Community •Ensure the rescue and
Slide 16: Tailings stopped flowing upstream allowing preventive works before rainy season
18 Tailings stopped flowing in the region upstream the watercourse allowing preventive works ahead of the rainy season
Slide 17: New water treatment measures started up at the Ferro-Carvão stream
19 New water treatment measures already started up at the Ferro-Carvão stream Conclusion of the Ferro-Carvão Stream Water Treatment Station Watch the video
Slide 18: Actions to ensure the water supply
20 And actions to ensure the water supply Artesian wells Water pipeline in Pará de Minas city • 135 artesian wells planned • Implementation of a water catchment in Pará river • 21 already drilled • 47 kilometers of pipeline to ensure water supply • 55 in operation August by beginning of • Same capac
Slide 19: Ecotoxicology tests assure that the river can be recovered
21 Ecotoxicology tests¹ assure that the river can be recovered • 66 monitoring points and daily analyses +1,600,000 samples analyzed • Previous conditions maintained after the plume flow, non-toxic in 97% of samples • The fish contamination: zero toxicity in 100% of samples • Since the end of March,
Slide 20: Vale reallocated all Self-Saving Zone residents of Level 2 and 3 dams
22 Vale reallocated all Self-Saving Zones¹ (ZAS) residents of dams with Level 2 and 3 back in February About the reallocations: • About 357 families were reallocated, out of which 242 are in definite homes chosen by them • Every Tuesday Vale hosts meetings with the ZAS Residents Commission to inform
Slide 21: Slope movements losing energy without impacting the Sul Superior dam
23 Movements on the slope have been losing energy indicating a soft accommodation without impacting the Sul Superior dam Actions are being taken to mitigate the risks northern slope slipped and the pit, evaluations made show compromise the Sul Superior operations Note: Updated on March 31th, 2019. •
Slide 22: Vale has been implementing containment works in specific areas
Nevertheless, Vale has been implementing containment works in specific areas 1st phase • - 1st barrier of granite blocks - 1st metallic netting Granite blocks barrier 2nd phase • - Flow detour channel to a decantation pond (3 million m3) – Aug/Sep 19 - 2nd set of granite blocks barrier and metallic
Slide 23: Vale made available information related to its tailings dams and JVs
25 Aligned with its commitment to transparency, Vale made available information related to its tailings dams and JV’s Link to presentation Link to complete list
Slide 24: A new pact with society: generating wealth for communities
26 A new pact with society: to act as a force for generating wealth to communities by fostering sustainable development Vale is considering to increase Carajás Serra Sul to 150 Mtpy and developing the associated railroad and port infrastructure Debottlenecking of the Ponta da Madeira Port through a
Slide 25: Our challenges ahead
27 Our challenges ahead Rebirth of Brumadinho • Brumadinho sustainable development 1 Cultural transformation • Safety becomes an “obsession” with our risk perception and safety culture evolved into an interdependent mindset • Sustainability entrenched in local operations and Vale perceived as a deve
Slide 26: Our challenges ahead
7 Our challenges ahead Rebirth of Brumadinho * Brumadinho sustainable development Cultural transformation * Safety becomes an “obsession” with our risk perception and safety culture evolved into an interdependent mindset * Sustainability entrenched in local operations and Vale perceived as a develop