Slide 1: Vale's ESG Webinar
Vale’s ESG Webinar December 11th, 2018 1
Slide 2: Disclaimer
Disclaimer “This presentation may include statements about Vale's current expectations about future events or results (forward-looking statements). Many of those forward-looking statements can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "shou
Slide 3: Agenda
3 Agenda Update on the resettlement activities in Mozambique Iron ore tailings dam management 3
Slide 4: Agenda
4 Agenda Update on the resettlement activities in Mozambique Iron ore tailings dam management 4
Slide 5: Mozambique resettlement program encompasses three main activities
5 Mozambique resettlement program encompasses three main activities Moatize Nacala Corridor Moatize resettlement resettlement encroachment 5
Slide 6: In Moatize, 1,365 families were resettled into rural and urban areas
6 In Moatize, 1,365 families were resettled into rural and urban areas • Implementation of the recommendations • International tender for the Moatize coalfield • 2nd MoU2 for 2nd ha (2013) • Environmental license, • 3rd MoU2 assisted RAP1 approval compensation (2014) • Socioeconomic data update, • R
Slide 7: 625 houses were rehabilitated in Cateme and financial indemnity for 289 houses
7 625 houses were rehabilitated in Cateme and financial indemnity was provided for all 289 houses in 25 de Setembro • 625 rehabilitated houses in Cateme • 25 de Setembro: • Meetings with residents and local authorities to discuss financial compensation instead of rehabilitation Original house of hou
Slide 8: Cateme's families were compensated with land and means to income generation
8 Cateme’s families were compensated with land and means to income generation • Cateme’s families received 0.8 hectares of land for residence and 1 hectare of land for agricultural production • Replacement of the 1st hectare of land for crops (‘machamba’) for 47 families, in Cateme resettlement hous
Slide 9: Water supply system in Cateme was improved
9 Water supply system in Cateme was improved and water connections were made at 25 de Setembro • Water supply system at Cateme: • 4 wells • 1 water tank of 500 m3 • 2 water tanks of 40 m3 • Water supply by 34 fountains Water tank - Cateme • 11 km pipeline network • 2 dams over the Mualadzi river • 2
Slide 10: Mobility challenges and electricity improved through investments
10 Mobility challenges and electricity improved through investments • Construction of 8 km of roads and two bridges • Restructuring and maintenance of road infrastructures and drainage • Provision of subsidized buses to connect Moatize and Cateme • Private operators also provide transport between Mo
Slide 11: Health care infrastructure was implemented in Cateme and 25 de Setembro
11 Health care infrastructure was implemented in Cateme and 25 de Setembro • Construction of a Health Center, prenatal house and 2 houses for healthcare professionals in Cateme • Construction of public pharmacy in Cateme, which the Government is responsible for 25 de Setembro health center medicine
Slide 12: Primary and secondary schools were built in Cateme and 25 de Setembro
12 Primary and secondary schools were built in Cateme and 25 de Setembro with capacity for over 2,300 students • Primary school Cateme, built and equipped with capacity for over 1,200 students and boarding school for 300 students • Secondary school Armando Emilio Guebuza, built and equipped with cap
Slide 13: More than 2,100 people graduated in professional and income generation trainings
13 More than 2,100 people graduated in professional and income generation trainings • Professional training: bricklayer, sewing, women entrepreneurs, domestic workers, savings and loans, business management • Rural capacity training: poultry production, horticulture, fruit farming, beans crops • Loc
Slide 14: Increase in number of families residing in 25 de Setembro and Cateme
14 Increase in the number of families residing in 25 de Setembro and Cateme demonstrates community approval +66% 1,659 1,001 1,200 Vale’s initiatives improved the quality of life of the communities as shown 712 by the socioeconomic monitoring assessment1 started in 2017 459 289 Original families Ori
Slide 15: The resettlement improved the water consumed in the regions
15 The resettlement improved the water consumed in 25 de Setembro and Cateme regions 1% 3% 8% 6% 4% 2% • 94% of resettlement 5% residents in 25 de 31% Setembro and 92% in Cateme have access to 62% improved water 78% • Indicators are considerably higher than the national 25 de Setembro Cateme average
Slide 16: Vale's guidelines for resettlement process were improved after lessons learned workshop
16 Vale’s guidelines for resettlement process were improved after the “Moatize resettlement lessons learned” workshop • Minimize the number of people to be resettled • Ensure community and government participation • Establish permanent grievance mechanisms • Minimize the rupture of the social networ
Slide 17: There were 1,816 physically resettled families along the Nacala Corridor
17 There were 1,816 physically resettled families along the Nacala Corridor 2010-2011: Environmental Impact Assessment, Formal Public Participation/disclosure and Environmental Licence obtained 2011-2017: Resettlement planning and implementation (1,816 physically resettled families and 13,783 econom
Slide 18: 10,500 families benefiting from the Livelihood Restoration Program
18 10,500 families along the Nacala Logistics Corridor are benefiting from the Livelihood Restoration Program 454 families 3,600 families • Bee hives 4,605 families • Agriculture • Poultry farming • Agriculture • Capacity building • Goat breeding • Bee hives 2018 April May August September October N
Slide 19: Vale has identified an encroachment process in Section 5 of Moatize mine concession
19 Vale has identified an encroachment process in Section 5 of its Moatize mine concession area • 1,532 occupied and 619 unoccupied buildings were mapped • 1,559 economic activities were identified Rovubwe river Section 5 • Public meetings to explain the process were held in each “Machambas” neighbo
Slide 20: Socioeconomic studies are also being developed for communities within concession borders
20 Socioeconomic studies are also being developed for communities located within concession borders • Approximately 162 Moatize village buildings identified (Ntchenga and Mphandwe communities) • Number of families and economic activities to be Mphandwe mapped Ntchenga Communities Roads under study D
Slide 21: Agenda
21 Agenda Update on the resettlement activities in Mozambique Iron ore tailings dam management 21
Slide 22: Vale has been reducing its need of iron ore tailings dams
22 Vale has been reducing its need of iron ore tailings dams North 16 structures • Our goal is to ‘ continuously reduce PA the number of tailings dams BA • In 2018, we reduced MG Northeast MS 1 structure our portfolio from 150 Central-west to 136 structures 8 structures Southeast Iron ore quadrangle
Slide 23: Until 2015, Vale's dam management was decentralized
23 Until 2015, Vale’s dam management was decentralized and each department was responsible for the safety of its dams Operational team Safety management ✓ Performance ✓ Monitoring ✓ Maintenance ✓ Projects to support the structure of the dam 23
Slide 24: Since 2016, Vale has strengthened its management system with integrated risk analysis
24 Since 2016, Vale has strengthened its management system implementing an integrated process based in risk analysis Operational Matrix team team Safety management Risk management ✓ Performance ✓ Risk analysis methodology (operational and inactive dams) ✓ Monitoring ✓ Legal and internal requirements
Slide 25: New integrated risk management system is based on 3 pillars
25 The new integrated risk management system is based on 3 pillars that support all geotechnical processes Dedicated and • ~130 technicians with masters degree qualified team • Technical improvements: safety, risk and emergency processes Processes • Standardization • Definition of responsibilities •
Slide 26: In addition to regulatory compliance, Vale works proactively with complementary initiatives
26 In addition to regulatory compliance, Vale works proactively with complementary processes and initiatives Legal requirements Additional improvements • Semiannual external audit with • Risk analysis GRG 2 DCE1 methodology • International panel of experts • Dam safety periodic performance review wi
Slide 27: Emergency drills involve public agents, communities and Vale employees
27 Emergency drills involve public agents, communities and Vale employees Team assembled at the command post End of emergency drill: community, public presents details of the drill agents and Vale • In 2018, there were 9 external exercises carried out in 3 different states: Minas Gerais, Pará and Ma
Slide 28: All of Vale's iron ore dams are safe and operating within normal limits
28 All of Vale’s iron ore dams are safe and operating within normal limits • 100% of Vale’s iron ore dams have their Stability Dam Declaration issued by the External Auditors • In 2018, all Vale’s iron ore tailings dams were audited • There is a need to continue evolving and taking into account the
Slide 29: Q&A
29 Q&A 29
Slide 30: Save the date: next Vale's ESG Webinar
30 Save the date: next Vale’s ESG Webinar March, 2019 30
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Slide 32: Appendix I - Moatize resettlement process
32 Appendix I Moatize resettlement process 32
Slide 33: Resettlement planning - Moatize
33 Resettlement planning - Moatize Studies: • Socioeconomic census • Territorial characterization • Qualitative research - emphasis on population dynamics, the family structure and organization • Assets and crops Assessment • Conducting study areas hosts - 11 areas studied • Integrated diagnosis • R
Slide 34: Resettlement planning - Moatize
34 Resettlement planning - Moatize • Based on Community Participation Plan, a series of community meetings in various stages of RAP were made: • Qualitative research - 30 focus groups (1,079 households interviewed) • Theater performances were held in the local language (Nyungue) - 41 theater present
Slide 35: 60% of the population in 25 de Setembro work on formal activities
35 60% of the population in 25 de Setembro are working on formal activities, while in Cateme mostly are still in rural activities Main economic activities Sale of crops products 9% 23% Sale of animal production 0% 2% Sale of firewood/ charcoal/cuttings/grass 2% 29% Sale of bricks 3% 6% Sale of tradi
Slide 36: Presentation of the project of the area where communities would be moved
36 Presentation of the project of the area where the communities would be moved to and assisted visits to Cateme 36
Slide 37: Dialogue with the communities
37 Dialogue with the communities 37
Slide 38: Meetings to present the resettlement process to the community and leadership
38 Meetings to present the resettlement process to the community and the leadership 38
Slide 39: Cateme plots choice
Cateme plots choice is 39 Wa
Slide 40: Relocation process - Moatize
40 Relocation process - Moatize The process was initiated in September To the relocation process and moving 2009 and completed in April 2010 and it was necessary to make available: consisted of: • Social workers to follow up and support the families in both areas • Mobilization of local leaders and
Slide 41: Moving process - Moatize
41 Moving process - Moatize 41
Slide 42: Moving process - Moatize
42 Moving process - Moatize 42
Slide 43: Cateme
43 Cateme 43
Slide 44: Infrastructures improvement
44 Infrastructures improvement Before After Before After 44
Slide 45: Infrastructures improvement
45 Infrastructures improvement Community square Bus station Cemetery Police station 45
Slide 46: Food security support for families in Cateme
46 Food security support for families in Cateme • Cattle genetics improvement programme, packing house, slaughter house, poultry, horticulture, agricultural trade market in Moatize and Cateme • Construction of the marketplace in Cateme and 25 de Setembro • Model Experimental Farm: crops seeds, Model
Slide 47: Mozambique Government improved legislation on resettlements
47 Mozambique Government improved legislation on resettlements Specific legal requirements: Decree 31/2012: Regulation on the Resettlement Process Resulting from Economic Activities Diploma 155/2014: Regulation for the Technical Committee for Monitoring and Supervision of Resettlement involving gove
Slide 48: Appendix II - Nacala resettlement process
48 Appendix II Nacala resettlement process 48
Slide 49: Community hearing – definition and approval of housing project
49 Community hearing – definition and approval of housing project Nhamitsatse community members at community hearing process. April 2 nd, 2014. 49
Slide 50: Community hearing – definition and approval of housing project
50 Community hearing – definition and approval of housing project Nhamitsatse community members at community hearing process – April 2nd, 2014. 50
Slide 51: Traditional ceremony for the beginning of the houses construction
51 Traditional ceremony for the beginning of the houses construction A community elderly woman leading the traditional Goverment, CLN and Khembo’s Contructions ceremony. representatives. April 2nd, 2014 April 2nd, 2014 51
Slide 52: Initial phase of house construction
52 Initial phase of house construction Construction of Mr. Raúl Chauma house. Mr. Raúl Chauma working on its building. 52
Slide 53: Construction works in advanced stage
53 Construction works in advanced stage Ana Karina, CLN’s community development analyst, House under construction at Nhamitsatse community. talking to the building technicians. 53
Slide 54: Consultation of houses colors
54 Consultation of houses colors Meeting with the community regarding their choice of theirs houses colors. July 30, 2014. Ana Karina, CLN’s community development analyst, with The houses owners. Nhamitsatse community leader, Mr. António Mavico. 54
Slide 55: Meetings with Government and Commission
55 Meetings with Government and Commission 55
Slide 56: Meetings with traditional authorities
56 Meetings with traditional authorities 56
Slide 57: Traditional ceremonies
57 Traditional ceremonies 57
Slide 58: Community hearing
Community hearing 58 yv VALE
Slide 59: Community hearing
Community hearing 59 VW va
Slide 60: Specific meetings – discussion and negotiation process
60 Specific meetings – discussion and negotiation process 60
Slide 61: Meetings to discuss the compensation with families and local leaders
61 Meetings to discuss the compensation with families and local leaders Explanation about the compensation and reallocations processes. Participants: community, community leader, government and CLN representatives. 61
Slide 62: Negotiation process
62 Negotiation process Explanation about compensation process and alignment regarding deadlines to vacancy the buildings: Mucaia community leader signing the deal. Participants: community, community leader, government and CLN representatives. 62
Slide 63: Housing project
63 Housing project Participative Model •House design discussed with the community prioritizing local habits •Indication of plots by families in consensus with district government •Distribution of the plots by traditional authorities and families •Indication up to 2 family members to work on building
Slide 64: Housing project
Housing project LATRINA MELHORADA 64 VW va
Slide 65: Agriculture is one of the most successful activities of the Livelihood Restoration Program
65 Agriculture is one of the most successful activities of the Livelihood Restoration Program in the Nacala Corridor 65