Slide 1: Vale ESG Webinar Tailings and Dam Management
COMPROMISSOS PÚBLICOS 2030 Vale ESG Webinar Tailings and Dam Management Eduardo Bartolomeo CEO Carlos Medeiros Executive Vice President of Safety and Operational Excellence Rafael Bittar Geotechnical Director March 25, 2022 1
Slide 2: Disclaimer
isclaime “This presentation may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and un
Slide 3: Opening remarks
Opening remarks Eduardo Bartolomeo, Chief Executive Officer 3
Slide 4: De-risking Vale through dam safety
4 De-risking Vale through dam safety Re-rating Reshaping Reshaping De-risking ▪ Benchmark in Safety ▪ Focus on core business ▪ Best-in-class reliable operator ▪ Brumadinho ▪ Elimination of cash drains ▪ Talent-oriented organization ▪ Mariana ▪ Accretive growth ▪ Leader in low carbon mining opportuni
Slide 5: Strong governance and oversight for TSF management
5 Strong governance and oversight for TSF¹ management… Structures created post- Board of Dam I collapse Directors Executive compensation Audit Advisory Committee Committees 35-60% ▪ Operational of short-term variable compensation tied to Health & Excellence & Safety, Operational Risk and VPS targets
Slide 6: Risk management model
Risk management model Carlos Medeiros, Executive Vice President of Safety and Operational Excellence 6
Slide 7: The risk management model fosters the office's independence
7 The risk management model fosters the office‘s independence 1st Line of Defense 2nd Line of Defense 3rd Line of Defense External Sentinels Safety & Operational Engineer of Independent TSF Safety Business Units Internal Audit Excellence Record Audits Review 1st Layer 2nd Layer ▪ TSF safety ▪ Public
Slide 8: The flow of information ensures visibility of critical issues to top management
8 The flow of information ensures visibility of critical issues to top management Office’s reporting routine Conservative approach to TSF safety management Half-year reports ▪ Reclassification of TSFs² based on to the Board of Directors updated knowledge of structures and safety conditions Half-year
Slide 9: Best practices roll-out supports key achievements
9 Best practices roll-out supports key achievements Upstream TSF HIRA¹ for TSFs Structures at emergency level De-characterization % of upstream TSFs² % of TSFs³ with HIRA No. of structures 35 33 4 31 29 23% 28% 3 3 7 8 6 3 7 60% 24 22 22 9 17% 19 4 72% 5 2020 jan-21 dec-21 mar-22 dec-25E Completed b
Slide 10: Commitment to the Global Industry Standard on Tailings Management
10 Commitment to the Global Industry Standard on Tailings Management ▪ 1st self- ~60% adherence¹ ~90% adherence ▪ In line with the assessment (target)² ³ industry based on the ▪ Gap-assessment commitment principles based on the ▪ External audit (Sep 2020) conformance protocol ▪ Gap treatment Vale (N
Slide 11: Tailings and dam management
Tailings and dam management Rafael Bittar, Geotechnical Director 11
Slide 12: Our Tailings Management Strategic Pillars
12 Our Tailings Management Strategic Pillars Implementation of a new and transformed Tailings & Dams Management System (TDMS) Vale will comply with the Global Industry Standard for Tailings Management Eliminating Upstream TSFs - De-characterization Program New Way to Operate - New projects to reduce
Slide 13: Understanding the TDMS
13 Understanding the TDMS¹ Cultural transformation focused on Transparency, Leadership and Performance CULTURAL TRANSFORMATION AND KEY BEHAVIORS POLICIES & COMMITMENTS TECHNICAL: Normative Standards and Procedures ORGANIZATIONAL: Roles, Responsibilities and Authorities TECHNOLOGICAL: Systems and Tec
Slide 14: Understanding the TDMS: POL-0037 guidelines and commitments
14 Understanding the TDMS¹ POL-0037 establishes guidelines and commitments ¹ TDMS stands for Tailings and Dam Management System.
Slide 15: Understanding the TDMS: global standards operational procedures
15 Understanding the TDMS¹ Global standards operational procedures ¹ TDMS stands for Tailings and Dam Management System.
Slide 16: Understanding the TDMS: organizational structure and senior leadership
16 Understanding the TDMS¹ Organizational structure and the role of senior leadership ¹ TDMS stands for Tailings and Dam Management System. ¹ TSF stands for Tailings Storage Facility.
Slide 17: Monthly TSF performance assessed by the EoR
17 Understanding the TDMS¹ Monthly TSF performance assessed by the EoR² ▪ All TSFs with extreme, very high, and high consequences need to have a designated EoR ▪ The EoR is responsible for periodic TSF safety inspections ▪ Monthly TSF Performance Assessment is publicly disclosed at Vale ESG portal s
Slide 18: Understanding the TDMS: HIRA deliverables
18 Understanding the TDMS¹ HIRA² deliverables 1 FMEA³, MUE4, Risk Assessment, Controls 3 Risk Matrix 2 Critical Controle One Pagers 4 Action List ¹ TDMS stands for Tailings and Dam Management System. ² HIRA stands for Hazard Identification and Risk Assessment. ² FMEA stands for Failure Mode and Effe
Slide 19: Good performance of geotechnical assets during the heavy rains in Minas Gerais
19 Good performance of geotechnical assets during the heavy rains in Minas Gerais¹ Points of attention related to erosion in Challenge access, small slope failures, natural slopes, ▪ +750mm rains recorded in January backup dams with water retention - 650mm in just 12 days - Around 300mm in 2 days Pe
Slide 20: GISTM Journey and the commitment to compliance
20 GISTM¹ Journey and the commitment to compliance All TSFs in compliance with 95% ~60%² GISTM 76% Aug/25 Common gaps and focus areas 67% 67% 58% ▪ Climate change incorporated in the facility Full adherence to GISTM to design current TSFs 4 22% ▪ Seismic studies Dec/22 Aug/23 ▪ Social community enga
Slide 21: Self-assessment to drive actions for full adherence to GISTM
21 Self-assessment¹ to drive actions for full adherence to GISTM Iron Ore² Base Metals³ Topic I – Affected Communities Principle 1 62% 81% Principle 2 55% 66% Topic II – Integrated knowledge base Principle 3 59% 55% Principle 4 60% 71% Principle 5 54% 78% Topic III – Design, construction, Principle
Slide 22: Concrete steps towards GISTM implementation
22 Concrete steps towards GISTM implementation Non-exhaustive examples Design, construc- Emergency Public disclosure Affected Integrated Management tion, operation & response and and access to communities¹ knowledge base and governance monitoring long-term recovery information ▪ Grievance Global ▪ T
Slide 23: Community engagement in preparation and response for emergency situations
23 Community engagement in preparation and response for emergency situations Emergency response training with communities close to TSFs Emergency Action Plans for Mining Dams (PAEBM)¹ publicly Partnership with the local Civil Defense Agency to ensure appropriate conditions for simulations and emerge
Slide 24: Upstream TSF De-characterization
Upstream TSF De-characterization 24
Slide 25: Eliminating upstream TSFs in Brazil
25 Eliminating upstream TSFs¹ in Brazil Upstream TSF De-characterization Program 7 eliminated since 2019 2 completed in 2021 23 remaining Completion by 2035 1 TSF stands for Tailing Storage Facility.
Slide 26: Precautionary approach to address brittle failure modes
26 Precautionary approach to address brittle failure modes ECJ Fábrica 95m height | 330m length Use of remotely operated Construction of equipment to remove backup dams tailings in critical TSFs (containment dams) downstream critical TSFs and removal of population at risk ECJ B3/B4 ECJ Sul Superior
Slide 27: Updated and transparent program's timeline
27 Updated and transparent program’s timeline Structure 2022 2023 2024 2025 2026 2027 2028 2029 2035 De-characterization works in Baixo João Pereira progress: Dique Auxiliar B5 ▪ Baixo João Pereira, B3/B4, Dique 3 Dique 3, Dique 4, Sul Dique 4 Superior Ipoema Dique 2 Engineering in progress: Área IX
Slide 28: Revised provisions according to project pipeline
28 Revised provisions according to project pipeline Elimination of upstream TSFs per year Program’s cash outflow¹ No. of structures 3 US$ billion 5 3 2 1 4 30 0.5 0.5 5 0.4 0.4 0.4 0.3 0.2 7 2021A 2022F 2024F¹ 2025F³ 2026F 2027F 2029F 2035F Total 2021A 2022F 2023F 2024F 2025F 2026F 2027- ² 35F on av
Slide 29: Moving from wet to dry tailings
Moving from wet to dry tailings 29
Slide 30: New projects to reduce the reliance on TSFs
30 New projects to reduce the reliance on TSFs Iron ore production by method Mt Wet processing Wet processing with tailings filtration Dry concentration Dry processing 400 385 346 300 ~15% ~1% ~70% 85% 58% 73% Lower TSF 40% exposure 2015 2018 2020 400 Mtpy production level1 1 Considers a time horizo
Slide 31: Co-products: recycling dry tailings to sustainably increase production capacity
31 Co-products: recycling dry tailings to sustainably increase production capacity Less area required to dispose dry tailings1 Co-products operations in place at Brucutu and plans for Viga in 20222 Sand as a raw material for industry (around 1.0 Mt sales3 committed to 2022) Multiple uses under devel
Slide 32: Closing remarks
Closing remarks 32
Slide 33: On track: we are building a safer and more reliable Vale
33 On track We are building for eliminating exposure to TSF failure risk a safer and more reliable Vale Upstream TSF De-characterization Program in progress Optimized governance supporting risk management Best practices to improve tailings and dam performance Processing solutions to replace TSFs
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