Slide 1: Webinar ESG: Tailings Dam Management
COMPROMISSOS PÚBLICOS 2030 Webinar ESG Tailings Dam Management Carlos Medeiros and Rafael Bittar July 15, 2020 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 and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prov
Slide 3: Agenda
Agend 1. Opening remarks 2. Safety and operational excellence 3. Introduction to tailings dam 4. Tailings management 5. Final remarks 3
Slide 4: Opening remarks
Opening remarks 4
Slide 5: A year ago, we added two new pillars to our strategy
A year ago, we added two new pillars to our strategy New pact with society Safety and operational excellence Maximize flight to quality in Iron Ore Base Metals transformation Discipline in capital allocation 5
Slide 6: We are honouring our new pact with society
We are honouring our new pact with society... …with efforts to mitigate the impacts …and advancing with the reparation of of COVID-19 Brumadinho R$ 3.8 billion in indemnifications¹ 5 million detection kits to Brazil Emergency aid Civil Labour 31 million items for health professionals People +106,000
Slide 7: Safety and Operational Excellence
Safety and Operational Excellence 7
Slide 8: Three lines of defense model for safety and operational excellence
We adopt the three lines of defense model to assure our safety and operational excellence Business units Safety & Risk Internal audit • Support operations in the implementation of critical • Define risk norms, controls standards and policies • Compliance Office is • Identify, monitor and responsible
Slide 9: Vale has strengthened its governance for safety and operational processes
Vale has strengthened its governance to safety and operational processes, as well as to its geotechnical structures Operational • Support to the Board of Directors and interact with Dam Safety Committee Excellence and Risk • Assess corporate risk management Committee • Monitors operational risks, es
Slide 10: The second line of defense is managed independently from operations
The second line of defense is managed independently from operations Safety & Operational • Development of a new and transformed Tailings Management System. Excellence Office (+400 staff) • X staff Ensure the application of best practices to continually monitor mine waste facilities. • Support to the
Slide 11: Introduction to tailings dam
Introduction to tailings dam 11
Slide 12: Tailings dam are used to store liquid, solid, or a slurry of fine particles
Tailings dam are used to store liquid, solid, or a slurry of fine particles Downstream Upstream Centerline The downstream shell is built on The dam body is constructed The centerline method is a compacted soil, regardless of using the deposited tailings. It is hybrid of upstream and the type of tail
Slide 13: Tailings storage facilities require continuous management and risk assessment
Tailings storage facilities requires continuous management and risk assessment for the most common failure mechanisms • Overtopping: Water volumes exceed the capacity of the dam • Slope stability: The slope is stable, if the available shear strength of the tailings/soil exceeds that required to keep
Slide 14: Vale's tailings dam portfolio is concentrated in Brazil
Vale’s tailings dam portfolio is concentrated in Brazil Location and operational status of operated tailings storage facilities¹ (TSF) Active Canada Inactive² 7 8 Under construction TSF upstream method Canada 4 64 operated tailings facilities Pará • 27 active 1 • 35 inactive 5 Mozambique New Caledon
Slide 15: De-characterization of upstream tailings dams and other structures in Brazil
Vale is evolving with the de-characterization of upstream tailings dams and other structures in Brazil 2019 2020 2021 2022+ Other structures to be 8B de-characterized: Fernandinho • Doutor, Campo Grande dams and three drained Grupo stacks are in Forquilha I engineering phase Forquilha II • Pondes de
Slide 16: Vale has completed the containment structure for Sul Superior
Vale has completed the containment structure for Sul Superior
Slide 17: Backup works on containment structures continued despite COVID
Despite Vale hasthe COVID scenario, completed thedam the backup works foron Sulcontainment Superior structures continued as considered essential to safety Containments for Forquilhas and Grupo
Slide 18: Tailings Management
Tailings Management 18
Slide 19: We are implementing a new Tailings Management System
We are implementing a new Tailings Management System Tailings Management System What How Who Technical Technological Organizational Guiding principles of key Technology guiding principles Roles and responsibilities elements Recommended best practices Functional landscape Behavioral transformation Mi
Slide 20: Gaps were assessed for each key element of the tailings management system
To design Vale’s tailings management system, gaps were assessed for each key element Project Phase Standard Operating Procedures International Dam Classification Standards Water Management Guideline Planning Dewatering Technology Selection Closure Planning Geotechnical Investigation Project life cyc
Slide 21: Geotechnical Monitoring Centers run 24/7
Geotechnical Monitoring Centers run 24/7 basis for 100 structures Geotechnical systems evolutions Trigger response plans and alerts system Real time piezometers monitoring New dam Video analytics with artificial intelligence monitoring Geophones to measure dam’s response to seismic activity Radars e
Slide 22: RASCI matrix to define roles and responsibilities
RASCI¹ matrix to define roles and responsibilities 72 key processes, including: • Governance • Design and planning • Construction • Risk management • Operations • Audits and Reviews • Closure • Emergency Preparedness 1 RASCI matrix: Responsible, Accountable, Supporting, Consulted and Informed. 22
Slide 23: Roles and responsibilities aligned with international best practices
Roles and responsibilities are being reviewed and aligned with international best practices Reports to Keeps open communication Overall Business at Executive Ownership executive level (i.e. (Accountable Executive Executive Director) Officer) Independent Tailings Geotech Governance & Global: The 2nd
Slide 24: Tailings Management System based on Routine, Performance and Risk
Our Tailings Management System is based on three levels: Routine, Performance and Risk (RPR system) Routine Performance Risk Continuous Check of the Continuous Check of Failure Modes and Critical Tailings Dam Geotechnical Operational Discipline Controls Mapping Performance EoR (Engineer of Record) B
Slide 25: Basic Geotechnical Guidelines
Basic Geotechnical Guidelines KPI’s and dashboards Per status Routine and special Adherence to Effective Business risk integration inspections recommendations Partial Effective Monitoring and Not Effective Legal requirements instrumentation Non Applicable Maintenance, operation and Dam breach study
Slide 26: Engineer of Record and the continuous performance assessment
Engineer of Record and the continuous performance assessment • The EoR is external to the operations and is integrated with Vale's lines of defense Guidance Table for Classification of the Dams Geotechnical • Model of continuous monitoring, and a more rigorous one. Performance Condition Better integ
Slide 27: Dam portfolio risk assessments through HIRA
Dam portfolio risk assessments through Hazard Identification and Risk Analysis (HIRA) Planning • Work plan • Internal communication Testing • Inventory • Priorities Chosen sites: • Hire consultants • Sudbury and Long Harbor Implementation Lessons learned All dam portfolio covered until end of 2022 2
Slide 28: Portal in geotechnics to share expertise and disseminate knowledge
Portal in geotechnics to share expertise and disseminate knowledge Data base with technical articles, standards and guidelines Technical studies calendar Integration workshops Geotechnical specialization course • 360h (soil and rock mechanics, engineering geology, tailings disposal, risk management)
Slide 29: Geotechnical team is part of Vale's cultural transformation
Geotechnical team is also part of Vale’s Cultural transformation with transparency, responsibility and technique Roles are clear People understand their roles and responsibilities Accountabilities are There is clear accountability at both process and personal level defined Geotechnical team Clear Ge
Slide 30: Case 1: Brucutu
Case 1: Brucutu • On December 2019, Vale proactively decided to suspend temporarily the disposal of tailings at the Laranjeiras dam, originated at the Brucutu plant, while assessing the dam’s geotechnical characteristics. • The decision was taken after conjoint examination from different teams, as w
Slide 31: Case 2: Itabiruçu
Case 2: Itabiruçu • On October 2019, Vale proactively decided to suspend temporarily the raising construction and disposal of tailings at the Itabiruçu dam, while assessing some deformations associated with the raising works. • The decision was taken with the recommendation from the second line of d
Slide 32: Final Remarks
Final Remarks 32
Slide 33: New tailings management approach based on multiple layers of protection
Our new tailings management approach is based in a multi layers of protection, improving our capacity to avoid accidents Business units Safety & Risk Internal audit External sentinels Geotechnical Geotechnical Safety & Independent Chief Engineer Independent Dam Safety operations support Operational
Slide 34: Our objectives
Our objectives 1. Finalize the new Tailings Management System implementation across all business by December 2020, aligned with best international practices 2. Complete the As-Is drawings, operational manual, and emergency plans of all structures by December 2020 (85% concluded) 3. Improve our inter
Slide 35: Vale's ESG Portal: transparency for our dam management
Vale’s ESG Portal: transparency for our dam management Click here to visit.
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