Slide 1: Vale ESG Webinar Risk Management
COMPROMISSOS PÚBLICOS 2030 Vale ESG Webinar Risk Management Eduardo Bartolomeo CEO Carlos Medeiros Executive Vice President of Safety and Operational Excellence September 23, 2021 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: De-risking Vale through Safety and Operational Excellence
De-risking Vale through Safety and Operational Excellence Re-rating Reshaping Reshaping De-risking ▪ Benchmark in Safety ▪ Focus on core business ▪ Best-in-class reliable ▪ Brumadinho operator ▪ Control of cash drains ▪ Talent-oriented organization ▪ Dam safety ▪ Growth opportunities ▪ Leader in low
Slide 4: The cultural transformation is keeping pace
The cultural transformation is keeping pace… The Pulse: 17,000 employees assessing key behaviors across Vale 2019 2020 2021 2022 • Cultural Diagnosis • Purpose defined by leaders • Purpose activation • Purpose fully reflected in the strategy • Defined aspiration • Culture & VPS² integrated • Culture
Slide 5: Strong governance for safety and risk management
… supported by a strong governance for safety and risk management Structures created after Dam I collapse Board of Directors Executive compensation Audit Advisory Committee Committees ▪ Operational Excellence & Risks 35-60% ▪ Sustainability of short-term variable Compliance ▪ Finance compensation ti
Slide 6: Risk management model
Risk management model Carlos Medeiros, Executive Vice President of Safety and Operational Excellence 6
Slide 7: An integrated risk map supports the decision-making process
An integrated risk map supports the decision-making process Risk categories Strategic People Sustainability and Reputation Finance ▪ Demand and competition ▪ Outsourcing and partnership ▪ Reparation ▪ Exchange and interest rates ▪ Budget and Planning ▪ Relationship with Unions ▪ Climate Change ▪ Com
Slide 8: The Safety and Operational Excellence Executive Office was created in 2019
The Safety and Operational Excellence Executive Office was created in 2019… Safety and Operational The risk management model based on 3 lines of defense Excellence Executive Office supports the office‘s independence 450 professionals 1st Line of Defense Operations and Business 2nd Line of Defense 3r
Slide 9: … to ensure an effective risk management
… to ensure an effective risk management Office’s reporting routine Operations shutdown² as a result of more stringent Health & Safety protocols Half-year reports to the Board of Directors ▪ Operations at Sossego ▪ Operations at Onça Puma Half-year reports to the Fiscal Council ▪ Operations at Voise
Slide 10: Occupational Health & Safety
Occupational Health & Safety 10
Slide 11: We are building a sustainable performance in Health & Safety
We are building a sustainable performance in Health & Safety … TRIFR¹ Innovation to reduce risk exposure -39% ▪ Digital workforce: Eliminating at-site risks by accelerating 3.48 remote working 2.25 1.98 1.38 ▪ Automation: 2018 2019 2020 2021 - Brucutu mine’s entire fleet is autonomous TRIFR - 2020 c
Slide 12: … as we are making progress with our commitments
… as we are making progress with our commitments Zero high-potential Reduction of high-potential recordable Reduction of exposures above the recordable injuries (N2)¹ injuries (N2 - absolute values4) Occupational Exposure Limit (OEL) 21.0 Reduce by 50% employee 17.0 exposure to key health risks² 15.
Slide 13: HIRA implementation
HIRA implementation 13
Slide 14: All sites are already covered by HIRA first cycle
All sites are already covered by HIRA¹ first cycle… Risk 79 sites² Identification assessed since 2019 824 material unwanted events Assessment mapped 2,039 immediate actions Treatment implemented Control & 7,250 critical controls Monitoring identified Reassessments every 3 years (critical sites) or 5
Slide 15: … with rollout to our dam portfolio
… with rollout to our dam portfolio HIRA for Dams and Tailings Storage Facilities Number of dams ▪ Focus on key tailings dams¹ operated by Vale 21 10 ▪ Assess Material Unwanted Events 60 24 ▪ Identify, design and implement Critical Controls 5 ▪ Prioritize and implement Immediate Actions for risk 202
Slide 16: Operational Excellence
Operational Excellence 16
Slide 17: The VPS is the vehicle of our cultural transformation
The VPS¹ is the vehicle of our cultural transformation… Continuous improvement and operational stability Back to basics ▪ Standardization of priority tasks 3 dimensions, ▪ 5S, routine management ▪ MICT² technical training 17 elements ▪ Technical capacitation ▪ Waste reduction and increased with the
Slide 18: … and drives Vale to become the best-in-class reliable operator
… and drives Vale to become the best-in-class reliable operator Itabira Complex EFVM railway Tubarão Port Total recordable -63% injury frequency rate - TRIFR -5% -82% 4.23 2.43 3.21 1.67 1.80 1.58 1.52 1.56 0.43 2019 2020 2021 2019 2020 2021 2019 2020 2021 Adherence to +41% maintenance plan (%) +67%
Slide 19: Asset Integrity
Asset Integrity 19
Slide 20: We promote the Safety and Integrity of our assets throughout their life cycle
We promote the Safety and Integrity of our assets throughout their life cycle Hazard Preventive Mitigate control control Material Causes unwanted Consequences events Engineering PNRs¹ Barriers Decommissioning Construction A P Asset life cycle C D Maintenance Commissioning Check Training / Process Qu
Slide 21: Our Asset Integrity technical standards are global for critical assets
Our Asset Integrity technical standards are global for critical assets ~50% Rail Ports and bridges of standards Systems, Pumping systems defined by the end of 2021 layout and Hazardous material handling structures Explosives ▪ Risk assessment Combustible dusts and solids ▪ Benchmarks Plant layout, e
Slide 22: Dam management
Dam management 22
Slide 23: Progress with TDMS and the Decharacterization Program
Progress with TDMS and the Decharacterization Program Tailings & Dams Management System Upstream² Dam³ Decharacterization Program Routine ▪ 6 upstream dam eliminated since 2019 ▪ New dam management policy ▪ 24 upstream dam to eliminate: ▪ Responsibility assignment matrix revised ▪ 25 requirements an
Slide 24: Commitment to comply with the GISTM
Commitment to comply with the GISTM Tailings storage facilities (TSF) operated by Vale will be in conformance with the GISTM: ▪ Those with “Extreme” or “Very high” potential consequences, by August 5th, 2023 ▪ All other, not in a state of safe closure, by August 5th, 2025 1st step – Self-Assessment
Slide 25: Decharacterization of 8B dam
8B Decharacterization of 8B dam Nova Lima (MG) 25 2019
Slide 26: Decharacterization of Dique Rio do Peixe
Dique Rio do Peixe Decharacterization of Dique Rio do Peixe Itabira(MG) 26
Slide 27: Decharacterization of Fernadinho dam
Decharacterization of Fernadinho dam Vargem Grande Complex (MG) 27
Slide 28: ECJ Sul Superior back-up dam
ECJ Sul Superior Sul Superior back-up dam Barão de Cocais, MG, Brazil 28
Slide 29: Forquilhas and Grupo back-up dam
Forquilhas and Grupo back-up dam Ouro Preto and Itabirito (MG) 29
Slide 30: ECJ B3/B4 back-up dam
ECJ B3/B4 B3/B4 back-up dam Nova Lima (MG) 30
Slide 31: Closing remarks
Closing remarks 31
Slide 32: We are building a safer and more reliable Vale
We are building a safer and more reliable Vale Geotechnical Monitoring Center Parauapebas (PA)
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