Slide 1: Vale PRI Webinar
Conclusion of the Ferro-Carvão Stream Water Treatment Station in Brumadinho, MG Vale PRI Webinar June 18th, 2019 1
Slide 2: Forward-looking statements and cautionary note
“This presentation may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the Agend future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove c
Slide 3: 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 InvestmentsInvestments in dam management, R$ R$ in dam management, Investments in dam management¹ million million +178% • Reinforced continuously since the 300 256 241 Samarco dam failure in 2015 250 200 180 • Applied main
Slide 4: Vale is accelerating the decommissioning of 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
Slide 5: 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 6: 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 Carlos Medeiros: new Executive three key pillars Officer as of July 1st • Extensive international experience • Former CEO Americas of Ball Corporation • 25+ years
Slide 7: Three lines of defense to support safety conditions, management and mitigation of risks
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 1st charge of the operation has the duty to treat imminent risks and stop the operation in case of critical deviations fr
Slide 8: Three Extraordinary Independent Committees addressing key issues in response to the dam rupture
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 9: Three Extraordinary Independent Committees addressing key issues in response to the dam rupture
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 10: Three Extraordinary Independent Committees addressing key issues in response to the dam rupture
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 11: Vale will not rest until every damage from Brumadinho is repaired or compensated for
11 Vale will not rest until every damage from Brumadinho is repaired or compensated for • Directly reporting to the CEO Special Director • Over 400 staff allocated to the structure for Recovery & Development • From emergency to permanent recovery • Actions of recovery to be carried out in Brumadinho
Slide 12: Vale is committed to the full and effective reparation
12 Vale is committed to the full and effective reparation Full reparation • Apologies Public apologies to individuals How to restore the means • Restitution and ways of life Restoration of affected areas and productive Systemic view taking into account: capacity • Health • Rehabilitation • Psycholog
Slide 13: Key immediate response indicators
13 Key immediate response indicators • 10 Hospitals and Health Units Available Health • 242 Accommodations available • 2,622 Medical Services at Help Centers • 89,000 Pharmacy Items Purchased • 1,536 Professionals at Help Centers • 6,374 Psychological Services at Help Centers • 157 Rented Houses Acq
Slide 14: Key immediate response indicators
14 Key immediate response indicators Donations to individuals Donations to cities/institutions • R$ 100 thousand donations to the • US$ 29 million in donations¹ to Fire families of the fatalities: Department, Civil Defense and Police i. 276 donations made Force ii. Totaling R$ 28 million • R$ 2.6 mi
Slide 15: 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 Foundati
Slide 16: Vale is advancing with the Preliminary Agreements for indemnifications
16 Vale is advancing with the Preliminary Agreements for indemnifications with the Brazilian authorities 111,053 plaintiffs Emergency indemnification payments¹ 90,990 indemnifications paid Labor preliminary agreements 192 agreements signed 546 plaintiffs Individual indemnification² 49 agreements sig
Slide 17: Other agreements have been signed covering infrastructure, health, environmental and social initiatives
17 Other 10 agreements have been signed covering infrastructure, health, environmental and social initiatives Examples Infrastructure Health • Renovation of the road • Ensure psychological police station assistance to the ones affected • Hiring of independent external auditors for dam safety assessm
Slide 18: Tailings stopped flowing upstream the watercourse allowing preventive works
18 Tailings stopped flowing in the region upstream the watercourse allowing preventive works ahead of the rainy season 18
Slide 19: New water treatment measures already started up at the Ferro-Carvão stream
19 New water treatment measures already started up at the Ferro- Carvão stream Watch the video Conclusion of the Ferro-Carvão Stream Water Treatment Station 19
Slide 20: And 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 • 55 in operation by beginning of water supply August • Same capac
Slide 21: 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 Marc
Slide 22: Vale reallocated all Self-Saving Zones residents of dams with Level 2 and 3
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 23: Movements on the slope have been 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 • All residents from the Self-Rescue Zone (“ZAS – Zonas de Auto-Salvamento”) in • On May 31st, fragments of the Barão de Cocais were
Slide 24: 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 25: 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 25
Slide 26: A new pact with society: to act as a force for generating wealth to 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 27: Our challenges ahead
27 Our challenges ahead Rebirth of Brumadinho 1 • Brumadinho sustainable development Cultural transformation 2 • 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 de
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