Slide 1: Vale PRI Webinar
Breast Cancer Awareness Month – Pink October in Itabira, MG Vale 1PRI Webinar October 8th, 2019
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: Vale's commitment to the full and effective reparation
3 Vale’s commitment to the full and effective reparation Guidelines¹ #1 Restoring the dignity of those affected and livelihood #2 Economic and Non-economic compensation #3 Restoring the productive capacity of affected areas #4 Measures to guarantee non-repetition Emergency Support ▪ Hospitals and he
Slide 4: Key civil and labor framework agreements have been settled and adherence is increasing
4 Key civil and labor framework agreements have been settled and adherence is increasing Paraopeba River Emergency Indemnification >108,000 people with monthly compensation until Jan 2020 R$ 860 million paid¹ Individual / Group Indemnification² > 550 agreements signed > 1,200 beneficiaries R$ 233 mi
Slide 5: Legal agreements to cover other specific fronts were also signed so far
5 25 legal agreements to cover other specific fronts were also signed so far¹… 4 Support to municipalities 5 Environmental recovery ▪ Brumadinho, São Joaquim das Bicas, Initiatives to protect and recover fauna and flora Mário Campos and AMIG²³ ▪ Over R$ 200 million paid for 10 cities 4 Water supply
Slide 6: A plan for tailings treatment and environmental recovery is defined
6 A plan for tailings treatment and environmental recovery is defined, with key structures already in operation US$ 1.2 billion provisioned ▪ Ensure water supply to the Belo Horizonte region - Reestablish the water withdrawal system in the Paraopeba river basin - Prevent tailings carriage to the Rio
Slide 7: Our challenges ahead
7 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 dev
Slide 8: Safety and Operational Excellence Executive Office is independent from operations
8 The newly created Safety and Operational Excellence Executive Office is independent from operations Safety & Operational Excellence Office ▪ Direct report to the CEO ▪ Authority to stop operations Operational H&S and Excellence Operational Risks ▪ Variable remuneration independent from operations
Slide 9: Safety and Operational Excellence Office key initiatives
9 The Safety and Operational Excellence Executive Office has been working on the key initiatives below Health and Safety and Operational Asset Geotechnical Operational Risks Excellence Management Structures • Global Vale Golden Rules • Vale Management System • Architecture of asset • Design and supp
Slide 10: Our dogma: Every accident is preventable
10 Our dogma: Every accident is preventable Cultural transformation 1st wave 2nd wave (2019 – 2020) (2020 - 2021) • Fast track global risk assessment completed • Consolidate the risk management process by a SWAT team through focus on critical controls • Risk tolerance limit implemented • Management
Slide 11: Risk governance
11 Risk governance Three independent Not exhaustive committees¹ Executive Board Board of Directors Executive Committee Executive Committee Executive Committee for Strategic, Executive Committee for Geotechnical for Operational Risks Financial and for Compliance Risks Risks Cybernetic Risks Operation
Slide 12: Risk Governance and external sentinels increase reliability of dams
12 Vale’s Risk Governance and external sentinels act to increase reliability of dams and vigilance over processes Internal Lines of Defense External Sentinels Business Units ▪External ▪Federal Audit Public Safety & Independent Prosecutor Operational Board Internal Issuer of Operational Matrix Excell
Slide 13: Structured plan to accelerate de-characterization of dam structures in Brazil
13 Vale has a structured plan in place to accelerate the de- characterization of dam structures in Brazil US$ 1.9 billion already provisioned to decommission 9 upstream dams Dams 2019 2020 2021 2022+ 4 dams to be de- characterized as upstream dams with strengthening downstream embankments 3 dams to
Slide 14: The de-characterization means the dam will no longer receive tailings
14 The de-characterization means the dam will no longer receive tailings or function as a container structure Examples: De-characterization macro processes 1 Closure of operations 2 Safety index adequacy 15,000 meters 3 Containment construction¹ in total 4 Final de-characterization² 5 Monitoring 14
Slide 15: Containment structures to increase safety in dams areas under construction
15 Containment structures to increase safety in dams areas are also under construction Schematic Containment Containment under construction at Sul Superior dam December 2019 ▪ 310 meters long, 36 meters high Expected conclusion ▪ 1,593 employees at peak work Capacity ▪ 77% of local employees Retain
Slide 16: De-characterization project: Sul Superior dam
16 De-characterization project Sul Superior dam 16
Slide 17: De-characterization project: Sul Superior dam
17 De-characterization project Sul Superior dam 17
Slide 18: De-characterization project: Sul Superior dam
18 De-characterization project Sul Superior dam 18
Slide 19: De-characterization project: Sul Superior dam
19 De-characterization project Sul Superior dam 19
Slide 20: De-characterization project: Sul Superior dam
20 De-characterization project Sul Superior dam 20
Slide 21: De-characterization project: Sul Superior dam
21 De-characterization project Sul Superior dam 21
Slide 22: De-characterization project: Sul Superior dam
22 De-characterization project Sul Superior dam 22
Slide 23: 23
23
Slide 24: Final de-characterization project main steps: started dike
24 The final de-characterization project has the following main steps 1 Started dike 1 24
Slide 25: Final de-characterization project main steps: upstream rising
25 The final de-characterization project has the following main steps 1 Started dike 2 2 Upstream rising 1 25
Slide 26: Final de-characterization project main steps: downstream embankments
26 The final de-characterization project has the following main steps 1 Started dike 2 3 2 Upstream rising 1 3 Downstream embankments 26
Slide 27: Final de-characterization project main steps: backfilling
27 The final de-characterization project has the following main steps 4 1 Started dike 2 3 2 Upstream rising 1 3 Downstream embankments Backfilling between the dam 3 4 and the strengthening structure 27
Slide 28: Final de-characterization project main steps: structure de-characterization
28 The final de-characterization project has the following main steps 4 1 Started dike 2 3 2 Upstream rising 1 3 Downstream embankments 3 5 Backfilling between the dam 3 4 and the strengthening structure 3 Structure de-characterization 5 28
Slide 29: Final de-characterization project main steps: final result
29 The final de-characterization project has the following main steps 1 Started dike 2 Upstream rising 3 Downstream embankments Backfilling between the dam 3 4 and the strengthening structure 6 3 Structure de-characterization 5 3 Final result 6 29