Vale Presents Its Strategy for Safe Growth in the Next Few Years

About Vale

12/2/2019

Vale Presents Its Strategy for Safe Growth in the Next Few Years

Vale disclosed this week the perspectives for the next years during a meeting with investors at the New York Stock Exchange (NYSE), on december 2nd, and in London, on december 4th. Chief Executive Officer Eduardo Bartolomeo opened the events highlighting that 2019 was the most challenging year in Vale’s history, referring to the breach of Dam 1, in Brumadinho.

“We are committed to making this company much safer and reliable. People, Safety and Reparation are the concepts guiding Vale’s map of actions for risk reduction.” Bartolomeo also explained that the company’s focus for the next years will be paving the way for value creation by listening more to its different audiences, namely communities, government, agencies and institutions, investors, and shareholders. 

Also present at the meeting were the Safety and Operational Excellence executive director, Carlos Medeiros; the Finance and Investor Relations executive director, Luciano Siani; the Recovery and Development director; Marcelo Klein; the Ferrous Minerals executive director, Marcelo Spinelli; and Base Metals interin executive director, Mark Travers.

Recovery

Vale is committed to the full and effective recovery of Brumadinho. Action fronts include:

- Twenty-five indemnity agreements have been signed
- A total of 2,300 beneficiaries have received individual or group indemnities, and 1,557 received labor Indemnities
- 108,000 beneficiaries are receiving emergency aid
- Construction of tailing containment structures
- Permanent monitoring of the Paraopeba river’s water


Safety and Operational Excellence

To promote safety and operational excellence is a priority for Vale. Vale is committed to becoming one of the world’s safest and most reliable companies. To guarantee that the best practices in management and expert technical knowledge is applied to the management of operational risks and strategic assets, Vales has created:


  • A new risk governance
  • Four executive committees to enable a more detailed assessment of the risks involved in the business 
  • An Executive Board for Safety and Operational Excellence reporting directly to the CEO.

In addition, Vale continues the de-characterization process of nine upstream dams. The 8B dam, in Nova Lima (Minas Gerais), was the first dam fully reintegrated to the environment.


New Pact with Society

Vale is focused on establishing a new pact with society, which includes undertaking goals even more ambitious than those already announced in relation to climate change, energy, and forests. The redefined commitments for 2030 include:

Climate Change

To reduce greenhouse gas emissions, in alignment with the Paris Agreement, and to become carbon neutral by 2050

Energy

Vale already produces 60% of the energy it consumes in Brazil. By 2030, the company will generate 100% of the energy it consumes globally

Forest

To recover and protect 500,000 hectares of degraded areas beyond our borders

Water

To reduce new water withdrawal by 10%

The company aims to leave a legacy in the regions it operates, which is aligned with the goal of social and economic contribution. One such example is the investment of approximate US$100 million in a technology complex in the city of Itabira (Minas Gerais), where Vale was founded more than 70 years ago.


Business Strategy

Vale also presented the guidelines for its business units. The goal of the Iron Ore area is still to improve the flight to quality. Vale also plans to stabilize production, reaching again the volume and costs achieved in 2018.

The guidance for iron ore production in 2020 is expected to fall between 345 and 360 million metric tons, and the forecast is to reach 390 to 400 million metric tons by 2022

In the Base Metals area, we have already reached a self-sustainable business level, and the perspectives for the future are quite positive. 

ESG

Vale launched this week a web portal whose goal is to promote transparency of its actions in the areas of Environment, Social and Governance (ESG). Using the portal, the company will disclose its progress and gaps through direct and accessible communication. As a means to meet the growing demand for a structured source of information about the company, the web portal offers several topics of interest for investors, rating agencies and shareholders whose investments are dependent on transparency.

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Vale Presents Its Strategy for Safe Growth in the Next Few Years