About Vale

11/25/2021

Vale Day 2021: Vale presents advances in reparation and strategies for sustainable mining


On Monday (11/29/2021), Vale presented its prospects for the coming years, at a meeting with investors, in New York, which was broadcast live. The CEO, Eduardo Bartolomeo, opened the event by reinforcing that the Company's priority remains to repair Brumadinho quickly and fairly. The CEO also announced Vale's social ambition:

"Be a partnering company in the development of autonomous communities, engaged in issues relevant to humanity and committed to sustainable mining"

To achieve this goal, Vale defined three social goals for 2030: be among the three companies in the sector best positioned in social requirements according to the main external assessments in sustainable mining; remove 500,000 people out of extreme poverty; and collaborate with the indigenous communities neighboring all of Vale's operations in the preparation and execution of their plans in pursuit of the rights set out in the UN Declaration on the Rights of Indigenous Peoples. ​​​​​​​​​​​

Vale has a history of engagement and social support and a relevant role in the locations where it operates, but we want to do more. To do so, we consider our social ambition of being a partner that enables the development and autonomy of the communities with which we interact, based on the education-health-income tripod

Eduardo Bartolomeo, Vale’s President.

Eduardo Bartolomeo participated in the meeting along with some of Vale's Vice Presidents, including: Alexandre D'Ambrosio (Executive Vice President of Legal and Tax), Carlos Medeiros (Executive Vice President for Safety and Operational Excellence), Gustavo Pimenta (Executive Vice President of Finance and Investor Relations), Luciano Siani (Executive Vice President of Strategy and Business Transformation), Marcello Spinelli (Executive Vice President, Iron Ore ) and Mark Travers (Executive Vice President, Base Metals).

Check out the main points announced at Vale Day 2021:

Repair

In line with the commitment to social and environmental repair in the Brumadinho region, Vale signed an agreement, in February 2021, with the government and justice institutions, for full repair of the area affected. Check out some recent actions:

Indemnification Agreement

Almost 12,000 people have already been covered by individual agreements, with a total value equivalent to R$ 2.7 billion reais.

Water safety

New stage of the 11 km pipeline completed and a new water collection system from the Paraopeba River, which continues to be monitored permanently.

Infrastructure

Day care centers and family health units are among the social works for urban infrastructure delivered by Vale

Health

The health program was expanded from 11 to 15 cities and professionals were trained to provide care.

People

Vale anticipated in five years, to 2025, the goal of reaching a 26% representation of women in the workforce. Currently, the percentage of women at Vale is 18.7% against 13.5% in 2019, when the Company established the target for women within a global diversity strategy. Vale announced that it intends to reach 40% of black employees in leadership roles in Brazil by 2026, against 29%, a number registered after carrying out a self-declared census of employees in Brazil.

Security

Investing in the best international safety standards, Vale continued with a de-characterization program for its upstream dams. Since 2019, 7 upstream dams have been eliminated and, by 2035, another 23 will undergo the same process.

In addition to the dams, other processes to increase employee safety have been carried out and the Total Recordable Injury Frequency Rate (TRIFR) dropped 35% from 2018 to 2021.

New Pact with Society

To achieve its social ambition, Vale defined three social goals for 2030:

  • be ranked among the top three companies in the sector in terms of social requirements according to the main external assessments in sustainable mining;
  • remove 500,000 people out of extreme poverty;
  • collaborate with indigenous communities neighboring all of Vale's operations in the preparation and execution of their plans in pursuit of the rights provided for in the UN Declaration on the Rights of Indigenous Peoples
Net Zero

Seeking carbon neutrality by 2050, Vale aims at reducing scope 1 and 2 emissions by 33% by 2030. In addition, by 2025 all energy used in Brazil will be renewable, a goal that will be achieved globally in 2050.

In the forestry area, +120,000 ha of forests will be protected by the end of 2021, totaling 1.1 million ha, 80% of which in the Amazon. By 2030, the goal is to protect and recover +500,000 ha, reaching 1.5 million.

Regarding Scope 3 emissions, important advances were made, through partnerships and engagement with customers and suppliers, steps were taken to decarbonize the steel industry and reduce emissions in navigation.

Iron Ore

In line with the strategic pillar of Maximizing flight-to-quality in Iron Ore, Vale has invested in new ways of operating, reducing its dependence on tailings dams, through the development of dry processing solutions, developing concentration solutions dry cleaning, tailings filtration and disposal of sandy tailings with a co-product.

From 2019 to 2021, US$ 1.2 billion was invested in filtration plants and disposal piles, and between 2022 and 2025, an additional US$ 1.3 billion will be earmarked for this purpose.

Vale will reach 400 Mtpy of capacity in the medium term with its new way of operating. In 2022, the main deliveries included the start-up of the tailings filtration plants in Brucutu/Itabira, the start-up of the Gelado and S11D 100 Mtpa projects and the start-up of the Torto dam. The value over volume approach will continue to define the production and sales strategy.

In order to improve Vale's portfolio, the Company seeks to develop solutions for the decarbonization of the steel industry, through increased production of high quality ores, dry concentration to increase the percentage of iron, leadership in the production of iron and steel products. direct cargo (pellets and green briquette) and asset-light solutions through partnerships.

Highlights, the green briquette, launched in September 2021, is an innovative, environmentally friendly solution that has been developed over 18 years and has been patented in 47 countries. The solution is applicable to the BF-BOF route, being able to reduce CO2 emissions by more than 10% when the sintering stage is replaced, and the direct reduction route, with the capacity to offer volumes for a growing demand.

Base Metals

With regard to Base Metals, we had many challenges in 2021. Among them, a comprehensive review focused on safety of operational processes, resulting in a profound reassessment of standards, procedures, training and supervision of maintenance activities, critical maintenance activities at the Sossego mill and the Onça Puma furnace and 2 months of interruption of the work in Sudbury, as well as delays in scheduled maintenance due to the stop in Sudbury.

For 2022, there are important milestones towards performance recovery. To deliver copper production, we need to stabilize production from the North Atlantic mines, improve handling at the Salobo mine and carry out planned maintenance at the Sossego mill.

In nickel production, we need to stabilize the production of the North Atlantic mines as well, ramp up new projects (VBME - Voisey's Bay Mine Extension and CCM1 - Copper Cliff Mine 1), stabilize the Onça Puma operation and carry out the renovation of the PTVI furnace.

Vale continues to advance in the delivery of the Salobo 3 project in Carajás and remains committed to the development of new growth projects in the region, such as the Alemão project which, once implemented, should add a production of approximately 60 kt of copper per year.

In Indonesia, we completed the evaluation of alternatives for the pre-feasibility study of the Hu’u project. We currently estimate the Onto deposit to contain 17.4 Mt of copper and 32 Moz of gold in resources (equivalent to a ~15% increase in contained copper since February 2020).

The project's estimated copper production is 300-350 ktpa during peak production, with an expected service life of more than 45 years. The pre-feasibility study must be completed in 2024.

In the North Atlantic, Vale is well-positioned in the North Atlantic electric vehicle market, among the novelties is an agreement signed with OEM “Original Equipment Manufacturer” to sell 5% of Class I nickel to North America with a target of reaching between 30-40% Ni for the electric vehicle industry.

Download and replay​

Watch the replay of the webcast and download the presentation

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Vale Day 2021: Vale presents advances in reparation and strategies for sustainable mining