Vale Launches Development Plan for Impacted Territories

About Vale

9/24/2019

Vale Launches Development Plan for Impacted Territories

Vale is developing a set of integrated actions for the communities of Macacos (Nova Lima), Barão de Cocais, and Itabirito. With a total investment of R$190 million, the Development Plan for Impacted Territories has been prepared in accordance with the economic and social profile of each of these locations. It aims to develop the economic vocation of the regions as well as to promote the social well-being after changes on the emergency levels of B3/B4, Sul Superior, and Forquilhas dams.

Investments will be directed to the areas of tourism, infrastructure, education, health, environment, and professional qualification. Construction and refurbishment of public facilities, cleaning and dredging of watercourses, construction of schools, as well as improvement of social and health programs are some of the actions to be carried out.

The planning was developed based on the demands, needs, and vocation of each of the impacted locations. The set of initiatives is being defined based on the permanent dialogue with the involved communities and municipal authorities. 


Macacos

In Macacos, the actions are intended to promote local tourism as well as to reduce impacts on the routine of residents. In 2020, Vale will deploy a comprehensive Urbanization Plan for the central area, adding even more value to the tourism infrastructure. Investments in public goods, such as the restoration of São Sebastião das Águas Claras church (built in 1718), public parking, and road recovery, are already planned.

Another action is the economic diversification, with planned provisions of R$1.5 million for the Municipal Tourism Fund (FUMTUR, Fundo Municipal de Turismo). The goal is to provide workforce training programs that can enable productivity gains and service development.


Barão de Cocais

The plan for Barão de Cocais includes cleaning and dredging of watercourses to reduce risk of flooding in the city, improvements of urban infrastructure, development of professional training programs, and improvements of the Municipal Primary Care Program. Investments in sports projects and teacher qualification are also planned.

The purpose, defined in agreement with the impacted communities and public authorities, is to promote a quality improvement of the urban infrastructure in Barão de Cocais, as well as to contribute to the growth of tourist interest through the promotion of events and attractions, such as festivals and local natural attractions. It is noteworthy that the city is part of Caminho dos Diamantes, one of the routes of Estrada Real (a road that goes from Ouro Preto to Diamantina) and Circuito Entre Serras, a bike touring route in the central region of the state. 


Itabirito

In Itabirito, the projects will be defined together with the community and the newly elected municipal administration. Refurbishment of public goods and equipment, such as the Rehabilitation Specialty Center, the Association of Parents and Friends of Down Syndrome People (APAE, Associação de Pais e Amigos dos Excepcionais), and churches of Bação and Engenheiro Correia; improvement of tour itineraries; construction of outdoor gym center; and projects for professional qualification of the local workforce, promoting local businesses and generation of income, are some of the planned actions already identified. 


Overview of the Company's Performance in the Locations

To offset the evacuated communities in Barão de Cocais, Macacos and Itabirito, Vale has taken several actions and programs, always focusing on caring for families and improving the living conditions of affected populations.

In these communities, Vale provides all necessary assistance to families – 333 families (196 in Barão de Cocais, 125 in Macacos, and 12 in Itabirito) are living in houses rented by the company, regional hotels and inns, or houses of friends and relatives, as chosen by those affected.

In addition, Vale has made multidisciplinary teams of psychologists, social assistants, and physicians available to these communities. This assistance aims to ensure, for example, access to medicines and special food for those people in need. Vale will continue supporting this population until the situation stabilizes.

Since January 25, Vale has provided a direct channel to meet the demands of the communities – 0800 031 0831.

In a process established by Vale and the Public Defender's Office of Minas Gerais, people who feel affected can already negotiate indemnities individually. To do so, they must go to one of the offices in the region, accompanied by lawyers. Another option is to contact the Public Defender's Office directly, which will help to move forward with the case. 


Safety for Communities

In order to protect communities and reduce impact on the environment, Vale is carrying out three containment works at areas downstream of Sul Superior, B3/B4, and Forquilhas dams. The construction works are expected to be complete by early 2020, and the project includes de-characterization of nine dams, amounting to R$7.1 billion, as announced in Vale's first quarter balance sheet, in May.

The containment structures will be able to retain tailings from dams in the case of an extreme breach scenario. Due to the emergency nature, the construction works were previously communicated to the State Department of Environment and Sustainable Development (Semad, Secretaria de Estado de Meio Ambiente e Desenvolvimento Sustentável) and, within 90 days after notice, the documentation and respective studies will be submitted as provided for in Article 8 of Semad/IEF Joint Resolution No. 1905, from 2013.

To carry out these three projects, Vale is creating access to these areas for the construction sites. The aim of this access is to prevent truck traffic within the surrounding communities, reducing the inconvenience caused to residents during the construction works. The containment works can be decommissioned; that is, after completion of the dam de-characterization plan, containment structures can be removed. And the areas, in which vegetation was removed, will be recovered.


Vale Launches Development Plan for Impacted Territories