Mining in indigenous land
Brazil
Vale understands that mining in Indigenous Land
may only take place with the Free, Prior and
Informed Consent (FPIC) from the indigenous people themselves, and
in light of a regulatory framework that contemplates the
participation and autonomy of indigenous people.
Vale does not currently carry out any mineral research or mining
activities in Indigenous Lands in Brazil, whether mining titles or
legal expectations. Furthermore, Vale's production plan does not
consider mineral resources or mineral reserves in Indigenous Lands
in Brazil and, for this reason, the new Bill 191/2020, if approved,
will not impact its business.
Nowadays, Vale develops activities in traditional lands in
countries where there are regulations in force, such as Voisey's
Bay in Canada, always with strict observance of the principles
mentioned above, with emphasis on Free, Prior and Informed Consent
(FPIC).
Last updated on April 2021.
Mining rights in indigenous land
Brazil
Vale
decided to relinquish its mineral rights in Indigenous Lands in
Brazil, which includes applications for exploration permits and mining
concessions. The company is taking the appropriate actions with the
ANM (National Mining Agency) to comply with the necessary
procedures.
Last updated on September 2021.
Human rights
Pico Mine, Brazil
In February 2015, Ouro Verde Locações e Serviços S.A., which provided
transportation services for finished products between Pico and Fábrica
mines to Vale S.A., had their workplaces, both owned by Vale, inspected
by Ministry of Labor and Employment, currently the Ministry of Economy.
After said inspection, the Ministry of Labor pointed out the non-
compliance with several labor obligations related to the conditions of
the locker room, cleaning, access to water, working hours, among others.
Upon learning of the notifications, Vale followed all corrective
measures and subsequently terminated the contract with the transport
company. It so happens that, adopting an extensive interpretation of the
legislation, the Ministry of Labor and Employment considered that the
outsourcing of the transport activity was illegal, under the argument
that it would be considered among the main activities of the contracting
company and, therefore, the employees of the carrier company should be
considered Vale's employees. It is important to highlight that the
service provider's employees were never deprived of the right to
come and go, were properly registered and received transportation to and
from their homes, in conditions superior to those provided by public
transport, had their work cards signed, they did not have their
documents withheld, nor indebtedness to the company; being certain that
they were not kept in degrading conditions analogous to slave labor. Due
to the extensive interpretation of the legislation, adopted by the
Ministry of Labor and Employment, Vale was assessed for alleged
irregularities committed by Ouro Verde, including the illegality of
outsourcing and maintaining employees in conditions similar to slave
labor. As the assessments did not match the reality of the work of those
service providers, the company presented defenses and administrative
appeals.
Since 2016, Vale has reinforced the work of internal groups for the
identification and realization of continuous improvements in facilities
and workplaces, and the improvements and their results have been
monitored in meetings of leaders in the areas. In addition, the contract
management area reinforced inspections on contracted service providers
to verify compliance with labor criteria. These actions are in line with
Vale's position of repudiation of any and all forms of disrespect
for human rights and unworthy working conditions; and aim to avoid, and
ensure, that cases like Ouro Verde do not reoccur.
Also in 2016, Vale filed annulment actions against the infraction
notices that addressed the (i) illegality of outsourcing and (ii) the
maintenance of employees in conditions similar to slavery.
Firstly, it obtained an injunction to suspend the effects of the
assessments until the final decision in the judicial decisions handed
down in the records of the proposed annulment actions. In December/2018,
the 6th Panel of the Regional Labor Court of MG accepted Vale's
appeal, to annul the tax assessment notice on illegal outsourcing and
recognize the validity of hiring transport services. Since outsourcing
is lawful, there is no longer any basis for drawing up the tax
assessment notice due to a degrading work condition against Vale, given
that it was recognized that the workers were not Vale employees.
However, despite the fact that the employment relationship between Vale
and the employees of Ouro Verde Locações e Serviços S/A was removed,
this fact had given rise to Vale's assessment of the degrading work
conditions, the 4th Panel of the Regional Court MG's Labor Court,
through a non- unanimous decision, maintained the tax assessment notice.
Vale is taking the appropriate legal measures to reform it, given that
it is inconsistent with the decision issued by the 6th Panel of the same
court.
Last updated on July 2020.
Indigenous Peoples
Carajás Railroad, Brazil
The Carajás’ Railway (EFC) is 892 km long, connecting the largest
open-pit iron ore mine in the world, in Carajás, in southeastern Pará,
to the Port of Ponta da Madeira, in São Luís (MA). Through its tracks,
200 million tons of cargo and 350 thousand passengers are transported
per year, representing the main means of transporting passengers and
fuel between the states of Pará and Maranhão. Inaugurated in the 1980s,
the Estrada de Ferro Carajás leads the ranking of the most efficient
railroads in Brazil thanks to constant investment in technology.
In the states of Maranhão and Pará, the railroad passes in the vicinity
of different traditional communities. They are indigenous peoples,
quilombolas and coconut breakers. These populations are recognized for
their unique relationship with the territory, which involves not only
physical and socioeconomic aspects, but also cultural and spiritual
ones.
Vale acts with respect for the rights of these populations, managing
risks and impacts of its operations and proposing actions, in a
participatory manner.
Since the 1980s, as part of the construction of the Carajás Railway,
Vale has maintained a relationship with these populations, which is
carried out by dedicated professionals, with indigenous training and
experience, in the public, private and academic sectors.
Indigenous People
Vale signed agreements with the Awá, Guajajara and Ka´apor indigenous
peoples of the Caru, Rio Pindaré, Awá and Alto Turiaçu indigenous
peoples, which have an interface with the EFC's area of influence in
the state of Maranhão. These agreements support actions on territorial
protection, preservation and conservation of natural resources, economic
sustainability, income generation, cultural and institutional
strengthening, productive activities and others that contribute to the
ethnodevelopment of these communities. Fundação Nacional do Índio, a
governmental entity responsible for the protection of the rights of
indigenous peoples, and which appears as an intervening party in the
different instruments entered into, participated in the development and
monitoring of these agreements.
Among the actions carried out by Vale, on a voluntary basis, was support
provided for the construction and supply of equipment for 03 (three)
Basic Health Units, in partnership with the Special Indigenous Sanitary
District (DSEI) of Maranhão and BNDES - Banco Nacional do
Desenvolvimento (“BNDES”). The units were installed in two villages of
the Awá people and a village of the Guajajara people, located in the
Indigenous Territory Caru in the state of Maranhão.
The specificities of indigenous peoples are respected throughout the
expansion process of the Carajás Railway (EFC) in accordance with
Brazilian legislation, international principles, and Vale's internal
policies. The works for the expansion of the EFC started only after the
conclusion and approval of the Indigenous Component Study (ECI – Estudo
do Componente Indígena in Portuguese) - carried out with the direct
participation of indigenous peoples, external consultancy and through
FUNAI, a complementary part of the environmental licensing process for
the project expansion, conducted by IBAMA.
The Specific Studies (ECI) were conducted by independent consultancy
with the participation of the indigenous peoples and addressed important
adjustments to the original project, including the non-installation of
construction sites with employee housing in stretches close to these
communities, and the hiring indigenous workers to operate in these same
stretches, thus reducing the impact in these locations.
As expected, the Basic Environmental Plan for Indigenous Component (PBA
CI) is still being implemented for the Awá and Guajajara Indigenous
Peoples.
In another stretch of the EFC, in the state of Pará, in the municipality
of Bom Jesus do Tocantins, Vale has been in contact with the Parkatêjê,
Kyikatêjê and Akrãtikatêjê Indigenous People, from the Mãe Maria
Indigenous Land, since the 1980s.
Over the years, different forms of partnership and support for
indigenous people have been formalized, including actions in the areas
of health, education, productive activities, protection, and
surveillance.
Vale has always valued the respect for these populations and
keeping a permanent relationship and dialogue. In this context, it
supported the elaboration of the Life Plan of the indigenous people of
the Mãe Maria Indigenous Land, with a participatory methodology that
promoted reflection and discussion on strategies to be adopted in order
to guarantee the quality of life of these peoples and guide ongoing
projects and activities.
As part of the environmental licensing process for the duplication works
of the Carajás Railway, the Basic Environmental Plan for the Indigenous
Component (PBA CI) is being prepared, which is conducted with the
support of specialized consultancy and previously approved by the
indigenous peoples. The PBA aims to propose programs to mitigate the
impacts of the duplication of the EFC, in the stretch that borders
the Indigenous Land. Among the programs foreseen in the PBA, we
highlight those of productive activities, cultural strengthening,
strengthening of indigenous organizations, territorial protection,
environmental and territorial management, among others.
In the same way that the indigenous people approve the processes related
to environmental licensing, they also authorize all Vale activities that
may impact them. This occurs in line with the Company
commitments laid out in its Global Human Rights Policy, which
is aligned with the main international requirements related to
indigenous rights - such as FPIC (Free Prior and Informed Consent).
Quilombola Communities
With the quilombola communities of Maranhão, the Quilombola Component
Study (ECQ) was prepared in a participatory manner and with the
monitoring of the competent governmental authorities, which included the
territorial, socioeconomic, and cultural characterization of the
communities located at a distance of up to 1km from the EFC. The studies
made it possible to identify and assess the potential impacts of the
railway duplication works and to propose the Basic Environmental Plan
Quilombola Component (PBACQ) to mitigate the potential impacts of these
works.
These programs involve a set of territorial protection and management
actions, communication, environmental education, cultural and
institutional strengthening. Committees were established according to the social organization and
policies of these communities, which plan the execution, monitor and
evaluate the actions developed, considering the objectives, expected
results and related indicators of each program. The PBACQ was
developed and is being carried out in a participatory manner,
guaranteeing the listening of quilombola communities and the
possibilities of monitoring actions, evaluating their results and
planning activities for each year of work.
Despite pending the authorization to carry out the PBACQ in 07 of the
15 quilombola communities with which we have a relationship, due to
questionings from the DPU (Federal Public Defender Office) within the
scope of the EFC licensing process, Vale remains engaged with them.
Several projects were implemented, including support for productive
activities, cultural heritage, health and infrastructure, such as
installation of a water supply system, fish farming projects,
agro-industries and agro-ecological programs. Vale reiterates its
commitment to comply with the determinations in the environmental
legislation and requested the release of the seven communities
so that it can also carry out the actions provided for in the PBACQ.
The company awaits the response of the competent bodies.
The respect for the way of life of Indigenous Peoples and Traditional
Communities is guided by Vale's Global Human Rights Policy. The
Policy is aligned with the main international standards related to the
theme and guides the work of the professionals responsible for the
relationship with these populations. Vale believes in supporting
ethno-development and in respectful, mutually beneficial, and
long-term relationships.
Last updated on April 2021.
Indigenous Peoples
Onça Puma Nickel Mine, Brazil
It is important to emphasize that Vale does not carry out mineral
research or mining activities of any kind on indigenous lands in
Brazil and strictly respects the current legislation. The company reinforces that it respects the FPIC (Free, Prior, and
Informed Consent) principle with indigenous communities. Vale further
declares that mineral resources or mineral reserves in indigenous lands
in Brazil are not being considered in its current production plan.
The Vale’s relationship with Indigenous Peoples and Traditional
Communities is guided by Vale’s Global Human Rights Policy, which is
aligned with the main international references related to the theme,
such as the UN Guiding Principles on Business and Human Rights, the
Equator Principles, the Position of the International Mining and Metals
Council on Mining and Indigenous Peoples, Convention No. 169 of the
International Labor Organization, the UN Global Compact, the Global
Reporting Initiative, IFC Performance Standard No. 07, and the United
Nations Declaration on the Rights of Indigenous Peoples, as well as the
laws provided for in the countries where Vale operates. Access
here to learn more about our commitment, management, goals.
Regarding Vale’s performance in the Carajás mosaic, it is important to
clarify that Vale has been in the Amazon for more than 30 years, helping
to protect, in partnership with the Chico Mendes Institute for
Biodiversity Conservation (ICMBio), about 800 thousand hectares of
forest, an area equivalent to five times the city of São Paulo, which
represents a stock of 490 million tons of carbon equivalent and the
largest area of continuous forest in the south and southeast regions of
Pará. This benefits the Xikrin do Cateté Indigenous Land, which remains
free from mining and illegal loggers, in addition to having Vale’s
support for fighting fires.
The importance of the partnership with ICMBio can be seen in a timeline
that demonstrates the evolution of land use and occupation and shows
that the landscape of forested areas in the region is restricted to the
conservation units in which Vale works together with the environmental
organ and the Xikrin do Cateté Indigenous Land. See this timeline
and more information
here.
The relationship with the Xikrin do Cateté People dates back to the
1980s, having Vale contributed to this community through improvements to
their homes, access to drinking water, healthcare (where they have the
same healthcare plan as Vale employees) ), mobility, memory protection,
etc. through voluntary agreements, while recording the collaboration
with the quality of life of the indigenous people. In these more than 30
years, the population of the Xikrin do Cateté Indigenous Land has almost
quadrupled, from just over 300 individuals, at the time of the beginning
of the relationship, to approximately 1100 individuals, according to
information obtained by Vale.
Despite the relationship of more than 30 years with the indigenous
peoples and the environmental actions described above, Associations
representing the Indigenous Peoples of the Xikrin do Cateté, and Kayapó
and some Brazilian public authorities allege a negative impact on the
health of communities close to the nickel mines of Onça Puma. These
associations also claim that the plant residues polluted the
Cateté River with heavy metals.
In September 2017, the 5th Panel of the Federal Court of the 1st Region
ordered the suspension of extraction activities in the mines of Onça
Puma, under the condition for its operational resumption that Vale
prove the implementation of an economic and environmental
management project to compensate the indigenous communities affected by
the Vale appealed the decision. The Federal Court of Redenção
ordered a Court expert investigation in 9 scientific matters, with
a focus on limnology, biology, geology, and metallurgy. The judicial
experts were nominated by the judge and agreed upon by Vale, the Federal
Public Prosecutor’s Office, and the indigenous people. The result of the
analyzes in seven of the nine scientific subjects studied, pending the
analyzes in the subjects of anthropology and medicine (genetics),
demonstrated that there was no causation link between the Onça Puma
mining operation and the alleged contamination of the Cateté River.
Therefore, the enterprise is not the source and contamination of the
referred watercourse, thus ratifying the efficiency of the operation
control systems and the existing data in the reports periodically
submitted to the State Secretariat of Environment and Sustainability
(SEMAS) of the State of Pará - the competent environmental agency that
issues the licenses and inspects the mining enterprise.
It is worth noting that the Itacaiúnas Hydrographic Basin, which
encompasses the Cateté River, its streams and contributors, is located
in a geological region with a natural presence of metals, such as iron,
nickel, copper, among others, and therefore, such metals are inherent
characteristics to the region’s soil, occurring in volumes naturally
higher than those estimated in the parameters of the legislation. The
information recorded and confirmed in the Environmental Impact Study
(EIA) and Environmental Impact Report (RIMA), prepared in 2004 and
subsidized the project’s license. The preparation of such documents used
the monitoring data prior to the implementation of the project’s
activities, between 2003 and 2005. The systematic monitoring points of
the Onça Puma Operational Unit for surface water, located in the Cateté
River channel, were taken as quality reference, for the purpose of
comparison between possible interferences on the characteristics of the
waters, before and after the start of the enterprise implementation and
operation.. In addition, Vale has a systematic monitoring program for
the quality of surface water and effluents with a historical series from
2008 to the present day. It is important to highlight that the past data
and the historical monitoring series supported the background study
carried out through the statistical analysis of these results, formally
recognized by the environmental licensing agency.
In September 2019, the President of the Supreme Federal Court (STF), in
a monocratic decision, considering the information in the reports
prepared by the judicial experts, allowed for the resumption of
operations of the Onça Puma mine, until the final decision that analyzes
the merits of the judicial demand is reached,. In addition, it ordered
the release of judicial deposits to the indigenous peoples of the Xikrin
do Cateté and Kayapó Indigenous Lands and the maintenance of their
monthly payment. This application must fully comply with the obligations
assumed by the indigenous communities in the Adjustment Terms of Conduct
(TACs) concluded between these communities and the Federal Public
Prosecutor’s Office (MPF). In trial, the STF Plenary confirmed, by a
majority of votes, its president's monocratic decision in its
entirety.
At a conciliation hearing held within the scope of the Class Action
(ACP) pending before the Federal Civil Court of the Judicial Subsection
of Redenção (PA), on November 4, 2020, an agreement was signed between
Vale, Indigenous Peoples Xikrin do Cateté and Kayapó, and MPF, with
positive reactions from the Fundação Nacional do Índio (FUNAI) and the
State of Pará, also in the ACP. There was also the temporary suspension,
for a period of 1 year, of the Class Action procedural course, its
resources and developments, as well as other legal proceedings in which
the company and these peoples, jointly or separately, appear as parties,
to create a favorable and harmonious environment for the construction
through a joint and participatory manner of a more significant agreement
that may close all of these lawsuits.
Despite the above facts, Vale learned about the Monitoring Report of the
Cateté River of the Indigenous Land of the Xikrin do Cateté in June
2018, prepared by Prof. Dr. Reginaldo Saboia de Paiva, from the Federal
University of Pará (UFPA), who presents the results of the sampling
campaigns and chemical analyzes of monitoring points of the river that
crosses the Xikrin indigenous lands in the Carajás region. Vale also has
unofficial knowledge of the Partial Monitoring Report of the River of
the Cateté das Terras Indígenas dos Xikrins December 2019 to march 2020,
since Vale has not yet been summoned by the VCF-Redenção court to
comment on this document.
Although the effort undertaken by the Federal University of Pará,
through the Energy and Environment Minerals Treatment Group - GTEMA /
CNPQ, to develop research and work supported by the indigenous people,
essential aspects of the collection and testing processes must be
observed so that the results of the environment to be analyzed are the
most representative.
After careful analysis of the results, it appears that the evaluation of
the analytical results of the campaign carried out by Prof. Reginaldo
Saboia in 2020, was rendered unfeasible. The quality of the
results cannot be guaranteed, given the technical non-conformities
indicated in the sampling process, a fundamental step for guaranteeing
the quality of the results, in addition to the absence of accreditation
of analytical laboratory.
Besides that, it is important to reinforce that the allegations of
contamination of the Cateté River, as well as health problems caused by
impacts from the operation of the Onça Puma Mines, are unfounded, as
evidenced in the expert reports presented to the VCF-Redenção court.
Vale remains adherent to its commitment to ensuring efficient management
of the environmental control systems of the Onça Puma operation. It is
also imbued to strengthen its relationship with the Xikrin People of
Cateté, supporting the implementation of productive and cultural
projects, as well as actions in the health area, which include measures
to support the combat of the Covid-19 pandemic, among other initiatives
aimed at improving the quality of life of this community.
It also reiterates its respect for indigenous peoples and its total
willingness to resolve this controversy with the Xikrin People of
Cateté.
Last updated on April 2021.
Dust Emissions
State of Espírito Santo, Brazil
Tubarão Port, in the municipality of Vitória, Espírito Santo, is an iron
ore port and a coal dock, which imports coal and exports iron ore from
the Minas Gerais Iron Quadrangle, as well as steel to
ArcelorMittal's operations in Brazil. A police investigation
conducted in January 2014 revealed that Vale's operations at the
Tubarão Port had resulted in the release of dust in its surrounding
bodies of water and air.
The municipal government of Vitória subsequently penalized Vale and
ArcelorMittal with US$ 8.35 million each, as well as demanding that both
companies repair any damage resulting from the dust release. The
companies appealed the fine.
In May 2018, Vale and ArcelorMittal received a study made by the São
Paulo State Environmental Company of São Paulo (Cetesb) containing over
190 targets to reduce pollution based on an agreement signed by the
companies and the local regulators until 2023.
Vale operates and continually invests in environmental control systems.
The entire productive system of the Tubarão Complex - from the arrival
of the ore to the shipment - has the latest environmental control
technology. By 2023, Vale will have invested approximately R$ 1 billion
in environmental control measures in its operations at the Tubarão
Complex, adding the amounts invested in recent years.
With regard to health, Vale informs that it monitors the health effects
of its employees related to the exposure to the iron ore present in the
workplace environment. It emphasizes that there are no records of
current employees, or retirees, with health problems, or who have been
removed from work, due to exposure to iron ore at the Tubarão Complex.
It is noteworthy that, according to a Social Security report, there have
been no records of respiratory diseases related to the exposure to iron
ore in Vale employees in Brazil.
Last updated on March 2021.
Samarco
Fundão Dam, Mariana, Brazil
The mining tailings dam of Fundão, owned by Samarco Mineração S.A., collapsed in November 2015 in the Bento Rodrigues sub-district, 35 km from the center of the Brazilian municipality of Mariana, Minas Gerais.
Vale and BHP Billiton each hold 50% of Samarco mining company’s shares. As a shareholder, Vale has always emphasized the importance of implementing policies and standards in line with its own and has supported Samarco in its efforts to recover the damage caused by the Fundão Dam breach in the State of Minas Gerais.
From the first day of the breach, Vale and its employees committed to responding to the emergency and, shortly thereafter, to the remediation of human rights and environmental recovery.
After the signing of a Conduct Adjustment Transaction Term (TTAC) between Samarco, Vale and BHP Billiton, with the Federal Government and the governments of the States of Minas Gerais and Espírito Santo and their autarchies, the Renova Foundation, an institution responsible for conducting the repair, restoration and socio-economic and socio-environmental recovery programs in the areas impacted by the Fundão dam failure, was created. This term was later ammended by the Conduct Adjustment Term, TAC -Governance.
It is important to note that the TTAC instituted the Interfederative Committee (CIF), a collegiate system that brings together representatives of public bodies and society, led by Ibama and the Ministry of the Environment, which works as an independent entity, external from the Renova Foundation, with the function of guiding, monitoring and supervising the execution of the remediation measures provided for in the TTAC. The CIF also has eleven Technical Chambers, which are consultative bodies, created to assist it, in specific matters, for the performance of its purpose.
By establishing an organization dedicated exclusively to the reparation process, such as Renova Foundation, a robust governance model was also created, with the participation of dozens of entities. Since June 2018, with the signing of the TAC Governança, the Renova Foundation, its sponsors - Samarco, Vale and BHP Billiton - and the ministries and public defenders at the federal level and in the states of Minas Gerais and Espírito Santo, there has been an increase in participation of the affected people in the decision-making processes of reparation, improving the model of collective construction of solutions, and giving the affected communities the opportunity, with the right to vote, to participate effectively in decisions on the reparation process.
TAC Governança established the creation of regional chambers and local commissions, which are being organized to represent the affected communities. Representatives of these chambers and commissions are part of the Interfederative Committee, the Board of Trustees and the Advisory Board of the Renova Foundation. Since the creation of the Renova Foundation, its activities have been monitored by the Public Ministry of Foundations of Minas Gerais, which oversees the fulfillment of the objectives and the functioning of this model of reparation, hitherto unprecedented in Brazil.
Internally, the Foundation's Board of Trustees is empowered to approve the plans, programs and projects proposed by the Executive Board of the Renova Foundation, in accordance with its bylaws, which were also approved by the Public Ministry. The Advisory Board, with positions for the participation of representatives of the affected communities, basin committees, Ibama and academic institutions, has the ability to represent society within the Renova Foundation, and its role is to give an opinion on plans, programs and projects, in addition to indicating solution proposals for damage caused by the dam failure. Internal governance also has a Fiscal Council, Independent Audit, and Compliance and independent Ombudsman areas. Vale, observing the governance structure created, has always supported Samarco and Fundação Renova in all necessary areas and has been guaranteeing funding and the implementation of more than 40 programs that were established in the agreement with the federal and state governments, together with the mining company BHP Billiton.
Vale also implemented an area dedicated to geotechnics, with the purpose of evaluating and improving the company’s dam management processes, with action plans and goals. The company also revised its emergency plans, including clarifications on evacuation and mobilizing the surrounding community on how to act in the event of an accident. All remediation and recovery actions taken by Samarco and, now, by the Renova Foundation are in line with national and international standards and best practices, in addition to the National and State Dam Safety Policy.
More information about the reparation process conducted by the Renova Foundation may be accessed on the webpage: https://www.fundacaorenova.org/.
Last updated on December 2021.
Belo Monte
Pará, Brazil
In June 2011, Vale became a shareholder of Norte Energia S.A. (Norte Energia), holding company of the Belo Monte Hydroelectric Power Plant (HPP), by acquiring a 9% stake. At that time, the concession contract had already been signed with the Brazilian authorities. In March 2015, Vale sold 49% of its stake in Norte Energia to CEMIG. Currently, Vale holds an indirect stake of 4.59% in Norte Energia's capital.
Since the auction notice for the Hydroelectric Power Plant in Belo Monte, launched in 2009, the project has been intensely debated by society. The current configuration of the enterprise reduced the area that would have been flooded by 58% of the original proposal to avoid affecting indigenous lands.
The use of approximately 100 km of unevenness of Volta Grande do Xingu was then widely studied and debated, resulting in the Water Availability Reserve Declaration - National Water Agency (ANA - Agência Nacional das Águas, in Portuguese) Resolution no. 740, of 10/06/2009 and in conditions of the Preliminary License (LP) IBAMA (Portuguese acronym for Brazilian Institute for the Environment and Renewable Natural Resources) no. 342/2010, of 02/01/2010, which dictates the rules relating to the hydrogram and navigability, with emphasis on the test period of 06 (six) years after installation of the full generation capacity of the Main Powerhouse is completed, which occurred in November 2019.
There is a robust monitoring plan, with identification of the resulting impacts, which has been implemented, configured by the Integrated Management Plan of Volta Grande do Xingu, consolidated in 2011 when the Basic Environmental Project – PBA was presented, then composed of 05 (five) subprograms such as the Navigability and Living Conditions Monitoring Program, in addition to the Aquatic and Terrestrial Ecosystem Conservation Plans and the Water Resources Management Plan.
The Social monitoring forum of the Belo Monte HPP (FASBM, Fórum de Acompanhamento Social da Usina Hidrelética de Belo Monte, in Portuguese) was implemented in 2011 as well, with a joint board formed by various local and regional stakeholders, with periodic meetings. According to information provided by Norte Energia, meetings, participative workshops, or technical visits are held with representatives from the communities, where civil society, local municipalities, IBAMA, and other interested parties participate. By 2020, 29 (twenty-nine) FASBM meetings had been held, which also has other participatory instances, the thematic commissions, with 174 (one hundred and seventy-four) meetings having been held of specific thematic commissions and committees, totaling 4,949 participations, among them Volta Grande do Xingu commission – CVGX (Comissão da Volta Grande do Xingu, in Portuguese) and Fisheries and aquaculture commission – CPA (Comissão da Pesca e Aquicultura).
The Belo Monte HPP meets all the requirements of the Environmental Licensing process, through the Environmental Impact Study (EIA/RIMA), one of the most complex and extensive in Brazil, with teams from IBAMA dedicated to analyzing the documents, participating in meetings in the region and in regular inspections. By 2020, 17 (seventeen) consolidated reports on the execution of environmental programs were presented, which were widely presented and debated in technical seminars, inspections and meetings with environmental agencies and the local population, through FASBM commissions, as well as other specific participatory initiatives for execution of the PBA.
The Belo Monte HPP also complies with the requirements of the Equator Principles, and specifically Principle 9: Independent Monitoring and Reporting, Norte Energia has an Independent Social and Environmental Monitoring Report for the Belo Monte HPP Project, prepared regularly by JGP (Independent Socio-environmental Consultant - CSI).
In May 2021, Norte Energia presented its annual report for 2020 based on the guidelines of the Global Reporting Initiative - GRI, in compliance with a rigorous process of mapping material issues and organizing information.
Therefore, given the strict environmental licensing process, extensive monitoring, development of constant participatory processes and independent monitoring, it is demonstrated that all socio-environmental measures have been observed, and the foreseen and generated impacts have been mitigated, compensated and monitored as well, in compliance with legal requirements and those agreed upon with society.
Since 2013, quarterly reports have been presented for analysis by an independent socio-environmental auditing company, which investigates the venture's socio-environmental regularity, among other aspects, in compliance with the contractual obligation assumed in the BNDES (Portuguese acronym for the Brazilian National Bank for Economic and Social Development) Financing Agreement (Clause 13, Item i, subitems "a" and “b”).
Last updated on December 2021.
Corruption
Republic of Guinea
Considered to be one of the best unexploited iron ore deposits in
the world, Simandou was acquired by Vale in April 2010 as part of a
joint venture with BSG Resources Limited (“BSGR”). At the time,
the project was announced as a major impetus for the company’s faster
growth in iron ore production.
Prior to entering into the joint venture with BSGR, Vale conducted a
thorough and in-depth due diligence, with support from internationally
renowned companies and law firms, to understand how BSGR obtained its
mining concessions and to assure itself that BSGR had not engaged in any
corruption activities in that regard. BSGR repeatedly attested and
assured Vale that BSGR had lawfully obtained its mining rights in Guinea
and followed proper procedures in obtaining its rights. Vale diligently
requested, prior to the formation of the joint venture, personal
anti-corruption declarations from representatives of BSGR, including Mr.
Benjamin Steinmetz, which were duly submitted.
Vale paid BSGR an initial purchase price of US$ 500 million, and
invested over US$ 700 million more in developing the mining concession,
principally in Zogota.
In October 2012, the new Guinean government began investigating the
manner in which BSGR obtained its rights.
At the same time, in 2013, investigations conducted by the U.S.
Department of Justice and the FBI resulted in the arrest of a BSGR
intermediate who had attempted to bribe the wife of Guinea's late
dictator to destroy evidence of his relationship with BSGR.
The new Guinea government's investigation concluded that BSGR had
obtained the rights to Simandou through corruption and bribery of
Guinean officials. In April 2014, the Guinean government revoked
the mining concessions after determining that BSGR had engaged in
bribery and corruption. The Guinean government explicitly
concluded that Vale had played no role in any of BSGR’s corrupt
activities. In March 2015, Vale transferred the interest of the
mining joint venture stake in Guinea back to the partner company
BSGR.
In April 2014, Vale instituted an arbitration against BSGR before the
London Court of International Arbitration (“LCIA”) seeking to recover
over US$ 1 billion in damages Vale suffered due to BSGR’s fraud in
inducing Vale through false statements and representations to invest in
the joint venture and develop mining rights in Guinea that, unknown to
Vale at the time, BSGR had obtained through bribery and
corruption. On April 4, 2019, an arbitral tribunal of the LCIA
issued an award against BSGR, awarding Vale more than US$ 1.2 billion in
damages (with interest, correction and expenses the value totals more
than US$ 2.0 billion). Vale promptly commenced proceedings to enforce
its award against BSGR in the High Court of Justice of England and the
United States District Court for the Southern District of New
York. The award was recognized in both the United Kingdom and the
United States in judgments that are final and not subject to
appeal.
On January 22, 2021 a Swiss Court convicted Beny Steinmetz on criminal
charges of bribery and forgery in connection with his company BSGR
procurement of valuable mining rights in Simandou. Two Steinmetz’s
associates were also found guilty, one was found guilty of bribery and
forgery and the other of bribery. The court sentenced Steinmetz to 5
years of imprisonment and ordered forfeiture of CHF 50 million. The
decision of the Swiss Court to hold Steinmetz personally accountable for
his corrupt acts follows the April 2019 award of the London Court of
International Arbitration, which found that BSGR defrauded Vale by
concealing its bribery and corruption from Vale in order to secure
Vale’s investment in Simandou and awarded Vale more than US$2 billion in
damages. That award was subsequently confirmed by courts in the United
States and England, the latter of which described BSGR’s appeal as
“hopeless”.
Vale continues to pursue collection from BSGR and Steinmetz personally,
including through litigation in the High Court in London, which has
entered a worldwide freezing order on the assets of Steinmetz, his
foundation and other defendants.
Vale is confident that the Brazilian authorities will likewise not be
misled by Steinmetz’s continued efforts to shift blame and attention
away from his corrupt acts.
Last updated on March 2021.
Leak
Sudbury, Canada
The Sudbury Basin in Canada contains one of the most important mining
fields in the world, producing hundreds of millions of tons of copper
and nickel per year. This location is also the center of Vale’s
operations in Ontario.
Two miners died at Vale's Stobie Mine in Sudbury, Ontario, Canada,
on June 8, 2011, after an uncontrolled emission of material (muck). Vale
was not criminally charged as a result of this incident, but received
charges under the Ontario Occupational Health and Safety Act, and
pleaded guilty to three counts.
Following Vale's internal investigation into this incident, an
action plan, including more than 40 recommendations, was implemented to
address the contributing factors and to improve the control measures to
protect the health and safety of its employees. These recommendations
included actions in the fields of water management, operational
controls, hazard identification and risk assessment, among others. These
actions and their recommendations are intended to prevent similar issues
in Vale operations.
Last updated on December 2019.
Leak
Copper Cliff, Canada
Vale’s mining operations in the Sudbury Basin include mines, a mill, a
smelter and a nickel refinery; collectively, these assets constitute one
of the largest integrated mining operations in the Americas.
During the planned maintenance period of Vale’s smelter complex at
Copper Cliff, in August 2015, as a result of the standard procedure for
washing and draining the acid plant, there was a release of nitrogen
oxide and nitrogen dioxide (NOx) mist during a standard procedure to
wash Vale’s Acid Plant and to drain it. At the time, a yellow plume was
visible above the Vale complex, but the levels that were registered
during the event were very low and dissipated.
Emergency measures were activated as a precaution and the emergency
siren was activated to notify residents from the region. The release was
contained and there were no injuries or impacts on production. Since
this event, the procedures to clean the acid plant have been adjusted to
prevent a similar incident from happening.
Last updated on December 2019.
Resettlements
Mozambique
Moatize
For the implementation of the Carvão Moatize Mine, whose operation began
in 2011, it was necessary to carry out a plan for the resettlement of
families residing in the areas concessioned to Vale. Following
international standards and governmental guidelines and decisions on the
subject, this plan began in 2006 and had broad community engagement and
formal approvals from different levels of government and traditional
leadership. The relocation was completed in 2010, with 1,365 families in
two resettlements distributed in areas provided by the local government
- in the locality of Cateme with rural characteristics, and in 25 de
Setembro, with urban characteristics, and 107 families distributed in
the village of Moatize on an assisted indemnity basis.
In May 2012, the international organization Human Rights Watch conducted
an assessment in Tete province, Mozambique, in the resettlements related
to mining activities, including Vale's coal operation. Based on
Human Rights Watch's findings and recommendations, Vale and the
Government of Mozambique signed a Memorandum of Understanding (MOU),
with a commitment to address these recommendations and other demands
from the communities.
Since then, Vale has been working continuously on improvements in
resettlements and is committed to the development of actions to support
families, together with several stakeholders, through the implementation
of a listening and response mechanism with these communities and other
stakeholders engagement through our Stakeholder Engagement Program
(PES), with the objective of reestablishing the living conditions of
these families and supporting local development by promoting sustainable
activities. Since 2012, about 80% of the actions agreed in the MOU have
been implemented, and in an assessment approved by the community and
local governments.
This agreement was made possible through a partnership between Vale,
local governments and the community and brought important improvements
to both resettlements, focusing on the following actions:
- Rehabilitation of the water supply systems.
-
Construction of paved access roads, bridges and revitalization of
roads.
- Expansion of access to public transport.
- Expansion of the electricity supply capacity.
- Training of teachers from primary and secondary schools.
-
Acquisition of ambulances, construction of a pregnant woman's
waiting room and a pharmacy at the Cateme Health Center.
-
Construction of a football stadium and market on 25
September.
-
Income Generation Programs in poultry, agriculture, training, goat
farming, among others.
Such investments have made Vale resettlements a center of attraction for
families willing to have access to public services more easily, such as
a health center, primary and secondary schools and a police station, in
addition to a water and energy network.
In the socioeconomic studies conducted by Vale in both resettlements,
improvements were detected in the following indicators:
-
Education: Increase in the population's level of education, with
higher levels of around 50% compared to the average of the other
neighborhoods in Moatize. The presence of a secondary school led to
the migration of families to Cateme.
-
Health: improved access to health services (distance traveled to the
nearest Health Center - average of 2.2 km for 100% of resettled
people, much higher than the average for other neighborhoods) and
greater access to specialties.
-
Sanitation: construction of improved latrines in 100% of residences in
both resettlements vs 30% of the average of the other neighborhoods in
Moatize. Construction of fountains, boreholes and water home
connection, to be connected by the families.
-
Energy: improvement of the access to the electricity network, to be
connected by the families.
Currently, Vale has made countless efforts to improve living conditions
in both resettlements, with the implementation of numerous integrated
projects aimed at the needs raised by the most different stakeholders,
namely:
-
Janitorial Project of Cateme and 25 de Setembro, with repair of house
pathologies, capacity building in civil construction and building
maintenance.
-
Issuance of titles for agricultural land and residences in Cateme and
25 de Setembro.
-
Rehabilitation and increase in the capacity of the Cateme water
system.
-
Expanded mobility with the subsidy for the purchase of bikes for all
resettled families, in addition to the purchase of buses for the
Cateme Moatize transport.
-
Income generation projects focused on poultry for 120 families and
agriculture for 712 families, with the purchase of part of the
production by the Vale workers' restaurant in Moatize.
-
Local labor absorption program, with training and creation of a
CV database connected to Vale and its suppliers.
-
Rehabilitation of several public infrastructures, such as primary and
secondary schools, police station and health center in Cateme.
-
Rehabilitation of roads, sidewalks and construction of bicycle
paths.
-
Construction of a Support Center for Victims of Domestic Violence in
Cateme.
-
Distribution of School Supplies - Primary and Secondary Schools - for
all schools in Moatize - about 17,000 students.
-
Girl Empowerment: Distribution of Hygienic Kits and Awareness
Workshops against School Evasion.
In view of the above, Vale demonstrates its commitment to increase
programs and projects to minimize the impacts of the expansion of the
activities of the Moatize Coal Mine.
Nacala Corridor
In 2010, as part of the undertaking and with the objective of connecting
the Moatize Coal Mine to the market to make the world-class business
viable, Vale revitalized 682 km of railways in the Nacala Corridor and
built new railway extensions totaling 230 km, crossing Malawi and reach
the deep-water sea port built by the company in Nacala-a-Velha, off the
coast of Mozambique.
The installation of the Nacala Corridor generated the need to carry out
the involuntary displacement of 15,500 families, mostly in impacts on
subsistence by agriculture and 1,600 removals of houses, which followed
the standards of the International Finance Corporation (IFC, Performance
Standard 5) for its execution, which has been assessed by an independent
social and environmental auditors (IESC) through several site visits and
desktop monitoring activities since 2017.
In addition to the public consultation and an extensive stakeholder
engagement program, the creation of a Livelihood Restoration Program in
Mozambique and Malawi stands out, with a focus on agriculture, fishing,
training/entrepreneurship, reaching around 80 % of impacted families.
In agriculture, considered one of the largest agriculture development
programs in Sub-Saharan Africa, we provide support in inputs and
technical assistance to about 12,000 Mozambican and Malawian families,
with a constant increase in productivity, access to markets and
identified success stories, as well as increased market access food
availability, thus guaranteeing food and nutritional security for
families and income generation in cash crops. In addition, to ensure the
resettlement of land for resettled families, the Nacala Corridor is
issuing agriculture land titles to resettled families in the form of
production blocks, thus facilitating technical assistance and marketing
on a scale by the producers.
The Fishing Program, developed for families indirectly impacted by the
construction and operation of the Nacala Port, currently benefits more
than 500 families, with the formation of fishermen's associations,
technical training, supply of equipment, income diversification and
inclusion of women in several economic activities through microcredit
and savings programs.
The Capacity Building Program serves hundreds of non-rural families
without access to agricultural land, training professionals in areas
focused on formal and self-employment, in addition to entrepreneur
support kits, containing important tools for the establishment of
individual or group businesses.
In terms of voluntary investment, the Nacala Corridor formalized an
agreement with the World Food Program to supply daily school meals to
28,000 primary school students in 03 districts covered by the railroad,
reducing school dropout rates for boys and girls and promoting
commercialization. agricultural products produced by the beneficiary
families of the livelihood restoration initiatives.
Last uptaded on May 2021.
Piquiá de Baixo
Maranhão State, Brazil
Regarding the community of Piquiá de Baixo, located in the Chemical
Industrial Park of Açailândia, in the state of Maranhão/Brazil, where
there are allegations of pollution caused by steel mills installed for
over 30 years, Vale informs that it does not have any steel mill
dedicated to the production of pig iron in Açailândia and participates
in the pig iron production chain in the locality, through the supply of
iron ore. Vale seeks to strictly comply with environmental standards,
controls and monitoring in all its operations.
Despite the impact generated by pig iron producers has no direct
relationship with Vale, the company is maintaining a permanent dialogue
with all stakeholders interested in the issue of Piquiá de Baixo and
acting through the Vale Foundation on the subject, in order to
contribute to a sustainable joint solution in favor of the community and
the territory that it belongs to.
Thus, Vale has carried out initiatives such as the elaboration of a
socioeconomic diagnosis of families located in the community and the
formalization of a partnership between the Vale Foundation and the
Piquiá Community Association with Banco Caixa Econômica Federal (CAIXA),
with the objective of promoting the construction of 312 houses destined
to community resettlement. This action was part of Vale Foundation Urban
Quality Seal Program, which aimed to support housing projects of social
interest, within the scope of the “Minha Casa, Minha Vida Program”, with
financial complementation per housing unit, as in the case discussed
here.
Due to the contingency of federal resources, the works of the “Minha
Casa, Minha Vida Program”, to which the construction of the new
neighborhood is linked, were impacted, leading the Vale Foundation to
mediate with CAIXA, the unlocking of the Foundation's resources and
respective release for the Association to continue the works. In
addition to this initiative, still in 2020, Vale contributed with R$ 315
thousand in favor of the Association for assistance in the maintenance
of the construction site during the shutdown imposed by the pandemic of
COVID-19.
As for the report issued by the International Federation of Human Rights
- FIDH pointing out socio-environmental issues in the Piquiá region,
corroborated by the Justice on Tracks movement, and after a visit by
members of Vale's Sustainability Committee to the site, the pig iron
producers have carried out actions to deal issues referred to in the
report, and Vale has been following the evolution of these actions, such
as the shutdown of operations at a pig iron production plant close to
the community of Piquiá de Baixo, ratifying Vale's commitment to be
part of the solution and maintain the engagement with the community.
Last updated on January 2021.
Run over Reduction Plan
Run over Reduction Plan
The run over reduction plan in the Nacala Corridor has shown
significant results in recent years, based on a series of actions
implemented to ensure greater safety for the communities and the
operation, which resulted in a 46% run over decrease between 2019
and 2020, and 96% between 2020 and 2021, and consequently, the THP
(Train Stoppage Hour) rate, which greatly impacts communities mobility.
Among the implemented actions are:
-
Social monitors: the Nacala Corridor hired 320 monitors who
work both in Malawi and Mozambique, 24-hour and 7 days a week, with an
anticipation control and warning system for the trains approaching in
the community, allowing the social monitor to position themselves at
critical points, avoiding accidents and collisions.
-
Mobility infrastructure: construction of 17 footbridges, 152
level crossings and 30 safe crossings by 2021, with others being
implemented and planned.
-
Railway Safety Campaigns: permanent implementation of railway
safety campaigns such as hiring sound cars for campaigns in the
communities, behavior dialogues in strategic points as bars, schools,
restaurants, cinemas in the community, radio spots, among others.
The run over decrease in the Nacala Corridor aligns the operation with
international safety standards and creates a greater perception of risk
by the community and a healthy, open and transparent relationship
between the company and its various stakeholders.
Last uptaded on July 2021.
Emission of particulate matter
Vale seeks to prevent and mitigate the potential emission of particulate matter emission in its operations through performance evaluation. The company
initiatives are based on the requirements of its operational licenses
and voluntary actions.
Action Planning
Vale has a particulate emission study and inventory, carried out by
a specialized company, which identifies and classifies the relevance of
each source. Based on these studies, we plan actions and resources to
create and maintain controls, monitoring and specific management
systems. In this sense, since 2018, US$ 18 million have been invested in
the implementation and revitalization of environmental controls for
particulate matter.
Air Quality Monitoring
In Mozambique, Vale maintains an Air Quality Monitoring Stations Grid, a
pioneering initiative in the country, which online monitors the region’s
air quality. The grid is comprised by four stations that are technically
positioned in the city of Moatize, two of which even have meteorological
analyzers for better interpretation of atmospheric phenomena. The data
is quarterly reported to the environmental agencies.
Mitigate efforts for particulate emission
An important mitigation initiative for emissions is the implementation
of a process for wetting roads with water and suppressants polymer and
sprinkling in mining fronts, stockyards and secondary roads, reducing
the potential particulate emission and wind transportation. Vale
Mozambique has acquired tanker trucks with a capacity of up to
85,000 liters to carry out this process on roads, and other smaller
trucks are also used in smaller locations.
The operation adopts fixed sprinkler systems in the coal stockyards, in
the primary and tertiary crusher, and in the transfer towers in the coal
processing plants. During the process of loading coal onto wagons, a
fixed sprinkler system is used with the addition of suppressant
polymers, which are intended to create a film on the cargo, avoiding
emissions from wind dragging during transport to the Nacala port
terminal.
Vale also carries out visual monitoring of particulates, with a monitors
team based in strategic locations and following a specific procedure,
prepared aligned with technical recommendations in force, interrelating
with the operation's management to take immediate action in the
event of a critical emission, ranging from mitigation at the source to
operational shutdown. This team is also responsible for verifying the
functionality and efficiency regarding the environmental controls.
Finally, and also as part of the ongoing dialogue with the communities,
Vale monitors environmental sensitivity in the communities, using social
agents who conduct interviews with residents to measure their
sensitivity to the dust, noise, and vibration coming from the Mine.
Natural conditions in the Tete region
Importantly, air quality is the result of complex interactions,
involving the emission of air pollutants by fixed and mobile, local and
remote, natural and anthropogenic sources, which together with
meteorological conditions and topography characteristics, determine the
concentration of pollutants in the atmosphere, influencing the air
quality of the Moatize region.
In this sense, the monitoring of air quality in the village of Moatize
comprises all emissions beyond Vale's operations, i.e. from other
industries, the precarious conditions of urban infrastructure, fires and
the use of charcoal as an energy source by the inhabitants, as well as
the adverse climatic conditions of the region, such as dry weather, high
temperatures, deciduous vegetation (all leaves fall), sandy soils and
strong winds.
Last updated on July 2021.