Home Environment Water Water Water resources are essential to our activities and we develop programs and implement actions that go beyond compliance with legal requirements to optimize water use and consumption. Vale is a ICMM (International Mining and Metals Council) member, and utilizes the GRI (Global Report Initiative) methodology to your reports and sustainability reports. We implement water management practices that provide strong and transparent governance, effective and efficient management in operations and seek to exceed stakeholder expectations in order to promote sustainable water use. As a guide to our actions, we rely on the Target Water Program, started in 2018, whose main objective is to reduce the abstraction fresh water for use in our production processes. To this end, Vale invests in the expansion of the monitoring network, in reuse initiatives, in the search for new technologies and in the development of studies. KPIs Report Water Volume and percentage and water stress level (in millions of m³) North America and Europe South America Africa, Asia and Oceania Total Volume (million of m³) % Volume (million of m³) % Volume (million of m³) % Volume (million of m³) % Total 52 112 38 202 Low 52 67% 37 6,7% 52 0% 72 36% Low to medium 17 33% 73 6,7% 52 20% 10 54% Medium to high 0 0% 2 6,7% 52 3% 6 3% High 0 0% 0 0% 52 13% 13 6% Extremely High 0 0% 0 0% 52 2% 2 1% América do Norte e Europa Volume (million of m³) % Total 52 Low 52 67% Low to medium 17 33% Medium to high 0 0% High 0 0% Extremely High 0 0% América do Sul Volume (million of m³) % Total 112 Low 37 6,7% Low to medium 73 6,7% Medium to high 2 6,7% High 0 0% Extremely High 0 0% África, Ásia e Oceania Volume (million of m³) % Total 38 Low 52 0% Low to medium 52 20% Medium to high 52 3% High 52 13% Extremely High 52 2% América do Norte e Europa Volume (million of m³) % Total 52 Low 52 67% Low to medium 17 33% Medium to high 0 0% High 0 0% Extremamente alto 0 0% Distribution of the total volume of fresh water withdrawal by regions according to water risk Hydric balance (In million of m³) Performance evolution In 2018, the total volume of water withdrawal for use in our production processes was 202 million m³, 34% less than 2017, mainly due to the sale of fertilizer assets and stoppage of some nickel operations. Another 104 million m³ were whithdrawal and made available to neighboring communities (35 million m³) and returned to the environment (69 million m³). The volume of water reused reached the rate of 83%, which in volume are equal to 956 million m³. After the use of water in industrial operations, the effluents are directed to the control, treatment and disposal systems, which totaled 33 million m³. Total demand (in millions of m³) Water withdrawal for Vale’s production processes (in millions of m³) Goals and deadlines The Target Water Program's main objective is to reduce fresh water withdrawal for use in our production processes. The goal is to reduce 10% of specific use for 2017 by 2030 (fresh water withdrawal and used in processes per ton produced), which means lower volume of new water captured for the same production volume. In addition to the main goal of Target Water, the program also invests in the continuous improvement of water resource management to adhere ICMM’s principles. All of these strategies are aligned with the Structuring Plan, which is the basis of the Target Water program . Thus, among our main commitments related to the water resource management are : Manage our operating units’ water resources by following the stipulated procedures, with annual frequency and by sampling; Acquire, install, revise, expand and maintain our water monitoring network through studies and acquisition of monitoring equipment and instruments for measurement and automation; Identify and make infrastructural projects and executions feasible to improve the management of water resources and effluents; Map water resources; Keep water balances up to date; Expand the use of the water resources and effluents data management tool; Establish a methodology for economic valuation of ecosystem services related to water resources; Map opportunities to optimize water use and reduce water collection for use in the processes through reuse; Develop and implement effluent treatment systems; Reduce and/or eliminate losses (evaporation, retained water in tailings, leaks, etc). Impact Management Tailings Retention Measures Five days after the breach of Dam I, Vale presented to the Public Prosecutor's Office and to environmental agencies a plan for action in three sections along the Paraopeba River, with an emergency-level urgency: Stretch 1 –Up to 10 km from the site of the dam breach: considering the strategic geographic position to optimize tailings containment in the Ferro-Carvão Stream, located downstream of the dam breach and to avoid material input to the Paraopeba River, we plan to construct containment structures, such as rockfill dikes, hydraulic barriers and a metal curtain, as well as to install a Fluvial Water Treatment Plant in the Ferro-Carvão Stream, with the capacity to treat approximately 2 million liters per hour, already in operation. A 50-meter metal and concrete bridge was built to restore access to the communities of the Parque da Cachoeira and Córrego do Feijão to the central area of Brumadinho. The bridge allows dual-vehicle traffic and includes pedestrian walkways. Policies and Procedures Our Sustainability Policy sets out the guidelines and principles for sustainability in our projects and operations, spelling out our commitment to life first and our social, environmental and economic responsibility. The implementation of these principles and guidelines will take place from three dimensions: Sustainable Operator, related to the responsible performance throughout the life cycle of our projects; Local Development Catalyst, focused on collaboration with the socioeconomic and environmental development of the territories where we operate, with the establishment of intersectoral partnerships with the aim of leaving a positive legacy; and Global Sustainability Agent, which forsees our contribution to dialogue and the search for solutions to sustainable development challenges shared by various regions and countries in which we operate. Risks Overview We are currently developing a Water Risk Assessment, Management and Monitoring methodology, entirely in line with ICMM. To assist the Company in analyzing water risks, we count on the Aqueduct tool. Developed by the WRI (World Resource Institute), this tool provides global-scale water risk mapping to identify the impacts of river floods due to urban damage, the occurrence of floods and the severity of droughts, and the populations affected by these situations. With this tool, it is also possible to correlate our operating units’ water use with the degree of risk indicated by Aqueduct. Perspectives In addition to the main goals of Target Water, the program also invests in the continuous improvement of water resource management to adhere to the ICMM’s principles. In 2018, our main initiatives in this area were defined in the Water Target 2030; mapping of universities to develop R&D projects; analysis of 11 R&D project proposals; establishment of five contracts to improve Water Resources Management at operating units; water resources workshop, integrating operating units at the global level; acquisition of portable ultrasonic flowmeter and verification campaigns at operating units; training of water resources coordinators in operational units; purchase of 413 water monitoring instruments and equipment; water balance reviews at operating units; development of systematic analysis and calculation of quantitative data of water resources; identification of water resources management tool and quality module implementation in five operational units; and consolidation and centralization of grant information in the corporate area. Business Case Dry Processing Vale invested nearly R$ 66 billion (US$ 17.5 billion¹) over the last 10 years to install and expand the use of the dry process – or natural moisture – of the iron ore produced in its operations in Brazil. By not using water in the process, the dry method does not generate tailings and, therefore, does not use dams. Dry Processing Vale Brazil Over the next five years, we estimate to apply another R$ 11 billion (US$ 2.5 billion¹) towards similar processing facilities. Today, around 60% of Vale's production is dry and the goal is to reach 70% by 2024. The Serra Leste, treatment plants in Curionópolis and the S11D in Canaã dos Carajás also do not use water to treat the ore. ¹ 2018 Exchange rate In S11D, for example, using the natural moisture procesing route reduces water consumption by 93% compared to a conventional iron ore production project. The water conserved equals the annual supply for a city of 400,000 inhabitants. In Minas Gerais, dry processing was increased from 20% in 2016 to 32% in 2018. Today, this type of processing is present in several units, such as Brucutu, Alegria, Fábrica Nova, Fazendão, Abóboras, Mutuca, Pico and Fábrica. In the coming years, the objective is to use dry processing in other locations in Minas Gerais, such as the Apollo and Capanema projects, which are currently under environmental licensing.