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Relatório de Sustentabilidade

2016

Sustainability Report

10

YEARS
Business
Vision
Health and
Safety
Local
Development
Social
Strengthening
Environmental
Responsibility

Global
Performance

This report is a milestone for Vale, which completes ten years of publication, whose objective is to expose its achievements and difficulties, its challenges and advances, in the economic, social and environmental dimensions, in a demonstration of transparency and commitment to accountability to society.

In order to highlight this tenth report, we have elaborated a special article with the main news and events that happened in the last 10 years of Vale and we call it "10 years Trajectory"

In keeping with the tradition of reporting our performance to society, we have launched our Annual Sustainability Report prepared in accordance with the guidelines of the Global Reporting Initiative (GRI) and adopt the G4 version in the Comprehensive option.

Click here to download our Sustainability Global Policy

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Business
Vision

2016 was marked by production records

348.8 Mt

Fe

Iron Ore

  • Record achieved in
    Carajás

311,000 t

Ni

Nickel

  • Record achieved in
    New Caledônia

453,000 t

Cu

Copper

  • Record achieved in
    Salobo

US$12.2

billion

Operational cash generation, as measured by adjusted EBITDA, which represents a 72% increase from the US$ 7.1 billion in 2015, mainly due to the better results of the EBITDA from:

Iron
Ores

US$ 10.5
billion

Base
Metals

US$ 1.8
billion

US$4.0
billion

Net income obtained in the year.

US$5.5
billion

Sum of investments directed
to growth and maintenance.

Movement for
Integrity

It disseminates the importance of the value of "Acting Correctly" and became part of the Company's annual agenda as an event to reflect on ethics and integrity.

CASE

S11D Complex
Competitiveness with
safety

Forklift at the S11D Complex, Pará

Inaugurated in December 2016, the mission of the S11D complex is to increase Vale’s competitiveness and contribute to establishing Brazil as one of the world’s largest iron ore producers. Its business challenge in facing the global mining market is to provide low cost, high quality, cutting-edge technology, and flexibility to meet the tailored needs of its clients. The venture has ground-breaking equipment and solutions, which are essential to increasing the Vale’s total iron ore production in Para to 230 million metric tons per year in 2020 – approximately 55% higher than the volume in 2016 – conferring an advantageous position in the next cycle of strong demand for iron ore. Another gain, resulting from the process of continuous mining, is the greater flexibility of the operation, which is able to adapt to the clients’ demands. The high iron ore content will contribute to the production of the iron ore at the aimed specifications. In addition, the project will contribute to reducing the operating costs of the North System – from extraction at the mine to deliver at the port, in Maranhao. Among the smart solutions adopted is the truckless system, reduces the use of diesel by 70% and emissions to environment. A structure comprising excavators and crushers will replace the 100 vehicles that would be needed to extract iron ore, which will feed approximately 30 kilometers of conveyer belts and, in addition to reducing the amount of residues, it aims to reduce approximately 70% of diesel consumption. The replacement of off-road trucks with the truckless system seeks a safer operation aiming to reduce the number of employees involved directly in the operation.

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Health and
Safety

1.9

The total rate of injuries in 2016, which points to a fall in relation to the previous period, of 2.2

Good practices

In the year, 120 initiatives were certified as Good Health and Safety Practices, which means they were tested and provably contributed to the reduction in risk, and consequently, a safer environment.

Respect to life

“Life matters most” permeates Vale's actions, which is committed to reaching Zero Harm by investing in prevention, the standardization of processes, risk management and in a culture of Active Genuine Care – which includes taking care of oneself, taking care of others and letting others take care of you.

US$2.7
million

Was invested into Health campaigns, programs, and initiatives involving Vale employees and subcontractors in 14 countries, in line with the Sustainable Development Goals (SDGs) – including the third goal: “Ensuring healthy lives and promoting the well-being for all at all ages”.

CASE

Vale's Ferrosos Sul
Operation – Safer and more
sustainable operation

The transposition of electrical cables from large excavators is safer in the Vargem Grande Complex in Minas Gerais, Brazil, thanks to the Ecological Walkway project for Electrical Cables (PEC), a practical and sustainable solution aiming to reduce the exposure of employees to risks. In the new system, built using discarded tires from offroad equipment, the walkways replaced the previously used lift towers. After implementing the project in the Aboboras Mine, various benefits were confirmed, such as:

  • A 62% reduction in medium and low risks associated with the service;
  • Reduction of certain ergonomic risks;
  • Improved employee satisfaction;
  • Decreased duration of the activity;
  • Reduction of scrap tires for disposal;
  • Reduction of expenses.

For these advantages, the implementation of the project in the Capitão do Mato Mine is underway. The idea is to expand it to all other Vale’s areas that move electrical cables.

Employees at the Capitão do Mato Mine

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Local
Development

US$16
million

Amount allocated to the Vale Foundation in 2016, of which 42% were directly contributed by the operational areas.

70%

Local hiring index in 2016. Taking into account only members of senior management from the local community, the indicator was 43%.

1.9
thousand

Total number of kilometers of railroad operated by Vale, equivalent to 6.3% of the total amount installed in the Country, through the Carajás Railroad (EFC), which is 997 kilometers in length, and the Vitória - Minas Railroad (EFVM), which is 905 kilometers in length.

Demobilization of assets

Throughout the period, Vale developed 21 progressive asset demobilization activities, in which approximately U$ 15.1 million were invested in the definitive recovery of degraded areas, projects and actions for decommissioning industrial facilities.

CASE

New Course Project
Advancement of Family
Farming

Family agriculture in Brumadinho

After diagnosing the vulnerabilities of the Córrego do Feijão community in Brumadinho (MG, Brazil), Vale committed to intensifying family farming in the region, considering as a premise sustainable development. After the meetings with the Community Association and local institutions, such as Inhotim and Minerações Itabirito, in addition to the Municipal Government, the integrate operation that resulted in the New Course Project began in 2014. It began with the aim of encouraging local farmers to expand and diversify income generation from the cultivation of greenery, fruits, vegetables, processed products, and handicrafts.
For this, in the idle areas that the Company maintained in the region, a vegetable garden and a Community Center were built – with a kitchen equipped for the collective production of preserves, sweets, bread, and jam – in addition to an interpretive trail and sensorial garden, where environmental education activities are developed. Leadership and agroforestry courses were promoted and family agriculture and regional handicraft fairs were held.
Two years of shared work have yielded good results: most farmers changed the way they planted, adopting Agroforestry techniques and methods, and production significantly increased thanks to the technical support that included mapping the consumer market. Thus, producers began to direct their products to the region’s inns and restaurants, in addition to promoting organic fairs in their own community.

Gains also extend to the environment. The construction of the Community Center using Adobe bricks (soil extracted from the construction site), the reuse of utensils from the Vale Discarded Materials Center, rainwater reuse mechanism, and black water treatment system by natural filters involved the community in the discussion on the use of local raw materials and the reuse of materials.
The adoption of Agroforestry Systems methodologies (consortia of crops with tree species that can be used to restore forests and recover degraded areas) still alleviates terrain limitations, minimizes the risk of degradation, and increases productivity. There is also reduced loss of soil fertility and pest attacks, and the possibility of planting more demanding species, due to the cycling of nutrients due to the greater availability of biomass.
The work reinforced several commitments of the Vale's Sustainability Policy, such as:

  • Support for social empowerment;
  • Socio-economic development of the regions where it operates;
  • Voluntary business actions;
  • Positive social, economic, and environmental legacy in the territories where it operates;
  • Local Development Catalyst respecting local culture;
  • Respect for the cultural aspects of the territories, giving priority to communities in vulnerable situations, and directly impacted by Vale’s operations and projects, always taking into account the existing public policies.

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Social
Strengthening

Appreciation of all differences

Internal and external communication campaign to reinforce the Company’s global position on diversity and to raise employee awareness on the importance of inclusion. The event addressed topics of race, gender, disability, sexual orientation, nationality and region, mobilizing the entire Company in Brazil.

3.3
million

Hours dedicated to the qualification
of professionals.

139.7
thousand

Number of employees,
both those from Vale and those that were subcontracted,
that were maintained by Vale at the end of 2016.

97.4%

Percentage of employees with
their performance evaluated in the year.

Human rights

In 2016, Vale became a member of the Voluntary Principles on Security and Human Rights, as initiative that guides companies and governments on respect for human rights and safety activities.

Traditional
Communities

36

Indigenous
Peoples

27

... relate to Vale. Of the former, 35 are in Brazil and one is in Malaysia. Indigenous peoples are distributed between 12 in Brazil and 15 abroad, located in Canada, Australia, Indonesia, and New Caledonia.

CASE

Vale Fertilizantes S.A. (Vale Fertilizantes)
Dams under control

In a demonstration of transparency and genuine concern with safety issues, Vale Fertilizantes structured Key Performance Indicators (KPIs) to broaden the dialogue on the issue, involving mainly neighboring communities and public security agencies. The measure, motivated by the growing demand for clarification regarding the safety of mining dams also boosted internal movement for the revision of risk analyses and emergency plans, in search of the continuous improvement of the process.
The project's implementation process included:

  • Identification, in Vale Fertilizantes operations, of structures that, in the event of failure accidents, leakage, or overflowing, may present a risk of significant material loss or loss of life;
  • Mapping of communities that could be potentially affected by problems in each of the structures identified;
  • Survey of participation need and service capacity of relevant local agencies;
  • Updating the activities of Emergency Action Plans;
  • Coordination of actions necessary to carry out the plans with the region’s Civil Defense, Fire Department and/or Environmental Police;
  • Operationalization of the Emergency Action Plans with each of the potentially affected communities.

All this work marked the beginning of an ongoing dialogue that the Vale intends to maintain with communities and security agencies on the subject of dams. In 2016 there has been an approach and clarification of doubts. The expectation is that the communities involved (Araxa, Tapira, Uberaba, and Patos de Minas – MG; Catalao – GO; Cajati and Cubatao – SP; Rosario do Catete, Maruim, Santo Amaro das Brotas, and Barra dos Coqueiros – SE) continue increasingly well-informed and prepared to proceed in a possible dam accident.

Aereal view of the Vale Fertilizers unit

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Environmental
Responsibility

1,824
vegetation...

...plant species and 1,443 animal species were identified in Vale operational areas. Of these, around 3.1% are on the International Union for the Conservation of Nature's (IUCN) Red List and 1.4% are on official national lists of species threatened with extinction, of the Ministry of the Environment.

8.2
thousand

Number of square kilometers of natural areas protected by Vale, which represents approximately 5 times the sum of the areas of the operational units.

Sustainable Waste Disposal

The company maintains a sustainable destination program that contemplates composting, re-use, re-refining and recycling, encouraging reuse and seeking to reduce disposal into landfills. Sent 157.5 tons of waste in 2016 to recycling cooperatives in Minas Gerais, Brazil.

US$169
million

Amount invested in initiatives for the improvement of processes and the adoption of technologies and systems to control atmospheric emissions. The amount is 28% higher than the applied sum in 2015.

CASE

Savings
at Vale's ports

Loading of the Valemax at the Tubarão Port Complex

In line with the idea of rational use of natural resources and cost reduction, the engineering project developed by Vale in the Tubarão, Ilha Guaíba (TIG), and Ponta da Madeira ports will provide annual savings of US$429.8 million in electric energy. It allows the automatic shutdown of an engine after operating for period below pre-determined current.
With the beginning of the study and development in 2014, the system was installed as a pilot at the Tubarão and Ponta da Madeira ports, and definitively at some conveyers. On 2015, extended to five belt conveyers at the Ilha Guaíba terminal, it totaled 45 applications and not only reduced energy use at the port, but assured a new level of specific consumption (kWh/ton.), essential to sustaining the challenges of Cost and Energy Efficiency targets at Vale’s ports.
The project was developed and implemented with internal resources from local maintenance and port engineering, without the need for contracts or external companies. This is an important differentiator because, in addition to being simpler and more functional, it ensures that the company has qualified professionals to maintain, update, and improve the system in the future.

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Trajectory

10 years of Vale's
Sustainability Reports

2007

Vale's first Sustainability Report

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2007

Vale's first Sustainability Report

In the publication, then GRI G3, with a B+ application level, Vale sought to portray the state of its management and performance practices. The company’s commitment has always been to seek continuous improvement, using diagnostics as a basis for defining necessary policies, action plans and targets, promoting transformation towards excellence in sustainability.

Brand change

In 2007, Vale assumed the name by which it was already popularly known. The Companhia Vale do Rio Doce then changed its name to simply Vale. It was the end of the different brands for its different areas. The easy visual read also reinforced Vale's image as a global company.

United Nations Global Compact

Vale became a signatory of the United Nations Global Compact, a program comprising of ten principles in the areas of environment, human rights, and anti-corruption.

2008

Recognized by UNESCO

2008

Recognized by UNESCO

The Vale Natural Reserve was recognized by UNESCO as a World Natural Heritage Site of the Discovery Coast and Advanced Outpost of the Atlantic Forest Reserve. Located in Espírito Santo, with 22,000 hectares of land, the reserve is a true open-air laboratory. Scientists of various specialties and other researchers study the complexity of this Brazilian biome and work for the conservation and multiplication of its diversity. The focuses of the studies are the sustainable use and conservation of natural resources, and the creation of technologies to recover degraded areas, in Brazil and around the world.

Management of emissions

In 2008, Vale became the only company in Latin America listed on the Carbon Disclosure Leadership Index and also the mining company with the best evaluation on the indicator that measures GHG emission per gross revenue. This recognition is the result of several actions set forth in previous years, especially the implementation of its Climate Change policy, which includes the Vale Carbon Program.

2009

Efforts beyond the operations

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2009

Efforts beyond the operations

The Vale Fund for Sustainable Development, a non-profit institution, was created by Vale with the goal of promoting sustainable development, and to reconcile the preservation and conservation of the environment with improved socio-economic conditions in developing countries.
Its efforts in regards to the central issues of sustainability are made through the support for transformative programs that seek solutions to combat deforestation and forest degradation, in addition to ensuring the socio-economic development of the populations, providing improvements in physical and institutional infrastructure.
Through partnerships established with NGOs, the Vale Fund works in projects focused on three main issues: Strategic Monitoring of the Legal Amazon, Consolidation and Creation of Protected Areas, and the Promotion of Green Municipalities.

ITV

This year, the Vale Technological Institute was created, whose goal is to coordinate scientific and technological actions, with an emphasis on long-term research developed in partnership with scientific communities in the domestic and international sphere.

2010

Commitment made

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2010

Commitment made

Vale's Sustainability Action Plan (PAS) aims to establish targets and actions for performance improvement related to sustainability in issues such as fuel inputs, consumption and recirculation of water, waste generation and disposal, mine closure, local development and human resources.
In 2010, the company included PAS targets as one of the criteria for Variable Remuneration of some of its Brazilian operations, such as iron ore, pelletizing, logistics, manganese, copper, and potassium. This action reaffirmed the commitment of the areas with the permanent improvement of the results and with the advance of sustainability management at Vale.

Great Brazilian exporter

Vale made a great commercial leap in 2010, as measured by the volume of its exports. In the period, the company, alone, exported approximately US$29 billion net, resulting from the sum of the company’s exports and discounting the aggregate of its imports. Despite 2010 having been a record year, Vale’s importance as a large domestic exporter would be confirmed throughout the entire decade.
The Vale Sustainability Report receives the GRI Choice Award in the Civil Society category. In addition to this, the company is listed among the five best in the world in the Investors and General Winner categories.

2011

Gender equity

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2011

The commitment made was to reduce Greenhouse Gas emissions by 5% by 2020 and to influence the value chain to follow the same path, investing in renewable sources of energy, energy science, and technological innovation.

Gender equity

With the goal of helping to reduce historical and cultural differences regarding women in the job market, Vale created the Gender Equity Project, in which one of the main proposals is to recognize and promote female talent.

First coal continues its journey

The first product of the Moatize mine left Mozambique on September 14, 2011 aboard the Orion Express ship heading for Lebanon. It was carrying 35,000 metric tons of thermal coal, which covered the 575 kilometers of the Sena-Beira line, which connects Moatize to Porto da Beira in Sofala, in central Mozambique. The line was cut off 28 years ago due to civil war. The activities in the mine began in May 2011, and its implementation contributed to boosting the economy of Mozambique, generating employment and income.

2012

70-year trajectory

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2012

70-year trajectory

In 2012, Vale reached 70 years of history. The company, whose initial goal was to produce 1.5 million metric tons of iron ore, exceeded, shortly before its anniversary in 2012, the mark of 5 billion metric tons of iron ore produced, which could sustain more than two years of steel production in the world at a rate of 1.5 billion metric tons of crude steel.
The mining company born in the small town of Itabira, Minas Gerais, grew, advanced with its operations around the world, accumulated experience and bet on new challenges in order to face the future ahead.

Oman

Vale opened a pelletizing plant and distribution center in the Sohar Port Industrial Complex, in Oman. The Salobo copper mine in Marabá, Pará also went into operation.

Carbon Goal

The commitment that was assumed was to reduce Greenhouse Gas Emissions by 5% until 2020.

2013

Vale-China connection

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2013

Vale-China connection

Vale celebrated the 40th anniversary of the first shipment of iron ore to China and a long-term partnership with Asian clients.
Vale made its first sale of iron ore to the country in July 1973. Two shipments were made that year, totaling 46,000 metric tons. The shipments departed from the Port of Atalaia, in Vitória (ES), bound for the port of Tianjin.

More modern, safer, and more efficient

The Tubarão Port in Vitória (ES) has invested almost R$2 billion to prepare for future challenges. The work included two great projects: the modernization of the electrical system and the replacement of yard machines for more modern and efficient versions. The goal was to increase the safety, and the energy and operational efficiency of the port without the need for physical expansion.

2014

Here comes the train

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2014

Here comes the train

The year 2014 began with many novelties for users of the Passenger Trains on the Vitória-Minas Railroad. With an investment of US$80.2 million, Vale renewed the fleet of railcars that traveled between the states of Minas Gerais and Espírito Santo. In all, 56 new railcars were added: ten for business class and 30 for economy class, in addition to railcars that would become restaurants, diners, generators, and railcars adapted to the handicapped.

Day of Reflection

With the first edition in 2011, around 150,000 employees and subcontractors mobilized on Health and Safety Reflection Day in 2014 to remember casualties and to intensify collective efforts to achieve zero harm.

2015

First Biofactory

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2015

First Biofactory

Vale implemented the first biofactory that focused on the preservation of vegetable biodiversity, and was initially dedicated to the reproduction of orchids, bromeliads, cacti, grass, and native trees of the Iron Quadrangle. There are 600,000 seedlings from 63 different types of species in development.

Bursting of the Samarco dam

November 5, 2015 made mining history as a sad milestone. The bursting of the Samarco’s Fundão dam in Mariana (MG), of which Vale is a shareholder together with BHP Billiton, resulted in 18 deaths, as well as a missing person, and displaced various families. From the outset, Vale has strived to support Samarco in taking care of the affected people and to offer all of the necessary efforts to minimize environmental impacts. The company provided human and material resources, such as a helicopter and emergency equipment to assist in rescue efforts, water distribution, and the removal of people displaced by the accident from the areas of risk.

2016

Ponta da Madeira, the biggest in the world

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2016

Ponta da Madeira, the biggest in the world

With 30 years of operation, the Ponta da Madeira Maritime Terminal has its histroy marked by evolution, thanks to the commitment and dedication of its employees. Leader in the cargo moving ranking in Brazil, the terminal is going through capacity expansion works to deal with the increase in production from the S11D project, which will transform it into the biggest port in the world.

New paths for mining

The largest iron ore mining project in Vale’s history and the largest private investment in Brazil this decade entered production: the Eliezer Batista S11D Complex. S11D is strategic for the company to be able to increase its competitiveness and to maintain leadership in the global iron ore market. The venture, which carries state-of-the-art technologies in its operation, was carefully planned to achieve operational excellence, and without losing respect for the communities and the environment.

"Vale is confident it is on the right path, remaining firm in its trajectory towards sustainability"