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Reparation
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Gyorslinkek
On January 25th, 2019, a tailings dam collapsed at our Córrego do Feijão mine, in the city of Brumadinho, state of Minas Gerais. The dam was constructed in 1976 by a German mining company and was purchased by Vale in 2001. Since July 2016, the dam was inactive, not in operation, and at the time of the dam breach, the decommissioning process was being studied and some tests were being conducted to evaluate the best way to decommission the dam.
The collapse of the dam released a flow of tailings1 reaching our administrative area at the Córrego do Feijão mine and the communities of Córrego do Feijão and Parque da Cachoeira outside of Brumadinho, as well as the nearby Paraopeba River. The dam collapse resulted in 270 fatalities, including two pregnant women. The incident also caused property and environmental damage in the region. Among the victims, three are still missing and searches continue at the site with the support of the fire department.
We will never forget Brumadinho. We reaffirm our respect for the victims and their families, prioritizing the integral reparation of Brumadinho and are committed to the non-repetition of another dam breach.
Reparation: A detailed timeline of the actions of the reparation to date can be found in our Reparation Day by Day report from November 2023.
Emergency Actions: Immediately after the dam breach, Vale took emergency action in Brumadinho to assist victims, their family members and the community (including indigenous peoples and traditional communities). These initiatives include payment of emergency aid and compensation, providing temporary housing, including basic necessities, water (for the community, animals and agricultural use2), health care (including psychological care), animal rescue and shelter, supply of animal feed for agriculture, and local transport as well as payments to public agencies for further assistance to the community. Vale also created service points to attend to the local population. At the same time, the company was conducting emergency works to contain the tailings and providing resources for the search and rescue missions with the support of the fire department, including providing cutting edge equipment and the necessary infrastructure. For details on these emergency actions, please read the Reparation Routine reports available here.
Integral Reparation Agreement
In February 2021, we signed an Integral Reparation Agreement with government authorities3 committing to the integral reparation, implementing actions to restore and remediate the community and the environment. The agreement totals R$ 37.7 billion4 for the complete reparation to be concluded within 10 years, and includes R$ 6.3 billion disbursed until February 2021, R$ 11.4 billion in obligations to implementing projects (“To-do”) and R$ 19.9 billion to pay for the public authorities.
The reparation works within the agreement cover three categories of obligations: socioenvironmental obligations, socioeconomic obligations and other compensatory measures.
The socioenvironmental obligations are aimed at restoring the environment and compensating (financially or otherwise) impacts, damages or losses caused by the dam collapse. Compensation for known environmental damages is R$ 1.55 billion and environmental recovery is estimated at R$ 5.0 billion.
Before socioeconomic initiatives and projects are undertaken for Brumadinho and the other 25 affected municipalities in the Paraopeba basin, consultations are undergone with affected individuals to prioritize investments. Projects for the Paraopeba basin total R$ 2.5 billion (+ payment obligations) and for Brumadinho are R$ 1.5 billion.
Other compensatory measures, in the amount of R$ 303 million, include framework agreements signed with the Civil defense program, the fire department, among others.
Progress on the Integral Reparation Agreement
As of July 2024, overall, Vale has completed 76% of the agreement (39% of the “To-do” reparation works and 88% of the “To-pay” reparation works) in line with the schedule. All obligations will be fulfilled by the end of the agreement term in 2031 and it is estimated that 90% of the agreement will be fulfilled by 2026.
Financial commitment: As a result of the dam failure, the Company recognized provisions to meet its assumed obligations to the remediation of the impacted areas and compensation to the society. As of June 2024, those provisions totaled US$2.4 billion (R$ 13.4 billion).
Individual indemnification: Individual indemnification was not covered by the Integral Reparation Agreement. For the individual indemnification, Vale formalized an agreement with the Public Defender’s Office of the State of Minas Gerais in April 2019, under which those affected by Brumadinho’s dam failure may join an individual or a family group out of Court settlement agreement for the indemnification of material, economic and moral damages. This agreement establishes the basis for a wide range of indemnification payments, which were defined according to the best practices and case law of Brazilian Courts, following rules and principles of the United Nations. 91% of the extrajudicial compensation cases have been completed (as of July 2024). Vale has paid R$ 3.7 billion in indemnifications for +16,700 people (July 2024). For more information on the indemnity program, please visit: Indemnity - Vale.
Water monitoring
Data from water and sediment quality monitoring in the Paraopeba River indicate that water quality has progressively improved, with quality analysis similar to or better than dry-season baseline figures before the dam breach. Information on water monitoring and quality can be found on our page on Environmental Reparation page. These data are consistent with monitoring data from the Minas Gerais Institute for Water Management (IGAM) (read more in the December/22 Reparation Report and in the State Environmental Foundation’s reports on water quality in the Paraopeba River.
Socio-economic development
To support the socio-economic development in the region, several initiatives have been created to improve quality of life, increase local tourism, support livelihood for residents. These initiatives are planned based on active engagement with communities to address their needs. These include the construction of a Community Marketplace with a bakery, community kitchen, confectionary, and pizzeria that offer training workshops; the construction of a Culture Center; and an entrepreneur and eco tourism program; among others. 434 local associations and small businesses are being supported, directly and indirectly, impacting more than 16,000 people in the region.
Social and infrastructure projects are also planned with active consultation with communities and in partnership with the public sector. The focus is on improving the quality of life and collective wellbeing, with an emphasis on local job creation. Initiatives include the construction of daycares, public squares, sidewalks, and investments in medical equipment.
For more information on the Reparation works, please visit https://vale.com/esg/brumadinho.
Community member participation in the decision-making of the Reparation actions
The initiatives in the Integral Reparation Agreement are planned with active consultation of community members, municipal governments, the state government of Minas Gerais, regulatory and oversight agencies, the judiciary, and audit support all of which contribute according to the respective initiative, for joint development of solutions. Community members include indigenous peoples and traditional communities, in accordance with Convention 169 of ILO.
Accountability and Independent Audit
Our commitment to full reparation for the Brumadinho disaster includes transparency in managing the entire process and maintaining constant dialog and communication at each stage. Every six months, we release a report (available here) on ongoing initiatives, including funds invested, major projects completed, and other details.
Our Vale+ Comunidade publication provides monthly updates on key initiatives, presented separately for Brumadinho and the broader Paraopeba River Basin and its 25 municipalities (excluding Brumadinho).
Additionally, the Pro-Brumadinho Committee portal, coordinated by the compliance enforcement agencies, provides information on impacts on affected communities and the environment and details on ongoing initiatives and projects under the Integral Reparation Agreement. This committee collaborates with the Getulio Vargas Foundation (FGV), engaged as independent auditors, to support decision-making on economic reparation projects. Learn more here.
Besides Vale´s regular listening channels (https://vale.com/contact-us), we also have a specific Reparation support line (0800-031-0831) for any stakeholders that would like to contact Vale regarding the reparation or indemnification process.
What caused the dam breach?
Immediately after the dam breach, Vale’s Board of Directors assembled an independent panel of experts, composed of world-class specialists in geotechnics and engineers to investigate the causes of the dam breach. The report, along with ten appendices and a concise explanatory video (available here) revealed that multiple factors, including small and cumulative events combined with a potentially very brittle behavior of its tailings could have triggered the rupture. The brittle behavior is a relevant finding because with the traditional approach to evaluating the stability of dams used at that time, it would be concluded that the dam is stable and safe. At the same time, the Brazilian Public Prosecutors contracted a separate study (available here) which revealed that due to a particularly unfavorable combination of circumstances at a specific area inside of the dam, including regular drilling by a specialized company as part of the regular dam monitoring, worked as a trigger which led to the liquefaction of the structure. Nonetheless, this separate study also concluded, through numerical analysis, that if the drilling of this one well in this specific area had not been conducted, the dam would remain stable for another 100 years. These studies were a game changer for dam management and created significant changes in industry standards.
Global Industry Standard on Tailings Management (GISTM)
Brumadinho brought the world´s attention to the need to improve dam management standards with an acute interest in guaranteeing non-repetition of dam failures in the future. The United Nations Environment Program, the Principles for Responsible Investment (PRI) and the International Council on Mining and Metals (ICMM) joined together to create a new dam management benchmark called the Global Industry Standard on Tailings Management (GISTM). Vale has implemented the GISTM in its Tailings Storage Facilities (TSFs) by August 5th, 2023, regardless of the consequence classification of the TSFs. Since August 2023, two additional TSFs have come into Vale´s portfolio and will be in conformance with GISTM by the deadline of August 2025.
For more information on GISTM and Vale´s dams, please visit: https://vale.com/gistm.
Vale’s transformation
After the dam breach, Vale implemented the following actions:
Governance and dam safety: Vale created a Geotechnical Risk Committee and reinforced its three lines of defense. Vale contributed to the development of GISTM with the knowledge acquired and is in conformance with the standard as explained above. Three Geotechnical Monitoring Centers were created with 24/7 monitoring of all our geotechnical structures. Vale also requires periodic reviews of the safety conditions of its dams, conducted by external and independent companies. These include: The Regular Safety Inspection Report; The Engineer of Record (EoR) an external professional assigned to each dam and to issue periodic reports to Vale and Public authorities; the Periodic Dam Safety Review (RPSB) according to legal requirements; and independent audits according to the demand of Public Prosecutors. Vale also has an Emergency Response Plan for Mining Dams (PAEBM in Portuguese) according to the Brazilian National Dam Safety Policy. For more information on Dam management and safety, please visit: https://vale.com/dams.
Dam decharacterization program: Vale committed US$ 5 billion towards the de-characterization of all up-stream dams (upstream structures that have the same engineering as the dam in Brumadinho). Of the 30 upstream dams in Vale´s portfolio in Brazil, 14 have been eliminated6, 6 will be eliminated by 2026, and all upstream dams will be eliminated by 2035. For more information on the progress of this program, please visit: De-characterization Program - Vale.
Dam classification according to the Emergency Level7: Vale has intensified its preventive, corrective, and monitoring actions on its structures. This has resulted in a substancial reduction in the number of tailings storage structures at the emergency level since 2020. Vale has also committed to remove dams at the highest emergency level (Level 3) by 2025 and currently is still undergoing the elimination of one remaining dam at this level. Please visit: https://vale.com/gestao-e-desempenho.
Reduce reliance on dams: Vale has committed investments of US$ 2.5 billion for filtration plants, dry-stacking, and circular mining initiatives to reduce its dependence on tailings dam structures.
Circular Mining: Vale’s approach involves mining of co-products, reprocessing tailings and reducing waste that would otherwise be disposed in tailings dams. For example, in March 2023, we began operations at the Gelado project which will produce pellet feed from the reuse of iron ore waste in Carajás with an initial production capacity of 5 Mtpa. Agera is a start-up company that Vale created to develop new applications for waste generated by our operations. It explores the transformation of ore-sand removed from tailings into different uses, such as bricks, for road construction and other uses.
Cultural Transformation: Vale’s journey includes rebuilding the company around a new cultural paradigm. Together with our top leaders and input from our stakeholders, we established a new Purpose and formulated our cultural narrative. This transformation began with our first Global Cultural Diagnosis in 2019. Since then, we have been implementing various actions and campaigns, experiencing cultural transformation in practice. Results from our ongoing Engagement Surveys are encouraging, indicating important advancements in Culture, Leadership, career, well-being, and belonging and positively impacting Safety, VPS (the Vale Production System), People, Innovation, and Sustainability efforts.
ESG commitments: Beyond targets created to improve dam safety, Vale announced public targets for:Scopes 1, 2 and 3 emissions, in fact Vale was one of the first mining companies to publicly define an absolute scope 3 target.
The reduction of atmospheric emissions.
Reaching zero high-potential injuries (N2) by 2025.
Reducing exposure to harmful health agents in the workforce by 2025.
Increasing female representation in the workforce and in leadership by 26% by 2025.
Forest protection and restoration.
100% Renewable energy consumption globally.
Water use reduction by 7%, in addition to the previous 10% already delivered in 2021.
Social targets to support uplifting 500,000 people out of extreme poverty and empowering indigenous communities in line with their rights under the UN Declaration on the Rights of Indigenous Peoples.
These commitments and our current progress towards these goals can be found here: https://vale.com/esg/our-commitments.
Vale does not engage in mineral exploration or any mining activities in Indigenous Lands in Brazil, strictly respects current legislation, and the company is committed to Free, Prior, and Informed Consent (FPIC) 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.
Vale's relationship with Indigenous Peoples and Traditional Communities is guided by its Global Human Rights Policy, which is aligned with major international frameworks on the subject, such as the UN Guiding Principles on Business and Human Rights and the UN Declaration on the Rights of Indigenous Peoples. This also includes the International Council on Mining and Metals' Position Statement on Mining and Indigenous Peoples, ILO Convention No. 169, among others, as well as the legislation in the countries where Vale operates.
Regarding allegations of contamination of the Cateté River and health problems caused by the impacts of the Onça Puma Mine's operation, reports prepared by court-appointed experts from the Federal Civil and Criminal Court in Redenção have shown that the enterprise is not a source of contamination for the mentioned watercourse and employs effective environmental monitoring controls. The analysis of the scientific issues studied demonstrated the absence of a causal link between the Onça Puma mining operation and the alleged contamination of the Cateté River.
The Itacaiúnas River Basin, which includes the Cateté River, its streams, and tributaries, naturally contains metals like iron, nickel, copper, among others, inherent to the region's soil composition, with volumes naturally exceeding legal parameters. This information is recorded and confirmed in the Impact Assessment Environmental (EIA) and the Environmental Impact Report (RIMA) prepared in 2004, well before the start of the Onça Puma Mine's operation, which supported the project's licensing.
Vale maintains a systematic water quality monitoring program for surface waters and effluents, with historical data since 2008. The past data and the historical monitoring series supported a study through statistical analysis of these results, recognized by the licensing environmental authority, demonstrating the project's operational regularity and aligning with the findings of the judicial expert report in the area of limnology.
Regarding the Xikrin do Cateté Indigenous People, the signing of an agreement within the Onça Puma Public Civil Action, which discusses the environmental issues of Cateté and other socio-economic issues related to this project, Salobo, S11D, Ferro Carajás, and the Alemão Project, has resolved almost all judicial controversies.
Regarding the Kayapó Indigenous People, who were part of the Onça Puma Public Civil Action, the agreement reached and ratified by the Judiciary also resolves the controversy with this group. Vale highlights that the Kayapó Indigenous Land is more than 30 km away from Onça Puma and outside the Cateté Basin, therefore, it has no environmental correlation with the project or the Cateté River itself.
Since the agreements' signing, the relationship with these Indigenous Peoples has been strengthened, and voluntary initiatives for the empowerment and autonomy of these communities have been developed, in alignment with Vale's relationship strategy focused on generating mutual benefits. Some examples include actions promoting the ethnodevelopment of the Xikrin People, particularly the Project for the Appreciation of the Culture and Memory of the Xikrin do Cateté Indigenous People. With the Kayapó People, Vale supported the creation of their Consultation Protocol, developed by the Associação Indígena Floresta Protegida and approved at the General Assembly of Chiefs and Leaders of the Kayapó Indigenous Land, held in the Gorotire village in January 2024. This action is part of Vale’s Social Ambition for Indigenous Peoples, which aims to support, by 2030, the development of at least one structuring action, such as Consultation Protocols, Territorial and Environmental Management Plans (PGTAs), or Life Plans, for 11 Indigenous Peoples in Brazil.
Learn more about Vale's Social Ambition for Indigenous Peoples at https://vale.com/esg/indigenous-peoples-and-traditional-communities
Last update August 2024
Inaugurated in the 1980s, the Carajás Railway (EFC) stretches 972 kilometers, connecting the Carajás mines in southeastern Pará to the Ponta da Madeira Maritime Terminal in São Luís (MA). Annually, around 350,000 passengers use the railway. Additionally, the EFC transports cargo such as iron ore, pig iron, manganese, copper, fuels, and coal.
In the states of Maranhão and Pará, the railroad passes in the vicinity of different traditional communities. They are Indigenous Peoples, Quilombolas and other Traditional Communities. 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.
Since the 1980s, during the construction of the EFC, Vale has maintained relationships with these communities. Currently, these engagement activities are carried out by professionals with multidisciplinary backgrounds and experience in the area. It's important to note that Vale's relationship with Indigenous Peoples and Traditional Communities is guided by its Global Human Rights Policy, aligned with major international standards on the subject, such as the UN Guiding Principles on Business and Human Rights and the UN Declaration on the Rights of Indigenous Peoples. It also considers the International Council on Mining and Metals' Position Statement on Mining and Indigenous Peoples, ILO Convention No. 169, among others, as well as the laws of the countries where Vale operates.
The company operates with respect for the rights of these communities, managing risks and impacts of its operations and respecting the process of Free, Prior, and Informed Consent (FPIC). Furthermore, it contributes to the institutional strengthening and appreciation of the traditional way of life of these communities, aiming at value-sharing and partnership.
Maranhão - Indigenous Peoples
Vale engages with the Awá, Guajajara, and Ka'apor Indigenous Peoples from the Caru, Rio Pindaré, Awá, and Alto Turiaçu Indigenous Lands, which interface with the EFC's area of influence in Maranhão. The specificities of the Indigenous Peoples were and are respected throughout the EFC expansion process, in compliance with Brazilian legislation, international principles, and Vale's internal policies. The expansion works of the EFC began only after the completion and approval of the Impact Assessment with Indigenous Peoples - a study conducted with the direct participation of Indigenous Peoples, external consultancy under the guidance of the National Foundation for Indigenous Peoples (Funai), the intervening body in the environmental licensing process of the expansion project, conducted by Ibama.
The Impact Assessments for the Caru and Rio Pindaré Indigenous Lands identified and addressed significant adjustments to the original project. The Social and Environmental Programs for the Maranhão Indigenous is being implemented in a participatory manner, with programs for managing and mitigating the impacts identified in the study. Long-term agreements were established with these populations to support actions for territorial protection, preservation and conservation of natural resources, economic sustainability, income generation, cultural and institutional strengthening, productive activities, and other initiatives that contribute to the ethno-development of these communities. The development and monitoring of these agreements involve Funai as an intervening party in the various instruments celebrated.
Among the voluntary actions developed by Vale with the three peoples in Maranhão are the construction of housing, improvement of access roads, construction and provision of equipment for one (1) Basic Health Unit, as well as water supply and solar energy systems in partnership with the Maranhão Special Indigenous Sanitary District (DSEI) and National Bank for Economic and Social Development (BNDES). The Basic Health Unit was installed in the village of the Awá People, located in the Awá Indigenous Land. Throughout 2023, intercultural training courses were also held for Indigenous Health Agents and Indigenous Basic Sanitation Agents from the Guajajara and Awá peoples.
Additionally, a voluntary initiative aimed at strengthening and preserving culture included documenting the memories of the Guajajara, Ka'apor, and Awá peoples. The collection was also part of an exhibition at the Vale Maranhão Cultural Center, featuring 17 Indigenous Peoples.
Maranhão - Quilombola Communities
For the Quilombola communities near the EFC in Maranhão, the Impact Assessment with Quilombola was prepared in a participatory manner and with the supervision of government authorities. The Impact Assessment included the territorial, socioeconomic, and cultural characterization of the communities located near the EFC. The studies enabled the identification and assessment of the impacts of the railway expansion works and the proposal of the Social and Environmental programs for the Quilombola to mitigate these impacts.
The Social and Environmental programs for the Quilombola includes a set of programs focused on safety, mobility, communication, cultural and institutional strengthening actions. Governance committees were established in accordance with the social and political organization of these communities, with responsibilities for planning, executing, monitoring, and evaluating the developed actions, considering the objectives, expected results, and related indicators of each program.
For the past 10 years, the Social and Environmental programs for the Quilombola has been implemented participatorily, ensuring the Quilombola communities' voice through the committees.
The Social and Environmental programs for the Quilombola has generally achieved the established objectives, a result of the execution of the programs' actions and the participatory management model adopted. The shared management, monitoring, and evaluation system has proven fundamental to achieving the program's objectives, as the procedures and activities developed within this system contribute to maintaining dialogue with the Quilombola communities, their effective participation, and leadership, including in the planning of actions and decision-making at all stages of the work.
In 2023, Vale, voluntarily and through community associations, implemented water supply systems and repaired a bridge damaged by heavy rains in the region.
Pará - Indigenous Peoples
In another stretch of the EFC, in the state of Pará, in the municipality of Bom Jesus do Tocantins, Vale has been engaging with the Gavião Indigenous People, specifically the Parkatêjê, Kyikatêjê, and Akrãtikatêjê groups from the Mãe Maria Indigenous Land, since the 1980s.
Over the years, partnerships and support have been formalized with the Gavião Indigenous community, including actions in health, education, productive activities, and territorial protection and surveillance.
Vale, aligned with its Global Human Rights Policy, prioritizes respect for these communities and maintains ongoing relationships and dialogue. In this context, Vale supported the development of the Life Plan for the Indigenous Peoples of the Mãe Maria Indigenous Land, using a participatory methodology that promoted reflection and discussion on strategies to adopt to contribute to the quality of life of these peoples and guide ongoing projects and activities.
As part of the environmental licensing process for the EFC expansion works, the Gavião People Social and Environmental Programs was developed, similar to those prepared for the Indigenous communities neighboring the EFC in Maranhão. This plan was conducted with the support of specialized consultancy and approved by the Indigenous Peoples. The Gavião People Social and Environmental Programs includes programs to mitigate and/or compensate for the impacts of the EFC expansion identified in the Impact Assessment specifically prepared for this community, part of the licensing process for the project in the stretch of railway neighboring the Mãe Maria Indigenous Land. Among the programs being implemented in the Gavião People Social and Environmental Programs are those for productive activities, cultural strengthening, strengthening of Indigenous organizations, territorial protection, environmental and territorial management, among others, which were approved in December 2022 and are ongoing.
Vale has supported the Gavião People in strengthening the institutional capacity of their associations through workshops, training, and capacity-building that include aspects of resource management and governance.
Moreover, it is noteworthy that all activities by Vale that interface with the community are previously communicated by the company, thereby ensuring the process of free, prior, and informed consultation and consent, ensuring a transparent and good-faith relationship between the company and the Indigenous communities neighboring the EFC.
For more information on Vale’s activities with Indigenous Peoples and Traditional Communities, visit the website.
Last update August 2024
Context
Vale's purpose is to improve lives and transform the future while respecting the environment and neighboring communities. This is achieved through active listening and ongoing dialogue with all stakeholders. Therefore, there is a continuous approach to relevant issues, focusing on mutual engagement and long-term relationships.
Vale does not have a steel plant dedicated to pig iron production in the Chemical Industrial Park of Açailândia (Piquiá), Maranhão, nor does it have any dependency or subordination relationship with the steel companies located in the territory. Its relationship with companies in the sector is strictly commercial when requested to supply iron ore. In this context, Vale has always strived to strictly comply with environmental regulations, maintaining controls and monitoring in all its ore-related operations, being attentive to the community's social demands, and actively participating in discussions and solutions jointly with the public authorities and steel companies.
Indeed, Vales's operations in the region take into account environmental aspects and all applicable legislation, managing its processes using available technology for environmental control, preventing and mitigating impacts. Vale's social actions are based on an ongoing risk management process regarding communities and the promotion of a positive social legacy. Through alliances and partnerships, we are constantly seeking ways to articulate solutions to the challenges faced by neighboring communities and society.
Vales's participation in the Piquiá region is carried out in a participatory manner, focusing on contributing to the integrated development of the territory through initiatives organized into the following priority areas: Housing, Environmental, and Social, all resulting from the company's ongoing dialogue with the community and which also include the actions agreed upon in the Piquiá Sustainability Committee, created by the Açailândia Citty Hall.
Housing
Since 2017, Vale and the Vale Foundation, through voluntary investments, have been executing cooperation agreements together with the Piquiá Community Association and the Caixa Econômica Federal to build 312 houses for the creation of the new neighborhood for the community—“Piquiá da Conquista.”
In the first phase of the project, an initial contribution of R$ 6 million was made by the Vale Foundation's Urban Quality Seal Program, which aims to encourage social housing projects under the Minha Casa, Minha Vida Program, with financial supplementation per housing unit.
In 2022, at the request of the Piquiá Community Association, Vale made an additional financial contribution of R$ 33 million to CAIXA to ensure the continuity of the new neighborhood's construction, considering budgetary impacts and project updates, including basic sanitation infrastructure, paving, adequate public lighting, among other infrastructure items. The project is scheduled for completion in 2024. The total voluntary socio-environmental investment amounts to R$ 45 million.
Environmental
Regarding the report issued by the International Federation for Human Rights (FIDH) highlighting socio-environmental issues in the Piquiá region, corroborated by the Justice on Tracks movement, all allegations were assessed, resulting in visits by members of the Vale Sustainability Committee to the site and permanent monitoring by local teams.
Vale monitors actions such as the revitalization of roadbeds along the highway, the installation of collectors in trucks, the halt of operations in a pig iron production plant near the Piquiá community, among other actions taken by the pig iron producers to address the issues mentioned in the report, reaffirming Vale's commitment to being engaged in discussions for the benefit of Piquiá de Baixo.
Social
Vale operates in an articulated manner in the Piquiá territory, considering the following dimensions:
a) Infrastructure
Focusing on promoting sustainable and territorial development, Vale has been contributing and investing in social actions, such as conducting a participative social and territorial diagnosis of the region. Among other outcomes, the diagnosis identified the need to carry out urban drainage in the Piquiá de Cima area, where this action was also prioritized and supported by Vale. The project was completed in 2023.
b) Health
Vale and the Vale Foundation, through the Ciclo Saúde and Fortalecer Proteção Social projects, support infrastructure, supply of inputs and equipment, as well as the training of healthcare and social assistance professionals in the three Basic Health Units and the CRAS (Reference Center for Social Assistance) in the region.
c) Education
Vale contributed to training the public education network in the state and municipalities of Maranhão through an initiative by the Vale Foundation, in partnership with FGV, in the Literacy Trails project, which also benefits the Piquiá region. The company also supported the renovation of the Piquiá de Baixo Almirante Barroso school in 2023, benefiting 136 students. Additionally, the Vale Foundation, through the Routes and Literary Networks program, also renovated and equipped reading rooms in Piquiá schools, including book donations and training for education professionals on reading-related themes. A total of approximately 6,000 books were donated to schools in Açailândia, 630of which to Piquiá.
In 2024, the company is contributing to the full literacy of children in the first five years of elementary education at two schools (Eduardo Pereira Duarte municipal school and Darcy Ribeiro municipal school). A total of 317 students are being benefited from the initiative, and eight professionals are being trained.
d) Employment and Income Generation
To promote local entrepreneurship and income generation, the Vale Foundation runs the Income Generation Support Program (AGIR), which supports five community businesses in Açailândia. Through AGIR, entrepreneurs receive specialized consulting in business management and operation, customized training for their specific type of activity, support in partnership building and fundraising, as well as seed capital for business structuring and expansion. The AGIR program also supports the Feira Livre do Piquiá, a business composed of 35 entrepreneurs who produce and sell local products, promoting the region's culture and occupying public spaces. In addition to the market, Piquiá also has other entrepreneurs supported by AGIR, such as beekeepers who are part of the AAVA - Agroindustrial Association Vale do Açailândia. The honey is produced in an apiary pasture provided by the company Suzano, through a technical cooperation partnership with the Vale Foundation.
Vale reaffirms its commitment to continue dialoguing and building social development solutions with the Piquiá community, civil society in general, public authorities, and other private companies, aiming to promote human rights, empowerment of the community, and strengthen public policies and management, thus seeking sustainable results for the region.
Last updated in August 2024.
As per previous clarifications, Vale's improper inclusion on the “dirty list” was related to an incident that took place in February 2015. The company Ouro Verde Locações e Serviços S.A., which provided transportation services for finished products between Pico and Fábrica Mines for Vale S.A. in Minas Gerais, had its work sites inspected by the Ministry of Labor. After this inspection, the Ministry indicated non-compliance with labor obligations relating to changing room conditions, access to water, working hours, among others.
At the time, when made aware of the findings, Vale S.A. followed up all the corrective measures in collaboration with the public authorities, implemented the immediate correction of the labor irregularities incurred by the service provider and subsequently terminated the contract with the transport company - Ouro Verde.
Furthermore, elaborated a “forced labor prevention plan”, restructuring and strengthening its corporate governance system; began carrying out training on third party contractions with a focus on human rights protection; and hired external consulting for prevention, through analysis of the execution of service providers' contracts, notedly aiming inhibiting labor irregularities in relation to health, hygiene and work safety, among other actions.
However, adopting an extensive interpretation of the legislation, the Ministry of Labor considered that the outsourcing of the transport activity was illegal, on the grounds that it was part of the contracting company's core activities and that, therefore, the employees of the transport company should be considered Vale employees. It is important to note that the employees of the service provider were never deprived of the right to come and go, were duly registered and received transportation to and from their homes, in conditions superior to those provided by public transport, had their work cards signed, did not have their documents withheld, nor were they in debt to the company; it is certain that they were not kept in degrading conditions analogous to slave labor. Due to the aforementioned broad interpretation of the legislation, adopted by the Ministry of Labor, Vale S.A. was fined for alleged irregularities committed by Ouro Verde, including illegal outsourcing and keeping employees in conditions analogous to slave labor. As the notices were not in line with the working reality of those service providers, the company filed defenses and administrative appeals.
In 2016, Vale filed actions to overturn infraction notices that dealt with (i) the illegality of outsourcing and (ii) the maintenance of employees in conditions analogous to slavery.
Since 2019, the company carries out human rights due diligence in its operations and supply chain. Vale has a contract management procedure on compliance with health and safety standards and construction sites (checklist for inspections) and has expanded the activities of its Whistleblower Channel to investigate any irregularities that may cover service providers.
In addition, the contractual clauses were revised, with the purpose of providing for the possibility of terminating the contract in the event of the use of labor analogous to slavery and non-compliance with labor legislation. Dialogue between Vale's labor relations department and Trade Unions representing the categories of third-party workers has also been expanded, among other measures currently being implemented by the company.
Vale repudiates any form of disrespect for human rights and degrading working conditions. Reinforces its commitment, aligned with its policies, to maintaining decent working conditions for its entire production chain and adopts strict measures to ensure compliance with labor laws and respect for human rights.
Last update in July 2024.
With the commitment to work towards reducing its dust emissions to the maximum, Vale signed a new Environmental Commitment Agreement (TCA) in 2018 with the Federal Prosecutor's Office (MPF), the Federal Prosecutor's Office (MPE), the State Environment Secretariat, and the State Environmental Institute. The agreement aims to ensure transparency in the implementation process of the investments announced by the company, which are part of its Environmental Master Plan.
The Tubarão Environmental Master Plan includes actions that meet the recommendations of technical bodies, focused on addressing sources of diffuse emissions from the movement of products in yards, conveyor belts, and piers, with investments of approximately R$ 4.7 billion.
There are 131 projects for improving atmospheric management, including the implementation of new equipment, improvements in atmospheric environmental controls, and studies of new technologies. Among the main actions are the expansion of the internal monitoring network and the Environmental Control Center, with 53 points monitoring to ensure the proper functioning of all controls; the closure of temporary storage areas and supply yards; the enclosure of transfer houses and conveyor belts; and the installation of four new wind fences, totaling 10 wind barriers.
It is also important to clarify that settleable dust, commonly known as "black dust," is composed of different elements from various sources, such as vehicles, construction, and industry, according to the Source Inventory of the State Environmental Institute (Iema).
The company maintains open and direct dialogue with communities and is also available through the Alô Vale listening channel (0800 285 7000).
Last updated, July 2024
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 complemented 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 diverse 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, has been an increase in the possibility of 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 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 can be 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 possibility 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’s companies BHP Billiton and Samarco.
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 www.fundacaorenova.org.
Last update June 2024.
PT Vale Indonesia (‘PTVI’) is a non-operated joint venture of Vale Base Metals, which holds a 33.9% share in the company, making Vale S.A. (‘Vale’) an indirect shareholder*. PTVI’s operational focus is on nickel mining, smelting, and refining activities in Sorowako, South Sulawesi.
In 2023, Vale, S.A. received a stakeholder letter containing allegations of social and environmental impacts related to PTVI’s activities in Sorowako and Tanamalia.
The alleged social and human rights impacts related to land access, resettlement, livelihood restoration, water access and quality, lack of consultation, and intimidation by security forces
In response to the allegations, in October 2023, Vale Base Metals (VBM) established a task force to help PTVI assess and address the allegations, and to help the company strengthen their approach to social, human rights, and environmental impact management in the region. An external and independent investigation was commissioned to investigate the allegations relating to water quality, freedom of expression, deprivation of livelihood and land.
Regarding land, livelihoods and compensation, interviewees indicated that they were unaware of the boundaries of the PTVI concession around Sorowako, which is used by families for economic activities (e.g. farming) and/or as residential land. Concerns were also raised about differing approaches to and levels of compensation. Collectively, these contributed to a rise in social tensions and community frustration.
Regarding suppression of freedom of expression, it was confirmed that the presence of security forces during community engagements led to perceptions of intimidation, suppressing free expression. It was also noted that, past incidents, including threats to PTVI employees and community conflicts, had escalated tensions.
Regarding access to clean water in the Asuli village (Sorowako), the report indicates that the “discolouration of the water could have been caused by mining-related land clearance and disturbance, or by natural soil erosion during rainfall”. In addition, according to interviewees, the boreholes provided by PTVI do not serve all residents, and some members of the community felt a lack of communication regarding the possible mining impacts on water sources and the actions. It is important to note that Hexavelant Chromium contamination was not raised by the communities during the investigation, and PTVI provided sample results which were compliant with Class II quality standards for Hexavalent Chromium. PTVI is taking specific actions to address the community’s concerns, which can be found in the related Action Plan document on the PTVI website.
Regarding the potential future loss of livelihoods in Tanamalia, the report indicates that farmers have cleared land, without authorization, within the concession area and protected forest area to plant pepper trees. The investigation raised concerns over the impact on future livelihood due to potential exploration and mining operations in Tanamalia and the need for participatory stakeholder engagement and impact management.
PTVI acknowledges the investigation's findings and is committed to implementing an Action Plan, which includes:
- Improving stakeholder engagement and participation
- Reinforcing PTVI’s Grievance Mechanism
- Reviewing past compensation payments and developing a Land Access and Compensation Framework (LACF) as well as a Land Access and Resettlement Framework (LARF) to manage physical and / or economic displacement associated with planned exploration activities
- Including the community in the independent water testing protocols and water monitoring that PTVI regularly commissions
- Strengthening its implementation strategy of the Voluntary Principles on Security and Human Rights
The summary action plan can be found here.
PTVI is dedicated to working with all parties to ensure local community engagement is conducted in a respectful manner, adhering to local customs and international standards. Progress updates on these action items will be shared in the next PTVI Annual Sustainability Report, which will be published on the company’s website in due course.
*The remaining ownership interests are divided between Sumitomo Metal Mining Co. Ltd. (‘SMM’), Indonesia’s mining industry holding company PT Mineral Industri Indonesia (‘MIND ID’), and publicly shares listed on the Indonesia Stock Exchange.
Last updated September 2024
Norte Energia S.A. has its own governance structure, with representation of its shareholders through its Board of Directors and respective advisory committees. The regulatory framework of Norte Energia S.A. comprises policies, standards, and other instruments, guiding decision-making on matters according to the relevant authorities in the best interest of the company. Vale exerts influence through the company’s Board of Directors and supports the committees, with the goal of contributing to the adoption of specific processes, policies, and best market practices. In its involvement with Norte Energia, Vale monitors the adoption of practices of integrity, transparency, and responsibility, aiming to generate sustainable value for the organization, the environment, and society in general, while also promoting the continuous improvement of risk and impact management.
Since before the bidding notice for the Belo Monte Hydroelectric Plant was issued in 2009, the project has been debated by society. The current configuration of the project allowed for a 58% reduction in the flooded area compared to the original proposal, thereby preventing the flooding of Indigenous Lands. The use of the approximately 100 km drop of the Volta Grande do Xingu was studied and debated, resulting in the Declaration of Water Availability Reserve – National Water Agency (ANA) Resolution No. 740, dated 10/06/2009 – and the conditions of the Preliminary License (LP) Ibama No. 342/2010, dated 02/01/2010, which established rules regarding the hydrograph and navigability, with particular emphasis on the six-year testing period following the installation of the full generation capacity of the Main Powerhouse. This installation was completed in November 2019.
- The Firm Energy Guarantee of the Belo Monte Hydroelectric Plant (4,571 MW) was obtained based on the average monthly natural inflow series of the Xingu River in the Belo Monte Complex region and the Consensus Hydrograph, which consists of alternating between Hydrographs A and B, as defined by the Brazilian State, to be practiced alternately each year. This alternation was established after evaluating various scenarios, as it best balanced energy generation with the environmental issues involved. The Consensus Hydrograph was anticipated in the Environmental Impact Assessment (EIA) and in all subsequent licensing acts, including the Preliminary License (LP), Installation License (LI), and Operating License (LO), as well as in the Bidding Notice and Concession Contract.
- The generation of the Belo Monte Complex in 2023 was impacted by the combination of the following three factors, resulting in production values below the Firm Energy Guarantee: 1) the use of only Hydrograph B, which considers a higher flow for the Xingu's Reduced Flow Stretch (TVR), and therefore provides a lower flow for the Belo Monte HPP; 2) the average annual inflow observed in 2023 was below the historical average; 3) in addition, restrictions observed in the National Interconnected System for the allocation of full dispatch at the Belo Monte HPP also negatively impacted production.
- Data from fish monitoring, ongoing since 2012 as part of the Social and Environmental Programs (PBA), shows that most fish continue to reproduce in the post-filling period (Source: Norte Energia Sustainability Report, 2023). In 2024, Norte Energia, in partnership with the Federal University of Pará, began detailed monitoring of fish spawning areas to bring greater robustness to the results regarding fish reproduction in the Reduced Flow Stretch. The study is ongoing and has already shown that most spawning areas are flooded for varying periods during the river’s high water season, contrary to what has been reported by the Independent Territorial Environmental Monitoring, which claims that fish are not reproducing in these areas of the Reduced Flow Stretch.
Also in 2011, the Social Monitoring Forum for the Belo Monte Hydroelectric Plant was implemented. This body is composed of local and regional stakeholders for the clarification of doubts and exchange of information about the Belo Monte HPP. Within this forum, meetings, participatory workshops, or technical visits are held with community representatives, including civil society, local governments, Ibama, and other interested parties. The Forum also includes other participatory bodies, which are permanent and address one of the socio-environmental commitments made between Norte Energia and Ibama during the environmental licensing process (communication plans and programs). Among these bodies are the Volta Grande do Xingu Commission (CVGX) and the Fisheries and Aquaculture Commission (CPA), which hold regular meetings of commissions and specific thematic committees to facilitate the appropriate breadth of dialogue."
According to the Sustainability Report from Norte Energia, the Belo Monte Hydroelectric Plant meets the requirements and conditions of the Environmental Licensing process, as defined in the Environmental Impact Assessment (EIA/RIMA), conducted in collaboration with Ibama teams dedicated to analyzing documents, participating in regional meetings, and conducting regular inspections. Additionally, the Belo Monte HPP also complies with the requirements of the Equator Principles as referenced by the International Finance Corporation (IFC). Quarterly, Norte Energia publishes reports, prepared by an independent external audit, regarding compliance with the Performance Standards on Socio-environmental Sustainability (access: https://www.norteenergiasa.com.br/sustentabilidade/relatorios-e-publicacoes). Therefore, due to the environmental licensing process, the execution of monitoring, the development of participatory processes, and the conducting of independent audits, it is clear that the socio-environmental measures have been followed, and the anticipated and generated impacts are being mitigated, compensated, and monitored in compliance with legal requirements and agreements with society. (Source: Norte Energia Sustainability Report, 2023).
Beyond the commitments established within the scope of the environmental licensing process, Norte Energia, through its concession agreement, provides financial resources for projects in the Xingu region through the Xingu Sustainable Regional Development Plan (PDRSX).
The PDRSX aims to promote a total investment of R$ 500 million in projects that contribute to the sustainable regional development of the region from 2010 to 2030, according to Presidential Decree No. 7340 of 2010, updated by Decree 10.729 of June 23, 2021. These actions seek to contribute to and strengthen the socioeconomic development of the region and the environmental protection of the Xingu basin. The commitment established with the Brazilian government was to invest R$ 500 million during the concession period. The PDRSX started in 2011, and as of September 2024, R$ 306 million has been invested in projects in the region. In 2023, R$ 4.2 million was allocated to projects approved in calls for proposals conducted until 2017 that were still in progress.
In the first half of 2023, UHE Belo Monte was the largest energy generator in Brazil and Latin America, and in the last six months of the year, despite the El Niño phenomenon, which reduced the flow of rivers in the Northern region, the plant contributed to the energy supply, maintaining second place in the ranking. Another milestone achieved in 2023 was the inauguration of the Northern Operations Center at the Belo Monte Hydroelectric Plant, which centralized communication with the National System Operator (ONS). Additionally, there were advancements in the primarization of operation and maintenance processes, which prioritized and qualified local labor. These actions were carried out in partnership with the National Service for Industrial Training (Senai) in Altamira-PA.
Furthermore, the 2023 Sustainability Report from Norte Energia highlights the company's adherence to the United Nations Global Compact (UNGC); the achievement of gender parity on the Board of Directors, with six women in its composition; and the publication of the 2nd Greenhouse Gas (GHG) Emissions Inventory, which, for the second consecutive year, received the Gold Seal from the Brazilian GHG Protocol Program.
In the field of biodiversity, in 2023, the Xingu Call for Proposals was launched with BNDES, Fundo Vale and Energisa, as part of the Floresta Viva initiative. This initiative will allocate up to R$ 26.7 million in non-reimbursable funds over the next four years for projects focused on restoring degraded areas and strengthening production chains in the Xingu River Basin, in the Amazon region.
Also notable is the implementation of Permear, a project aimed at training educators from the Altamira Municipal Education Network on ethnic-racial issues. Developed in partnership with the Municipal Department of Education, the initiative seeks to support the public sector in implementing Federal Law No. 11,645/2008, which makes the teaching of Indigenous and Afro-Brazilian history and culture mandatory in Basic Education. Through this public-private partnership, Norte Energia aims to contribute to the Sustainable Development Goals (SDGs) and the International Decade of Indigenous Languages 2022-2032, both declared by the UN.
In 2023, Belo Monte Comunidade, the main social responsibility program of Norte Energia, expanded its area of operation, strengthening activities with the riverside communities in the Volta Grande do Xingu region. In partnership with Belo Monte Empreende, training in chocolate production was offered, with the participation of Indigenous Peoples.
In the field of Human Rights, Norte Energia continued its internal training for employees and actively participated in thematic forums. It was elected co-leader (2024-2026) of the Social Technical Chamber of the Brazilian Business Council for Sustainable Development (CEBDS) and contributed, along with other companies in the sector, to the Working Group of the Electric Power Sector of the UN Global Compact. (Source: 2023 Sustainability Report from Norte Energia).
Currently, Vale develops activities in traditional territories in countries where regulations are in force, such as Canada, always in strict observance of the principles mentioned above, with emphasis on Free, Prior and Informed Consent (FPIC).
Last update june 2023.
Prior to entering 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 statements from representatives of BSGR, including Mr. Benjamin Steinmetz, and such statements were regularly provided by them to Vale.
Vale paid BSGR an initial purchase price of US$ 500 million, to become a partner of BSGR 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 way BSGR obtained its mining 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 in obtaining such concessions. The Guinean government explicitly concluded that Vale had played no role in any of BSGR’s corrupt activities, which would have been carried out even before Vale became a partner in the business. In March 2015, Vale transferred the interest of the mining joint venture stake in Guinea back to former partner BSGR.
In April 2014, Vale initiated an arbitration against BSGR before the London Court of International Arbitration (“LCIA”) seeking to terminate the contracts then in force with BSGR and also to recover over US$ 1 billion in damages 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 LCIA arbitral tribunal rendered a fully favorable arbitral award for Vale, ordering BSGR to pay Vale over US$ 1.2 billion in damages (with interest, correction and expenses the value totals more than US$ 2.0 billion), and expressly declaring that Vale was never involved in the illegal practices related to BSGR's obtaining of mining concessions, on the contrary, the Tribunal attested that Vale was a victim of the fraud perpetrated by BSGR. Vale promptly commenced legal proceedings to enforce its award against BSGR in the High Court of Justice of England and in the United States District Court for the Southern District of New York. The arbitral award was recognized in both the United Kingdom and the United States by Court decisions that are final and not subject to appeal. On the other side, the attempts made by the BSGR to set aside the arbitral award have been unsuccessful, with the international Courts rejecting BSGR's applications to set aside the arbitral award.
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 to secure Vale’s investment in Simandou.
In an attempt to recover at least some part of the losses it suffered from the JV with BSGR, Vale filed a fraud claim in 2019 with the High Court of England and Wales in London, alleging fraud in the Simandou deal. The action was brought against certain individuals and entities related to BSGR, including Mr. Benjamin Steinmetz, seeking forfeiture of personal property of these individuals and entities. In December 2019, the English Court granted a worldwide freezing order on the assets of Steinmetz, his foundation, and other defendants to secure payment of Vale's JV losses with BSGR. However, due to a change in English case law regarding the limitation period for such claims, Vale had to file to discontinue this fraud action against the BSGR-related individuals and entities. As a result, the personal assets of the defendants were released due to the dismissal of the case as the claims were time-barred.
In the meantime, Vale is still seeking to receive from BSGR amounts through the other ongoing legal proceedings in London and New York against BSGR.
In the context of the proceedings initiated by Mr. Benjamin Steinmetz in Brazil, 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 update May 2023.
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