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    The processes, activities and industries that aim to extract substances from deposits or mineral masses face controversial issues every day. These disputes involve a matter of opinion about which the parties actively discuss, disagree, and manage solutions. 

    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 by respecting the environment and the communities neighboring its operations, practicing active listening, and maintaining ongoing dialogue with all stakeholders. Consequently, the company adopts a continuous approach to relevant issues, focusing on mutual engagement and long-term relationships.

    Vale does not operate a steel plant for pig iron production in the Piquiá Chemical Industrial Park in Açailândia, Maranhão, nor does it have any relationship of dependency or subordination with the steel companies located in the region. The company's relationship with steel sector companies is strictly commercial, limited to supplying iron ore upon request. In this context, Vale has consistently strived to comply rigorously with environmental regulations, maintaining controls and monitoring across all its ore-related operations. The company remains attentive to the community's social demands, actively participating in discussions and solutions in collaboration with public authorities and steel companies.

    Vale considers environmental aspects and all applicable legislation, managing its processes with available technology for environmental control to prevent and mitigate impacts. The company's social initiatives are guided by an ongoing risk management process regarding communities and by promoting a positive social legacy. Through alliances and partnerships, Vale continuously seeks ways to develop solutions for the challenges faced by neighboring communities and society at large.
    In the Piquiá region, Vale conducts its activities participatively, focusing on contributing to the integrated development of the territory through initiatives organized into priority areas: Housing, Environmental and Social, and Institutional. These areas are defined through ongoing dialogue with the community and are also part of the actions agreed upon in the Piquiá Sustainability Committee, created by the Municipal Government of Açailândia.

    Housing Axis
    Since 2017, Vale and the Vale Foundation, through voluntary investments, have been executing cooperation agreements with the Piquiá Community Association and Caixa Econômica Federal to build 312 houses for the creation of a new neighborhood for the community — "Piquiá da Conquista." The homes were delivered in October 2024 during a ceremony organized by the Federal Government/Ministry of Cities, with Vale's participation.

    The project received an investment of BRL 45 million (R$ 45.000.000,00) from Vale and the Vale Foundation, in addition to institutional support with public agencies, combining efforts with other entities linked to municipal, state, and federal governments. The state government has already begun construction of facilities including a market, a primary healthcare unit, a school, a sports court, and a family plaza.

    Environmental Axis
    Vale continues to implement actions aimed at mitigating the emission of particulates during the road transportation of iron ore between Vale and the plants, including the paving of roads. The company also monitors the decommissioning of steel plant furnaces and the compliance with legal and market environmental standards by the installed plants, reaffirming Vale's commitment to supporting initiatives for the benefit of Piquiá de Baixo.

    Social and Institutional Axis
    In the social and institutional sphere, Vale is in the implementation phase of a socioeconomic development plan for Piquiá, which was developed participatively. Through the creation of intersectoral actions with public authorities and other companies in the region, the plan takes into account the following dimensions:

    A) Infrastructure
    With a focus on promoting sustainable and territorial development, Vale contributes to and invests in actions such as rainwater drainage works in the region, as well as planning long-term initiatives like local revitalization.

    The implementation of the new housing complex financed by Vale created a synergistic impact by channeling rainwater from Piquiá da Conquista to the Novo Horizonte neighborhood. Consequently, the need to implement a drainage system was identified. In this regard, Vale formalized the donation of additional materials for the drainage service to the Municipal Government of Açailândia, following recommendations from the Secretariat of Social Dialogues of the Presidency of the Republic and the Public Prosecutor's Office of Maranhão/Açailândia. The works will be carried out by the Municipal Infrastructure Department.

    b) Health
    Vale and the Vale Foundation, through the Cycle of Health and Strengthening Social Protection projects, support infrastructure, procurement of supplies and equipment, as well as the training of professionals in the health and social assistance fields in the three Basic Health Units (UBS) and the CRAS (Social Assistance Reference Center) in the region.

    c) Education
    Vale contributed to training programs for the public education network of Maranhão state and its municipalities through an initiative by the Vale Foundation, in partnership with FGV, within the Literacy Tracks Project (Trilhos da Alfabetização), which also benefits the Piquiá region. The company supported the renovation of the Admiral Barroso Piquiá de Baixo School in 2023, benefiting 136 students.

    Additionally, the Vale Foundation, through the Literary Routes and Networks Project (Rotas e Redes Literárias), renovated and equipped reading rooms in Piquiá schools, donated collections, and trained education professionals on reading-related themes. In total, approximately 6,000 books were donated to Açailândia schools, with 630 specifically for Piquiá.

    In 2024, the company supported full literacy for children in the first five years of elementary school at two schools (EM Eduardo Pereira Duarte and EM Darcy Ribeiro). A total of 317 students benefited from the initiative, and eight professionals were trained.

    d) Employment and Income Generation
    To promote local entrepreneurship and income generation, the Vale Foundation implements the AGIR Program (Support for Income Generation and Growth), which supports five community businesses in Açailândia. Through AGIR, entrepreneurs receive specialized consulting in business management and operations, customized training for their activities, assistance in establishing partnerships and fundraising, as well as seed capital for structuring and expanding their businesses.

    The AGIR Program also supports the Piquiá Open Market, a business consisting of 35 entrepreneurs who produce and sell local products, while promoting the preservation of regional culture and the use of public spaces. In addition to the market, Piquiá has other entrepreneurs supported by AGIR, such as beekeepers from the AAVA (Vale do Açailândia Agroindustrial Association). The honey is produced in an apicultural pasture provided by Suzano through a technical cooperation partnership with the Vale Foundation.

    In 2024, Vale also implemented its Young Apprentice Program in the Piquiá community. In this edition, Vale offered positions for the Electromechanical Technician course, with practical training in the company’s Maintenance or Operations area. Admissions are scheduled to begin in January 2025. Approved participants will receive a stipend along with other benefits.
    Vale reaffirms its commitment to continuing dialogue and collaboratively building social development solutions with the Piquiá community, civil society, public authorities, and other private companies. The goal is to promote the protection of human rights, empower the community, strengthen public policies and governance, and create sustainable results for the region.

    Last updated in December 2024. 

    Vale clarifies that in October 2024, the decision issued by the Federal Supreme Court (res judicata) became final, following the August 2024 decision of the 3rd Regional Labor Court, which declared the infraction notice that dealt with slave labor null and void. This outcome confirms the decision to exclude Vale S.A. from the Ministry of Labor and Employment's Register of employers, known as the “dirty list”, definitively ending the legal debates on the subject.
     

    Context

    Vale's undue inclusion on the “dirty list” was related to an event that took place in February 2015, when the company Ouro Verde Locações e Serviços S.A., which provided transportation services for final products between the Pico and Fábrica mines for Vale S.A. in Minas Gerais, had its workplace inspected by the Ministry of Labor and Employment. The inspection revealed non-compliance with labor obligations regarding changing room conditions, cleanliness, access to water, and working hours, among others.

    The Ministry of Labor and Employment, adopting a broad interpretation of the law, considered that the outsourcing of the transportation was illegal, arguing that it was part of Vale's core activities and that, therefore, Ouro Verde employees should be considered Vale employees. It is important to note that these workers were never deprived of their liberty, were duly registered, received adequate transportation, had their work cards signed, had no documents withheld nor had debt owed to the company, and were not in poor working conditions.

    Due to the extensive interpretation of the legislation adopted by the Ministry of Labor and Employment, Vale S.A. was fined for alleged irregularities committed by Ouro Verde, including illegal outsourcing and keeping employees in moderns slavery conditions. As the fines were not consistent with the working reality of those service providers, the company filed defense and administrative appeals.

    In 2016, Vale filed lawsuits to annul the fines related to outsourcing and the working conditions of third-party workers and reinforced the work of internal groups to identify and make continuous improvements to facilities and workstations.
     

    Remediation actions in 2015

    At the time of becoming aware of the findings in the infraction notice, Vale, in collaboration with the authorities, implemented an immediate correction of the labor irregularities incurred by the service provider and subsequently terminated the contract with Ouro Verde.

    In addition, Vale developed a “forced labor prevention plan”, through which it improved its corporate governance system; began to carry out training on subcontracting with a focus on the protection of human rights; and hired external consultants to assist in the prevention of labor irregularities related to health, hygiene and safety at work, among other actions.
     

    Long-term corrective and preventive measures

    Human Rights Policy - Since 2009, Vale has a Human Rights Policy which aims to establish general guidelines and principles so that its actions respect and promote all human rights in the development of its activities and partnerships in its value chain.

    Contract management - Vale has a contract management procedure for compliance with health and safety standards and construction sites (checklist for inspections).

    Contractual clauses - The contractual clauses related to human rights issues allow the termination of the contract in the event of the use of salve labor  and non-compliance with labor legislation.

    Strengthened dialogue - Dialogue between Vale and worker unions representing third-party workers has also been expanded.

    Engagement with suppliers - Holding events, training and webinars and the Decent Work Caravans with the participation of the Regional Labor Secretariats.

    Whistleblowing Channel - The Whistleblowing Channel was expanded to investigate possible irregularities, including those of suppliers and contractors.

    Human rights due diligence - Since 2019, the company has carried out external human rights due diligence on its operations and supply chain. Based on the findings, corrective action plans are drawn up for suppliers, which are monitored by Vale.

    Vale condemns any form of disrespect for human rights and degrading working conditions and reaffirms its commitment to maintaining decent working conditions and respecting human rights in all its activities.

    For more information on human rights management of Vale's suppliers, visit the ESG Human Rights Portal. 

    Last update in november 2024.
    The Tubarão Unit, located in Vitória, centralizes Vale's railway, pelletizing, and port operations in Espírito Santo. The history of the Tubarão Unit begins in 1966 with the transfer of Vale's port activities from the Atalaia and Paul docks in Vila Velha to a new location, capable of meeting the growing demand at the time for iron ore. The Tubarão Port was already interconnected with the Vitória to Minas Railway (EFVM), being considered the driving force of Vale's activities in Espírito Santo and the springboard for the State, whose economy was centered on coffee, to diversify its activities by operating in other industrial and commercial attractions. The port is responsible for the movement of iron ore, grains, fertilizers, and coal. The company has been investing over the years to mitigate the potential emission of particulate material from pelletizing activities and the movement of these products.

    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
    On November 5th, 2015, Samarco's Fundão dam, located in Mariana, Minas Gerais, collapsed and released approximately 39.2 million cubic meters of tailings into the Gualaxo do Norte River in Mariana which then flowed into the Doce river on a path of around 670 km impacting 39 municipalities from Minas Gerais to Espirito Santo. There were 19 fatalities because of the dam breach.  

    The Samarco Fundão Dam failure was a tragedy that will never be forgotten. As shareholders in the 50:50 non-operated joint-venture, Vale and BHP have always been committed to the reparation of the damages caused. 
     

    Original Framework Agreement (TTAC)

    In March 2016, Samarco, Vale and BHP Brasil entered into a Framework Agreement (“TTAC”, acronym for Termo de Transação e Ajustamento de Conduta, or “Original Framework Agreement”) with the Brazilian federal government, the two Brazilian states affected by the dam failure (Espirito Santos and Minas Gerais) and other government authorities to establish remediation and reparation programs for the communities and areas affected by the dam failure.  Samarco was responsible for reparations of the affected areas through the Renova Foundation, with Vale and BHP as additional shareholders jointly responsible for funding the Foundation.  Pursuant to the Framework Agreement, Renova was conducting a total of 42 social, economic, and environmental reparation programs in affected territories in a total amount of R$ 38 billion. Information on the TTAC and progress can be found on Renova´s website.  
     

    Agreement Renegotiation

    Under the terms of the TTAC, a review of the governance related to the 42 programs was started in 2021 seeking effective, efficient, comprehensive and clearer terms to the Agreement signed. Samarco, BHP Brasil and Vale engaged in a mediation led by the Brazilian Federal Court of Appeals of the Sixth Region, with the Brazilian State and Federal Governments and other public entities to come to a definitive settlement of obligations under the Framework Agreement, the Federal Public Prosecution Office Claim, and other claims by government entities relating to the Samarco dam failure. 
     

    2024 Definitive Settlement in Brazil for the full reparation of Samarco’s Fundão Dam Collapse

    On October 25th, 2025, Vale S.A., BHP Billiton Brasil Ltda and Samarco Mineração S.A., together with the Brazilian Federal Government, the state governments of Minas Gerais and Espírito Santo, the Federal State Prosecutors’ and Public Defendors’ offices and other Brazilian public entities signed a definitive and substantial settlement of claims related to the Fundão dam collapse (“Definitive Settlement”). The Definitive Settlement was approved by the Brazilian Supreme Court on Nov. 6th, 2024.  

    The Definitive Settlement addresses all demands involving the signatory Brazilian public authorities, related to the collapse of Samarco's Fundão dam, including all socio-environmental damages and all collective and diffuse socioeconomic damages resulting from the rupture.

    “The Definitive Settlement enabled a mutually beneficial resolution for all Parties under fair and effective terms, while creating definitiveness and legal certainty. It is the result of a high-level mediation process conducted by the Brazilian Federal Court of Appeals of the 6th Region, with open dialogue and transparency. 

    The engagement of Brazilian authorities and public entities ensured legitimacy to the settlement, which was supported by social, environmental and technical criteria. This important agreement also reinforces our commitment to Brazilian society and to a better future for the people, communities and the environment", Gustavo Pimenta, Vale’s CEO.
     

    Key financial commitments

    The Definitive Settlement provides for a total financial value of approximately R$ 170 billion¹ , comprising past and future obligations, to serve the people, communities and the environment impacted by the dam failure. It sets three main lines of obligations. 
     ¹ Future financial obligations are presented on a real, undiscounted basis and will accrue inflation at Brazilian inflation index IPCA.

     ² Adjusted by the Brazilian inflation index IPCA.
     
    • Obligations to pay: Funds will support several compensation fronts, ensuring substantial resources for improvements in health, sanitation, fishing activities and community funding, and a dedicated approach to indigenous and traditional communities, and municipalities.
       
    • Obligations to perform: Samarco will execute certain obligations, including a voluntary-based, simplified individual indemnification system, measures towards the Doce River environmental recovery and the completion of Community resettlements, which already reached around 94% of total cases to be delivered as of September 30, 2024. Hence, part of the Renova Foundation’s 42 programs will be gradually transferred to Samarco or the authorities, while the remaining programs will be closed. The Renova Foundation’s governance body will cease on signing. 
    Samarco funding of remediation obligations: Under the terms of Samarco’s Judicial Reorganisation Plan, Samarco’s funding of remediation obligations will be capped at US$1 billion for the period CY2024 to CY2030. To the extent that Samarco has a positive cash balance each year after meeting its various obligations including operating capital requirements, debt service and remediation obligations in line with the cap, Vale and BHP Brasil are able to direct 50% of Samarco’s year end excess cash balance to provide further funding for remediation and compensation obligations. Vale and BHP Brasil will be required to provide funding to remediation obligations during this period to the extent that the funding amount required exceeds the US$1 billion cap and any excess Samarco cash available.

    Vale’s provision and cash outflow expectation: Vale reaffirms its commitments to supporting Samarco in repairing the damage caused by the Fundão dam collapse and to the shareholders' previously agreed obligation to finance, up to a 50% share, the amounts that Samarco may eventually fail to fund as the primary obligor. Vale’s provision recorded for those obligations is US$ 4.7 billion as of September 30, 2024, and includes estimates of Samarco’s contributions. The estimated timeline for cash disbursement is as follows: 
     3 Future financial obligations are presented on a real, undiscounted basis and will accrue inflation at IPCA inflation rate. 
     4 Average annual payments between 2031 and 2043.
     5 Average annual payments between 2031 and 2039.
     6 As per previous framework agreements.
     7 Considering an average exchange rate of 5.4481 as of September 30,2024.
     

    Legal Processes

        -    Processes in Brazil: Vale is a defendant in several legal proceedings brought by government authorities and civil associations claiming socioenvironmental and socioeconomic damages and remediation measures because of Samarco’s Fundão dam failure. The signing of the definitive settlement agreement provides a stable framework for the execution of reparation and compensation measures related to the Samarco dam rupture; it also settles all lawsuits brought by the public authorities involved. Relevant criminal proceedings against Vale are outlined in our 20-F report on p. 174.  

        -    International Claims (UK and the Netherlands):  Vale believes the English and the Netherlands proceedings are unnecessary because they duplicate matters already covered by the existing and ongoing reparation work and legal agreements in Brazil.
    • BHP Group Limited and BHP Group (UK) Limited (BHP) are defendants to a group action claim in the English High Court, brought by claimants seeking damages in relation to the Fundão Dam failure in 2015 (the English Proceedings). BHP does not consider that it is liable to the claimants in the English Proceedings. 
    • In March 2024 a new claim was filed against Vale and the Dutch subsidiary of Samarco in the Netherlands on behalf of Brazilian claimants, including municipalities, for compensation relating to the Fundão Dam failure (the Netherlands Proceedings).  Vale does not consider that it is liable to the claimants in the Netherlands Proceedings. 
    • BHP, BHP Brasil and Vale have entered into an agreement for BHP and Vale to each pay 50% of any amounts potentially payable to the claimants in the English Proceedings, the Netherlands Proceedings and other proceedings in Brazil covered by the agreement without any admission of liability for these proceedings. The agreement reinforces the terms of the Framework Agreement entered in 2016 which require BHP Brasil and Vale to each contribute 50% to the funding of the Renova Foundation for compensation of persons impacted by the Fundão Dam failure where Samarco is unable to contribute that funding.  

    Detailed terms of the Definitive Settlement 

    Category Description
    Parties
    •    The Federal Government of Brazil, the State of Minas Gerais, the State of Espírito Santo, the public prosecutors and public defenders
    •    Samarco, Vale and BHP Brasil 
    Settlement and releases
    •    Full and final settlement of the TTAC obligations, the Federal Public Prosecution Office civil claim and other claims by the Public Authorities relating to the dam failure.
    •    Confirmation that the collective socio-environmental and socio-economic damages of any nature (including social, moral and non-economic damages) arising from the dam failure are compensated and remediated by the Obligations to Perform and Obligations to Pay and no additional obligations will be required for the reparation and compensation of the collective damages.
    •    Releases from the Obligations to Perform and Obligations to Pay will be provided once the obligations have been completed.
    •    Releases from liability by eligible individuals, small businesses, Municipalities and Indigenous and Traditional communities will be provided on receipt of compensation payments if they choose to opt-in to the settlement.
    •    See ‘Legal Processes' section above for the liabilities and claims that will not be resolved by the Agreement.
    Payment terms
    •    Samarco will be required to pay the Obligation to Pay to the Public Authorities in instalments over a 20-year period from FY25 to FY43 (see “Key Financial Commitments” for further detail).
    •    Samarco and the Renova Foundation will be required to complete the Obligations to Perform in accordance with the scope and period set out in the Agreement.
    •    Samarco is the primary obligor for the settlement obligations and Vale and BHP Brasil are each secondarily liable for any obligation that Samarco cannot fund or perform in proportion to their shareholding at the time of the dam failure, which is 50% each.
     
    Municipalities
    (Obligation to Pay)
    •    Allocation of amounts that will be directly paid to eligible Municipalities in the affected regions that agree to opt-in to the settlement.
    •    Investments in Municipalities and communities via the various environment and community initiatives in the Agreement, including in relation to health, economic recovery and water sanitation programs (described in the table below). 
    Health
    (Obligation to Pay)
    •    Funding for the creation of a perpetual fund to strengthen the public health system in the affected regions, which will be coordinated by the Federal Government of Brazil.
    Fishing
    (Obligation to Pay)
    •    Funding for the creation of federal and state perpetual funds to strengthen fishing activity in the Doce River which will be administered by the Public Authorities.
    •    The existing fishing ban applicable to the portion of the Doce River in the State of Minas Gerais will be released in up to six months, and the fishing ban applicable to the river mouth and coastal area of the State of Espírito Santo will be released in up to two years. Both releases will support the resumption of livelihoods and economic activities in the affected regions.
    Water sanitation
    (Obligation to Pay)
    •    Funding for the universalisation of basic water sanitation for municipalities in the Doce River basin, with the objective of reducing the amount of untreated sewage that is discharged into the river.
    State Projects
    (Obligation to Pay)
    •    Funding for infrastructure works related to the construction and improvement of roads in the affected regions and the development of a defined list of State Government actions and projects that will replace the socioeconomic and socio-environmental programs that are currently run by the Renova Foundation.
    Program for Women
    (Obligation to Pay)
    •    Funding for a program to support women.
    •    Program to be managed by the public prosecutors and public defenders.    
    Other community funding
    (Obligation to Pay)
    •    Income support program: Funding allocated to the financial support of individuals involved in agriculture and fishing activities in the affected areas. The Federal Government will create a program to provide a prescribed amount to eligible individuals on a monthly basis for three to four years.
    •    Economic Recovery Plan: Funding allocated to the creation of a program to support education, science, technology, innovation, socioeconomic development and farming, with the aim to support the economic recovery of the affected regions.
    •    Prevention and mitigation of mining risks: Funding for actions aimed at monitoring and risk mitigation for mineral exploration activities.
    •    Strengthening of National Social Assistance System: Funding to strengthen the services and other public offerings of the Unified Social Assistance System in Brazil.
    •    Social Security Reimbursements: Funding to reimburse the Federal Government for public spending on social security resulting from the dam failure, including amounts for social security benefits due to work accidents and unemployment insurance for eligible fishermen.
    Indigenous and Traditional communities
    (Obligation to Pay)
    •    Compensation of R$8bn (US$1.4bn) for eligible Indigenous and Traditional communities that opt-in following a consultation process led by the Federal Government, which is expected to take up to 18 months. During the consultation period, the communities will continue to receive monthly financial aid payments.
    •    Communities that opt-in will have discretion to decide how the payments are used to compensate the community members for their collective way of life, including through community programs and/or individual payments.
    •    The agreement will also establish a fund administered by the Federal Government to implement public policies in connection with Indigenous and Traditional communities.
    Indemnification and Compensation
    (Obligations to Perform)
    •    Eligible individual claimants with unresolved claims in connection with water damage will be entitled to R$13,018 per person if they opt in.
    •    Eligible fisherman and small farmers in the affected regions will be entitled to R$95,000 per person.
    •    A further compensation and indemnification system endorsed by the Public Authorities will compensate eligible individuals and small businesses who agree to opt-in to the settlement for remaining general damages claims in the amount of R$35,000 per person for a full release.
    •    Under the compensation and indemnification system, eligible claimants will only be required to present proof of identity and residency in order to be assessed for eligibility, and this simplified structure and eligibility criteria has been designed to accommodate a large number of people in a simplified processing scheme. 
    Community resettlement
    (Obligations to Perform)
    •    Samarco will complete the resettlement of the communities of Bento Rodrigues and Paracatu de Baixo.
    •    At 30 September 2024, approximately 91 per cent of resettlement cases were completed.
    Environment
    (Obligations to Perform)
    •    Samarco has committed to remove up to 9.15 million m³ of tailings and sediment from a pre-defined location of the Doce River. The removal of the material would be subject to approved environmental licensing limits and certain conditions.
    •    If Samarco receives approval by the environmental agency to remove only part of the 9.15 million m³ of the material, a compensation payment of R$450 million per million m3 of material not removed will be payable at the end of the removal works.
    •    Samarco will continue an environmental monitoring program to test for the presence of seven prescribed chemical substances in eight defined areas of the Doce River basin which may increase to nine areas if the full 9.15 million m3 is not removed (a total area of approximately 42,000 hectares).
    •    Samarco will undertake additional remediation of areas impacted by the dam failure, including restoration of aquatic habitats and environmental and water quality monitoring of the Doce River basin.
     Renova Foundation
    •    In March 2016, the TTAC entered into between the Companies and relevant Brazilian authorities established the Renova Foundation, a not-for-profit, private foundation responsible for implementing 42 remediation and compensatory programs to address the impacts of the dam failure to date.
    •    The Renova Foundation’s 42 programs will be completed or transferred to Samarco or to the Federal or State Governments of Brazil within 12 months and the Renova Foundation’s governance body will cease on signing.
    •    As noted above, Samarco will be the primary party responsible for completing the Obligations to Perform

    Last updated 5 December 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. 

    The independent social risk, human rights and sustainability consultancy, tentyfifty, carried out the investigation with a team comprised of international and Indonesian consultants. The work performed was based on the UNGPs and included collecting information and documents from PTVI; as well as conducting interviews with community members. The consultancy also made several attempts to engage with the NGO Walhi.  The summary report can be found here.


    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

    In June 2011, Vale became a shareholder of Norte Energia S.A., a private company and concessionaire of the Belo Monte Hydroelectric Plant (UHE), by acquiring a 9% stake. In March 2015, Vale sold 49% of its 9% stake in Norte Energia to CEMIG. As a result, Vale currently holds an indirect 4.59% stake in the capital of Norte Energia S.A.

    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.
    Based on the information provided in the latest Norte Energia Sustainability Report, the Integrated Management Plan for the Volta Grande do Xingu has been implemented as part of the mitigation and compensation actions for the impacts resulting from the operation of the hydroelectric plant. This Plan was consolidated in 2011, when the Social and Environmental Programs (PBA) was presented, consisting of 05 (five) subprograms, including the Monitoring Program for Navigability Conditions and Living Conditions, as well as the Aquatic and Terrestrial Ecosystem Conservation Plans and the Water Resources Management Plan. On its website, Norte Energia gives broad visibility to the regular flow and river level reports, with maps and explanatory notes. (https://www.norteenergiasa.com.br/sustentabilidade/relatorios-e-publicacoes).

    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).
     
    Last updated on October 31st 2024
    Vale has no Mining Rights on Indigenous Lands in Brazil. In 2021, Vale relinquished all its mining rights on Indigenous Lands in Brazil and has also given up requests for research authorizations and mining concessions. Vale's relinquishment is based on the understanding that mining on Indigenous Lands can only be carried out with the Free, Prior and Informed Consent (FPIC) of the Indigenous People themselves and based on legislation that adequately regulates the activity. 

    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 november 2024. 
    Considered to be one of the best unexploited iron ore deposits in the world, Simandou was acquired by Vale in April 2010 as part of a joint venture with BSG Resources Limited (“BSGR”).  At the time, the project was announced as a major impetus for the company’s faster growth in iron ore production. 

    Prior to entering 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.