OREANDA-NEWS. At the launch of its Sustainability Report on Wednesday, July 3, Vale highlighted, among other themes, progress in relation to the efficient use of water in its operations. The overall average recirculation rate in 2012 was 77%, seven percentage points higher than in 2011. As a result, Vale saved 1.227 billion cubic metres of water from natural sources, equivalent to around twice the annual consumption of the city of Rio de Janeiro. Part of this result arose from investments in technology to develop programs and actions focused on cutting water demand and consumption. In 2012 alone, Vale invested USD 125.9 million in water resource management.

For example, at Sossego Mine in Canaa dos Carajas, Para, the water recirculation rate at the copper processing plant there has risen to 99%. This increase is the result of improvements implemented since 2008, when the project’s water balance was calculated and actions were developed to reduce the use of new water. At Sossego, the amount of water extracted from the Parauapebas River every year has fallen by 900,000 cubic metres, enough to supply a town of 25,000 people for six months.

At Carajas Mining Complex in Parauapebas, southeast Para, there has been a 24% reduction in water withdrawal due to changes in the iron ore screening process, which now uses the material’s natural moisture, eliminating the need for new water. Carajas represents around 5% of all the water extracted by the company. “Today, of the 10 operations that extract the most water, nine are in regions where the risk of water stress, meaning the potential for scarcity, is below average,” explains Bernadette Backx, Water Resources Manager at Vale.

The results obtained by the company reflect alignment with various water cooperation efforts, thereby helping to guarantee multiple uses of the input, both now and in the future. The company participates actively in engagement actions to develop public policies, based on global and local discussions about water. Underpinned by its commitment to contribute to the management of water resources, Vale also participates in river basin committees, which discuss and prioritize the use of water in river basins. Among others, Vale takes part in the river basin committees for the Paraopeba, Velhas, Doce, Piranga, Piracicaba and Santo Antonio rivers, all in Minas Gerais. The company also participates in technical discussion forums at the National Environment Council (Conama) and National Water Resources Council (CNRH).

Water footprint

Last year, Vale began studies aimed at evaluating the concept of “water footprint” and its applicability to its operations. This indicator measures the consumption of fresh water directly and indirectly involved in the process of producing consumer goods and services. The company has developed a project to evaluate the technical, methodological, institutional and economic application of the indicator, and has held an internal workshop to publicize the issue and assess its implications in mining activities. “It is necessary to verify in practice the application of some existing methodologies to quantify the footprint and this indicator’s potential correlation with the natural water availability conditions in the different regions where we operate,” concludes Backx.

2012 Sustainability Report

For the fourth consecutive year, Vale has maintained an A+ application level, the highest level of transparency, and presents its performance in economic, environmental and social dimensions, in line with the methodology of the Global Reporting Initiative (GRI). In 2012, the company reported 86 indicators, all profile items, management data, essential performance indicators and information related to the Mining and Metals Sector Supplement. The document has undergone an independent external review, taking into consideration the principles of the International Council on Mining and Metals (ICMM). The report is also aligned with the principles of the United Nations Global Compact. The full version of Vale’s 2012 Sustainability Report is available on the company’s website, at www.vale.com/rs2012

Some highlights of the report:

• In 2012, Vale invested USD 1.342 billion in social and environmental actions: USD 1.025 billion (76%) in the environmental field and USD 317.2 million (24%) in social actions.

• Vale invested USD 63.7 million in education in Brazil. In 2012, the company managed to reduce the educational deficit among its employees in Brazil by 14%.

• Vale protects or helps to protect 13,700 square kilometres, around nine times the size of the city of Sao Paulo. These protected areas are nearly three times the combined total size of the company’s operational sites (4,700 square kilometres).

• The Vale Foundation’s actions have directly or indirectly benefited 745,000 people.

• Investments in energy efficiency projects in 2012 amounted to USD 22.3 million. A further USD 3.8 million was invested in engineering services focused on reducing energy consumption at operational sites and capital projects. Today, 20% of Vale’s energy supplies come from renewable sources.

• AThe company is engaging its value chain in line with its commitment to reduce its projected 2020 global greenhouse gas emissions by 5%. In 2012, 170 suppliers were trained in producing greenhouse gas emissions inventories.

• Vale was recognized as one of the 100 most sustainable companies in the world, earning a place in the Global 100 ranking organized by Canadian institution Corporate Knights, with regard to energy use, CO2 emissions, innovation, and health and safety.