Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k)
September 23 2021 - 2:46PM
Edgar (US Regulatory)
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of
September 2021
Vale S.A.
Praia de Botafogo nº 186, 18º andar,
Botafogo
22250-145 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
(Indicate by check mark whether the registrant files
or will file annual reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F x Form 40-F
¨
(Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1))
(Check One) Yes ¨
No x
(Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7))
(Check One) Yes ¨
No x
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.)
(Check One) Yes ¨
No x
(If “Yes” is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b). 82-_.)
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1
COMPROMISSOS PÚBLICOS 2030
Vale ESG Webinar
Risk Management
September 23, 2021
Eduardo Bartolomeo
CEO
Carlos Medeiros
Executive Vice President of Safety and Operational Excellence
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Agenda Disclaimer
“This
presentation
may
include
statements
that
present
Vale's
expectations
about
future
events
or
results
.
All
statements,
when
based
upon
expectations
about
the
future
involve
various
risks
and
uncertainties
.
Vale
cannot
guarantee
that
such
statements
will
prove
correct
.
These
risks
and
uncertainties
include
factors
related
to
the
following
:
(a)
the
countries
where
we
operate,
especially
Brazil
and
Canada
;
(b)
the
global
economy
;
(c)
the
capital
markets
;
(d)
the
mining
and
metals
prices
and
their
dependence
on
global
industrial
production,
which
is
cyclical
by
nature
;
(e)
global
competition
in
the
markets
in
which
Vale
operates
;
and
(f)
the
estimation
of
mineral
resources
and
reserves,
the
exploration
of
mineral
reserves
and
resources
and
the
development
of
mining
facilities,
our
ability
to
obtain
or
renew
licenses,
the
depletion
and
exhaustion
of
mines
and
mineral
reserves
and
resources
.
To
obtain
further
information
on
factors
that
may
lead
to
results
different
from
those
forecast
by
Vale,
please
consult
the
reports
Vale
files
with
the
U
.
S
.
Securities
and
Exchange
Commission
(SEC),
the
Brazilian
Comissão
de
Valores
Mobiliários
(CVM)
and
in
particular
the
factors
discussed
under
“Forward
-
Looking
Statements”
and
“Risk
Factors”
in
Vale’s
annual
report
on
Form
20
-
F
.
”
“Cautionary
Note
to
U
.
S
.
Investors
–
Vale
currently
complies
with
SEC
Industry
Guide
7
in
its
reporting
of
mineral
reserves
in
SEC
filings
.
SEC
Industry
Guide
7
permits
mining
companies,
in
their
filings
with
the
SEC,
to
disclose
only
those
mineral
deposits
that
a
company
can
economically
and
legally
extract
or
produce
.
We
present
certain
information
in
this
presentation
that
are
not
be
permitted
in
an
SEC
filing
.
These
materials
are
not
proven
or
probable
reserves,
as
defined
by
the
SEC,
and
we
cannot
assure
you
that
these
materials
will
be
converted
into
proven
or
probable
reserves,
as
defined
by
the
SEC
.
Starting
in
its
next
annual
report
on
Form
20
-
F,
Vale
will
comply
with
Subpart
1300
of
Regulation
S
-
K,
which
will
replace
SEC
Industry
Guide
7
.
Subpart
1300
of
Regulation
S
-
K
permits
mining
companies,
in
their
filings
with
the
SEC,
to
disclose
“mineral
reserves”,
“mineral
resources”
and
“exploration
targets”
that
are
based
upon
and
accurately
reflects
information
and
supporting
documentation
of
a
qualified
person
.
We
present
certain
information
in
this
presentation
that
are
not
based
upon
information
or
documentation
of
a
qualified
person,
and
that
will
not
be
permitted
in
an
SEC
filing
under
Subpart
1300
of
Regulation
S
-
K
.
These
materials
are
not
mineral
reserves,
mineral
resources
or
exploration
targets,
as
defined
by
the
SEC,
and
we
cannot
assure
you
that
these
materials
will
be
converted
into
mineral
reserves,
mineral
resources
or
exploration
targets,
as
defined
by
the
SEC
.
U
.
S
.
Investors
should
consider
closely
the
disclosure
in
our
Annual
Report
on
Form
20
-
K,
which
may
be
obtained
from
us,
from
our
website
or
at
http
:
//http
:
//us
.
sec
.
gov/edgar
.
shtml
.
”
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De-risking Vale
through Safety and Operational Excellence
Re-rating
▪ Benchmark in Safety
▪ Best-in-class reliable
operator
▪ Talent-oriented organization
▪ Leader in low carbon mining
▪ Reference in value creation
and sharing
De-risking
▪ Brumadinho
▪ Dam safety
▪ Robust ESG practices
▪ Production resumption
Reshaping
▪ Focus on core business
▪ Control of cash drains
▪ Growth opportunities
Solid cash flow generation
Discipline in capital allocation
Reshaping
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The cultural transformation
is keeping pace…
4
2019 2020 2021 2022
• Purpose defined by leaders
• Culture & VPS² integrated
• Senior Leadership activation
• Influencers network activation
• People Management Tools &
Targets
• D&I take-off
• Purpose fully reflected in
the strategy
• Frontline Leaders - Cultural
Transformation’s protagonists
• Site-centric approach –
tailored
•Measurement evolution
• Digital Inclusion
• Cultural Diagnosis
• Defined aspiration
• Leadership Awareness
• Review of key standards
• Exec Co. development to
model the change
• D&I¹ Statement
• Purpose activation
• Culture & VPS: single goal
• Reinforced communication
• Tailored transformation at VP
areas
• Measuring organizational and
individual impact
• D&I scaling up
The Pulse:
17,000 employees assessing
key behaviors across Vale
¹ D&I stands for Diversity & Inclusion. ² VPS stands for Vale Production System, Vale’s management model.
Learning together
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… supported by
a strong governance for safety and risk management
Board of
Directors
Audit
Committee
Advisory
Committees
Compliance
Office
CEO
Executive Risk
Committees
Safety and
Operational
Excellence
Executive Office
Structures created
after Dam I collapse
▪ Operational Excellence & Risks
▪ Sustainability
▪ Finance
▪ People, Compensation and Governance
▪ Innovation
▪ Nomination ▪ Whistleblower
Channel
▪ Internal Audit
▪ Corporate Integrity
▪ Geotechnical Risks
▪ Operational Risks
▪ Strategic, Financial and Cyber Risks
▪ Compliance
▪ Sustainability and Reputation Risks
Executive compensation
35-60%
of short-term variable
compensation tied to Health &
Safety, Operational Risk and VPS
targets
The Safety and Operational
Excellence Office has NO TARGET
tied to production or financial metrics
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6
Risk management model
Carlos Medeiros,
Executive Vice President of Safety and Operational
Excellence
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An integrated risk map
supports the decision-making process
Risk categories
People
▪ Outsourcing and partnership
▪ Relationship with Unions
▪ Organizational structure and culture
▪ Abusive and discriminatory practices
▪ Training, recruitment and retention
▪ Staff dependency / successions
▪ Adherence to Labor Law
Sustainability and Reputation
▪ Reparation
▪ Climate Change
▪ Waste, effluents and emissions
▪ Socio-Environmental obligations
▪ Human Rights
▪ Relationship with communities
▪ Institutional relationship
▪ Disruptions, vandalism and terrorism
▪ Image and reputation
▪ Communication and disclosure
Strategic
▪ Demand and competition
▪ Budget and Planning
▪ Intellectual property
▪ Sales/Commercial
▪ Projects and investments
▪ Associated companies
▪ Merges, acquisitions and
divestments
▪ Innovation and new
technologies
Cybernetic
▪ Information theft
or leakage
▪ Unavailability of
technology
assets
▪ Loss of data
integrity
Finance
▪ Exchange and interest rates
▪ Commodities
▪ Freight
▪ Investor Relations
▪ Cash flow
▪ Capital availability
▪ Insurance coverage
▪ Credit granting and defaults
▪ Financial and accounting reports
▪ Compliance, fraud
Business Continuity
▪ Shortage of critical raw materials
▪ Water and energy availability
▪ Licenses, concessions and mining rights
▪ Mine, rail, road and port structure
▪ Shipping and inland waterway
▪ Waste and tailings disposal
▪ Availability and quality of mineral reserves
Operational
▪ Occupational Safety
▪ Occupational Health & Hygiene
▪ Compliance with H&S Norms
▪ Process Safety
▪ Production disruption / material
losses
Geotechnical
▪ Tailings dams
▪ Pile
▪ Embankments,
cuts and slopes
▪ Underground
mines
Compliance
▪ Anti-corruption
▪ Tax and Fiscal
▪ Sanctions
▪ Antitrust
▪ Data Protection
▪ Litigation
▪ Regulatory changes
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1st Line of Defense
Operations and Business
The Safety and Operational Excellence Executive Office
was created in 2019…
Health and Safety and
Operational Risks
Asset
Management
Geotechnical
Structures
Safety and Operational
Excellence Executive Office
450 professionals
Operational
Excellence
3rd Line of Defense
Internal Audit 2nd Layer 1st Layer
2nd Line of Defense
Specialist
The risk management model based on 3 lines of defense
supports the office‘s independence
Business Unit
Maintenance
Engineering
Capital Projects
(Development)
Long-term Mine
Planning
“Asset Owner”
Operation &
Maintenance
Capital Projects
(Implementation)
Monitoring &
Inspection
Governance
Standards definition
Compliance check
Compliance with the
Company’s Policies and
standards
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… to ensure an effective risk management
Office’s reporting routine
Half-year reports
to the Board of Directors
Monthly reports¹
to the Operational Excellence and Risk Committee,
which reports monthly to the Board of Directors
Weekly reports
to the Executive Board
Ad-hoc reports
whenever a risk out of the tolerable
limit is identified
Operations shutdown² as a result of more
stringent Health & Safety protocols
▪ Operations at Sossego
▪ Operations at Onça Puma
▪ Operations at Voisey’s Bay
▪ VNC Refinery
▪ Simões Filho Plant
▪ Mina Azul
▪ Project Salobo III
▪ Project VBME
▪ Port Colborne Refinery
¹Considers 26 thematic reports in 9 months w ithin a year. ²In 2020, temporary or definitive shutdow n.
Half-year reports
to the Fiscal Council
Non-exhaustive list
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10
Occupational Health & Safety
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We are building a sustainable performance
in Health & Safety …
Innovation to reduce risk exposure
▪ Digital workforce:
Eliminating at-site risks by accelerating
remote working
▪ Automation:
- Brucutu mine’s entire fleet is autonomous
- In Sudbury, 40 autonomous trucks
- Remotely controlled equipment for
decharacterization of critical dams
- Unmanned train operation at Timbopeba
site
¹ Total Recordable Injury Frequency Rate.
TRIFR¹
Peer 4 Vale Peer 3
1.98 1.84
Peer 1
2.65 2.14
Peer 2
3.21
TRIFR - 2020 comparison in mining
2018 2019 2020 2021
1.38 1.98 2.25
3.48
-39%
+62%
+34%
+8% -7%
Peer compared to Vale
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… as we are making progress
with our commitments
Reduce by 50% employee
exposure to key health risks²
Eliminate very high-risk
scenarios³
Zero high-potential
recordable injuries (N2)¹
66 57 44
23
25
15 10 5 0
2018 2022 2025 2019 2024 2020 2021 2023
Target
N2
Reduction of high-potential recordable
injuries (N2 - absolute values4)
12.0
2020 2024 2018
21.0 23.0 17.9
2019
11.5
17.0
21.0
17.9
13.0
2021
15.0
2022 2023 2025
Target
Exposures
Reduction of exposures above the
Occupational Exposure Limit (OEL)
N2 (Jan-Sep 2021) Exposures (Jan-Sep 2021)
¹ Injuries w hich are considered a precursor to fatal accidents. ² Physical, chemical or biological risks. ³ According to Vale’s risk matrix, based on 2019. 4 Includes ow n employees and third parties.
Note: Commitments by 2025.
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13
HIRA implementation
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All sites are already
covered by HIRA¹ first cycle…
¹Hazard Identification and Risk Assessment. ²Includes New Caledonia, as the assessment was performed before Vale’s exit from the business.
Reassessments every 3 years (critical sites)
or 5 years (non-critical sites)
79 sites²
assessed since 2019 Identification
Assessment 824 material unwanted events
mapped
Treatment 2,039 immediate actions
implemented
Control &
Monitoring
7,250 critical controls
identified
Risk
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HIRA for Dams and Tailings Storage Facilities
Number of dams
… with rollout to
our dam portfolio
60
24
10
21
Total 2022 2020
5
9M21 4Q21
▪ Focus on key tailings dams¹ operated by Vale
▪ Assess Material Unwanted Events
▪ Identify, design and implement Critical Controls
▪ Prioritize and implement Immediate Actions for risk
reduction
▪ Supported by external expert companies Implemented
Under implementation
¹ Includes facilities within Vale operations and excludes Non-operated Joint Ventures (JVs). Key tailings storage facilities based on the definition agreed by the International Council
on Mining and Metals Tailings Advisory Group in response to the Church of England information request, which may differ from Brazilian National Mining Agency definition.
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16
Operational Excellence
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Back to basics
▪ 5S, routine management
▪ Technical capacitation
▪ Maintenance strategy
▪ Structuring maintenance plans
and control
▪ Basic guidelines (maintenance,
operation, geotechnical)
▪ VPS Assessment
2019-2020
2021-2022
2023-2025
Structuring
✓ Simplification of the
management model
✓ Publication of the VPS Manual
and Rulers
✓ Structuring performance cycles
✓ Training of employees in VPS
Continuous improvement
and operational stability
▪ Standardization of priority tasks
▪ MICT² technical training
▪ Waste reduction and increased
productivity
▪ Problem exposure culture and
continuous improvement
▪ Consolidation of maintenance and
operation processes
¹Vale’s integrated management system. The acronym stands for “Vale Production System”. ²Vale’s integrated MICT stands for Integrated Model of Technical Training.
The VPS¹ is the vehicle
of our cultural transformation…
3 dimensions,
17 elements
with the minimum
compliance requirements
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… and drives Vale
to become the best-in-class reliable operator
2020
2.43 1.52
2019
0.43
2021
-82%
2020 2019
67.7 95.2 93.5
2021
+41%
EFVM railway
Total recordable
injury frequency
rate - TRIFR
Adherence to
maintenance plan (%)
1.67
2020 2019
1.80
2021
1.58
-5%
69.9 54.6
2019
64.9
2020 2021
+28%
Itabira Complex
2020
4.23
2019
3.21
1.56
2021
-63%
49.0
2020 2019
73.6 81.8
2021
+67%
Tubarão Port
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19
Asset Integrity
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We promote the Safety and Integrity of our assets
throughout their life cycle
Engineering
Construction
Commissioning
Operation
Maintenance
Decommissioning
Asset
life cycle
Consequences Causes
Hazard
Material
unwanted
events
Preventive
control
Mitigate
control
PNRs¹ Barriers
Training /
Qualification
Technical support to
areas for implementation
Check
Process
P
DC
A
¹ Normative standards.
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▪ Risk assessment
▪ Benchmarks
▪ International standards
▪ Best engineering practices
▪ Accident history
▪ Engineering companies
Our Asset Integrity technical standards are global
for critical assets
Systems,
layout and
structures
Rail
Ports and bridges
Pumping systems
Hazardous material handling
Explosives
Combustible dusts and solids
Plant layout, escape route
Fire Protection
& Fighting
Protection and firefighting systems
Detection and alarm systems
Equipment
Material handling systems
Structural integrity
Furnaces, reactors, off-gas systems
~50%
of standards
defined by the end of 2021
Electrical,
Automation,
Instrumentation
Instrumentation and control
Incident energy
Power station protection systems
+17,000
employees trained in
Asset Integrity standards
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22
Dam management
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23
Progress with
TDMS and the Decharacterization Program
Upstream² Dam³ Decharacterization Program
▪ 6 upstream dam eliminated since 2019
▪ 24 upstream dam to eliminate:
▪ Back-up dams for all level-3 dams
▪ No dam at emergency level 3 by 2025
▪ Program’s completion by 2029
1In Brazil. ²Same raising method deployed at B1 dam, collapsed in Brumadinho. ³Includes dams, dikes and waste piles.
Emergency
level
# of
dams
3 3
2 4
1 4
Tailings & Dams Management System
Risk assessment
Routine
▪ New dam management policy
▪ Responsibility assignment matrix revised
▪ 25 requirements and guidelines
▪ Periodic assessment by the assurance team
Performance
▪ 100% of dams¹ with Engineer of Record
▪ Continuous monitoring and inspections
▪ Periodic and immediate reports to upper
management
▪ 100% tailings dam portfolio covered by risk
assessment (HIRA) by the end of 2022
▪ Rigorous enforcement of updated
emergency level requirements
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1st step – Self-Assessment
By the 1st Line of Defense
Completion by October 2021
A form-based tool for the
assessment of each TSF (with
supporting evidence). Cover all
77 auditable requirements.
Tailings storage facilities (TSF) operated by Vale will be in conformance with the GISTM:
▪ Those with “Extreme” or “Very high” potential consequences, by August 5th, 2023
▪ All other, not in a state of safe closure, by August 5th, 2025
Commitment to
comply with the GISTM
2nd step – Gap Assessment
By 2nd Line + external consulting
Completion by February 2022
Re-assessment of select TSFs
for full compliance
Key findings in December 2021
3rd step – External Audit
By independent, external party
Deadline for completion to be
defined
Depending on further guidance
by the ICMM
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25
8B
2019
Decharacterization of
8B dam
Nova Lima (MG)
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26
Dique Rio do Peixe
Decharacterization of
Dique Rio do Peixe
Itabira(MG)
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27
Decharacterization of
Fernadinho dam
Vargem Grande Complex (MG)
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28
ECJ Sul Superior
Sul Superior
back-up dam
Barão de Cocais, MG, Brazil
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29
Forquilhas and Grupo
back-up dam
Ouro Preto and Itabirito(MG)
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30
ECJ B3/B4
B3/B4
back-up dam
Nova Lima (MG)
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31
Closing remarks
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We are building
a safer and more reliable Vale
Geotechnical Monitoring Center
Parauapebas (PA)
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Vale S.A.
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(Registrant)
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By:
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/s/ Ivan Fadel
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Date: September 23, 2021
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Head of Investor Relations
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