Report to the Community

Report to the
Community
May 2015
Welcome to Vale’s annual Report to
the Community for news and updates
on our business and our community
activities over the past year.
Safety continues to be the highest priority at
Vale’s operations. In fact, earlier this year we
launched a new internal safety program called
HomeSafe, aimed at advancing our safety
culture and ensuring our employees go
home safely after every shift.
Our most important focus will always be
our 4,000 employees that work within Vale’s
Sudbury Operations. Sudbury is home to some
of the most experienced mining industry
professionals in the world, and we will continue
to work together every day to ensure one
another’s safety and success in the workplace.
We are pleased to have recently negotiated
a new five-year Collective Agreement with
our employees represented by the United
Steelworkers Local 6500. This is good news
for our community, and we will build on
that success with ongoing investments in
capital projects, environmental initiatives and
community programs. We invite you to read
more about these investments in the report
that follows.
If you have any feedback about this report,
we’d love to hear from you at:
ontario.questions@vale.com.
Inside:
About Vale..................................2
Business Update......................2
Safety............................................3
Capital Projects........................4
Environment.............................5
Community Investments.....7
Community Events.................8
About Vale
Vale is one of the world’s largest mining
companies, present in more than 30
countries across five continents.
Vale’s mission worldwide is to transform
natural resources into prosperity and
sustainable development.
Vale is also the world’s largest producer of nickel, with its Base Metals
business headquartered in Toronto. Operating in Canada for more
than 100 years, our Canadian operations also produce copper, cobalt,
platinum group metals, gold and silver. We aim to be profitable, but
only as a safe, high-quality and sustainable mining company where our
most important value is “Life Matters Most.”
Vale’s operations in Sudbury are home to one of the largest integrated
mining complexes in the world, including six mines, a mill, a smelter
and a nickel refinery.
For more information about Vale’s Sudbury Operations, please visit:
www.vale.com/canada.
Business Update
Despite a variety of operational challenges
in 2014, nickel and copper production
at Vale’s Ontario Operations remained
on target. And, in our ongoing efforts
for operational discipline, we were able
to reduce total controllable costs by
approximately 10%.
Market conditions also proved to be challenging, but despite this
Vale continued to invest in Sudbury to ensure the long-term success
of our operations here. In fact, since the acquisition of Inco in 2006,
Vale has invested almost $4 billion on capital projects in Sudbury to
modernize our operations.
Report to the Community / May 2015
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Safety
Vale has set an aggressive target for
its Ontario Operations to become a
zero harm organization, where no one
ever gets injured in the workplace. We
continued to make progress on this
journey by achieving a total recordable
injury frequency (TRIF) of 16.6 in 2014.
This represents a 32% reduction from
2013 and is the lowest TRIF we’ve ever
achieved in our operations.
Despite the progress that we made, we suffered the loss of Paul Rochette in our
smelter operations, in an incident that also left one of our fellow employees
injured. We continue to honour Paul’s memory by doing everything we can to
prevent another such tragedy from occurring.
Working together with our industry, government and labour partners, Vale was
a full participant in the provincial Mining Health, Safety & Prevention Review,
and fully endorses the Final Report that was issued in April 2015. We applaud
Labour Minister Kevin Flynn and Chief Prevention Officer George Gritziotis
for their open and collaborative approach to this process. We believe that the
recommendations that have been put forward in the report will assist Vale and
all companies within Ontario’s mining sector in becoming safer places to work.
We will continue to work with our government, labour and industry partners
towards our common goal of achieving zero harm in our mines and plants.
There is nothing more important than ensuring our people return home safely
to their families at the end of every work day.
Lost Time Injury Frequency
In terms of lost time injury frequency (LTIF), which represents injuries that prevent an employee from attending work,
we’ve continued with a downward trend, achieving an LTIF of 1.86 per million hours, a 14% reduction from 2013.
Report to the Community / May 2015
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Capital Projects Update
Clean AER Project
2500
SO2 Emission Reduction Projections
1500
2000
Emission Limit
Construction is moving along well for the project with one converter
successfully replaced and operating and another currently being decommissioned. Work is also underway on new material storage facilities and
dust collection equipment. Many local companies have been involved in the
project, giving an incredible economic boost to Greater Sudbury.
Most importantly, the Clean AER Project will ensure a cleaner
environment and Vale’s long- term sustainability and employment in
the Sudbury basin for decades to come.
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Of interest, given the vast reduction in emissions, Vale is currently studying
the need for its 1,250 foot “Superstack”. Built in 1970, the Superstack is
the second tallest freestanding structure in Canada and has become an
internationally recognized icon for our community. However, with Vale’s
smelter moving to a single furnace operation and the Clean AER Project
underway, Vale may no longer require such a large stack to operate.
If a decision is made to decommission the stack, further study would be
required to determine the best way to remove it. A decision regarding Vale’s
Superstack is expected to be announced later this year.
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AER stands for “Atmospheric Emissions Reduction”, which simply means
cleaner air. Following the completion of the project, Vale’s total sulphur
dioxide emissions will be reduced to approximately 20 kilotonnes per
year. This reduction is in addition to the 90% reduction in sulphur dioxide
emissions Vale has incorporated since 1970.
1970
1980
1990
2000
Project
Completion
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Vale’s Clean AER Project is the largest single
environmental investment in Sudbury’s
history. This $1 billion investment will reduce
sulphur dioxide levels by 85% from current
levels and significantly reduce metals and
particulate emissions.
By reducing natural gas consumption and modifying
certain process compounds, the Clean AER Project
will also reduce greenhouse gas emissions by
40%, from 270 kilotonnes of carbon dioxide to 150
kilotonnes by 2020.
Copper Cliff Mine Project
For more information about Vale’s Clean AER Project, please visit:
www.valecleanaer.com.
Superstack Facts:
• Built in 1970 for approx. $25 million
• 380 metres (1,250) feet high
• 115 feet wide at the base
• 52 feet wide at the top
• 45 foot wide steel liner inside
• Elevator and ladderway inside
What does the Superstack mean to you?
Send your thoughts to ontario.questions@vale.com
Vale is currently in the final stages of a feasibility study designed to evaluate
the viability of expanding operations at Copper Cliff Mine. The project
includes continued use of the North Mine shaft and re-activation of the
South Mine shaft. If approved, the project could support nickel, copper
and precious metal production for Vale’s Sudbury operations for the
next 20 years.
Report to the Community / May 2015
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Environment
Regreening & Biodiversity
Vale actively supports the City of Greater
Sudbury’s regreening and land reclamation
program with an annual donation
of $250,000.
In 2014, the program reclaimed four hectares of land north of Wahnapitae
and planted 70,000 tree seedlings and 45,000 shrubs and understory trees
throughout Greater Sudbury.
For more information about the City of Greater Sudbury’s regreening
program, please visit: www.greatersudbury.ca/regreening
Butterfly in milkweed patch on regreened slag pile.
A milkweed patch has also been established at Vale’s revegetated slag pile in
an effort to attract monarch butterflies and to further enhance biodiversity
efforts in the area with this important pollinator.
In addition, the company’s aerial seeding program, which targets barren
land around Vale’s Sudbury operations, treated 700 acres northeast of
Coniston in 2014 (up from 520 acres in 2013). The company’s aerial seeding
program began in 1990 and has treated more than 8,400 acres of land
to date
Vale also grows seedlings to support regreening efforts throughout the
City in its greenhouse in Copper Cliff and its underground greenhouse at
Creighton Mine. The underground greenhouse is now in a new location at
Creighton Mine and is capable of growing 200,000 seedlings per year.
Wayne Tonelli and Glen Watson show Vale’s first harvest of honey at the regreened
slag pile in Copper Cliff.
Fish released into the Onaping River.
Bee hives have been placed at the base of Vale’s revegetated slag pile in
Copper Cliff to enhance biodiversity at the site and to aid regional efforts to
restore declining bee populations. Seven bee hives containing 350,000 bees
are currently managed at the site by Vale’s environmental team and a
local beekeeper.
Bees are used to enhance biodiversity because they pollinate the flowering
plants that have been established on the revegetated slag pile. The
wildflowers on the revegetated slag pile provide a source of nectar and
pollen for the bees.
Report to the Community / May 2015
At Vale’s surface greenhouse in Copper Cliff, the company also raises walleye,
speckled and rainbow trout to stock local water systems in the Sudbury
Basin. Since the program began in 2012, approximately 15,000 fingerlings
have been released into the Onaping River and Ramsey Lake.
The surface greenhouse in Copper Cliff is not only home to fish these days
but is now also home to a community garden. The greenhouse features a
number of community garden boxes and local residents are invited to plant
and care for their own garden plots. Vale has a few of its own garden boxes
and the fresh produce is donated to the Foodshed Project’s Grow-A-Row
program, benefiting the Samaritan Centre in Sudbury.
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Environment
Community Air
Quality Monitoring
Environmental
Monitoring Team
Vale’s sulphur dioxide (SO2) air monitoring network, co-owned by Sudbury
Integrated Nickel Operations, a Glencore Company, includes 18 fixed
continuous monitoring stations, two meteorological towers and Vale’s
mobile SO2 monitoring unit. The mobile unit is used to measure ground
level concentrations of SO2 in areas of the community not covered by the
18 fixed stations. Vale also owns and operates eight particulate (metals)
monitoring stations.
In 2014, Vale exceeded provincial air quality standards for SO2 three times
and seven times for nickel as a result of outdoor crushing, material handling
and road dust. All of these events have been analyzed with the aim of
preventing future occurrences from these sources by better controlling dust
track-out of working areas, improving road cleaning, and maintaining best
practices for handling dusty materials.
Details about monitoring programs, emissions reduction and other
environmental initiatives can be found at http://www.vale.com/canada/
EN/aboutvale/communities/health-safety-environment/our-environment.
Current and recent environmental monitoring results as well as real-time,
recent and historical monitoring results are posted on our website in order
to ensure transparency of our operations.
From left to right: Environmental Monitoring Members Danica Pagnutti, Margaret Julian,
Monika Greenfield, Gerard Courtin, Colleen Zilio, Tom Zanetti, Wayne Manson
and Ron Paolin
Vale established an Environmental Monitoring Team in 2012, in response
to site-specific standard approvals Vale received from the Ministry of
Environment and Climate Change for both nickel and sulphur dioxide.
The group is comprised of Vale representatives, a representative from the
Ontario Ministry of the Environment and Climate Change and members of
the community including members of Vale’s Copper Cliff Liaison Committee
and two representatives from the Gatchell Community Action Network.
This group meets at least twice per year and serves as a forum for the
dissemination, consultation, review and exchange of information regarding
environmental issues, air monitoring data, and any new or amended
Ministry approvals.
Tailings Management
The tailings facility at Vale’s Sudbury
Operations between Lively and Copper Cliff
is one of the largest tailings operations in
the world.
Given Vale’s technical experience, history and knowledge in this area, we
are recognized in the industry for our considerable efforts to improve our
tailings and water management facilities.
In addition to Vale’s highly-qualified staff in the area of tailings and water
management who visually and remotely patrol and monitor tailings dams
on a daily basis, Vale consults with individual experts in various fields such
as geotechnical engineering, hydrology, seismicity and the environment to
manage our tailings in a safe and responsible way.
Very importantly, all aspects of our tailings dam design, operation and risk
mitigation strategies are reviewed by an independent third party known
as the Tailings Review Board, made up of globally recognized tailings
management subject matter experts.The Board receives frequent updates
throughout the year and attends our site annually for a highly technical
review of the operation and management of our tailings facility.
Vale is very committed to continuous improvement with respect to
our tailings facilities and has an active capital investment program to
continuously upgrade our dams to the highest standards. In fact, since 2007,
Vale has spent almost $50 million on upgrades to our tailings facility and
these investments will continue over the coming years.
Report to the Community / May 2015
Vale’s Randy Donato (left) with the Tailings Review Board, an independent group of experts
in tailings management.
Vale also has a very good record of regulatory compliance, actively
contributes to the Mining Association of Canada’s (MAC) Tailings Working
Group and adheres to MAC’s Towards Sustainable Mining (TSM) initiative,
which includes a best in class Tailings Management Protocol. This protocol
requires tailings management systems to conform with strict guidelines and
indicators that are independently verified. Vale’s current TSM ratings (AA)
for our tailings area are among the industry leaders and Vale is progressing
towards the highest rating that can be achieved (AAA).
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Community Investments
United Way Campaign
Vale and United Steelworkers raised $865,000 for the 2014 United Way
Centraide Sudbury and/et Nipissing Districts fundraising campaign. The
funds collected represent a 20% increase over last year’s campaign.
Vale matches employee and pensioner’s contributions to the campaign,
dollar for dollar. Employees have the opportunity to make regular
contributions or a one-time donation through a payroll deduction program.
Edgar Burton Christmas
Food Drive
The Edgar Burton Christmas Food Drive was another big success in 2014, with
500 businesses and 39 schools participating. The campaign collected more
than 100 tons of food, meeting one quarter of the Sudbury Food Bank’s
annual needs.
Vale and the USW’s joint fundraising campaign is the largest contributor
to the United Way’s Sudbury and Nipissing District community campaign.
Since the campaign began in 1982, over $16 million has been raised by the
company and USW.
Supporters and committee members celebrate the success of the 2014 Edgar Burton
Christmas Food Drive at the Sudbury Food Bank.
Edgar Burton, a Vale Divisional Shops employee for 36 years, started the annual
food drive 25 years ago when Edgar’s daughters asked him if they could start
collecting food for the less fortunate. Since then, the campaign has grown to
become one of the largest food drives across Canada.
Kelly Strong, (former) Vice-President UK & Ontario Operations; Ashley Thibault & Tina
Vincent, Co-Chairs; and Tim Kiley, Vice-President of the United Steelworkers Local 6500
present a cheque to United Way Centraide Sudbury and/et Nipissing District.
The Edgar Burton Christmas Food Drive has collected more than 950 tons of
food since it began. The goal for the food drive, as it always was for Edgar, was
to collect ‘one more can’ than last year.
Hope Air
Earlier this year, Vale announced an investment of $100,000 in Hope Air over
the next two years. This meaningful new partnership will provide free flights
to residents of Greater Sudbury in financial need that require vital healthcare
services that are not available locally.
Hope Air is a unique national charity which arranges free flights for Canadians
who must travel to healthcare and are in financial need. Clients need to meet
some eligibility requirements, which can be found at www.hopeair.ca.
Since its start in 1986, the charity has provided over 91,000 flights with
generous support from commercial airlines, corporations, foundations
and individual donors.
Vale’s donation was announced at centre ice at the company’s 10th annual
Sudbury Saturday Night hockey game, which saw the Sudbury Wolves square
off against the North Bay Battallion. The company invited its employees and
members of the community to enjoy the game.
For more information about Vale’s community investments and how to
apply for funding, visit: www.vale.com/canada/en/aboutvale/communities/
community-investment/
Report to the Community / May 2015
Kelly Strong, (former) Vice-President of Vale’s Ontario & UK Operations and Angie Robson,
Manager of Corporate & Aboriginal Affairs for Vale’s Ontario Operations, (centre) present a
$100,000 cheque to Doug Keller-Hobson, Executive Director of Hope Air (right), and local
Hope Air clients, Debbie (left) and Arianna (right) at Vale’s annual Sudbury Saturday Night
with the Sudbury Wolves.
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Community Events
Vale Concert Series
Wednesday, May 20
Cécile Doo-Kingué
Vale kicked off the third annual Vale Concert
Series with a $50,000 donation last year.
The series began in May with five concerts held throughout the summer at
The Grace Hartman Amphitheatre. Over the past two years, approximately
$30,000 has been raised in funds and food for the Sudbury Food Bank
through this concert series.
More award winning, top-tier Canadian talent is planned for this year’s
Vale Concert Series.
When:
Wednesday, June 17
Union Duke
Wednesday, July 15
Charlie A’Court
From May 20 to September 16 , 2015
th
th
Where: Grace Hartman Amphitheatre
Cost:
Free! Monetary donations to the Sudbury
Food Bank are welcome.
Wednesday, August 12
Ennis
Wednesday, September 16
Adam Crossley
Copper Cliff Open House
We want
to hear
from you!
If you have any questions or concerns about
Vale’s Sudbury Operations, please call our
Community Concerns Line at:
(705) 222-VALE (8253), for 24 hour service,
seven days of the week.
Or, email us at: ontario.questions@vale.com.
Vale’s annual Open House in Copper Cliff.
Vale hosted its annual Open House in Copper Cliff in September. The event
offered an opportunity to meet Vale staff, learn about the company’s
operations and discuss issues that are important to the community.
Another Open House is planned for Fall 2015.
Report to the Community / May 2015
Please also visit us on the web at:
www.vale.com/canada.
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