Vale has entered into a Global Settlement with the State of Minas Gerais, the Public Defender of the State of Minas Gerais and the Federal and the State of Minas Gerais Public Prosecutors Offices, to repair the environmental and social damage resulting from the B-1 dam rupture, which occurred on 25 January 2019, in Brumadinho, Minas Gerais.
The mediation process was conducted by the Court of Justice of Minas Gerais, through the Judicial Center for Resolution of Conflicts and Citizenship.
The Global Settlement has an economic value of R$37,689,767,329.00 (approx. AU$9 billion), contemplating socio-economic and socio-environmental reparation projects.
In the socioeconomic part, the settlement encompasses projects demanded by the affected communities, a program of income transfer to the affected population – replacing the current payment of emergency aid – and projects for Brumadinho and for the other municipalities of the Paraopeba Basin, in addition to resources for the Government of the State of Minas Gerais to carry out the Urban Mobility Program and the Public Service Strengthening Program.
Regarding the socio-environmental reparation, the Global Settlement establishes the guidelines and the governance for the execution, by Vale, of the Reparation Plan, as well as projects to be implemented to compensate for the environmental damage already known and projects aimed at water security in the impacted region.
The Global Settlement aims to be a quick solution to mitigate the impacts of the dam rupture on the State of Minas Gerais and the affected regions. CEO of Vale, Eduardo Bartolomeo, said the company is committed to fully repairing and compensating the damage caused by the tragedy in Brumadinho and to increasingly contribute to the improvement and development of the communities in which they operate.
“We trust that this Global Settlement is an important step in that direction. We know that we have work to do and we remain firm in that purpose, in line with our New Pact with Society,” Bartolomeo commented.
Indemnifications for individual divisible damages are excluded from the Global Settlement. Regarding these, Vale has reinforced its commitment to fair, swift and equitable reparation through the signing of individual settlements based on the Term of Commitment entered into with the Public Defender of the State of Minas Gerais on 5 April 2019.
Vale’s General Counsel, Alexandre D’Ambrosio, said the mediation process conducted by the Court of Justice of Minas Gerais allowed the construction of a Settlement that definitively ends the disputes with the State of Minas Gerais, the Federal and State Public Prosecutors, and the Public Defender of Minas Gerais.
“The institutions engaged in the construction of the Global Settlement ensured swift, fair and effective solutions in a process conducted with transparency, legitimacy and legal certainty,” D’Ambrosio said.
Vale’s Sustainability, Communication and Institutional Relations director, Luiz Eduardo Osorio, also commented: “According to the governance established in the agreement, the fulfillment of the agreed obligations will take place in two forms: upon payment of commitments, with defined values and schedule for projects managed by the State of Minas Gerais and Institutions of Justice; and upon the conclusion, by Vale, of the projects predefined in the settlement, that mainly include socio-environmental reparation projects.”
Vale maintains its commitments in Brumadinho and the region
In addition to meeting the most immediate needs of the affected people and regions, Vale advises that it is also working to deliver projects that promote lasting change to recover communities and benefit the population effectively.
Vale’s recovery and development director, Marcelo Klein, said Vale’s commitment is to promote a full repair of the damages associated with the disruption of dam B1.
“In this sense, the agreement includes countless measures for reparation, from actions to mitigate the impact over people and communities to projects aiming at strengthening the economy in the impacted municipalities,” Klein said.
“Many initiatives are still being implemented by Vale, while others will be handled by the State of Minas Gerais and its institutions, with resources provided by Vale.”
“We acknowledge our responsibility and commitment with full repair, in a spirit of solidarity with people, families, communities and affected territories,” he commented.
To date Vale has paid more than R$2.4 billion in indemnities. In all, 8,900 people have signed indemnity agreements with Vale, through labour courts and civil indemnities.
The company’s Full Assistance Program for the Affected People offers, for two years, psychosocial support, financial education and recommendations on the purchase of real estate and productive resumption for those affected by the incident who may need it.
This program allows families to make plans for the future, in face of new economic and socio-environmental conditions. More than 3,000 people have joined the program, which is voluntary and free.
Vale also makes monthly emergency payments to more than one hundred thousand residents of Brumadinho and cities along the Paraopeba river channel.
Resources allocated to emergency assistance now exceed R$1.8 billion.
The second anniversary of the Brumadinho dam collapse
Last month, the International Council on Mining and Metals (ICMM) said the second anniversary of the dam collapse at Vale’s Córrego do Feijão mine in Brumadinho is a reminder to the mining and metals industry that there is still more to be done if it is to reach the ambition of zero harm.
“The human and environmental consequences of the tragedy must always be remembered,” the ICMM stated.
In 2020, members of the ICMM, together with the United Nations Environment Programme (UNEP) and Principles for Responsible Investment (PRI), took a significant step towards achieving this ambition of zero harm with the publication of the Global Industry Standard on Tailings Management.
“Our members have committed to implement the Standard, which integrates social, environmental and technical considerations for the first time at the global level, and covers the entire tailings facility lifecycle,” the ICMM said.
“This year, ICMM will be publishing comprehensive guidance to support continuous improvement in the management of tailings storage facilities, and a set of protocols for use by companies and third parties seeking to demonstrate conformance with the Standard.”
