Vale’s 2008 Sustainability Report shows the company to be a leader in the efficient use of water resources in mining. Its 2008 Sustainability Report shows the company continues to make significant progress in environmental, social and economic management. One of the positive results noted in the document is higher reuse of water resources. Of the 1.37 billion m3 of water consumed by Vale in 2008, 1.03 billion m3, or 76%, came from recirculation and reuse projects in various locations, including operations acquired in Australia in 2007, which entered the sustainability report for the first time in 2008. The latest percentage represents a significant improvement on the 65% registered in 2007.
In the 2008 Sustainability Report, which follows the Global Reporting Initiative (GRI) methodology, Vale increased its level of transparency in disclosing information, describing 73 environmental, social and economic indicators – 22 more than in 2007, when the company first adopted the GRI model. As in the previous year’s report, the 2008 document complies with ‘G3′, the latest version of GRI guidelines, and is classified as B+, on a scale from C to A+. The document underwent an external verification, conducted by consulting firm KPMG Assurance Services.
“This publication reaffirms our commitment to the transparency of our activities and to improving our internal management of sustainability,” said Vale’s CEO, Roger Agnelli. “In 2008, we received recognition as a company committed to transparent communications – our 2007 Sustainability Report was highlighted as a ‘Notable Communications on Progress’ (COP) publication by the United Nations Global Compact, which shows we are on the right track.”
Vale’s Sustainable Development Policy, issued in January 2009, according to the company, strengthens its alignment with international initiatives in which it participates, such as the United Nations Global Compact and the International Council on Mining & Metals, a global forum on sustainability in the sector. Its sustainability strategy is based on three pillars: operating sustainably, catalysing local development, and acting as a global agent for sustainability.
One of the key global challenges for Vale’s Sustainable Development Policy is climate change. In 2008, the company’s greenhouse gas emissions stood at 15.2 Mt of CO2 equivalent – 10% higher than in 2007. This increase was mainly due to the incorporation of Vale Australia units and improvements to the emission calculations methodology.
Last year, the company launched its corporate guidelines on climate change and carbon, including the Vale Carbon Program, which is carrying out a series of globally co-ordinated projects. These include a project to replace fuel oil with natural gas in pelletising plants in Espírito Santo and Minas Gerais, which cut emissions by 126,073 t of CO2 equivalent between 2007 and 2008, and a project to capture methane to generate electricity in its operations at Integra underground mine in New South Wales, Australia. Besides reducing greenhouse gas emissions, the plant is able to generate 10 MW of electricity, enough to supply 15,000 homes.
Of all the electricity purchased by Vale (indirect electricity), 76% comes from hydroelectric sources. In Brazil, the company is investing heavily in power generation, mainly large hydroelectric projects through consortia (seven plants are operating and one – Estreito – is being built), and also small hydro projects. Vale directly produces 34% of its own electricity needs.
The company has also been investing in natural gas and biodiesel to replace diesel and fuel oil in its operations. In February, it launched the Green Train project, which aims to use a blend of natural gas and diesel in its locomotives, with from 50% to 70% natural gas. The project is under trials on the Vitória-Minas Railway. It is estimated that using natural gas on the Vitória-Minas Railway and the Carajás Railway will cut emissions of CO2 equivalent by 66,211 t/y.
Also this year, Vale signed an agreement with Biopalma da Amazônia to produce biodiesel from palm oil, which is ten times more productive than soy. The plan is to use B20 (a blend of 20% biodiesel and 80% regular diesel) on the Carajás Railway and in other operations in Vale’s North System, starting in 2014, far in advance of government regulations that mandate its use in 2020. Vale currently uses B3 in its trains.
Vale invested $678 million in environmental projects in 2008, 50% up on 2007. Most of this was spent on acquiring and installing environmental control equipment, environmental maintenance and geotechnical safety of dams and slag heaps, and reforestation and restoration of degraded areas.