DECEMBER 2019

Monthly Repair Report COVER: River Water Treatment Plant (ETAF) installed to clean the Ferro-Carvão stream and bring treated water to the . The Monthly Repair Report describes Vale's measures to minimize the impact caused by the B1 dam breach. In its third edition, the publication highlights the recovery of the Paraopeba river and the measures to treat and ensure water supply in the affected areas.

It also describes the social and emergency recovery works and the progress of the de-characterization of upstream dams. We know there's much yet to be done. We're going to keep doing it and reporting our actions to society.

The data presented in this report refer to January to 30 November 2019. Vale owes an eternal apology to society for the lost lives and the impacts caused by the B1 dam breach in . We are making our best efforts to carry out social, environmental and infrastructure repair in the affected communities. It is a long process that requires dialogue and strict collaboration with various stakeholders, with people at the core of our decisions. We are aware that many demands have not yet been met and that there are people and families struggling to regain control of their lives. We are aware and wary of these situations, and we are striving to apply all human, technological and material resources to ensure our repair actions are aligned with the expectations of those affected and perceived as fair and appropriate.

Marcelo Klein, Special Recovery and Development director This was the most difficult year in Vale's history and will never be forgotten. We move forward seeking the transformation of the company, based on people, safety and repair. We continue supporting the relevant authorities in the investigation of the causes of the incident. with ethics and transparency. We have also invested in prevention measures and safeguards to ensure this will never happen again. One example is the de- characterization of our upstream dams. In December, we delivered Vale’s first fully de-characterized structure, the 8B dam, located in (). The same process is already underway in other upstream structures.

Eduardo Bartolomeo CEO

Environment • Three billion liters of water treated and returned clean to the Paraopeba river • More than four million analyses of water, soil and tailings along the Paraopeba river channel; • 22 artesian wells installed in cities supplied by the Paraopeba river basin, ensuring the supply of drinking water to communities Vale remains committed to expedite the environmental recovery of the Paraopeba watershed and its surroundings. Environmental recovery is divided into four fronts:

Preservation of local flora and fauna

Removal of tailings on land and inside the river, relocating the material in safe and controlled areas

Containment of tailings, preventing it from flowing into the river in rainy seasons Monitoring and recovery of soil and water quality

The entire volume of tailings from the dam breach was classified by independent laboratories as inert and non-hazardous.

The company maintains 90 water quality monitoring points between the Paraopeba river and the São Francisco river mouth, including the main tributaries of the Paraopeba watershed. Turbidity analyses are carried out 24/7 in ten points of the river by means of automatic probes. Overview of the dredging of the Paraopeba river. Photo: Vale

Analyzes carried out by Vale and the Water Management Institute of Minas Gerais (IGAM, Instituto Mineiro de Gestão das Águas) show that the sediment plume has not reached the São Francisco river and attest that the Paraopeba river can be recovered.

Recovery of the Paraopeba River

Vale has established a tailings treatment and environmental recovery plan consisting of sediment containment works, river dredging and the construction of two water treatment plants, which are already in operation. This plan seeks to ensure the health of the river. CONTAINMENT WATER WATER OF TAILINGS TREATMENT QUALITY

The company has Vale has installed To date, more than built three large two Water Treatment four million water, soil containment Plants (ETAFs). So far, and sediment analyses structures, two three billion liters have been carried out hydraulic barriers and of water have been in more than 31,000 one dike, in addition treated at the stations samples. to another 25 river and returned to the This activity includes channel stabilization Paraopeba river. analyzes of several barriers to retain the Vale also began parameters, such as the flow of sediments. dredging tailings from presence of metals in A curtain was also the silted stretch of the water, pH, and turbidity. installed to contain river, a major initiative The tests carried out the tailings and enable for the recovery of during the dry season the cleaning of the water. This action pointed to a reduced area concentrating enables removing solid concentration of the the largest volume of material and draining analyzed elements, sediments. The flowing the water to one of closer to the levels of solid materials into the treatment plants, allowed by law. the Paraopeba river returning it clean to the was interrupted in Paraopeba river. May. Monitoring of the Paraopeba river will be audited and undertaken by Igam

Vale signed an Agreement (TC) with the Prosecution Office of Minas Gerais (MPMG) transferring all activities related to monitoring of water resources and sediment along the Paraopeba river basin and the São Francisco river to Instituto Mineiro de Gestão de Águas (Igam).

In addition, Vale will bear the costs incurred with the hiring of an independent technical audit that be responsible for overseeing the transfer process, scheduled to last 26 months. Until then, the audit will be responsible for overseeing the monitoring activities carried out by the company.

All other costs related to the Agreement shall be borne by Vale. After this period, Vale will continue to pay for monitoring activities for ten years. Learn about the work carried out at ETAF

The River Water Treatment Plant (ETAF) is regularly visited by the community, schools of Brumadinho, public authorities, and other institutions. Visitors learn about the Plant’s operations and how the water treatment contributes to the environmental recovery of the Paraopeba river.

River Water Treatment Plant (ETAF, Estação de Tratamento de Água Fluvial). Photo: Vale

Those willing to learn about the unit should contact Vale's help centers in Brumadinho or call the Service Center at 0800 031 0831. Water Supply

In addition to the humanitarian actions underway, more than 500 million liters of water have been distributed for human and animal consumption and agricultural use. Vale supplies to rural properties and residences that used water withdrawn directly from the Paraopeba river or groundwater (wells and cisterns located within 100 meters from the Paraopeba river bank).

Water truck delivering water. Photo: Vale Final solutions

Besides water supply, Vale is drilling artesian wells and conducting feasibility studies on the installation of filters. So far, 22 artesian wells have been installed in the cities supplied by the Paraopeba watershed, ensuring supply of drinking water to communities. These wells are complementary to the daily distribution of water carried out by approximately 100 water trucks.

Pillars of action: • Water for animal consumption and irrigation: supply for rural producers who depend on water withdrawn from the Paraopeba river or for users of wells and cisterns located within 100 meters from the river.

• Water for domestic use and consumption: supply for residents who depend on water withdrawn from the Paraopeba river for domestic use and consumption or for users of wells and cisterns located within 100 meters from the river.

• Hydraulic installations and reservoir supply: supply of reservoirs and hydraulic installations for requesters that are unable to store drinking water.

The water supplied by Vale comes from Copasa fountains in , Pompéu and Três Marias. Copasa monitors the quality of this water and discloses the results on its website. Distribution of mineral water. Photo: Vale

Who is eligible to receive the water supplied by Vale?

• Everyone who used water withdrawn directly from the Paraopeba river; • Everyone who had wells or cisterns within 100 meters from the Paraopeba river bank.

Who is not eligible to receive the water supplied by Vale?

• Properties that did not use water withdrawn from the Paraopeba river; • Properties using water withdrawn methods alternative to the Paraopeba river; • Properties with access to piped water supplied by the water utility company (e.g. Copasa); • Properties using water from artesian wells cisterns located more than 100 meters from the Paraopeba river. Please, note: According to guidelines of Instituto Mineiro de Gestão de Águas (Igam), there is no restriction on the withdrawal of groundwater for those located more than 100 meters from the Paraopeba river bank. Fauna

Vale maintains fauna assistance structures in Brumadinho with teams dedicated to rescuing, caring for and sheltering domestic and wild animals affected by the dam breach. More than 200 professionals from different areas work in these sites, including veterinarians, biologists, zootechnicians, among other environment- related areas.

865 animals have been treated at the Fauna Shelter Farm since the beginning of operations. Today, 524 animals are sheltered and 340 have already been permanently adopted, given back to their owners, reallocated to nature, transferred or allocated in a temporary home.

Fauna assistance. Photo: Vale Vale maintains 60 hives for the preservation of native bees that will help Collection of fish eggs in the Paraopeba river.Photo: in the reforestation of the Vale Brumadinho region.

Vale also monitors and protects the reproduction of fish in the Paraopeba river.

Flora

Reforestation and environmental reintegration in the affected area will begin as soon as the set of tailings removal and containment works reach a more advanced stage. Vale is expected to plant five million seedlings by 2024 to reestablish the native vegetation across the affected area. Part of these seedlings are cultivated simultaneously in the Vale Reserve, in Espírito Santo, in partnership with regional nurseries of the Cerrado biome.

Seedling nursery of the Vale Natural Reserve, in Linhares (Espírito Santo). Photo: Vale Social The Family Reference Program was created to ensure assistance to people and families directly affected by the dam breach. Currently, 596 families are being monitored. Vale acted quickly to address the financial insecurity of affected families. Learn about the donations and indemnities provided:

Donations Vale donated R$ 100,000.00 for 276 families of victims of the breach, R$ 50,000.00 for 100 families living in the so-called Self- Rescue Zone (ZAS) on the date of Emergency Aid the breach and R$ 15,000.00 for More than 106,000 people are 91 rural producers and merchants receiving emergency aid on a carrying out productive activities monthly basis. The aid also covers in the ZAS. 150 indigenous people from 46 family nuclei of the Pataxó indigenous community living by the Paraopeba river banks.

Individual or Family Indemnities In April, Vale set up offices exclusively for residents to negotiate compensation for material and moral damages voluntarily. By November 29, Labor Indemnities 723 individual agreements were 516 labor agreements were signed, covering 2,300 people. signed by November 29, covering 1,539 people. Temporary Housing

In addition to medical and psychological and social assistance, the affected residents were relocated to temporary housing paid by Vale. Currently, 100 families are living in these residences.

Medical and Psychological and Social Assistance

One of Vale's biggest concerns is the emotional health of workers, family members and the population of Brumadinho. Therefore, the company signed a cooperation agreement with the city government transferring R$ 32 million exclusively for the expansion of health and psychological and social care in the municipality. By the beginning of November, Vale’s medical care and psychological and social support services had addressed more than 18,000 cases. Signing of agreement with the city of São Joaquim de . Photo: Vale

Donations and Allocations to the Government

In recognition of the work carried out by the safety agencies of Minas Gerais in Brumadinho, Vale allocated R$70 million for equipment purchase, structural improvement, and professional training of the corporations. The amount covers the Military Police, the Fire Department, the Civil Police and the Civil Defense of Minas Gerais.

Vale also decided to allocate R$ 80 million in two years to the city of Brumadinho as financial aid due to the shutdown of the company's activities in the city. In addition, the company transferred R$ 200 million to ten other mining municipalities in Minas Gerais that had their revenues hampered by the shutdown of the company's activities. From Support to Development

Support

Vale set off to support the population of Brumadinho and region right after the breach. The first step was to open physical units in the main communities, with specialized teams providing support and care to those affected. So far, more than 50,000 demands have been registered. Of these, 96% have already been addressed and 3% are regular assistance cases.

Aurora Help Center. Photo: Vale Monitoring

The Family Reference Program was created to ensure assistance to people and families directly affected by the breach. Specialized professionals monitor the families and their demands on a systematic and ongoing basis. Currently, 596 families are being monitored. More than 15,000 cases have been addressed since January.

Family Reference Group meeting. Photo: Vale

Dialogue

To build and consolidate the relationship with the residents of the affected territories, Vale has a team of professionals acting locally to maintain dialogue and enable the development of agreements for repair. Regular meetings are held with leaders and residents. Contributing to development

More than supporting, Vale is investing in the development of affected municipalities.

The Full Assistance Program for Affected People helps those who received the individual indemnities plan for the future, offering support and guidance on planning and financial education, purchase of real estate, resumption of agricultural activities, among others.

A partnership between Vale with the City Governments of Mário Campos and Brumadinho and Associação Mineira de Supermercados (Amis) enabled the participation of 16 local producers at the Superminas Trade Fair in . This was the first step in our joint efforts to empower small producers in the region.

Booth of the Brumadinho and Mário Campos producers at the Superminas trade fair. Photo: Vale The Health Cycle Program in progress in Brumadinho, Sarzedo and Mário Campos is aimed at strengthening the cities’ Primary Care network. The program comprises training the teams of basic health care units, training young people on health issues, in addition to consulting for the city government to improve Primary Care management, among other activities.

Vale is carrying out activities in partnership with social institutions to promote culture and foster local vocations. The aim is to help the population resume normal life and recover their self-esteem, and strengthen the collective and productive potential of the communities. One example of supported activities are the professional training courses conducted by Instituto Yara Tupynambá, specializing in gardening and construction in Córrego do Feijão and Parque da Cachoeira.

Inaugural class in Parque da Cachoeira. Photo: Vale Social reparation in numbers

• 100 families in temporary housing paid by Vale • 18,000 medical and psychological and social cases addressed • 150 indigenous people assisted permanently

• More than 1,500 indemnities covering approximately 3,900 people • R$ 382 million allocated to public authorities

Emergency Works

Vale has completed the emergency construction works for implementation of tailings containmentstructures , and continues to act on several emergency construction works fronts for environmental recovery and containment and removal of tailings.

Tailings containment and water treatment structures

The emergency works for implementation of tailings containment structures have been completed. The result achieved is positive, as the structures successfully reduced the flow of sediments into the Paraopeba river during the first heavy rains of the second half of 2019 (October and November).

All structures were implemented according to schedule and the teams continue to focus on finalizing the drainage channels and on the environmental recovery of the areas. The tailings containment measures are integrated with dredging and water treatment initiatives and, together, they contribute to the environmental recovery of the Ferro-Carvão river and the Paraopeba river. Containment Construction work Status

River channel stabilization barrier Completed

Hydraulic Filtration Barrier BH0 Completed

Dike 2 Completed

Hydraulic Barrier BH1 Completed

Sheet Piles (Alberto Flores) Completed

Water Treatment Construction work Status

River Water Treatment Plant (Alberto Flores) Completed

Removal of antlers and materials from the Paraopeba river IN progress

Dredging of the Paraopeba river IN progress

River Water Treatment Plant () Completed Tailings containment and water treatment structures

The water that poured in the sheet pile barrier during the wet season in the region of Alberto Flores had turbidity levels within the limit established by the National Council for the Environment (Conama), which is up to 100 NTUs (Nephelometric Turbidity Units – measure of turbidity level).

Water pouring in the sheet pile barrier. Photo: Vale River Water Treatment Plant. Photo: Vale

The second River Water Treatment Plant installed by Vale in Brumadinho is already operating, and is integrated with the dredging of the Paraopeba river. The material removed during dredging is stored and dehydrated in large geotextile bags. Then, the water drained in these bags is pumped into the Station – which has the capacity to treat 2.25 million liters per hour – and returns clean, within legal standards, to the Paraopeba river. Amount invested in emergency works: R$ 359 million

Workforce: 2,750 people, 50% of which are residents of Brumadinho

Hydraulic Barrier 1 Implementation Works Photo: Vale. Road maintenance: 430 km

Volume of aggregates used m3 in containment structures: 220,000 Public infrastructure and equipment

Vale signed an agreement with the City Government of Brumadinho for the construction of public equipment and improvements in urban infrastructure in the communities of Tejuco, Córrego do Feijão, Parque da Cachoeira, Pires, Cohab, Carmo and Palhano. The commitments undertaken include the construction of day care centers, a soccer field, a health care unit, asphalt paving, public lighting, sewage and a drinking water pipeline system.

The municipality of Mário Campos will also receive a new day care center and a health care unit. The projects and schedules of the works were presented to the communities and the implementation works have already begun.

Municipal Daycare Project. Photo: Vale

Pedestrian walkway on Avenida Alberto Flores Photo: Vale Water pipeline construction work in Córrego do Feijão. Photo: Vale

Asphalt paving works in progress in Tejuco. Photo: Vale Family Health Center Project. Photo: Vale

At the end of September, Vale delivered the pedestrian walkway of the new Alberto Flores Avenue bridge in Brumadinho. Built in metal and equipped with a solar energy system, the walkway offers more safety to pedestrians. This delivery represents the completion of works on the bridge, which reopened the access of several communities to the central area of the city. Safety and Prevention

De-characterization of Upstream Dams

Vale is striving to eliminate the risks of all its upstream dams through works that cause the structure to lose its dams characteristics or cease operating as a dam. In November, Vale completed the de-characterization of the dam 8B, located at the Águas Claras Mine in Nova Lima –the first of the nine upstream dams announced on January 29.

Dam 8B before and after the de-characterization process. Photos: Vale

The 8B dam was used to contain sediments. The works carried out this year removed the upstream structure and its ability to operate as a dam. The entire area occupied by 8B has already been revegetated with species from the region to ensure reintegration into the environment. What was done at dam 8B?

• Removal of all surface water of the reservoir through pumping;

• Removal of the upstream raising structure;

• Construction of a central rock channel to allow the natural outflow of surface water;

• Revegetation: planting of 1,100 seedlings native to Mata do blanket Jambreiro across and application of a vegetation 12,000 m². Ongoing actions in the other dams

Before starting the de-characterization of the other dams as announced in January, Vale is working to increase the factor of safety in these structures by lowering the level of water through pumping, drilling wells (to avoid groundwater contributions), and building channels to divert rainwater.

Containment works at the B3/B4 dam in Nova Lima. Photo: Vale Dams announced for de- characterization on January 29, 2019:

8B (Nova Lima) Delivered √

Sul Superior (Barão de Cocais)

Vargem Grande (Nova Lima)

B3/B4 (Nova Lima)

Grupo ()

Forquilha I (Ouro Preto)

Forquilha II (Ouro Preto)

Forquilha III (Ouro Preto)

Fernandinho (Nova Lima) Containment structures

Three containment structures (concrete or rock) are also being constructed downstream of B3/B4, Sul Superior and Forquilhas 1 and 3. These dams are at emergency level 3. Communities living in ZAS have already been relocated outside the risk area. These containments are designed to retain the material from these dams in the event of a breach and, thus, reduce impacts on people and the environment.

These containment structures will be removed as soon as risks are completely eliminated. That is, at the end of the de-characterization process, when the structures will no longer be characterized as a dam. Containment of the Sul Superior dam on November 19: works are expected to complete by December. Photo: Vale VALE HELPLINE NUMBERS:

Community Help Centers (PA, Posto de Atendimento) BRUMADINHO:

• Central PA: Aurora Tênis Clube, Rua Presidente Vargas, 1.490 • PA Parque da Cachoeira: Rua Francisco Jorge Diniz, 143

BARÃO DE COCAIS

Av. Wilson Alvarenga, 535

NOVA LIMA (MACACOS)

Praça 25 de Março, 1.010.

Offices - Indemnities BRUMADINHO: Public Defender’s Office

Rua Oligisto, 197, bairro Ipiranga. Service hours: 10:00 to 12:00 and 13:00 to 17:00,

MONDAY toFriday. Vale’s Office

Rua Turquesa, 103, bairro Planalto Service hours: 9:00 to 18:00, Monday to Friday.

NOVA LIMA (MACACOS) Vale’s Office

Rua São Luiz, 181 Service hours: 9:00 to 18:00, Monday to Friday.

BARÃO DE COCAIS Vale’s Office

Rua José de Paula, 104/2º andar, Vila Regina Service hours: 9:00 to 18:00, Monday to Friday.

BELO HORIZONTE

Vale’s Office

Rua Pernambuco, 1077/4º andar, Savassi. Service hours: 9:00 to 18:00, Monday to Friday.

Those interested shall be accompanied by the Public Defender’s Office representatives or attorneys.

Official Communication Channels Use these channels to clarify doubts and stay informed about Vale’s repair initiatives: www.vale.com

Helpline number: 0800 031 0831 Hello Indemnities: 0800 888 1182 www.vale.com/barao-de-cocais

facebook.com/valenobrasil

linkedin.com/company/vale

instagram.com/valenobrasil/

youtube.com/vale