Our Region, Our Business, Our Future
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Our Region, Our Business, Our Future 2014/2015 Annual Update on Vale in Manitoba We are what we do Mission To transform natural resources into prosperity and sustainable development. Vision To be the number one global natural resources company in creating long term value, through excellence and passion for people and the planet. Values • Life matters most • Value our people • Prize our planet • Do what is right • Improve together • Make it happen On the cover Vale sponsored an Employee Photo Contest in 2014. We are proud to display some of the top entries. On the front cover, counter-clockwise starting from the top: Angela Paveley (Northern Life), Dean Shier (Vale and the Environment), Camille Meuse (Family & Friends). Rabbit on plant site. (Amanda Jacobs) Lovro Paulic, Vice-President Manitoba Operations Now that our Base Metals business is standing on its own We will continue to work with our employees, our two feet, we must all work to ensure that we are a safe, partners, and the communities in the region to ensure consistent, reliable and predictable deliverer of value we are ready for the transition to mining and milling in all price cycles. While we continue to strive to realize by 2019, and that the action plans arising from the the maximum value from existing and future resources, Thompson Economic Diversification Working Group the price of nickel and the global commodities market (TEDWG) process are implemented. I should note that continue to pose significant challenges. As we have heard the TEDWG process was nationally recognized yet again from our executive leaders, we will need to continue to in winning the 2015 Mining Association of Canada improve in terms of safety, costs, and productivity. (MAC) Towards Sustainable Mining (TSM) Community Engagement Award. The process and the recognition To that end, we celebrate many achievements. Most were possible because of the commitment of the noteworthy is that Birchtree Mine again won the partners and the broad participation of many people in regional John T. Ryan Award for being one of the safest Thompson and surrounding communities. The same will mines in Canada. Since the launch of SafeProduction in be true in successfully implementing the plans. 2003, our mines have won regional or national John T. Ryan Awards nine times in 12 years. This is because our There are many other reasons to celebrate: Ben Waldner employees remain committed to managing risk to as is the second two-time Quarter Century Club inductee low as reasonably achievable in order to achieve zero in the history of our operations; our Mill reached five harm. While the award goes to one mine this year, it is years without a Lost Time Injury; and our Northern reflective of the efforts of our entire team. Employment Strategy continues to result in 100% of our process operators being hired from the north. We continue to invest in the future of Thompson. While the current market environment necessitates As we continue to celebrate success together, we discretion in terms of timelines for studies and eventual must also continue to work together to ensure that projects. Studies for the Footwall Deep Project and the our Manitoba Operations are competitive in attracting Concentrate Load-out Facility will continue and we will continued investment, reducing waste, improving proceed with the new 4450-foot level exploration drift productivity, and operating safely, in all market to further define the resource beyond the life of the cycles. Let’s all keep our focus on the actions — plan, Footwall Deep area. The five-year agreement between accept, care, lead — and goals — profit, cost, margin, Vale and USW 6166, and the performance agreement- compete — of SafeProduction, so that our business in-principle with Environment Canada, which sees us and our community continue to be prosperous and able to operate the smelter and refinery up to 2019, sustainable. It’s what we do. offer much-needed stability for our operations and our community for several years. 2014/2015 Annual Update on Vale in Manitoba 1 SafeProduction Birchtree Mine awarded its 7th John T. Ryan Award for safety Risk management through major milestone for us,” said Manager Joe Armstrong, SafeProduction is a culture that “and confirms that the effort and commitment toward our SafeProduction model, as well as the continually makes Vale’s Manitoba implementation of its tools, are truly achieving results. Operations among the safest in It is important to note that our TRIF* (Total Recordable the country. Injury Frequency) in the Mill in 2013 was “0” proving that the goal of zero harm is attainable.” The Canadian Institute of Mining and Metallurgy (CIM) awarded Birchtree Mine the 2014 John T. Ryan award Employees at Birchtree Mine, the Mill and throughout for being the safest mine in the Prairies and Northwest the rest of Vale’s Manitoba Operations, embrace the Territories. This is the fifth time Birchtree Mine has received principles of risk management through SafeProduction this award. It has earned the national award twice. as part of their work culture. That means they seek zero harm to people, the workplace, the communities where The awards are given to a mine in a given category Vale operates, and the natural environment. They use which experiences the lowest accident frequency specific tools and processes to identify hazards, the risk during the previous year in all of Canada. Three national associated with the hazards, and to manage and reduce trophies are awarded annually — one to a metal mine, that risk to As Low As Reasonably Achievable (ALARA) a coal mine and a select mine. An award is also given to both at work and at home. the mine with the lowest accident frequency in each of the following regions: Quebec and East, Ontario, Prairies A key component to the success of SafeProduction and Northwest Territories, British Columbia and Yukon. is union involvement. In 2014, Vale’s Manitoba Operations and United Steelworkers Local 6166 jointly In addition, the Mill achieved five years without a Lost developed and delivered the Fatal Risk program that Time Accident, as of July 23, 2015. “This is certainly a focuses on high to extreme risk work. They also jointly attended training on mental health to help employees understand the signs and stigma around mental health. Vale also continues to support the City of Thompson with its SafeOperations program, which has seen an increased awareness of risk management with City employees, reduced accidents and reduced costs through Workers’ Compensation. * Total Recordable Injury Frequency rate is the number of medical aid, restricted work, lost time and fatal injuries, multiplied by one million and divided by the number of Employees at Birchtree Mine celebrate their seventh hours worked for a specific time period. John T. Ryan Award. (Chris Sundevic) 2 Divisional 2014 Operating ALARA 2014 2013 1. Manager’s Safe Production Activities 19. Hiring and Training 2. Safe Production Expectations and Accountability 18. Maintenance 3. Safety Professional 17. Medical Services 4. Vendor and Contractor Safety 16. Emergency Preparedness and Fire Prevention 5. Audits/Interactive Discussions 15. Injury and Incident Investigation 6. Employee Involvement 14. Inspections 7. Safe Production Committees 13. Ergonomics 8. Managing Risk and Regulatory Compliance 12. Process Safety Management 9. Communications 11. Chemical Management/Industrial Hygiene 10. Rules, Procedures and Job Safety Analysis Each year Manitoba Operations audits itself in 19 key areas to determine how well it is moving toward the goal of zero harm. The more the words ‘zero harm’ become visible, the better the progress towards zero harm. The mines in Thompson have won the John T. Ryan award in the following years: Thompson Mine Birchtree Mine 1985 Regional 2004 National 1988 Regional 2005 Regional 1989 Regional 2007 Regional 2006 Regional 2008 Regional 2010 National 2009 Regional (co-winner) 2010 National 2012 Regional (co-winner) 2014 Regional 2014/2015 Annual Update on Vale in Manitoba 3 Footwall Deep Project Feasibility study for Footwall Deep Project is on track Nearly 150 people from throughout “We are in competition with other capital projects Vale’s mining operations in Canada, across the company for investment dollars,” said Mark Scott, Director, Mining & Milling. “We are working to including external consultants, have make this a world class project. We are taking all the brought the FEL3 (feasibility) study to steps required to mitigate the identified risks; and we the half-way point. anticipate we will have a compelling submission.” Despite a continuing ‘trough’ in base metals prices, The Footwall Deep Project, if the capital is approved Vale continues with the feasibility study for the to develop it as a mine, would provide Vale’s Manitoba Footwall Deep Project. It is a major undertaking that Operations with ore through approximately 2028. must investigate every aspect — safety, technical, It is interesting to note that work associated with the environmental, financial, operational, etc. — to prove Footwall Deep is also providing the building blocks for that the Footwall Deep Project can be a viable mine ‘life after the Footwall Deep Project.’ The next ‘phase’ is within Thompson Mine. called the Hangingwall Area. A new exploration drift The FEL3 study is a major undertaking that started in is being driven from the 4450-foot level to improve 2014. The engineering will be complete by the end of diamond drilling access and angles to more accurately this year, with the FEL 3 report being written in the first define the Hangingwall Area, and to further develop the quarter (Q1) of 2016. Vale’s senior management team longer term mining and milling future for Thompson. will study the report beginning in Q2 2016. If the project Processing ore from the Footwall Deep Project will is approved, execution of the project should begin as require changes, both due to the project and to global market conditions improve.