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Vale to establish committee following Brumadinho disaster

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Mining & Resources / Tailings Storage Facilities

Vale to establish committee following Brumadinho disaster

Key points:

  • Vale to form an audit committee as part of their evolving corporate governance
  • Hear from Professor Elaine Baker (driving force behind the Global Tailings Portal) in this FREE webinar to find out about the next round of questions in the Investor Mining and Tailings Safety Initiative

Vale plans to form an audit committee following the Brumadinho dam disaster in Brazil last year.

The founding of the committee marks the company’s evolving corporate governance and will directly assist the board of Vale when conducting audits.

The committee will comprise a minimum of three members, two of which have already been appointed, including Vale’s independent board member Isabella Sabodya de Albuquerque and lawyer Luciana Pires Dias.

Vale’s board also plans to change the company’s bylaws and establish a compliance department, including recruiting a chief compliance officer (CCO) who will report directly to the board.

Should this go ahead, the CCO and the wider compliance department will be responsible for managing the whistleblower channel and Vale’s integrity and internal audit procedures.

“The creation of the CCO will reinforce Vale’s risk management model in its third line of defense, supervising the organisation’s corporate integrity and corroborating the compliance with laws, regulations, policies and procedures,” Vale stated in a media release.

“The board of directors leads the search for the professional who will be responsible for the CCO, as well as the professional who will compose the audit committee as a third member.”

Vale will keep the market informed of its recruitment for these positions in due course.

An expert panel put down the cause of the Brumadinho disaster at Vale’s Córrego do Feijão iron ore mine to drainage problems last December.

The high iron content of the heavy tailings waste became stiff and brittle, resulting in high shear stresses in the dam’s slope and causing it to burst.

Vale reported a loss of $US1.6 billion ($2.5 billion) as a result of the incident.

Originally published by Safe to Work

What is the Investor Mining and Tailings Safety Initiative?

Just days after the Brumadinho dam collapse, a group of investors co-led by the Church of England (CoE) Pensions Board and the United Nations Environment Program (UNEP) announced the Investor Mining and Tailings Initiative, calling on 727 extractive mining companies to disclose information on their tailings facilities to form a global independent database.On the one year anniversary, the group launched the first public database on tailings storage facilities (TSF). Prior to that, there had been no central database detailing the location and quantity of tailings, and as a result, no clear indication on the number of tailings around the world.

What did this mean for the mining companies?

This presented mining companies with a massive challenge of assembling data-sets that were often large, complex and stored in several locations, or even lost with corporate knowledge loss.

One company estimated that it took one person (per site), six weeks to collect and prepare the data.

How can companies prepare for the next round of reports?

Launching the public database was the first step in providing transparency. The CoE and UNEP remain highly motivated to deliver change in the safe management of tailings facilities across the world, and as such will be making more calls for disclosures, and for the reports to be updated regularly.

Decipher is hosting a webinar, The Investor Mining and Tailings Safety Initiative: What’s Next?

Hear from one of the driving forces behind the database and learn about:

  • The Mining and Tailings Safety Initiative (insights, key findings, what’s coming, and how to prepare for the next round of questions)
  • The upcoming global tailings standards
  • Best practices and recommendations
  • Available reporting and monitoring tools

Watch this FREE webinar

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FAQ:

What is the Investor Mining and Tailings Safety Initiative?

Following the recent tailings dam failures, The Investor Mining and Tailings Safety Initiative was established by a group of institutional investors active in the extractive industries representing more than $13.1 trillion in assets under management. Governed through a Steering Committee chaired by the Church of England Pensions Board and the Swedish Council of Ethics of the AP Funds, the group has called upon 727 extractive mining companies to disclose information in relation to their tailings storage facilities to form an online database.

How many companies have disclosed information about their TSFs?

As of the 20th of December 2019, 46 per cent of companies contacted responded to the request. 40 of the top 50 mining companies have made disclosures which has resulted in information about thousands of individual tailings dams being made public on company websites. All 23 of 23 publicly owned companies that are members of the International Council on Mining & Metals (ICMM) responded and fully disclosed information about their TSFs.

How many tailings dams have had stability issues?

Company disclosures to investors have revealed that 10% (166 out of 1,635) of the tailings dams reported to have had stability issues in their history.

What tailings reporting and monitoring tools are available?

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Using Decipher, you can start to organise and store your tailings storage facility data in the one place, making it easier to prepare for the next round of Church of England reports:
– Easily visualise all of your sites and simply click on the dams to see all of the relevant data and reports
– Reduce confusion, human error, and inefficiencies in reporting by providing internal stakeholders with a central repository of data on your tailings facilities
– Access key data and information from multiple departments to take a holistic approach to your tailings reporting and monitoring
– Reduce the time spent and associated costs preparing reports by creating templates which extract relevant information in a particular format, such as the Church of England report
– Decipher is designed to be securely accessed by industry, regulators, designers and operators involved in the management of TSFs. Easily setup security access levels to ensure stakeholders only see information that is relevant to them, and apply business rules, approval layers and track changes to ensure data is correct
– A Single Sign-On (SSO) integration also ensures that users are managed more easily


Request a demo of Decipher’s TSF Monitoring & Reporting tool


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