Can you tell us about Samarco?

Samarco is a Brazilian company with 46 years of history, and we are pioneering company in the use of flotation technology to process low-grade iron ore and introduced ore slurry pipelines for transportation. We restarted our operations with 7 million t/y of iron ore pellets and had been able to produce up to 30 million t/y before the Fundão dam failure in 2015.

In 2014, we were the second largest seaborne exporter of iron ore pellets in Brazil. After the dam failure, which marked our history and will never be forgotten, we suspended operations, but with the support of our shareholders and our commitment to repair the environment, we resumed in late 2020. Today, Samarco is a partnership between BHP and Vale, with a fully integrated operation from mining to export.

Can you share Samarco's recent priorities?

Our focus has been on restoring production, repairing and compensating the impacted communities, and remediating the environment. We've also worked on transforming our culture to emphasize inclusion, human rights, and sustainability. Despite operating at around 30% capacity, our production costs are competitive, and we have been able to achieve good results due to positive iron ore pellet prices. Notably, 2022 marked our safest year in 46 years, and we were recognized as the best company to work in the industry by the FIA-UOL Institute. These achievements have helped us to obtain approvals in June 2023 for a project to more than double our production by 2025.

What investments are needed to double production?

We plan to invest around R$1.5 billion in a new filtration facility, maintenance, and training. We will also increase our operational workforce by 40% to support these efforts. Additionally, R$3 billion will be invested in the decommissioning of our existing tailing dams. One of the dam decommissioning project has been completed, and we are working on the second as planned.

How does Samarco approach innovation?

Our innovation strategy focuses on three pillars: incremental, technological, and disruptive innovation. We use technology to improve productivity and reduce costs. As an example, we have lowered slurry generation by over 3% due to innovative solutions. Our main goal is to find ways to reduce and repurpose waste from our operations. We are receiving collaboration from global companies to find safe technologies for dry stacking and waste use. We are also exploring ways to reuse our residues in construction and metallurgy, like the micro-pellets as an example.

What is Samarco's focus on sustainability?

Sustainability at Samarco rests on four pillars: Environment, Social Relations, Governance, and Remediation/Compensation. It's central to our strategy, guiding our actions. We are committed to improving water quality and reducing CO2 emissions. We have created an inventory, switched to 100% renewable energy, and are studying electrification and a better energy matrix in our production chain. Our clients are part of this commitment to global goals as well.

In terms of social responsibility, we are focused on the remediation actions from the Fundão dam failure, as we are collaborating with the Renova Foundation to repair damages. We have established a program to build relationships with the local community through transparency. Our job creation programs support employment and local growth. Many of our team members are from Mariana, which helps communication. As we double production, our Diversity and Inclusion program aims at hiring from underrepresented groups. We are dedicated to this.

What are Samarco's goals for the future?

Our primary goal is to repair the damages from the Fundão dam failure. Afterward, we aim to double our production to 15 million t/y of iron ore pellets by 2025. We want to regain a significant position in the global market, prioritizing safety and responsibility.