Clydach, Swansea From Good to Great · 2019. 10. 15. · Clydach, Swansea From Good to Great. On the cover: Local children wearing Vale ... • Life matters most • Value our people

Vale Community Report 2018/2019

Clydach, Swansea

From Good to Great

On the cover: Local children wearing Vale high-visibility safety vests participate in a program situated at the Community Garden, located in the centre of the village, about a half mile from our refinery. Vale is proud to provide support to this community gem.

MissionTo transform natural resources into prosperity and sustainable development.

VisionTo 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

BrumadinhoJanuary 25, 2019We will never forget

We respect the environment ..................................................................... 4

We put safety first ........................................................................................... 5

Vale’s Clydach Refinery has been part of the community for 117 years.

ContentsA message from Dino Otranto ................................................................... 1

In focus: Our future ......................................................................................... 2

We live and work in our community ...................................................... 3

A message from Dino Otranto

Vale Community Report 2018/2019 | 1

This past year, I transitioned from Director, Technology & Development for Vale’s global Base Metals business into my new role as Chief Operating Officer (COO), and it has been an extraordinary experience, both personally and professionally.

My first priority as COO was to put on my boots to get to know the business and our employees firsthand to grasp the complexities and opportunities before us. As I visited our North Atlantic operations in Thompson, Manitoba; Sudbury and Port Colborne, Ontario; Long Harbour and Voisey’s Bay, Newfoundland and Labrador; and Clydach, Swansea, I was humbled, inspired and excited to discover the business through our people and our communities. What is clear to me is that our people are committed, and our communities are counting on us to live by our values.

There is so much heart and history in each of our operations and so much strength in our communities. You will see proof of this within the pages of this report as we share highlights, milestones, performance results, improvements and partnerships from each of our sites. I am proud to be leading our operations during a time of extraordinary transformation.

The most important work we do every day is getting everyone home safely. In

our industry, managing risk is a critical part of our daily lives. On that note, it has been a difficult year; the dam failure at Brumadinho in Brazil impacted an entire community and took the lives of hundreds of people, many of them our employees. Naturally, a tragic event of this magnitude demands a high level of introspection on how we do business — in terms of our approach to safety and risk management, who we are as a company, and who we need to become. I commit to working tirelessly to understand and address the risks we face, the key controls we need, and ways we can work together to assure our loved ones that we will return safely after each shift and bring our communities peace of mind.

There has been much change in our business and I will continue to foster the stability that is necessary to deliver on our commitments. At this pivotal time in our history, I commit to lead with care, respect and integrity and look forward to working with all of you to realize the best possible future for our people, our families and our communities.

Dino OtrantoChief Operating Officer — North Atlantic Operations and Asian Refineries

Meet Dino OtrantoA native of Germany, Dino now lives in Sudbury, Ont., with his family. He brings with him many years of operational leadership and experience with global mining companies, including BHP and South 32, where he served as Vice President of Operations of the company’s Worsley Alumina business.

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Having begun my journey at Vale’s Clydach Refinery as a young apprentice 27 years ago, I was humbled by the opportunity to become the Refinery Operations Manager this year. I am continually impressed by the enthusiasm and energy shown by the team here and the pride they show in the refinery’s performance.

All our efforts are aligned on ensuring that Clydach Refinery remains a significant contributor to both Vale’s nickel business, and to the communities around us. Achieving both is vitally important in meeting our responsibilities to our colleagues, neighbours and the environment.

Commercial production of nickel at the site commenced 117 years ago, and the Carbonyl Process developed by our

founder Ludwig Mond is still at the heart of our operations. The lessons learnt over many years of reliable operation present us with a foundation on which we can continue to improve our safe working practices, environmental performance and processing efficiencies.

As we embrace new technologies to further advance the refinery, we still recognise that people are key to our success and sustainability. It is our knowledgeable and committed workforce that makes Clydach Refinery the benchmark for others.

I am excited by the prospect of us working together to build a successful future for all who work at the refinery, and for the communities around us.

Darren Poland Operations Manager

In focus: Our future

Milestones• Opened in 1902, the

Clydach Nickel Refinery is one of the oldest refineries in the world, and one of the largest in Europe.

• We produce upwards of 40,000 metric tonnes of high-purity nickel products annually, and supply approximately 280 clients in more than 30 countries in Europe, Asia and the US.

• Our nickel is used for making batteries, including those being used for the growing electric vehicles market.

• In 2014, we received a Silver Medallion at the Shingo Prize for Operational Excellence, dubbed the “Nobel Prize of Manufacturing” by Business Week magazine. This marks the first time a UK company has been awarded the prize.

Vale’s Clydach Refinery produces refined nickel in the form of powder and pellets.

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In 2018, Vale’s Clydach Refinery and its employees supported more than 40 community initiatives by donating time, money and resources. You may have seen our employees picking up street litter, for example, or volunteering at Vale’s Woodland Walk, an interactive outdoor classroom for school-age children who participate in bug hunts, building bird boxes and more.

We have an Engagement Committee composed of Vale employees and other locals — all volunteers — that meets three times a year. The committee members brainstorm community initiatives and events, and propose them to Vale for consideration in supporting.

While all community initiatives are important to us, one that is particularly close to our employees’ hearts is the Christmas Project for Children. Each year the local Police Community Support Officers (PCSOs) and Army Cadets run a project to ensure every child within the area receives a gift, and we are very proud to be a part of such a worthy cause.

We live and work in our community

Local children build birdboxes at Vale’s Woodland Walk with Welsh nature observer and television presenter, Iolo Williams.

Local celebrity Roy Noble chats with one of our employees.

Christmas card project: Students at Swansea special needs school, Ysgol Pen-Y-Bryn, partake in an annual Christmas card project that tests their business acumen. Working with a local printing company, the students design and print their own cards, and then go out into the community to sell them. Vale funds the printing costs, and all sales proceeds go back to the school.

A celebrity in our midst: It was a pleasure to welcome radio and television broadcaster, Roy Noble, to our refinery. Roy was filming for the S4C program, ‘Cymoedd Roy Noble,’ to capture the critical role Vale plays in our Community.

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HighlightsFresh water, naturally In 2018, we completed a multi-year £4 million project at our effluent plant installing state-of-the-art, automated technology to monitor our treated water.

Peregrine falcon training ground Peregrine falcons are using our 300-ft. stack to train their young. From the top, the parents toss prey they have injured (not killed) so their chicks can attempt mid-air catches and perfect their signature divebombs, which can reach almost 200 mph.

Environmental Management System To continuously improve environmental performance whilst meeting our business objectives, Clydach Refinery operates to the internationally recognised, best-in-class standard ISO 14001. Every year, we are audited by an external third party to ensure we are meeting the standard, and continually striving to do better.

While our 64-acre property is a mix of 1900s brick buildings and modern steel-clad warehouses, punctuated by a 300-ft. stack — we are not all industrial. A woodland encircles the perimeter, while River Tawe and Swansea Canal hug the property on either side. Inside this naturalized boundary is a grassy area the size of 10 football fields, which we planted to remediate a former production and warehousing facility.

This, and the good water quality of the river and canal, have received a clean bill of health from our regulator, Natural Resources Wales (NRW). NRW sets the standards by which we operate, and inspects our operations regularly to ensure compliance.

We respect the environment

They’re back! For the first time in 200 years, otters are in River Tawe.

Recycled cooling water circuit This massive, multi-phase project will realize a 70% water reduction upon completion in 2021. Estimated cost: £2 million.

Insect hotel and compost bins Our wooden pallets have been upcycled into a luxe insect hotel by local school children, and our plastic pallets have been re-imagined as compost bins for a local community garden.

Landfill diversion 100% of waste from landfill is diverted. Our resounding success can be attributed to our employees’ adherence to the Waste Hierarchy (see chart below).

Disposal

Least favoured option

Most favoured option

Energy recovery

Recycling

Reuse

Minimisation

Prevention

4,849tonnes of scrap metal recycled

26tonnes of pallets reused

4.5tonnes of pipe wrap recycled

4.0tonnes of wood reused

1.7tonnes of cardboard reused

The wooden pallets featured in this insect hotel were donated by our company to a local school.

Vale donated the plastic pallets used to build compost bins at the Community Garden.

2018 numbers

Waste Hierarchy

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One of our company’s core values is: Life Matters Most

Every single day, the Clydach Nickel Refinery lives up to Vale’s core values, Life Matters Most and Value Our People, in how we manage Health and Safety — both onsite and in the community.

Health & Safety Management Systems

OHSA/ISOOccupational Health and Safety Assessment (OHSAS) — and the new international standard, ISO 45001, which we recently achieved — provide frameworks to identify, control and decrease risks associated with health and safety in the workplace. To be OHSAS and/or ISO accredited, we must pass a third-party, onsite audit that typically lasts one week and assesses our best practices for reducing and eliminating hazards in the workplace, whilst identifying opportunities for continued improvement. Since 2004, we have successfully met the OHSAS requirements.

COMAH The Control of Major Accident Hazards 2015 (COMAH) is a U.K. regulation that provides requirements for the storage and use of threshold quantities of dangerous substances, and ensures businesses take all necessary measures to prevent accidents. Clydach Nickel Refinery is an Upper Tier COMAH site. Every five

We put safety first years, we submit a Safety Case Report to the regulator, who reviews it annually, through onsite inspections and against the most current legislation and best practice standards.

Emergency services partnership

Emergency exercisesAt our Clydach Nickel Refinery, we have two emergency plans:

Onsite. This takes place on our property, and is created and reviewed by Vale and tested regularly with the Mid and West Wales Fire Rescue Service.

Offsite. This is for community emergencies with procedures and policies set out by the Swansea City Council in conjunction with the local fire, police and ambulance. Every three years, we participate in this full-scale plan in partnership with the City and emergency services, and advise local residents ahead of time. The next test will take place in early 2020.

Public information zone Once a year, Vale’s Clydach Refinery tests the onsite and public warning mechanisms. The public sirens are always tested on the first Wednesday in September at 2:30pm, and residents who live within an 800-metre radius of our operations are notified by letter in August.

Disposal

Energy recovery

Recycling

Vale Europe Major emergency safety instructions1. Warning of danger A siren giving a rising and falling wailing sound for 11/2 minutes. The siren is tested once per year at 2:30 pm on the first Wednesday of September.

2. Go to a safe place Go indoors. Do not remain in the open.

3. Make the place safer Close all doors and windows, go upstairs if possible, face away from windows, turn off ventilation and gas appliances — including pilot lights.

4. Further information Stay alert for instructions from the police and listen to the local radio. Do not phone the refinery! Keep line clear for emergeny use.

5. All clear Wait until the all clear is given by a three minute continuous note of the siren.

Check out our new website: For instructions, to contact our site and for an audio of the sirens go to www.valeclydach.com

Contact us If you would like to learn more about Vale or have queries, please visit us at our new website www.valeclydach.com or email [email protected].

Vale’s Clydach Refinery manufactures Nickel P-Pellets™ and Nickel S-Pellets™ through our carbonyl refining process.