Mine closure and Future Use
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Sustainably managing a mine project requires an integrated, long-term approach spanning every phase of a mine’s lifecycle. This approach aims to minimize risks, mitigate impacts, and ensure the physical, chemical, and biological stability of the terrain, ultimately reclaiming the land for communities.
Mine closure and future use activities occur in tandem with and are integrated into each stage of the mine lifecycle (mineral exploration and prospecting, mine development, operation and closure), and are not limited to decommissioning proper.
Each of our sites has a mine closure plan that is consistent with best practices established by the International Council on Mining and Metals (ICMM) and the prevailing mining legislation in Brazil.
Reintegrating the land with surrounding natural habitat, including all related decommissioning and revegetation activities, is an integral part of our future use programs. Vale designs these programs also focused on local development, and closely monitors all mine closure and future use work.
Our future use programs seek to reclaim the post-mining landscape in a way that leverages the area’s social, economic, and natural assets to create shared value for the company and society.
In summary, our goals in mine closure and future use programs are to:
Design strategies for progressive mine closure to mitigate risks, implement locally and internationally recognized best practices in mine enclosure, stabilize the terrain for future land uses, and leverage the local development.
• Identify future use opportunities that can leverage local environmental, social and economic resources and mitigate negative impacts while enhancing positive ones.
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Stages in the life cycle of a mine
Our management approach
Our approach to collaborating with communities and governments in mine site future use is aligned with our business strategy, commitments, purpose, corporate sustainability policy and governance practices.
Vale has reorganized its mine closure management function, incorporating it into its mine planning department, which is responsible for managing mining rights in its iron ore solutions operations. As a result, both aspects—technical and closure management—are now addressed together with long-term mine planning. This helps operations to be managed sustainably and responsibly from mine development to closure.
Also in 2023, we implemented an Executive Committee on mine closure and reclamation, aiming to enhance integration between technical processes and sustainability requirements in progressive closure and opportunities for implementing future use in the post-mining phase. We highlight the importance of this integrated approach to deliver benefits and a positive legacy for the communities where we operate.
Vale’s mine closure processes are aligned with nationally and internationally recognized best practices. We work with our operations in mine closure planning in order to identify priorities and capture synergies in either mine closure or continued mine development. Our Provision for Decommissioning policy establishes technical requirements on establishing financial provisions for all assets with a long-term useful life.
In 2023 Vale spent USD 172 million on final and progressive mine closure activities. We have established a provision of USD 3.8 billion for future decommissioning and mine closure operations. The estimated cost of these operations is revised annually to reflect current mine conditions.
172 million
spent in 2023 on final and progressive mine closure activities3.8 billion
in provisions for mine closureDecommissioning is the process of the structure's life cycle that is related to the closure of activities, with the aim of promoting physical, chemical and biological stability. Decommissioning can be carried out at the end of a mine’s lifecycle (full decommissioning and future use) or progressively (over the useful life of the mine).
On an annual basis, Vale prepares and revises cost estimates for decommissioning (pits, stockpiles, dams, mine facilities, etc.). These funds are used in measures to mitigate geotechnical and environmental impacts and rehabilitate disturbed land at the end of the mine’s lifecycle, reclaiming it for other land uses.
Our Asset Retirement Obligations (ARO) are disclosed in our financial reports in accordance with International Accounting Standard (IAS) 37. As a company listed on the New York Stock Exchange, Vale is also subject to the regulations of the US Securities and Exchange Commission (SEC) and the Sarbanes-Oxley (SOX) Act. These regulations require that we uphold high standards of transparency, financial accountability and rigorous internal controls over our financial transactions and reports.
Social Engagement
In terms of engagement with stakeholders for Mine Closure and Future Use, discussions are incorporated into all stages of the life cycle of the operation. Therefore, in the development of the engagement plan for Closure, the entire history of stakeholder relations and engagement throughout the previous stages of SLOM (Sustainable Life Of Mining) is encompassed.
In this context, to enable the execution of engagement processes during the Mine Closure phase, Vale defines guidelines that range from ensuring strategic business drivers for Closure and Future Use, considering internal stakeholders in the definition of the Closure and Future Use vision and principles, to involving stakeholders in the assessment of Future Use possibilities, assessment of socio-territorial risks and in the preparation of the Plan for Management of the Assets/Structures according to defined Future Use alternatives.
Support to Territorial Development for Mine Closure and Future Use:
Territorial Development assumes some premises such as: (i) the interpretation of the territory's social reality with internal and external information, from a systemic and integrated vision, (ii) the construction of stakeholders' social capacity, (iii) the promotion of inter-sector partnerships between companies (private sector), public authorities (governments), and civil society, (iv) the promotion of economic diversification, equal social opportunity, and (v) the preservation and environmental recovery, aligned to the company's business plan.
Future Use
Our approach is based on a four-stage methodology: Knowing, Designing, Enabling and Implement. In the first stage, “knowing,” we engage with stakeholders and determine the area’s available resources and potential. This informs the following stages of the process. Our planning process integrates environmental management and future use efforts with economic diversification. This includes supporting and creating partnerships for ecotourism, environmental education, new businesses and services, while safeguarding all associated human rights.
These four pillars are subdivided into stages that represent divergent and convergent processes, following the model known as Double Diamond, with the aim of expanding opportunities for future use. This approach can be applied to different assets or territories and presupposes the concept of Progressive Future Use, which means that as assets are gradually closed and areas are freed up, specific future uses can be implemented.
Arquivo vale
Future Use Project Methodology
Mine closure and Future Use initiatives
In our operations, co-creation in mine future use is supported by an integrated database management system. This informs assessments and prioritization of mine closure, integrated planning and identification of potential land uses.
We run annual cycles of mine closure planning and execution and assessments of potential land uses. Some of our most significant mine rehabilitation projects include Águas Claras (MAC) in Minas Gerais and Igarapé Bahia in Pará.
Águas Claras Mine (MAC) Future Use Project
The Águas Claras Mine (MAC) is located in Nova Lima, a municipality nestled in the Serra do Curral mountains, a region of historical, cultural, and social significance for the state of Minas Gerais, Brazil. After 30 years under the ownership of Minerações Brasileiras Reunidas (MBR), the mine was shut down in 2002. It was subsequently acquired by Vale in 2006 and is currently undergoing mine closure and geotechnical stabilization works, along with studies on land-use potential and restrictions to ensure the site leaves a sustainable legacy.
The MAC mine site holds diverse interests for the entire metropolitan area. The landscape is complex, comprising multiple stakeholders with, often competing, interests, including gated communities, informal settlements, commercial districts, farm areas, and protected areas relevant to water resource conservation.
Photographer: Marcelo Rosa
In 2020, Vale launched a future use program for the site with a survey of 605 representatives from different stakeholder groups. We identified land-use potential and restrictions as well as society’s expectations for future use.
The findings underscored the region's natural capital as playing a leading role in shaping its future use. Potential social land uses in the area include ecotourism, recreation, environmental conservation and education, real estate developments, and services.
The next steps in the program will involve detailed land-use planning, continued stakeholder engagement and implementation of identified initiatives. Progress so far at the site has included:
A perception survey to collaboratively build future land-use scenarios
A local development study to gain an understanding of the socio-economic and cultural dynamics of the region
In 2023, Vale also issued a call for proposals from sectors such as entertainment, recreation, sports and culture to develop community amenities in the region.
Photo: Vale's Archive