Vale: Responsible mining. A catalyst for sustainable development - Business Brief
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Governments, the private sector and civil society are increasingly joining efforts to ensure a more sustainable world. This is clear in the initiatives underway aiming to shape the post-2015 development agenda.
Since Rio+20, the importance of the private sector in fostering sustainable development is reinforced. This welcome development stems from the critical contributions of responsible business, and embodies an acknowledgement that the challenges facing the global sustainability agenda need to be addressed through collective action.
The impact of the extractive sector on the broader economy has also been recognized. There is stronger understanding not only that responsible mining can unleash benefits beyond much mining but also that this win-win situation happens when investors, governments and civil society strive together.
We are aware that we are catalysts for change, creating opportunities for advancement from a local to global scale, as the impact of responsible mining can be truly transformative.
Transport corridors: sustainable growth and diversification
An excellent illustration of this transformative change is seen in transport corridors and their use beyond mining, for general cargo and passengers. They pave the way for road, energy and telecoms investments, and harness the potential of diverse forms of general cargo.
These benefits set the scene for a more viable investment environment. They attract business from other sectors to formerly “remote” regions, bringing them into the global map of competitive economies, spurring diversification, sustainability and growth.
Vale is investing billions to build the Nacala Corridor, giving access to the sea to almost “off-the-grid” regions of Mozambique and landlocked Malawi. This project is intended to benefit them much beyond mining activities per se. Through the use of the logistical infrastructure, it will make exports of agricultural goods competitive on global markets, and facilitate imports.
Local content and capacity building
Another crucial legacy of responsible mining consists in strengthening the professional skills through training of local workers and support in capacity building for local suppliers, which is vital to attract investors from other sectors and diversify beyond mining.
Vale’s investments in Mozambique in mining and related infrastructure rely on a work-force of several thousand, of which over 85% are Mozambicans. In 2013, we spent more than USD 1.5 billion in services and goods in Mozambique and Malawi, 75% of which with local suppliers.
Mining companies play an important role in enabling local suppliers to meet their standards. Beyond mining, however, this support also strengthens their ability to grow, thereby contributing to the availability of top-notch, professional services.
Collective action
Regarding the global development agenda, we are engaged in a diverse range of initiatives. Among these is our leadership in the Sustainable Development Solutions Network, tasked with helping transform the current MDGs into the UN’s Post-2015 Sustainable Development Goals.
As Co-Chair of the WBCSD’s Action 2020 initiative–a framework for action to rally the efforts of business to deliver on the economic, environmental and social issues that will feed into the UN’s SDGs–, we endeavour to ensure the vital link between the private sector and structural, sustainable development solutions.
Good governance is a foundation of fair growth, essential to ensuring that mutually beneficial policies are enacted. Through partnership with the UN Global Compact, support for the EITI and alignment with the ICMM, responsible mining companies support transparency initiatives.
Conclusion
Vale is committed to transforming natural resources into sustainable development. We believe that sustainable development is achieved when our businesses provide value to our shareholders while establishing a positive social, economic and environmental legacy where we operate. Doing what is right, valuing our people and prizing our planet are fundamental values which guide our actions.
Note: Extractive industries play a central role in the OECD’s Policy Dialogue on Natural Resource-based Development. For an information brochure, see http://oe.cd/wL. Vale supports and participates in this initiative.
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Vania Somavilla,
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