Page 92 - Annual Report 2020
P. 92

1.9.3 Minerals Americas continued

          Minas Gerais,
          Espírito Santo
          Brazil

                           Gov. Valadares


          Belo Horizonte
          (Main O ices)  Nova Era – Antônio Dias
                  (Guilman-Amorim Hydroelectric Plant)
                                  Vitória
                      Mining Lease  (Sales O ice)
          Mariana – Ouro Preto  Muniz Freire
          (Germano     (Muniz Freire
          Operational Unit)  Hydroelectric Plant)
                                 Anchieta
                                 (Operational
                                 unit and Ocean
                                 Terminal at
                                 Ponta Ubu)
               Juiz de Fora
           Samarco   1st pipeline
           2nd pipeline  3rd pipeline
          s1008_v1
                 Iron ore

          Samarco (Brazil)
          BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale) each have    Following Vale’s Brumadinho dam tragedy on 25 January 2019,
          a 50 per cent shareholding in Samarco Mineração S.A. (Samarco),   Brazil’s National Mining Agency (ANM) announced a requirement
          the owner of the Samarco iron ore mine in Brazil.   for all upstream construction tailings dams to be decommissioned
          Overview                                           by various dates, depending on their size. As required under the
                                                             regulatory requirements, a dam decommissioning conceptual
          As a result of the tragic failure of the Fundão dam at Samarco    design was filed with the ANM in August 2019 and a basic design
          in November 2015, operations at Samarco remain suspended.  was filed with the ANM in December 2019. Field works started in
          Samarco comprises a mine and three concentrators located in the   April 2020 for the program, which includes the decommissioning
          state of Minas Gerais and four pellet plants and a port located in   of the Germano pit dam and Germano main dam (including the
          Anchieta in the state of Espírito Santo. Three 400-kilometre   main dam and the Sela, Tulipa and Selinha saddle dykes) to
          pipelines connect the mine site to the pelletising facilities.  guarantee the long-term stability of the structures, as well
                                                             as final regrading of the impoundment area and, finally,
          All geotechnical structures within the Germano facilities, including   environmental rehabilitation.
          tailings dams, are monitored 24 hours a day by Samarco, using
          more than 800 pieces of monitoring and safety equipment,   Construction of a new retaining dam, following the failure of the
          including cameras, weather forecast stations, drones and   Fundão dam, is now complete and was the last structure to be
          accelerometers. In addition, sirens are installed along the river up   built in the Fundão valley to ensure the remaining tailings would
          to 80 kilometres downstream of Samarco. Geotechnical engineers   not be remobilised. Further work relating to the starting dyke for
          and technicians monitor data from the instrumentation in an   the future tailings and waste piles is now incorporated into the
          integrated monitoring control room, undertake daily field   Germano decommissioning program. This work will be completed
          inspections and perform monthly third party audits.   by Samarco following transfer of the program from Fundação
          Key developments during FY2020                     Renova in September 2019.
          Samarco operations restart consists of three main pillars: Alegria   Looking ahead
          Sul pit tailings disposal system, LOC (corrective operational   The Samarco business plan considers an operations restart with
          licence) issuance and filtration plant construction together with   one concentrator and tailings filtering, which changes the tailings
          operations readiness activities. Alegria Sul pit tailings disposal   disposal from the use of tailings dams to disposal of the coarse
          system implementation was completed in September 2019.    portion of the tailings in dry stack piles and the disposal of slimes
          The LOC was issued on 25 October 2019. US$44 million for BHP   in a previously mined out pit. Samarco is focused on completing
          Billiton Brasil Ltda’s share was approved to fund the restart of   the filtration plant construction for dry stacking and completing
          production at Samarco from a single concentrator in the second   operational readiness activities. All filters are now installed and the
          half of CY2020 or early CY2021 (BHP mid-view is January 2021).    electrical and mechanical installation services are progressing.
          The funds will be used for the first phase of installation of tailings   As part of the dam decommissioning process, the Germano pit
          filtration infrastructure and operational readiness activities. Work   dam gallery plugging and the Germano main dam preliminary
          related to the construction of the filtration plant and operations   services have started. Samarco is looking ahead to complete
          readiness activities have been slowed as a result of a reduced   Germano main dam toe ground replacement, initial regrading
          workforce as part of our COVID-19 response without a significant   and initial excavation of the spillway in FY2021.
          impact on the restart schedule.
          BHP Brasil and Vale approved the filtration plant and operational
          readiness activities investment in November 2019 and dam
          decommissioning program investment for CY2020–2021 was
          approved in April 2020.









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