Juruti Bauxite Mine

International Seminar about Mining and

Socioenvironmental Sustainability in Biosphere Reserves

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Agenda

Alcoa

Juruti: the City and the project

Juruti: Sustainability strategies and actions

Commitments

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Global leading company in Aluminum Industry

Founded in 1888

A world leading producer

of primary aluminum, fabricated

aluminum and alumina

61,000 employees in 30 countries

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The Miracle Metal: Creates Unique Value for Diverse Applications

Transportation

Packaging

Building &

Construction

Aerospace

Oil & Gas

Consumer

Electronics

Advantages of using Aluminum

Lightweight

Recyclable

Non-corrosive

Fuel Efficient

Malleable

Durable

High Strength

Highly Conductive

Alcoa’s Model of Sustainability

En

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Social Responsibility Social Responsibility

Eco

no

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Su

ccess

E

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Su

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Transparency Ethics Governance

Stakeholders

Customers

Employees

Communities

Shareholders

Suppliers

Partners

ABS

Alcoa Business System

People

Make it happen

Products

Make to use

Process

Avoid waste

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Values

• Integrity

• Health, Safety &

Environment

• Innovation

• Respect

• Excellence

Prin

cip

les

Strategic Themes – 7+2

Stakeholders

Engagement

Transparency

and

Responsibility

Access to energy and efficient use

Local and regional development

People development and workforce relations

Waste management & emissions

Conservation & Biodiversity

Usually sustainability was related to

EHS and Community Relations

divisions. Current requirements

imposes more than that

Sustainability give an opportunity to

an integrated approach, as

expressed by the 7+2 strategic

themes

Sustainability must be part of the

company business plan as well as a

commitment to the social license Value chain: Sustainable procurement

Water management

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Agenda

Alcoa

Juruti: the City and the project

Juruti: Sustainability strategies and actions

Commitments

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Juruti: a small city located in the Amazon core in the

far west of the Pará State

Population1: 47,000 inhabitants spread amongst 200

communities (55 in Project’s direct area of influence)

12-hour boat ride from nearest urban center

(Santarém)

Average monthly per capita income: Juruti – $34

(Brazil, $1000; US, $3,900)

Economy: Based on cassava farming, fishing,

livestock farming, Brazil-nut tree extraction,

subsistence agriculture

Human Development Index2 :

115th lowest in Pará out of 143 municipalities

Illiteracy: Juruti – 8,5% for people with ten-year-old

or more

1) 2010 Census 2) HDI measures life expectancy (education and income)

Brazil

Pará State

Juruti

Juruti City

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Communities around the Project

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Communities with Alcoa’s actions Other communities Highway Railroad

Juruti Bauxite Mine

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1 1

2 2

3 3

4 4

Strip-mining method

Capiranga plateau: first area being

mined

Crushing

Washing (breaking-down, sieving, cyclone

and filtering)

Tailings Pond

Storage yards

33-mile (55 km) long

One locomotive and 40 wagons (80-ton

capacity each)

9-mile stretch (15 km) running in parallel

to State Highway

Located next to town on the right bank

of the Amazon River

1- Mining

2- Beneficiation

3- Railroad

4- Port

Agenda

Alcoa

Juruti: the City and the project

Juruti: Sustainability strategies and actions

Commitments

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Juruti Bauxite Mine foundations for sustainability

Business Requirement

• Competitive bauxite

Environmental License

• Control Plans and other legal commitment

Social License

• Community and general

population daily consent

Those foundations ensure the Sustainability of Alcoa Juruti

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It all starts with bauxite…

Significant

Reserves

Significant

Reserves

Alumina

Leadership

Alumina

Leadership

Foundation for

Growth

Foundation for

Growth

Third highest quality bauxite reserves in the world

Juruti Mine current capacity 4 MTY

Juruti helps to contribute for many years to sustain

Alcoa leadership position in the global alumina

market

High Quality High Quality Juruti mine has high quality bauxite with Al2O3

content of 47% and reactive silica of 4%

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As a result of continuous dialogue with the community (public hearings, meetings,

workshops, visits, work groups and communication tools), following commitment of

licensing process:

35 Environmental Control Plans

– Physical and Biotic (20)

– Social and economical (15)

Collective Compensation

– Compensatory actions for those communities living at Project’s Direct Areas of

Influence, particularly those close to Railroad, Highway and Mining areas

Losses and Damages Studies for Juruti Velho Association Communities

– Studies that will support the calculation for compensatory payment for those

communities living at Project’s Direct Areas of Influence, particularly those close to

Mining areas in Juruti Velho Region

Licensing commitment

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Sustainable Juruti Model

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Sustainable

Juruti Council

(Conjus)

(Civil Society, Public

Authorities, Companies)

Sustainable

Development

Indicators

Local and Regional

Development Fund

(Taxes, Charges, CFEM,

Private Social Investment)

Local and Sustainable

Development Agenda

Sustainable Juruti Model:

The Sustainable Juruti Council (CONJUS)

A network of civil society organizations, government agencies and

companies oriented to the local sustainability

Board of Councilors comprised of 15 representatives: three from the public

sector, three from the private sector and nine from communities and NGOs

Open Letter for Sustainable Juruti : a collection of proposals for local

sustainable development, organized on eight themes: education, health,

rural development, safety, infrastructure, citizenship, job and employment

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Sustainable Juruti Model: Sustainability Indicators

First Edition

October - 2009

27 indicators related to the Environment, People, Society and Infrastructure

Metrics to be used to measure growth in the municipality and support policy

making and investment

Results issued bi-annually

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Second Edition

December - 2011

Improve human, social, economic and environmental capital standards

Raise strategic funding to leverage sustainable development in Juruti in the

long term. Complementary funding: Alcoa and voluntary partners

Seed Money: initial funding from Alcoa: R$ 2 million. Focusing civil society’s

projects and partnerships

Currently funding 21 projects – US$ 300,000.00: 21 projects: craftworks,

gardening, fish farming, turtles conservation and environmental education,

among others

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Sustainable Juruti Model:

The Sustainable Juruti Fund (FUNJUS)

Strategic actions benefiting population

Hospital and remodeling on

existing health care first-aid center

Health Basic Units

Childhood Defense Council

Judiciary complex

Public schools’ classrooms

Military police’s lodging facilities

Police station

City urban infrastructure

Rural infrastructure

Major

Items

Concluded items

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Positive Agenda

Complementary actions

Direct benefit to Juruti communities

Aid for attenuating city’s historical needs

Partnership with community and local authorities

Juruti to build new standard in community relations

and mining paradigm in the Amazon

Changes in Juruti community before and after Alcoa’s mining project

As of 2008… Today Sustainability

• 89% acceptance by local population • Positive Agenda: physical

transformation • Sustainable Juruti Model: Council, Fund

and Metrics

• 91% acceptance by local population • Sustainability Model: fully operating • Most of the social and environmental projects

implemented

Local Economy • Economy based on cassava farming • Brazil-nut extraction and fishing

• Growth in local trade • Incentive to local/regional suppliers • Economic diversification • Taxes helping to boost local economy

Tangible facts that Alcoa has planted the seeds for sustainable development

in Juruti and endorsed by stakeholders:

Operating Licenses awarded (2009)/renewed (2012)

Opinion polls: region’s population accepts/is neutral about Juruti enterprise (2008-89%; 2010-91%)

Alcoa helped State Environmental Agency redefine environmental compensation contribution guidelines

Government/NGOs/communities: active participation in Juruti Sustainable Council

Labor Agreement with Miners Trade Union (2013)

Average 80% local people working at Mine (direct and contractors)

Alcoa being named Sustainable Company of the Year (2010)

One of the “Model Companies” in the Exame Sustainability Guide for six times

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Agenda

Alcoa

Juruti: the City and the project

Juruti: Sustainability strategies and actions

Commitments

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Commitments

1. Declaration of the President’s "Corporate Social Responsibility and Human Rights”;

2. The Alcoa Code of Conduct;

3. The Business Pact for Integrity and Against Corruption – Ethos;

4. Charter of Principles Associated with the Ethos Institute for Business and Social Responsibility

Confronting sexual violence against children and adolescents;

5. Covenant Action Defense Climate – CEBDS;

6. U.S. Climate Action Partnership or United States Climate Action Partnership (USCAP) (Alcoa Inc.);

7. Open letter to Brazil on Climate Change;

8. Position Paper on Climate Change CEBDS-developed by the Brazilian Business Council for Sustainable

Development, joined the World Business Council for Sustainable Development;

9. Copenhagen Communiqué;

10. The principles and values of the Green Building Council;

11. The Letter of Commitment of the Members of the Sustainable Amazon Forum;

12. Business Movement for the Protection and Sustainable Use of Biodiversity;

13. Code of Ethics Institute of Environmental Lights Brazil;

14. The Principles of Aluminum for Future Generations program of the IAI (Alcoa Inc.);

15. The ICMM Principles - World Council for Mining and Metals (Alcoa Inc.)

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