Saturday, January 25, 2020

One Year On From Brumadinho


                Four years ago, investors and companies were warned of a fundamental problem with the way waste from mining was being stored in tailing dams. Despite the death of 19 people in Mariana, and huge environmental damage, the issue was not properly addressed. Tragically an even larger disaster would occur just over three years later on January 25, 2019 in the same region of brazil resulting in the deaths of 270 people at Brumadinho. The response this time has been very different. today local community members will continue a solemn procession to the site of the disaster, and reflect on the news earlier this week that the former CEO of the company, Brazilian mining giant Vale. has been charged with murder. Tailings dams are some of the largest human-made structures on earth and supposed to last in perpetuity but some are not and more will colapse. Major interventions since the Brumadinho disaster by investors have included the demand for a new independent global standard of tailings management that is based upon the consequences of failure. This has resulted in an independent global Tailings Review led by former Swiss environment minister, Bruno Oberle and jointly convened through the International Council on Mining and Metals, U.N. Environment programme and Principles for Responsible Investment. Once the review was established, investors then wrote to over 700 companies and requested detailed disclosures for the first time on each individual tailings facility they had responsibility. As a result of these disclosures today we launch a new  public global database of the 1,800 tailings dams that have been identified to date. This is very much a first step and will integrate satellite imagery of each dam into the site as well as details of the safety classifications. Investors will also look to commit to reinforcing a new global standard and being prepared to consider denying finance to companies that do not comply. The first intervention is the need to create an international monitoring centre that provides objective monitoring of dams every minute all year round. We have systems like this for shipping and aviation and it is clear we need this for tailings dams. Second, we must remove the most dangerous tailings dams. A funding mechanism needs to be established, but one that can move at pace. This should not remove the responsibility of the company but enable immediate action. Lastly, industry with the support of investors needs to charge the application of new tech to remove the need for tailings dams. There are examples of companies that operate to the highest standards and these CEOs have been partners with investors in driving the kind of change that needs to happen. The urgency of this action is underlined by new data released today showing that the volume of tailings stored in disclosed facilities is set to increase 25% in the next five years. If we are to be honest these two disasters are the inevitable consequence of a mining system that has been pushed to maximise returns and reduce costs, with the treatment of waste in many respects as an externality. It is too soon to say if the interventions that investors are driving will be sufficient, but what is clear  is that the response this time is genuinely trying  to deal with the root of the problem. It will undoubtedly be difficult but this will eventually result in a safer mining sector that can provide the minerals and metals we need without the tragic consequences.
                 Like she has so many other nights, Ana Maria Gomes is awakened by the cries of her husband and tries to calm him as he shouts for help from his mine coworkers. She convinces him the dam collapse that devastated their city of Brumadinho and killed at least 270 people happened a year ago. SebastiĆ£o Gomes, recounted the episode and said he is learning to live with the nightmares. He is also undergoing psychiatric treatment. And he is not alone. Brumadinho is a city of 40,000 residents tortured by its past, and struggling to find a future, with doctors reporting spikes in the use of anti-anxiety medications and anti-depressants. The rupture of mining company Vale's dam created a wave of mud and debris. Some bodies still haven't been found, and perhaps never will be. For survivors and family members of victims, the dam's collapse was only the beginning. Use of anti-depressants jumped 56% in 2019 from the prior year, while anxiety medication rose 79% in the same period. "The impact on the population's mental health is similar to that caused by a huge disater. like Fukushima, or September 11 in the U.S." said Maila de Castro Neves, a professor of psychiatric at UFMG. De Castro will evaluate the impact of the dam's collapse on the local population over the coming years. She said local residents are in a "vulnerable state" at risk of anxiety, post-traumatic stress disorder, substance abuse and even suicidal behavior. The human toll from the disaster is not even fully clear; the search for corpses continues. Rescuers are digging in the mud, trying to locate the bodies of 11 missing victims. The eve of the disaster's anniversary brought some hope to victims' families that their loved ones may find justice. Public prosecutors charged Vale, German auditing firm TUV SUD and 16 employees for intentional homicide and environmental crimes. Among the accused is Vale's former CEO, Fabio Schvartsman. Prosecutors say there is evidence the companies knew the mine was operating with "unacceptable" safety conditions, putting at risk the lives of its employees. Vale and TUV SUD executives face up to 30 years jail time. In a statement, Vale expressed that "the accusations of fraud are perplexing" and said it is collaborating with authorities. Schvartsman denied the charges against him and TUV SUD has said the cause of the dam failure still has not been conclusively clarified, adding that the company continues to cooperate with the investigation. The paralysis of mining activity, which generated about 60% of town revenue before the tragedy, has left Brumadinho's economic future unknown. Paradoxically, the economic impact was initially positive, as the city received an infusion of emergency funds from Vale and carried out recovery works. The company paid out more than $6 billion in compensation, heating up local activity. "We are aware that the increase in economic activity is temporary, and we are greatly concerned about the future in the medium- and long-term," said Brumadinho's mayor, Avismar Barcelos. The punishment was worse for riverside communities and farmers who relied on the Paraopeba River. For Gomes, the ex-Vale worker, everything changed. That day he suffered only scratches on his arms and knees, but mental damage endures: he has to undergo various psychological treatments. The money he received from Vale has afforded him financial stability, though he remains in litigation with the company and he is writing a book for catharsis. He also gives paid talks about mining to raise awareness about its risks.
                 

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