CSN Reply

CSN seeks to include the ESG concept in its governance structure, which has policies, structures and tools to integrate socio-environmental aspects and the sustainability agenda into strategic decision-making.

The company has evolved in the definition of corporate structures to identify risks and opportunities, support the definition of ESG goals and monitor the evolution of all businesses towards these objectives. In the third quarter of 2021, the ESG Committee – which advises the Board of Directors – held its first meeting and approved the creation of the Integrated ESG Management Commission, made up of ambassadors (company employees) to promote an integrated model of innovation and sustainability in company.

Yes, our programs and projects have been briging significant results in reducing water consumption across the group. In mining, for example, our tailings filtration processes make it possible to recover 92% of the water contained in the filtered material and in the Central Plant, through investments in new technologies, the water recirculation rate increased from 79% in 2018 to 87% in 2020 and will reach 95% in 2023. In the steel industry, currently, the UPV (President Vargas Plant) reached a water recirculation rate of 93.6% with the help of some projects such as the Implementation of water reuse from the Carboquímica heat exchangers and the Effluent Treatment Station ( ETE) of the Raw Materials Yard, in addition to the recirculation of rainwater and industrial water from the lime plant.

In addition, as a pioneer in the sector, the UPV developed its Water Footprint study. This mapping makes it possible to map the entire water cycle in the production process and identify opportunities for improvement, with an assessment of costs and positive impacts of projects to improve performance. The study was also carried out in 2021 at CSN mining and as a result, opportunities were identified to improve water management throughout the iron ore production cycle.

The environmental management system at CSN is managed by the sustainability department with the help of the Internal Corporate Environmental Management Committee (CIGA – corporative) which is led by the corporate environmental coordination and composed of professionals from the environmental areas of the operating units. This group meets monthly, aiming to maintain the continuous improvement of the implemented EMS, as well as detect and prevent possible environmental impacts.

Yes. The CSN follows the performance evaluation model by Ciclo de Gente, using the 9Box methodology and tool. We ran our People Cycle where all employees had the opportunity to receive and give feedback regarding their current situation and their career expectations.

The Cycle consists of the following steps: evaluation – calibration/people committee – feedback – career & succession – preparation of the PDI – Development. Leaders are responsible for supporting the development of the team, in order to make them better professionals than themselves, thus ensuring the growth of people and the continuity of CSN, through the career & succession program.

After the evaluation, we carried out the CSN Group’s 9Boxes and implemented the calibration in the People Committee, resulting in the “inverted L”, mapping the company’s talents and potential.

The CSN’s Occupational Health and Safety Management System is based on three objectives that guide all our actions: A safe environment, Awareness of risks and Improvement in the performance of processes. We are constantly evolving in accident prevention, always seeking to assess the potential of certain situations that could lead to fatal or highly serious accidents.

Our strategy is in the task of identifying and preventing the risk of dangerous situations before they can lead to serious and fatal accidents. As practical measures we take, we have a program to identify signs of potential fatigue in operators of large equipment, the Alcohol and Narcotics Use Prevention Program to identify use at work and provide support, as well as an intelligent system to predict risks. accident in the work environment.

In addition, the Company defined the guidelines for its Occupational Health and Safety Management System through the SSO management manual, the corporate reference aims to consolidate the guidelines and Health and Safety Policy, in addition to the responsibilities and authorities to be disseminated and practiced by all employees and suppliers of all levels and in all processes of the organization. It is important to mention that the guidelines in the management manual are applicable to all direct employees and suppliers who are authorized to access CSN group units to perform services.

Currently, 90% of our operating units are ISO 14001 certified.

Yes. In 2021, we completed the qualitative assessment of the risks and opportunities related to climate change for all CSN segments, based on the TCFD (Task Force for Climate Related Financial Disclosures) guidelines.

We maintain a continuous dialogue with the communities through communication channels (green line) and open and transparent relationship programs to address any issues observed by the communities, such as: suggestions, criticism and praise about our operations, as well as clarifying doubts, including details on the environmental management of our main impacts. In this way, we operate with transparency and in a collaborative way in the construction of solutions and improvement of our management.

Based on the Mining Dams Emergency Plan (PAEBM), the Company constantly carries out studies and promotes the registration of families in areas close to the dams, in accordance with international recommendations such as Dam Safety Guidelines – Dam Break Inundation Analysis and Downstream Hazard Classification, prepared by the Washington State Department of Ecology. The objective of the studies and registration is to monitor the families inserted within the Auto Rescue Zone (ZAS) and Secondary Rescue Zone (ZSS), develop social assistance actions, define escape routes and mitigate damage caused by a hypothetical dam break, in other words, rupture of the complex’s dam.

In addition, CSN seeks to analyze and monitor all possible impacts in order to mitigate them throughout the life cycle of projects and operational processes, which includes:

• Carry out environmental control, monitoring, compensation and mitigation programs throughout the life of the project.
• Environmental Impact Study (EIS): Before a project is installed, an analysis of flora, fauna, water resources, soil, atmosphere and social aspects is carried out with the local community through surveys and public hearings.
• Air quality monitoring: At the Presidente Vargas Steelworks, in Volta Redonda (RJ), there are three automatic air quality monitoring stations, five semi-automatic and meteorological stations that contribute to the efficiency of environmental controls and air quality indicators. The data are reported in real time to the state environmental agency, which consolidates the information and disseminates the Air Quality Index (IQAr) to the community. This monitoring, as in the Cimentos plants in Volta Redonda (RJ) and Arcos (MG), is carried out through isokinetic and continuous measurements, measured by automatic meters of particulate materials and gases. CSN Mineração operates four monitoring stations, two of which are meteorological and two for air quality, and are part of the Optimized Network for Monitoring Air Quality in Congonhas and the region.

CSN offers 4 reporting channels (telephone, email, mail and website), respecting the premise of anonymity, secrecy and the guarantee of non-retaliation in the treatment of reports, available to its employees, service providers, suppliers, customers and the community in general, to receive information about deviations or transgressions that may affect the policies, guidelines and rules of the Company or its companies. Reports received through these channels, except correspondence, are handled by a third-party company specialized in receiving and initially handling reports, trained in interview techniques, content analysis and risk management, which interacts in order to obtain as much detail as possible regarding to the fact reported, and forwarded to the Audit, Risks and Compliance Board, which is responsible for carrying out investigations received through the reporting channels and reporting the results to the Audit Committee, which acts as the supervisory body of corporate governance activities. In addition, as previously mentioned, at its main units, CSN maintains an open and free communication channel with the external public, the “Green Line”, which aims to meet environmental demands.

We maintain a continuous dialogue with the communities through communication channels (green line) and open and transparent relationship programs to address any issues observed by the communities, such as: suggestions, criticism and praise about our operations, as well as clarifying doubts, including details on the environmental management of our main impacts. In this way, we operate with transparency and in a collaborative way in the construction of solutions and improvement of our management.

Based on the Mining Dams Emergency Plan (MDEP), the Company constantly carries out studies and promotes the registration of families in areas close to the dams, in accordance with international recommendations such as Dam Safety Guidelines – Dam Break Inundation Analysis and Downstream Hazard Classification, prepared by the Washington State Department of Ecology. The objective of the studies and registration is to monitor the families inserted within the Auto Rescue Zone (ARZ) and Secondary Rescue Zone (SRZ), develop social assistance actions, define escape routes and mitigate damage caused by a hypothetical dam break, that is, a dam failure in the complex.

The “CSN Support House”, located in the Residential neighborhood in Congonhas-MG, is an important channel of communication with the community. With the proper health protocols due to the pandemic, CSN Mineração has used the place to advertise vacancies and receive CVs. With this action, it was possible to hire people from the community, creating opportunities to transform the local reality by generating employment and income.

CSN Mineração’s social actions are mainly promoted by CSN Foundation, which aims to act in the communities in which we operate, through socio-educational and cultural projects that include partnerships with the government, companies and local institutions. With social actions, in line with the UN’s sustainable development goals, CSN contributed to transforming lives, families and communities, reinforcing the commitment in the cities where it is located.

Mining GHG emissions and reduction targets are calculated and stipulated based on the guidelines of the GHG Protocol, an internationally recognized tool that can be publicly accessed.

The Lump Ore, Sinter Feed and Pellet Feed products produced by CSN Mineração S.A. are sold in the Foreign and Domestic Markets. In 2021, of all products produced, 14.8% (4.9 million tons) were destined for the UPV (President Vargas Plant) and 85.2% were exported.

We operate throughout the steel production chain, from the extraction of iron ore, to the production and sale of a diversified line of high value-added steel products, including galvanized coated flat steel and sheet metal. The integrated production system, combined with the quality of management, makes CSN one of the lowest production costs in the steel industry worldwide. In addition, in Brazil, CSN is the only steel company that produces tinplate.

The CSN’s steel is present in several industry segments, including: Automotive, Civil Construction, Packaging, White Goods and OEM2. The domestic market represents the majority of the Company’s sales, which, however, is also strategically positioned in the foreign market.

Based on the structuring of the MACC curve (Marginal Abatement Cost Curve), we established a CO2 Roadmap, with the definition of projects and action plans that will be taken with a focus on reducing the GHG emissions of the entire CSN group. More than 100 projects and technologies have been mapped and are under feasibility analysis, such as: heat and energy recovery technologies, metallization of cargo, use of biomaterials and alternative fuels, among others.

The combination of blast furnace slag, resulting from the steelmaking process at the Presidente Vargas Steelworks, and clinker, produced at the limestone mine in Arcos, transformed CSN into one of the most competitive cement players in the country. The synergy between the businesses and the integrated logistics of the factories and strategically located distribution centers allow us to offer a differentiated service to the consumer market.

CSN Cimentos’ emissions are calculated based on two internationally recognized methodologies, the GHG Protocol and the Cement Sustainability Initiative (CSI). Both are published in our Integrated Report and can be compared with other peers in the sector, as following the best practices, we transparently make available to our stakeholders our absolute and specific emissions calculated in the two methodologies.

Based on the structuring of the MAC curve (Marginal Abatement Cost Curve), we established a CO2 roadmap, with the definition of projects and action plans that will be taken with a focus on reducing GHG emissions for the entire CSN group. More than 100 projects and technologies have been mapped and are under feasibility analysis, such as: heat and energy recovery technologies, metallization of cargo, use of biomaterials and alternative fuels, among others. At Cement, we highlight the use of slag, co-processing of waste, use of biomass, consumption of green hydrogen, and innovative technologies that improve energy efficiency and the clinker fator.

At the CSN Cimentos unit, in Arcos (MG), we signed the Atlantic Forest Compensation for the donation to the Chico Mendes Institute for Biodiversity Conservation (ICMBio) of 29.4 hectares as land regularization of the Cavernas do Peruaçu National Park, in the municipality of Itacarambi (MG). As mining compensation, 165.4 hectares located within the Serra do Cabral State Park, in the municipality of Buenópolis (MG) have already been donated and the donation as a complementary compensation of 18.71 hectares in the same park is in the final phase of documentary adjustments. , in an area contiguous to that previously donated by CSN Cimentos, thus increasing the land tenure regularization of the area protected by the State Government.

The combination of blast furnace slag, resulting from the steelmaking process at the Presidente Vargas Steelworks, and clinker, produced at the limestone mine in Arcos, transformed CSN into one of the most competitive cement players in the country. The synergy between the businesses and the integrated logistics of the factories and strategically located distribution centers allow us to offer a differentiated service to the consumer market.

CSN Cimentos’ emissions are calculated based on two internationally recognized methodologies, the GHG Protocol and the Cement Sustainability Initiative (CSI). Both are published in our Integrated Report and can be compared with other peers in the sector, as following the best practices, we transparently make available to our stakeholders our absolute and specific emissions calculated in the two methodologies.

Based on the structuring of the MAC curve (Marginal Abatement Cost Curve), we established a CO2 roadmap, with the definition of projects and action plans that will be taken with a focus on reducing GHG emissions for the entire CSN group. More than 100 projects and technologies have been mapped and are under feasibility analysis, such as: heat and energy recovery technologies, metallization of cargo, use of biomaterials and alternative fuels, among others. At Cement, we highlight the use of slag, co-processing of waste, use of biomass, consumption of green hydrogen, and innovative technologies that improve energy efficiency and the clinker fator.

At the CSN Cimentos unit, in Arcos (MG), we signed the Atlantic Forest Compensation for the donation to the Chico Mendes Institute for Biodiversity Conservation (ICMBio) of 29.4 hectares as land regularization of the Cavernas do Peruaçu National Park, in the municipality of Itacarambi (MG). As mining compensation, 165.4 hectares located within the Serra do Cabral State Park, in the municipality of Buenópolis (MG) have already been donated and the donation as a complementary compensation of 18.71 hectares in the same park is in the final phase of documentary adjustments. , in an area contiguous to that previously donated by CSN Cimentos, thus increasing the land tenure regularization of the area protected by the State Government.

In the CSN group, 94% of the energy used comes from renewable sources.

Together with CSN Cimentos, CSN Energia acquired, at the beginning of 2022, 100% of the shares of Santa Ana Energética, which holds the concession for the exploration of the Santa Ana Small Hydroelectric Power Plant (“SHP Santa Ana”), as well as the Topázio Energética S.A. (“Topázio”) and, indirectly, from Brasil Central Energia Ltda. (“BCE”), a subsidiary of Topázio. The acquisition aims to support and strengthen CSN’s business expansion strategy, through investments in renewable energy and self-production for greater competitiveness of its business.

No. CSN has always been careful about the safety of its dams, with high-tech and high-precision controls and monitoring, ensuring the safety of its dams and the surrounding communities. In addition to establishing legal compliance and complying with the requirements imposed on its activities.

The Casa de Pedra Dam structure complies with all existing safety standards, is duly authorized to operate by all competent bodies and, therefore, does not present any type of risk. The dam’s safety, built by the downstream raising method, was attested by renowned independent audits. It should be noted that the Declaration of Condition of Stability (DCE) of the structure was filed with the Public Ministry of the State of Minas Gerais (MPMG) and with the National Mining Agency (ANM), via SIGBM (Integrated System for the Management of Mining Dams of the ANM ), according to ANM Resolution No. 4, on March 11, 2019, without any request for a postponement of the deadline. It should also be noted that CSN Mineração is at the forefront of tailings treatment, with an investment of 250 million reais in dry stacking technology.

The Casa de Pedra tailings dam was built and raised downstream with a structure composed of compacted and resistant soil such as clay and silt (rock fragments or particles smaller than a grain of sand, which enter into the formation of the soil or a sedimentary rock). This is the same technique used in the construction of large hydroelectric dams. Among the advantages of the downstream construction method, we can highlight the reduction in liquefaction risks, the lower probability of internal ruptures and an efficient drainage system. In addition, it is important to emphasize that the starting dike was built on natural terrain, better supporting the structure.

The periodic monitoring carried out by the dam management team aims to ensure the safety of the Casa de Pedra dam, valuing the integrity of the structure. CSN Mineração has a management system for monitoring and inspecting its structures, using systems such as Geo Inspector, SHMS, Trimble, SAAsuite, and a 24-hour video surveillance system. The activities of reading and interpreting the data collected are carried out by the Inspection and Risk Assessment Group, as defined by the PAEBM Safety Management Committee. In addition to the results of the readings of the installed instruments, periodic visual inspections of the structures are carried out.

Currently, CSN Mineração filters 45% of the material generated during the beneficiation process at the Central Plant (PC) and at the High Intensity Magnetic Concentration (CMAI I) plant and stacks it dry. This reduced the need for tailings disposal by the conventional method in dams. By 2020, the company should process 100% of its ore dry, discarding the use of dams for the production process. With an investment of 250 million reais, this is the largest project of its kind in Brazil. Among the advantages provided by the technology are the reduction of environmental impacts, the improvement of safety in technical matters and the reuse of a large amount of the water present in the tailings, which are stored dry.

After being sent to the filtration plant, the tailings go through the process of densification in decanter cones, with the addition of flocculants. The decanter cones still receive the filtered liquor from the filters and, through the phenomenon of solid-liquid separation that occurs inside, 90% of the water is recovered, which is recirculated and returns to the beneficiation process. The densified material goes to a homogenization tank and is then sent to filters under high pressure. During pressing, the reduction of humidity and the formation of pressed tailings plates takes place, which are unloaded on conveyor belts and transferred to the loading pile. Subsequently, the filtered material is transported by trucks to form the definitive piles of dry material.

The CSN Mineração held several meetings with the residents of the Cristo Rei and Residencial Gualter Monteiro neighborhoods, in Congonhas, transmitting to them all the information about the Casa de Pedra Dam. More than that, CSN Mineração has promoted visits by residents to the dam itself. They climb the massif, attend lectures about the dam and visit the entire structure. In addition, CSN installed warning sirens in neighborhoods, implemented meeting points and escape routes. The company also carried out two simulated accidents with residents. At the moment, it is distributing an information booklet to the population, so that, knowing better the structure and safety of the dam, they can feel more relaxed. All this same information was taken to the local authorities.

Among the activities related to dam safety management, the following stand out:

• Performance of field inspections;
• Routine maintenance actions;
• Evaluation of the monitoring data and instrumentation response;
• Verification of the safety condition of the structure based on the safety factors obtained through the stability analyses;
• Verification of drainage conditions and evaluation of hydrological and hydraulic risk;
• 24-hour video monitoring
• Practices for compliance with state and federal legislation;
• Attending to the requirements of the inspection agencies;
• Monitoring and compliance with audit recommendations, RPSB, EDR.

Monitoring and instrumentation of the casa de pedra dam complex: the periodic monitoring carried out by the dam management team aims to ensure the safety of the casa de pedra dam, valuing the integrity of the structure. Csn mineração has a management system for monitoring and inspecting its structures, using systems such as geo inspector, shms, trimble, saasuite, and a 24-hour video surveillance system.

The activities of reading and interpreting the data collected are carried out by the inspection and risk assessment group, as defined by the paebm safety management committee. In addition to the results of the readings of the installed instruments, periodic visual inspections of the structures are carried out.

Field inspections: the safety inspection of a dam is an essential and elementary routine activity, which constitutes a highly relevant resource. At csn they are carried out by specialized and experienced technicians. The entire system, consisting of the casa de pedra dam and its components, such as abutments, slopes, surface drainage, overflow system, among other elements, are subject to visual inspections, and the respective routine reports are issued for monitoring, aiming at the good functioning of the structure.

The following routine maintenance services are carried out routinely

• pruning and conservation of the vegetation cover;
• grassing of the structure, allowing greater visibility and safety. This activity includes the removal of all and any vegetation, the adjustment of the grass and the elimination of existing termites and anthills.
• cleaning drainage channels and the spillway;
• maintenance of the waiting volume in the reservoir for flood dampening;
• maintenance of instruments;
• calibrations and testing the reading devices of the instruments.
• the special maintenance services, when necessary, are performed from the inspections carried out by the responsible team, through the geoinspector software at the structure’s site. From this, an action plan is generated for the execution of measures to be adopted, in case there is any improvement to be implemented.

Instrumentation: currently, there are 179 (one hundred and seventy-nine) instruments registered for the casa de pedra dam. Among them, piezometers, water level indicators (wis), surface markers, flow meters and inclinometers.

Piezometers and water level indicators: their purpose is to identify the water table in the structure, while the piezometers (pz) provide the piezometric load either in the structure or in the structure’s foundation.

Flow meters: their function is to monitor the flow coming from the structure’s internal drainage.

Surface marks: used to determine possible horizontal and vertical displacements in the structure.

Inclinometer: is used to measure horizontal movements in the dam, collaborating in slope stability control. This instrument is composed of a cylindrical rod with the presence of an inclination sensor inside it. From this device a comparison is made between the current readings and those taken after installation, thus verifying if there have been significant changes.

Field inspection: it is a routine activity that is essential for the structure’s safety. Through it, it is possible to observe the conditions of the structure and its surroundings, accesses; crest; slopes; right and left shoulders; surface and internal drainage systems, and overflow and other points that are considered important by the technical evaluation team.

During the inspection we try to identify if there are settlements, deformations, deterioration of the slopes, emergencies in the structure, as well as the state of conservation of the surface drainage, pouring capacity of the overflow and if, between the periods of inspection, there was the occurrence of any situation that requires action by the technical and maintenance team.

As a strategic investor, CSN Inova can help your startup to leverage its technological solution, through:

a) Smart Money: Access to equity in exchange for equity or convertible debt;

b) Traction and scale: Access to the markets that CSN operates, with the possibility of becoming a CSN supplier;

c) Technology validation: With the use of products/services, applied tests of technologies can be performed in the CSN environment;

d) Technical expertise: We provide access to our assets, business units and industry experts;

e) Network: We connect founders to a broad network of co-investment and potential clients in the service sector.

If your startup becomes a partner of CSN Inova, we can help you create a new solution, develop and test existing solutions or hire your startups to help solve a challenge for our company.

We believe in extraordinary teams and seek solutions that have the potential for scale and impact.

Entrepreneurs who have a solution that adheres to what we are looking for.

To register, your startup can be of any size, but you must consider the profile of the startups we are looking for.

For investment evaluation, we look for startups that have traction and scale perspective.

For open innovation partnerships, we work with well-structured startups with the ability to work together to solve our challenges.

If you don’t have a CNPJ, but believe that your solution can help us, send an email telling us a little more to: inova@csn.com.br

It is possible, but registration is just a first step in evaluating your startup by CSN Inova Ventures. From the registration, we may or may not evaluate your company.

If we consider that there is synergy between the characteristics of your startup and CSN Inova Ventures, we can conduct an evaluation and negotiation process, which will take into account a series of factors, and which may or may not result in a contribution.

It is important to note that registration and/or participation in the evaluation process does not mean that there will be an investment in your startup.

In order for there to be an investment partnership, it is essential that there is interest from both parties and that the objectives of CSN Inova Ventures and its startup are contemplated.

It is possible, but registration is also just the first step in evaluating possible open innovation partnerships between CSN Inova and your startup. This does not mean that your startup will be hired or that there will be a partnership with CSN Inova.

As CSN Inova conducts a continuous process of open innovation, your registration keeps your startup on our radar for a possible partnership to solve our challenges. We can contact you at any time to get to know your startup and your solution better and then evaluate and decide on a possible partnership.

Not. Registration is an ongoing process and your startup will enter our database for both investment assessment and our open innovation process.

There is no set amount. As our investment evaluation and open innovation process is continuous, the number of partnerships to be carried out is at our discretion.

Get in touch with us at inova@csn.com.br or acess our website to get to know more information.

The Presidente Vargas Steelworks was inaugurated in 1946 as the first integrated steel plant in Brazil; the site was built by the Brazilian government. At the time, few equipment and technologies for pollution control were implemented due to the absence of environmental standards and legislation. After its privatization in 1994, a long modernization journey began with more than R$5 billion in investments between 2000 and 2020. Obviously, the challenge of adapting such an old plant to the best environmental standards takes time, especially with modernization being carried out while the plant was operating at total capacity.

In this context, the TAC (Conduct Agreement Term) was signed with INEA – the State’s Environmental Bureau – based on the understanding that all necessary adaptations depended on more significant investments and time.

The current TAC, signed in 2018, provides a six-year action plan with independent verification reports every three months to monitor compliance with actions. The reports of these audits are delivered to INEA and prove that the planned activities are being fulfilled within the deadline.

The Company is currently investing BRL 700 million in modern equipment and filters to improve its environmental controls regarding dust emissions, more than double the amount initially forecast in the TAC, and until the final works are completed in 2024, the unit is adopting numerous measures to reduce the impact of dust: dust filters, gas scrubbers, mist turbines, cleaning and washing of internal pathways and sprinkler cannons with polymer application that minimizes solids in suspension.

It should be noted that exogenous and natural factors contributed to the occurrence identified at the period. In the climatic phenomenon called “thermal inversion” – which occurs in periods of drought and dry and cold weather – the air hardly disperses, which causes a concentration of accumulated particles over the region where the phenomenon occurs. This phenomenon is widespread between June and September in urban centers.

Additionally, the operation of the air quality monitoring stations located in the municipality of Volta Redonda has its data reported online to INEA without any interference from the Company. INEA consolidates this data and classifies the city’s air quality. There are no anomalies or interruptions in their operations at these stations. So that there are no gaps recorded in the history of air quality monitoring in Volta Redonda, which is not associated with external events, such as, for example, power outages, or intervention for maintenance and calibration of automatic measuring instruments, carried out following the maintenance schedule for this equipment, also previously informed to INEA. During the entire year of 2023 the air quality of Volta Redonda was considered as good in 95% of the time (in average).

Since 2019 CSN’s demobilized all facilities intended for administrative, living, health, and recreation activities in the Vigia Dam Self-Rescue Zone, CSN fully complied with the legislation made by the National Mining Agency (Resolution 95 of February/2022).

Additionally, the Auxiliar do Vigia Dam has been totally de-characterized since 2020. Finally, it is essential to inform you that the Vigia Dam is also in an advanced process of de-characterization that will be concluded by the end of 2022. Currently, this structure no longer has the characteristics of a tailing dam, as there is no reservoir or damping volume left.

The Casa de Pedra dam was built in the downstream method and is classified by the National Mining Agency as level 0 (zero) on safety, which is the best possible grade on this matter. The Dam has a DCE- Declaration of Stability, and all security audits are up to date, made by independent companies, and do not pose any risk to society. There is no technical or even judicial questioning regarding the safety of the Casa de Pedra Dam.

The penalty and interdiction order issued by the municipality of Itaguaí was illegal and arbitrary. This illegality was recognized by the Environmental Agency of Rio de Janeiro (INEA), which, just 9 hours after the municipal order was issued, immediately determined the restart of the Port operations.

The Environmental State Agency (INEA) is defined by federal law as the competent body to monitor and oversee our Port activities regarding all environmental matters. Therefore, contrary to what was alleged by the Itaguaí Municipality, CSN’s operations are duly licensed by the competent state environmental agency, with all environmental permits valid.

In this regard, Opinion no. 01/13-RTAM-PG-2 was issued by the Attorney General’s Office of the State of Rio de Janeiro, within the scope of INEA’s administrative process, informing that the fines issued by the Municipal Environmental Department of Itaguaí were not in compliance with the legal rules in effect.

Besides the order issued by INEA to reopen the Port, on the same day the municipality issued the penalty and the Interdiction order, CSN filed a lawsuit against the municipality to confirm the illegality of the municipality action, and the justice also determined the immediate suspension of the penalty and the interdiction order made by them.

Notes from CSN to the Press:

Positioning note 01, right after the interdiction- The company clarifies that it has all environmental licenses at the Itaguai Port, which attests that its performance is completely based on what the legislation determines. The Company informs that there was no leakage or spillage of iron ore at sea and does not recognize any of the charges allegedly by the municipality. A municipality is not legally competent to interdict a port duly licensed by the state environmental agency, and which is responsible for a large part of the Brazilian trade balance. The company will take all legal measures to ensure the continuity of its operations and seek for a compensation by the municipality on material and moral damages.

Positioning note 02, after lifting the interdiction – CSN informs that State Environmental Agency determined on Friday, April 16, to lift the interdiction order of the Itaguaí Port, which had been interdicted illegally by the local municipality. The decision of the environmental agency, was also accepted by the municipality, proving what the Company already clarified: its two port terminals (Tecar and Sepetiba Tecon) have all the environmental licenses and act in accordance with the Environmental legislation. The company refutes once again all the unfounded accusations presented by the Municipality.

A note from the State Environmental Agency is also clear about the legality of the terminals’ operation: “About the environmental license, Inea informs that Tecon has its license valid until 11/2/2024 (LO n ° IN048304). Tecar has the license LO nº IN016259 that is in the process of renewal, with a valid document supported by art. 18 of Conama Resolution No. 237 ”.

Check notes from the press on the following sources:

Link: https://www.reuters.com/

Link: https://agenciabrasil.ebc.com.br

Link: https://www.istoedinheiro.com.br

Environmental contamination from an industrial waste disposal site, where the company operated before its privatization in 1993.

CSN started the studies in the residential area in 2000, performing several campaigns of soil, soil vapor, and groundwater investigation following the local standards and guidelines. The entire condominium is one of the most investigated residential areas in Brazil, where since 2000, more than 100,000 environmental laboratory analyses have been performed, confirming the results obtained in all phases of environmental assessment, including semi-annual groundwater monitoring cycles. Since then, 21 environmental studies have been carried out, thus concluding all the diagnostic steps foreseen in CONAMA 420/2009 (Brazilian guideline for contaminated land management), obtaining the following conclusions:

– The wastes related exclusively to the steelmaking process are delineated in an area that corresponds to only 10% (18,000m2) of the total extension of the condominium, positioned in a continuous layer of 1.5m thick at a depth of 1.5m;

– The extensive chemical characterization of this material has demonstrated that the layer with the presence of steelmaking wastes is composed mainly of silica.

– The impacts for groundwater are very limited, and the mathematical modeling shows that there is no potential for migration of contaminants to the Paraíba do Sul River or off-site areas;

– There are no real risks to human health as long as restrictions on groundwater consumption are maintained (which is already prohibited by a municipal law that forbids groundwater exploitation) and no excavations are carried out at the depth at which the waste is reached;

Besides the studies performed since 2000, the Volta Grande condominium was the object of several academic studies published by independent and specialized scientific journals that confirm that the entire area is safe and there is no risk for residentials.

Concerning the intervention actions, CSN has followed the recommendations made by independent consultants responsible for the soil and groundwater investigations (NICKOL 2014):

– Implementation of 2 semi-annual campaigns of groundwater and soil vapors monitoring for 2 years, in which the results corroborated the diagnosis, i.e., over the cycles, no new occurrences or changes in the environmental scenario were verified;

– In a conservative way, the capping and confinement of exposed superficial soil in the public areas of the condominium to avoid excavations in these places, thus avoiding dermal contact with the soil;

-All public areas were converted into recreational spaces for residential uses, including the implementation of a public gym and a sports court, which increases the life quality of the local community

-It was made available from CSN, a public and voluntary soil sampling program, wherein the interested residential request CSN to perform sampling in the privative residential areas, with no costs, to confirm local conditions related to environmental soil quality.

– The CSN keeps a public communication channel with the community called “Linha Verde” in which the residentials can keep in touch to clarify any questions regarding the environmental quality of the condominium by telephone and e-mail.

Also, it is essential to note that all studies and information obtained were presented to the local environmental agency following local guidelines.

Public Studies:

Study: Journal of Environmental Protection > Vol.10 No.7, July 2019: Environmental Forensic Investigation in the Residential Neighbourhood Volta Grande IV, Volta Redonda, RJ, Brazil, Using TPH and PAHs Analyses in Soil Samples

Study: Published online 2020-11-05: Tiered analytical approach to determination of hydrocarbon fingerprint in soil vapor samples: Residential Neighbourhood Volta Grande IV, Volta Redonda, RJ, Brazil

Study: Published online: 08 Mar 2021: Forensic analytical approach for hydrocarbon fingerprinting in soil vapor samplings: Example of a residential neighbourhood in Brazil Forensic analytical approach for hydrocarbon fingerprinting in soil vapor samplings: Example of a residential neighbourhood in Brazil

The “slag” mentioned are a stock of steel aggregate, a by-product resulting from steel production. The stacks are located in an area duly licensed by INEA since the 2000s and with all environmental control measures applied. Steel aggregate is a non-hazardous and inert product, that does not pose any environmental or human health risks, is used to create road sub-bases, manufacture Pavers, and is gradually sold on the market. It turns out that, given the reduction in infrastructure works in the country that has occurred in recent years, the stock contained in the yard has increased. However, through investments in R&D projects, the Company has constantly sought new applications for this material, which has resulted in a progressive reduction in stock size. In the last 12 months alone, 230 thousand tons were removed from the stack and reused, with prospects for an increase in withdrawals in the coming years based on new initiatives and ongoing partnerships. It is worth noting that there is no risk of pollution of the Paraíba do Sul River, nor is there any relationship between piles of steel aggregate and dust emission, according to studies carried out by independent companies and presented within the scope of the ongoing agreement with the Federal Public Ministry, State Public Ministry and INEA (Rio de Janeiro Environmental Agency). In this agreement, given the conclusions of these studies, a consensus was reached that the Company can proceed with the gradual reduction of the stack, reducing the volume currently contained there by 50%, within a period of up to 19 years.

The Company expects to sign the agreement with the federal public prosecutor by the end of february to finally end this controversy. The draft of this agreement is being reviewed by the parties.

In December 2021, the Company’s request was approved by most of the Paraopeba’s River Committee members. This Committee comprises 36 representatives of the Federal and state governments, municipalities, NGOs, civil society, and users. During the voting session, with 29 members voting, the Company made a technical presentation to clarify any doubts of the members, and the renewal of the water grant was approved with only three votes against it.

The request for the expansion of the water grant was necessary to guarantee the continuity of CSN Mineração’s operation. This Company generates jobs and income for the population of Congonhas and the state of MG. This request was based on detailed technical studies, with the support of a third and independent company, analyzed and with a favorable opinion from the technical staff of IGAM (state agency for water).

Source: https://www.otempo.com.br/

A civil inquiry was launched to verify CMIN tailings dam compliance with the National Dam Safety Policy. The dams under investigation are B2 Água Preta, B2 auxiliary dam, B4, B5, Casa de Pedra, Dique do Bichento III-A, Esmeril IV dike, Vigia auxiliary Dam, Vigia Tailings Dam, and Vila II. – Regarding this inquiry, all the information was provided, and a preliminary agreement was signed regarding all tailing dams. An expert defined by the Federal Prosecutor made diligence to check if all the terms of the agreement were fulfilled by the Company to discontinue the inquiry definitively, which we expect to happen very soon.

The Fernandinho B2A Dam has been, since Jul/2019, undergoing groundwater lowering works, which consist of removing underground water from the Dam to make it even safer, and, later, to start the de-characterization process. However, the stabilization process of the Fernandinho Dam was suspended in 2021 by the National Mining Agency (ANM) for technical alignment on the methodology that was underway for stabilizing the Dam, which was misinterpreted by the State of Minas Gerais as if the Dam was at risk and resulted in the Civil Action mentioned.

After the company presented studies, safety indicators, and projects, the ANM authorized the resumption of maintenance works. Continued stabilization with the upkeep of the lowering of the water table and the drilling of wells to complement the decrease of the underground water demonstrates that the structure does not present risks as initially mentioned in the opening of the Public Civil Action. Therefore, as ANM authorized the continuity of works for the stabilization process, which were concluded in December/23.

The Dam were downgraded to level 1 of emergency. And after a recent inspection by authorities, it became clear to all involved that the Dam was not at risk. Thus, the local authorities an the Public Ministry requested the court to suspend the lawsuit and an agreement was signed with the Public Prosecutor and the State authorities in order to conclude this lawsuit. The lawsuit is already closed.

Once the works were completed, CSN requested a new inspection from ANM, the authority that affirms the stability of the dam, to evaluate and formalize the new level as stable (zero emergency level). As soon as it is completed, the dam’s decharacterization works will begin according to the schedule stipulated by the company.

The Casa de Pedra dam has the highest stability levels required by the National Mining Agency’s metrics. In addition, since 2020, CSN Mineração has operated independently from tailing dams. Since that, zero tailings have been deposited in our dams.

In April 2019, the Public Prosecutor’s Office of the state of Minas Gerais filed a public civil action to compel us to adopt mitigating measures regarding the psychological risks and losses allegedly generated by the Casa de Pedra dam. Including relocating residents, indemnifying, and bearing rent and social assistance expenses, and relocating the children who attended the daycare center and school that have been closed. The Public Prosecutor’s Office of the State of Minas Gerais (MG) also pleaded for the payment of collective moral damages. As a result, a partial injunction was issued, ordering the construction of a school with a block of R$ 3MM in CMIN’s accounts. The Company appealed, and the Minas Gerais State Court canceled the decision. In 2021, another decision in the first instance (by the same judge) obligated the Company to pay rent and build the school, again suspended by the Minas Gerais State Court through an appeal filed by the Company. In November/2022 the court of Minas Gerais decided unanimously and definitely that the company doesn’t have to remove the people or either pay any rent, considering that there is no risk related to the safety of the dam and no need to evacuate the families.

We were victims of mismanagement and disasters that occurred with other companies, which caused panic and affected other companies that have or had tailing dams, especially us, that operate in the same State where the disasters happened.

Besides that, an extensive communication campaign was done to inform the population that CSN has naver faced any accidents involging its tailing dams. In addition, even though there is no legal obligation to de-characterize Casa de Pedra dam, CSN has already established a public schedule to de-characterize all its tailing dams.

The discussion lies on the divergence between CSN Mineração and the control entity regarding concepts of the legislation on a tax calculation basis, in addition to nullities in the administrative process.

To mitigate liability risks, the Company adopts all appropriate measures in monitoring the inspections made by fiscal auditors and produces technical reports about the production process, when necessary, to explain to the auditor all the details.

However, we are unable to present measures to avoid inspection, and that kind of discussion brought by the controversy since the issue of CEFM in the territory of Minas Gerais is very complex and unclear.

The process can also be followed by the CSN’s Reference Form described in item 4. Risk Factors / 4.3 – Relevant Non-confidential Processes on page 51 of link: https://api.mziq.com/

Regarding the ship True Conrad ewcastlemax (IMO: 9778430), which was anchored in Ilha Grande Bay – outside the Porto’s oficial area according to a note issued by the Brazilian Navy, the ship was not stranded, but rather anchored to carry out repairs.

“The vessel interrupted its journey so that the captain could assess possible damage to the ballast tank, anchoring safely near the pair of buoys 1 and 2, where it is currently stable and without imminent risk, carrying out the necessary repairs. ”

The Brazilian Navy also reported that the repairs were completed quickly and efficiently, and the ship had to await a new inspection before continuing its journey to Singapore. During the inspection, no damage to the crew or risk of water pollution was found. oil leak or spill in the vessel area.

Due to the fact that the ship was anchored outside of CSN’s operating area, in this case the action would be the responsibility of the Navy to carry out due environmental monitoring, carry out preventive actions and report related updates to applicable authorities, such as INEA. In any case, as soon as CSN became aware of what happened, it immediately informed INEA through the on-call channel in accordance with the practice of environmental emergencies and collaborated with the reporting of all information requested by the responsible authorities.

There were no leaks in the tailings dams of CSN or its controlled companies. The news that circulated in public media refers to the structure called “Ecologica 1” located at the Fernandinho plant, in the State of Minas Gerais, belonging to Minérios Nacional – a company controlled by CSN. The structure – which does not receive waste – is used to contain sediments and clarify water. Annually, it is part of the Company’s operational planning to clean this structure in order to remove sediments that may have accumulated, thus mitigating possible impacts on water bodies downstream. It turns out that, during this activity, necessary to desilt the Ecologica 1 structure, there was a disturbance of the material that was accumulated at the bottom. This triggered, in April this year, an increase in the apparent color and turbidity of the water resulting from the removal of sediment from the structure itself and mainly due to the heavy rains that occurred in April. The change in water turbidity was immediately remedied by the Company by stopping the desilting works without causing any environmental damage to the receiving water body. The absence of damage was even recognized by IGAM (Water Management Institute of the State of Minas Gerais) in its post-inspection report carried out at Ecológica 1.

In the same sense, it was negotiated with FEAM (Minas Gerais State Environmental Angency) and the MPE (Public Ministry of Minas Gerais), through a judicial agreement about to be signed, that the fines applied by FEAM will not only be reduced, but also converted into actions to speed up the desilting works at Ecológica 1. The agreement only was possible because it was proven that there was no dumping of waste into the river and no environmental damage. What occurred was a specific change in the turbidity of the water resulting from the desilting work on the Ecológica 1 sediment containment structure, immediately addressed by the Company.