SUSTAINABILITY

REPORT
2014
 04
LETTER FROM
THE CEO

PERFORMANCE
HIGHLIGHTS FOR 2014

08 14

INTRODUCTION TO
VOTORANTIM METAIS
12 WHO
WE ARE

ABOUT THE REPORT

32 60
OUR STRATEGY
90
PERFORMANCE
AND DRIVERS

REPORT PRODUCTION

92 124
GRI LIST OF CONTENTS/ INDEPENDENT LIMITED
ASSURANCE REPORT
126
INDICATORS

PAGE REFERENCE LEGEND

GRI Indicators Material Issues

 LETTER FROM
THE CEO G4-1

We are publishing Votorantim Metais first Sustainability Report which Our people are at the core of our long-term strategy to grow. It is no coincidence that we
has been prepared for distribution to the market and society in have stepped up our investment in the ongoing development of our teams and the WE
general. The report provides information on our performance, training of our leaders. We believe in the capacity of our internal talent to transform the
MOBILIZED
operations and growth plans. This is another important development company and the importance of valuing diversity to build a more social and inclusive work
OUR LEADERS TO
regarding our accountability to our stakeholders and is based on a environment. To this end, we want to evolve in terms of gender diversity encouraging more
MAINTAIN A FOCUS
process of transparent and open dialogue, fundamental pillars of our and more women to develop their careers with us. Besides this, we understand that
ON SAFETY ISSUES
corporate governance approach. women are increasingly prepared to take on challenges and compete on equal terms for
AND INVESTED
jobs that were once considered strongholds of men, such as the operation of heavy
IN TRAINING
In recent years we have gained a prominent position on the national equipment in underground mines.
AND INCREASING
scene. Today, we are one of the leading players in the non-ferrous
THE AWARENESS
sector of the metals and mining industry. Our main results in 2014 Last year, Votorantim Metais established its own Board. The Board is responsible for
AMONG OUR
reflected significant improvements in our cost management and the setting and monitoring the companys goals, defining strategy, monitoring performance
EMPLOYEES TO
operational efficiency of our units, combined with a stronger and ensuring the companys long-term business continuity in terms of results, people
PROMOTE A SAFER
organizational structure. Our efforts were in line with our growth management and social and environmentally responsible practices, while also ensuring
OPERATIONAL
objectives and focused on initiatives aimed at the development that it preserves the values and corporate identity of the Votorantim Group. This new
ENVIRONMENT.
of new mineral resources, the extension of the useful life of our governance structure was a consequence of the decentralization of Votorantim
existing mines and the maximum utilization of our industrial assets. Industrials management model, implemented in late 2013. The new structure has enabled
the company to be more agile in its decision-making and more efficient in its operations,
WE ARE PART OF A
As Safety regards we implemented processes and methods, and both of which contribute directly to the long-term sustainability of our business.
SHARED NETWORK
provided more efficient equipment and systems, aimed at avoiding the
OF ASPIRATIONS,
occurrence of accidents. Furthermore, we mobilized our leaders to Furthermore, we believe that the companys long-term business continuity depends on
OBJECTIVES AND
maintain a focus on Safety questions and invested in training and in respectful relations and mutual development with our local communities. We are part of a
INITIATIVES AIMED
increasing awareness among our employees to promote a safer shared network of aspirations, objectives and initiatives aimed at improving the social and
AT IMPROVING
operational environment. As a result, our Safety indicators have economic indicators of the localities where we are present. During the year we made
THE SOCIAL
improved consistently year on year. Our goal for 2025 is to achieve an progress in our social strategy by means of our partnerships and collaboration with the
AND ECONOMIC
accident frequency rate, with and without lost days, equal to or less public sector and civil society in order to align our activities to a positive agenda for
INDICATORS OF THE
than those companies that are considered to be global benchmarks for municipalities, achieving and sharing resources and results. For 2015, we intend to further
LOCALITIES WHERE
Safety in the metals and mining industry. In 2014, two fatalities strengthen the open and strategic dialogue between the company and the local
WE ARE PRESENT.
occurred which we sincerely regret. communities as well as to improve the performance management of the social actions
carried out by our units.

4 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 5

 Despite the unfavorable macro-economic scenario in 2014, our financial results
exceeded expectations. We achieved increases of 125% in EBITDA and 5% in net
income, compared to 2013. In Milpo, which produces zinc, copper and other metals,
EBITDA increased by13% and net income by15%, compared to 2013. In addition to
the improvements we made in the management processes of our operations, other key
factors were the rationalization of investments, cost reduction and financial
management. We prioritized projects that effectively added value and contributed to
our growth strategy and, at the same time, we worked continuously to reduce leverage
and improve the companys debt profile.
In order to provide more direction to our activities, to capture synergies and to create an
organizational structure more appropriate to our long-term strategy, we reconfigured our
business organizational structure into two divisions: the Aluminum division and the
Polymetallics division. The goal was to optimize our activities and processes and gain
WE greater competitiveness.
PRIORITIZED WE MADE
PROJECTS THAT In our business activities, we exercised creativity and flexibility to adjust to the PROGRESS IN THE
EFFECTIVELY changes in the market. The major markets for zinc performed well. We included our Milpo METAL MARKETS IN
ADDED VALUE AND operations in the strategy for the Polymetallics division in order to ensure a greater level of WHICH WE OPERATE,
CONTRIBUTED synergy and a common approach to the market. ESPECIALLY
TO VOTORANTIM OVERSEAS, BUT
METAIS GROWTH In 2014, the recovery of the United States automobile industry contributed to a rally in OUR RESULTS
STRATEGY. zinc prices. The current outlook is for stable prices or even a continuance of the recent WERE ACHIEVED
upward trend in the next few years, since although the global supply of zinc is forecast to MAINLY BY OUR
decline, due to some major mines being worked out, consumption is expected to grow. MANAGEMENT
EFFORTS AND THE
On the other hand the nickel business has experienced a period of high volatility. One of RELENTLESS PURSUIT
its main challenges has been the competition from nickel pig iron, a product of inferior OF INTERNAL
quality produced in China using an alternative technology, leading to unfavorable market IMPROVEMENTS,
conditions. Even after a ban on nickel ore exports imposed by Indonesia in 2014, which FOCUSED ON
initially favored an increase in prices, the outlook remains challenging since China has OPERATIONAL
been effective in its search for alternatives. STABILITY.
These unfavorable market conditions led us, in November 2013, to temporarily suspend
nickel matte production at our unit in Fortaleza de Minas (MG). However it is important
to note that, in 2014, we continued with our actions to minimize the impacts of this
suspension on the local community. We looked for new opportunities to transfer
employees to other units and reinforced our investments in creating economic alternatives
for the municipality.
The results of the Aluminum division in Brazil were impacted by the high cost of energy.
Our strategy to address this situation was to reduce the volume of primary aluminum
production. We concentrated on the more profitable market segments and maintained our
marketing focus on the domestic market.
In terms of operational excellence, our performance was higher than expected, which is not to say
that we didnt face challenges. We made good progress in the metals market sectors in which we
operate, especially overseas, but our results were due, mainly, to our own management efforts and the
relentless pursuit of internal improvements, focused on operational stability. The results obtained were
due to the dedication of our teams, which combined knowledge, boldness, creativity, integrity and
entrepreneurial spirit, with the objective of seeking internal improvements in a number of areas. Some
of the main initiatives were: the continuous improvement the efficiency of our operations by maximizing
the utilization of the companys assets; the ongoing development of our leaders and employees; and
investments in technology and projects to increase energy efficiency. We sought, in short, with the
maximum of effort, to find the best solutions for all aspects of our activities.
As regards capacity expansion we made significant progress in our green-field projects. We
obtained the provisional license for the Rondon Alumina Project. We also advanced with our
projects in Aripuan (MT) and Santa Maria (RS), in Brazil, and in Bongar, Shalipayco, Hilarion,
Magistral and Pukaqaqa, in Peru.
Another important milestone in 2014 was the revision of our sustainability strategy. We revisited
our material issues and also reassessed our strategic planning process for social action. In 2015, we
will implement new management controls for social investment, strengthening the theme in the day-to
day routine of the operating units.
We are optimistic about our prospects for the coming years. We believe we are at the beginning of a
positive cycle for non-ferrous metals. An important sign was the resumption of investments in new
metals and mining projects around the world. Furthermore, the urbanization process in developing
countries will have a significant impact on demand.
We had a good year in 2014 and expect, at least, to repeat this performance in 2015, a year of major
economic change for Brazil. For our part, we can count on the support of a dedicated and trained team
of employees, an appropriate management approach, structured processes and a strong technical base.
We will continue to be attentive to our priorities, business strategies and opportunities. We seek to
generate value, maintain growth and ensure the long-term business continuity of Votorantim Metais.
We aim to obtain the best results for the company, our employees, our other main stakeholder groups,
and society in general.
WE ARE OPTIMISTIC
ABOUT OUR
PROSPECTS FOR THE
COMING YEARS. WE
BELIEVE WE ARE AT
THE BEGINNING OF A
POSITIVE CYCLE FOR
NON-FERROUS
METALS.
Tito Martins
CEO of Votorantim Metais

6 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 7

 With 76 years of history, Votorantim Metais is a company operating in the
metals and mining industry. We are part of the Votorantim Group, one of
Brazils largest business conglomerates. We hold leading positions in two
segments of the non-ferrous metals sector: Polymetallics and Aluminum.
We are the fifth largest producer of zinc metal in the world, the largest
producer of electrolytic nickel in Latin America and have one of the largest
vertically-integrated aluminum plants in the world.

On a daily basis we seek to consolidate our position as a metals and mining

company that is profitable, competitive and guided by globally-recognized
sustainable practices.

INTRODUCTION TO
VOTORANTIM
METAIS G4-4 G4-5 G4-6 G4-8 G4-9 G4-10
OUR PRODUCTION CAPACITY
ADMINISTRATIVE/SALES OFFICES
IN BELO HORIZONTE (MG),
HOUSTON (TEXAS, UNITED STATES),
WE HAVE 22 OPERATING UNITS LIMA (PERU) AND
AND A CORPORATE HEAD-OFFICE
IN SO PAULO (SP), BRAZIL.
CHANGSHU (CHINA)

430 THOUSAND METRIC TONS/YEAR OF

ALUMINUM

USA
219
EMPLOYEES

837 THOUSAND METRIC TONS/YEAR OF CHINA

POLYMETALLICS 51
603 THOUSAND METRIC TONS OF ZINC METAL EMPLOYEES
25 THOUSAND METRIC TONS OF ELECTROLYTIC NICKEL
187 THOUSAND METRIC TONS OF ZINC OXIDE
22 THOUSAND METRIC TONS OF ZINC POWDER
PERU

2,304 BRASIL
EMPLOYEES
MILPO 1,633
CAJAMARQUILLA 671
9,196
EMPLOYEES.

WE ALSO PRODUCE OTHER PRODUCTS, INCLUDING

WE HAVE COPPER, LEAD, SILVER, ELECTROLYTIC
11,770 COBALT, CADMIUM, ANHYDROUS SODIUM
SULFATE, COPPER SULFATE, SULFURIC ACID,
EMPLOYEES* LIQUID SULFUR DIOXIDE AND MINERAL
*Base: December 31st, 2014.
CONCENTRATES.

The locations of our units are as follows: Polymetallics division (Zinc) Transshipment yards Port Terminal
Aluminum division Juiz de Fora (MG) metal production Baro de Angra Paraba do Sul (RJ) Port So Vicente (SP)
Morro Agudo (Paracatu MG) mining and ore Baro de Camargo Cataguases (MG)
Alumnio (SP) metal production processing Mineral Exploration
Sorocaba (SP) service workshop for the recovery and manufacture of Trs Marias (MG) zinc metal and zinc oxide production
parts and components to meet the operational requirements of the Vazante (MG) mining and ore processing Offices Brazil
maintenance area of the aluminum plant in Alumnio Cajamarquilla (Peru) metal production Canada
Itamarati de Minas (MG) mining and ore processing Milpo (Peru) mining So Paulo (SP) head-office Peru
Mira (MG) mining and ore processing Cerro Lindo Belo Horizonte (MG) administration Nambia
Poos de Caldas (MG) mining and ore processing El Porvenir Houston (Texas, USA) sales South Africa
Araariguama (SP) recycling (Metalex) Atacocha Toronto (Canada) administration
U.S. Zinc Houston (Texas, USA) sales office and Lima (Peru) sales and administration
metal production (zinc metal and zinc powder))
Polymetallics division (Nickel) U.S. Zinc Coldwater (Michigan, USA) metal Distribution Centers (CD)
production (zinc oxide)
CD Jundia Jundia (SP)
So Miguel Paulista (SP) metal production U.S. Zinc Clarksville (Tennessee, USA) metal
CD Caxias Caxias do Sul (RS)
Niquelndia (GO) mining and ore processing production (zinc oxide)
CD Gaspar Gaspar (SC)
Fortaleza de Minas (MG) mining and ore processing (*) U.S. Zinc Millington (Tennessee, USA)
CD Rio de Janeiro Rio de Janeiro (RJ)
metal production (zinc oxide)
(*) The mining and ore processing operations have been temporarily suspended.
Changshu (China) metal production (zinc oxide)
The plant resumed operations in 2015, producing sulfuric acid from sulfur.

10 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 11

PERFORMANCE
HIGHLIGHTS
FOR 2014
G4-9
Our Safety performance continues to improve,
year on year. We intensified our initiatives
regarding prevention, increasing awareness
and risk mitigation with both own employees
and contract staff. Our accident frequency rate
was 2.74, a 5% improvement compared to 2013.
We also improved in relation to the severity of
accidents, and the number of lost days reduced
by 55.4% over the last two years.
In 2014 our net income totaled R$ 9.2 billion, 5% higher than the prior
125
year, and EBITDA increased by 125%. We also achieved good results in
our deleveraging process, reducing the ratio of net debt to EBITDA from
% 2.5 times in 2013 to 1.1 times in 2014.
12 SUSTAINABILITY REPORT 2014
We implemented a new organizational
G4-EC1 G4-EN31 G4-LA6
We made significant progress in
improving the level of operational
stability. In 2014, 16 of the 22
industrial units achieved a level of
performance that was at least 20%
higher than the Operational
Performance Index (OPI) for the
previous year. The benefits came in
the form of increased production
volume, reduced specific
consumption of inputs in general,
reduced fixed costs, lower inventory
levels for components and finished
and semi-finished products, as well
as the improved operational
management of the industrial plants.
20
% region of the state of Par. The license was
structure, more in line with our operating
strategy, and mapped out the critical
capabilities for our business activities.
Our Human and Organizational
Development (HOD) area carried out
a review of roles and responsibilities
and made assessments of our
leadership positions.
In the case of our brown-field, projects we expanded and upgraded mineral resources
through the deepening of the mines at Vazante (MG) and the development of the Ambrosia
Project, which will enable us to extend the useful lives of the mines in Vazante and Morro
Agudo. Our Mineral Exploration area conducted further surveys and developed a new resource
model for the Aripuan and Santa Maria projects.
We continued to make solid progress in our Technology area
which, together with the business areas, has developed
creative and innovative solutions to operational and
environmental issues. Among the many advances made were
improvements in the reuse of waste, the rationalization of
water usage and the development of alternative energies.
R$ 225,9 MILHES
Our social investments, carried out in partnership with
the Votorantim Institute, considering the operations in
Brazil and Peru (Cajamarquilla), totaled R$ 10.2 million
in the year. The investments were distributed among the
municipalities where we operate according to development
plans prepared locally, according to their social and
economic contexts and the level of interdependence with
our operations. In addition, Milpo made social investments
equivalent to R$ 37.9 million; its investments were divided
between fostering community relations and local
development, covering both existing operating units and
new projects. Our environmental investments rose
to R$ 225.9 million in initiatives aimed at consolidating
sustainability practices in the business areas, including
reforestation activities, preservation, environmental
education and natural resource management.
In May 2014, we obtained a preliminary license
from the state authorities for one of our
green-field projects, the Rondon Alumina
Project, which is located in the southwest
approved unanimously by the State Council for
the Environment (COEMA), which considered
the project to be environmentally feasible. The
sustainability of the project also includes the
planning of social actions and the construction
of a positive agenda in the municipalities in the
projects area of influence,
in partnership with
municipal and state governments. The project
involves the construction of an Integrated facility
for a bauxite mine and an alumina refinery and
it incorporates the most modern environmental
practices available in the market.
SUSTAINABILITY REPORT 2014 13
WHO
WE ARE
A HISTORY OF GROWTH AND STRENGTH
G4-13 G4-17

Votorantim Metals is part of the Votorantim Group, which is one of

Brazils largest industrial conglomerates and close to completing a
century of business activities. Our activities in the mining sector began
in 1938 ,in the steel industry, with the acquisition of an iron ore mine
in Miguel Bournier (MG) and a steel-making plant in Barra Mansa (RJ).

In 1996, following a reorganization of Votorantims management model,

Votorantim Minerao e Metalurgia (VMM) was set up, that soon after
became the current Votorantim Metais. At that time, the company
produced zinc, nickel and steel. Today we have two main business
divisions: the Polymetallics division (with an emphasis on the
production of zinc and nickel) and the Aluminum division.
Among the major milestones in our
76-year history (up to 2014), we would
highlight the following:
1938
Initiated steel production at the Cia. Siderrgica
Barra Mansa, in the state of Rio de Janeiro.
1955
Inauguration of the Companhia Brasileira
de Alumnio CBA.
1956
Foundation of the Companhia Mineira
de Metais (CMM) the future supplier of
concentrates for the zinc hydro-metallurgical
plant in Trs Marias (MG).
1957
Votorantim assumed control of Companhia
Nquel Tocantins. The decade of the 1960s
was marked by the beginning of the mining of
nickel ore located in Niquelndia (GO).
1969
Start of open-cast mining of zinc silicate ore
and the production of electrolytic zinc by the
Companhia Mineira de Metais (CMM), in the
units in Vazante and Trs Marias, respectively,
both located in the state of Minas Gerais.
16 SUSTAINABILITY REPORT 2014
1970 / 1972
The production capacity for long steel reached
250 thousand metric tons/year, following
investments in operations and quality control,
in Companhia Barra Mansa, Rio de Janeiro,
which had been inaugurated in 1938. In 1972
CBA became the first Brazilian producer of
primary aluminum. The company produced
36% of the total aluminum in Brazil and had
more than 5 thousand employees.
1973
The seven hydro-electric power plants of the
Votorantim Group produced 1 billion kWh/
year. CBA became the largest aluminum
manufacturer in Brazil, accounting for 30%
of the volume of total production.
1981
The Votorantim Group produced its first batch
of electrolytic nickel in Brazil at the So
Miguel Paulista plant, located in the city
of So Paulo (SP).
1982
Start-up of underground operations at the
mine in Vazante to extract zinc silicate ore.
1984
Votorantim became a shareholder in
Mineradora Morro Agudo S.A., located
in Paracatu (MG), a producer of zinc
sulfide concentrate, in conjunction with
two other companies, Ing (Masa) and
Paraibuna de Metais.
1986
A little over 30 years after its inauguration,
CBA became one of the largest vertically-
integrated aluminum plants in the world,
producing 170 thousand metric tons/year.
1988
Votorantim assumed control of Mineradora
Morro Agudo S.A.
1992
With investments of US$ 500 million,
Votorantim completed an expansion program
which increased electrolytic nickel production
capacity to 10 thousand metric tons/year.
1993
The production of zinc metal ingots at the
plant in Trs Marias increased from 10 to 90
thousand metric tons/year.
1995
In line with a sustainable development
approach, Votorantim began to use
recycled steel scrap as the main raw
material in long steel production.
1998
The companys electrolytic nickel production
capacity increased to 17.5 thousand metric
tons/year.
2001
The Trs Marias Unit expanded its production
of zinc metal cathodes from 90 to 180
thousand metric tons/year.
2002
VMM, soon to become Votorantim Metais
(VM), increased its share of the Brazilian zinc
market with the acquisition of Companhia
Paraibuna de Metais, located in Juiz de Fora
(MG). The companys production capacity,
including the new unit, increased from 180
to 270 thousand metric tons/year.
2003
A new program to expand nickel production
capacity was initiated. New investments increased
production capacity to 20 thousand metric tons/
year in 2004. Votorantim Metais acquired
Minerao Serra de Fortaleza, located in Fortaleza
de Minas (MG), increasing its nickel production
capacity by 50%. The Morro Agudo Unit
(Paracatu - MG) also underwent an expansion
program and increased zinc production capacity
to 35 thousand metric tons/year.
2004
The company acquired a zinc refinery in
Cajamarquilla, Peru, and initiated the
Votorantim Groups expansion process in Latin
America. The new unit had a zinc production
capacity of 160 thousand metric tons/year.
2005
Votorantim Metals increased its participation in
the Peruvian zinc market, following the acquisition
of a 24.9% shareholding in Milpo, the fourth
largest zinc mining company in the country. The
purchase was made through the Cajamarquilla
zinc refinery, the companys subsidiary in Peru.
2006
Votorantim Metals signed an agreement with
the Rio de Janeiro state government regarding
fiscal and financial support and initiated a
feasibility study to construct a new long steel
plant in the state - the Mini-mill Project.
2007
In line with the Votorantim Groups Latin
America growth strategy, Votorantim Metais
acquired a 52% shareholding in Aceras Paz del
Rio, the second largest steel company in
Colombia, with a production capacity of 315
thousand metric tons/year of long and flat steel.
The company also acquired U.S. Zinc, the
leading company in the United States for the
recycling of galvanized industrial waste,
the production of zinc metal and higher
value-added products such as zinc oxide and
zinc powder. In December, the company
acquired a 27% shareholding in AcerBrag, the
second largest long steel producer in Argentina,
with a 25% market share. The company
produced 250 thousand metric tons/year
of rebar, bars, wires, screens and wire rods.
2008
Votorantim Metais increased its
shareholding in AcerBrag to 52.9%
by purchasing shares in the market.
Votorantim Siderurgia was created, as
a separate from Votorantim Metais, to hold
the Groups steel-making business in Brazil,
Colombia and Argentina. Votorantim
Metais signed a long-term supply contract
with Mirabella, an Australian metals and
mining company, to acquire nickel
concentrate. This enabled the company
to expand nickel production at the
Fortaleza de Minas (MG) Unit from 6 to
19 thousand metric tons/year.
2009
The Companhia Brasileira de Alumnio
CBA became part of Votorantim Metais.
Votorantim Metais signed an agreement
with the government of Trinidad and Tobago
to produce aluminum in that country as
from 2012. This was the companys first
overseas investment in aluminum.
2010
Votorantim Metais took control of Milpo, at that
time the third-largest zinc mining company in
Peru. That same year, the zinc refinery in
Cajamarquilla, Peru, was expanded, increasing its
production capacity from 160 to 330 thousand
metric tons/year. This was part of the plan to
achieve a zinc production capacity of 1 million
metric tons/year by 2012, thus consolidating the
companys position as one of the global leaders in
the production of this metal. The Trinidad and
Tobago project was suspended by a decision of
the countrys government.
2011
In November 2011, the Polymetallics project
was implemented in the Juiz de Fora (MG) plant,
enabling us to increase the level of zinc recovery.
2014
The Votorantim Group restructured its corporate
governance model. Votorantim Industrial took
on the roles of providing guidance and portfolio
manager. The Votorantim Groups industrial
companies, including Votorantim Metais, gained
greater autonomy. One of the main consequences
of the new governance structure was the higher
degree of empowerment and accountability of
the senior management and the creation of a
Board of Directors in each industrial company.
Also in 2014 the Group carried out a
wide-ranging review to identify Votorantims
DNA, that is, the set of values, principles and
practices constructed by the organization
throughout its long history.
SUSTAINABILITY REPORT 2014 17
 VOTORANTIM
PARTICIPAES
BOARD OF DIRECTORS
VOTORANTIM METAIS
SHAREHOLDERS MEETING
VOTORANTIM METAIS
VOTORANTIM INDUSTRIAL BOARD OF DIRECTORS
REMUNERATION
AUDIT COMMITTEE
POLYMETALLICS SALES Our products have the following applications:
POLYMETALLICS
OPERATIONS POLYMETALLICS DIVISION
ZINC Application
MILPO
SHG Zinc Galvanized and electrolytic galvanizing processes for ingots, jumbos and granules.
Zamac Die-casting and centrifugal casting.
U.S. ZINC
Special Zinc Alloys Development according to customer needs.
Zinc Powder Production of alkaline batteries and corrosion protection paints.
ALUMINUM
Zinc oxide Vulcanization of rubber, cosmetics, zinc phosphates, drugs, ceramics, polymers, agribusiness, animal nutrition, etc.
Agricultural Lime Powder Correction of soil pH and enhancement of effects of fertilizers.
PROCUREMENT
AND LOGISTICS Sulfur Dioxide Bleaching of pulp, sugar and kaolin, preservatives for food products and bisulfite production.
Sulfuric Acid Manufacture of fertilizers for agriculture.
MANAGEMENT, SUSTAINABILITY
AND PEOPLE AND STRATEGIC PLANNING Copper Sulfate Applications in agriculture, livestock, mining, electroplating and the chemical industry.
COMMITTEE
Cadmium Manufacture of Ni-Cd batteries, pigments for paints and metal alloys.
HUMAN AND ORGANIZATIONAL
DEVELOPMENT AND Lead and Silver Concentrate Manufacture of metallic lead and silver
CORPORATE COMMUNICATION

CEO
INTERNAL AUDIT
ORGANIZATIONAL PROFILE
G4-4 G4-7 G4-9
We are a family-owned, closed-capital company, focused on
the metals and mining sectors. Votorantim Metais is a leading
player in the non-ferrous metals segment.
We would highlight the following points:
We are one of the five largest global zinc producers; we are
the market leader in zinc oxide and the second largest in zinc
powder. Our production capacities are 603 thousand metric
tons/year of zinc metal, 187 thousand metric tons/year of zinc
oxide and 22 thousand metric tons/year of zinc powder.
We are the market leader in Brazil for primary aluminum,
with a production capacity of 430 thousand metric tons/
year (approximately a 50% market share).
With a total production capacity of 25 thousand metric
tons/year, between electrolytic nickel and nickel matte, we
are the market leader in Latin America for electrolytic nickel.
Through our Metalex subsidiary, we are the leading
company in the recycling of aluminum scrap originated
from industrial processes and customers. We have the
capacity to process 70 thousand metric tons/year of
aluminum scrap such as door and window profiles,
cables, vehicle wheels and cooking utensils.
FINANCE AND
ADMINISTRATION NICKEL
MINERAL
Electrolytic Nickel Electroplating, super-alloys and non-ferrous alloys.
EXPLORATION
Nickel Coins. Electroplating and titanium baskets.
Production of super-alloys, magnetic alloys, cutting tools, chemicals, batteries, fertilizers and animal feed, among other
TECHNOLOGY Cobalt
AND ENGINEERING products.
Anhydrous Sodium
Chemicals, ceramics, textiles and related industries, soap and detergent, glass and pulp and paper.
We have two main business areas - the Polymetallics Sulfate
division and the Aluminum division. This structure was Sulfuric Acid Sugar and ethanol, pulp and paper, chemicals and fertilizers in general.
created in 2014 after an analysis of our products, markets
and applications.
ALUMINUM DIVISION
The grouping of the zinc and nickel activities into a Polymetallics
Plates and Coils Applications in buses, highway equipment, household articles, refrigerators, machinery and equipment and roofing.
division was due to their synergies and the similarities in their
Thin and Medium Sheets Applications in food packaging and disposable packaging.
models of mineral assets and operations, which are the main
Thick Sheets Applications in automotive heat exchangers and air conditioners.
characteristics and foundations of the metals and mining sector.
Applications in construction (walls, doors, windows, seals); infrastructure equipment (molds and scaffolding); transportation
They are business-to-business markets and both generate value Profiles (bus, highway equipment, bicycles, motorcycles, rail tracks); consumer goods (ladders, chairs, furniture, solar panels); and a
through the mine-smelter production chain. variety of other types of machinery and equipment.
Billets Intermediate product for extruded profiles.
In the case of the Aluminum division, we have a fully vertically-
Rebar Intermediate product for the production of wires and cables.
integrated operation from bauxite mining to the production of
Intermediate product for various casting products such as automotive wheels, engine and compressor blocks, as well as a
aluminum intermediate and transformed products. Our final Ingots
raw material for all other products.
products are used in a variety of applications, such as: plates and
sheets of different widths and thicknesses, profiles, roofing, rebar, Our Metalex subsidiary, in addition to producing aluminum billets for direct sale, is a provider of recycling services for aluminum scrap from
etc. They are also used in many different sectors including: industrial processes.
construction, packaging, transportation, automotive, consumer
goods and electrical energy. This is a business which has a specific
production technology and which is electro-intensive.
Our total product range includes: aluminum, alumina, zinc,
electrolytic nickel, copper, lead and silver concentrates,
electrolytic cobalt, cadmium, anhydrous sodium sulfate,
copper sulfate, zinc oxide, sulfuric acid, zinc powder, liquid
sulfur dioxide and mineral concentrates.

18 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 19

 DIAGRAM OF
MACRO-PROCESSES
Legend:
Precipitation
Process Product for sale

ALUMINUM
Aluminum oxide Calcination Ingot Billet Rebar
Caster rolls
Crushing
Sludge
separation
Furnace room Plate
Filtration

Rolling
Digestion

Bauxite
Foil

Profile
Grinding Casting

Extrusion Special alloys

ZINC Zamac
Flotation
Crushing Sulfuric acid and liquid SHG zinc
Roasting
sulfur dioxide
Lead
concentrate

Zinc sulfide Cadmium, copper sulfate

concentrate and silver concentrate
Homogenization
Thickening Electrolysis
and filtration
Leaching, purification and filtration
Zinc oxide

Grinding

Magnesium removal Oxide plant

Zinc silicate Casting
Precipitation concentrate
Nickel
NICKEL Nickel refining
Crushing carbonate Electrolytic nickel Nickel
Metal- coins
reduction
furnace
Acid leaching
Electrolysis
Homogenization

Solvent extraction Cobalt refining Electrolytic

Ammonia leaching Electrolysis cobalt

Grinding

20 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 21

 The temporary suspension of production at the
Fortaleza de Minas Unit
In November 2013, we temporarily suspended the production of nickel matte at
our Fortaleza de Minas Unit, due to the products lack of competitiveness. About
60 employees were retained in the unit to carry out facility and environmental
maintenance, including the monitoring of the soil, air and water.
The temporary suspension of the production activities at the Fortaleza de
Minas Unit was only decided after careful studies that concluded that it
was economically unviable. In accordance with Votorantims values, we
explained our position in a transparent manner and maintained an open
dialogue with the various segments of society involved. The employees at
the Fortaleza de Minas Unit were informed about the temporary
suspension on the same date that we began the process of negotiating
with the Union for Workers in Extractive Industries (Sintex).
We have looked for opportunities to transfer employees to other units of
Votorantim Metals and other Group companies. Around 20% of the total
number of employees of the Fortaleza de Minas plant had been referred
Metalex, our subsidiary for the recycling for internal relocation. We have also searched for other employment
of industrial scrap
In 2014, market conditions did not enable us to resume nickel matte
production at the unit. Following our decision to suspend activities, teams
from our Engineering and Technology area have been developing studies
and projects to utilize the assets at the Fortaleza de Minas unit. One of
these projects went into operation in mid-June 2015. The unit began to
produce sulfuric acid from the combustion of sulfur. The sulfuric acid
produced will be used in a number of applications in a variety of industries
including fertilizers, agriculture, sugar and ethanol, chemicals, and pulp
and paper, among others.
We are fully aware of our social responsibility role, and will increase our
investments and initiatives aimed at promoting local development. These
initiatives include programs to foster regional productive chains, provide
training for public administration, promote community dialogues, and
support improvements in education and the appreciation of childrens and
adolescents rights. Overall we have invested approximately R$ 5 million
since we initiated our activities in Fortaleza de Minas.
Among the main initiatives, worthy of mention are: Eye on the Future
Program; Public Administration Support Program; Sustainable Integrated
Agro-ecological Production (PAIS); Votorantim Partnership for Education,

Metalex, which is located in Araariguama (SP), 50 kilometers
from the city of So Paulo (SP), is the largest recycler of aluminum
scrap from industrial processes in Brazil. It was founded in 2001
and, since 2010, has been part of Votorantim Metais. It has 141
employees, who follow our policies and practices.
One of Metalexs competitive differentials is its capability to
manufacture aluminum billets in a range of diameters (4,
5, 6and 7), enabling it to supply products to a number of
different extrusion market segments. The extrusion
technique allows the billets to be transformed into other
products with a variety of applications in many different
economic sectors. One of the main product categories from
the extrusion of Metalexs billets is aluminum profiles. They
can be used to manufacture windows for houses and
apartments, and are also used in industry, including the
automotive and electrical energy industries among others.
The company produces aluminum billets in different
compositions of metal alloys, by recycling aluminum ingots
and industrial scrap as raw materials. The recycling of
scrap, in addition to requiring less energy in the production
process, reduces environmental impacts.
50
relocation alternatives for the remaining employees, with the support Women Entrepreneurs; and the School for Parents and Children of the
of a specialist company. Municipal Council for Children and Adolescents (CMDCA).
THOUSAND
METRIC TONS/YEAR
OUR CAPACITY TO PROCESS
INDUSTRIAL SCRAP
The companys industrial scrap processing capacity is 50
thousand metric tons/year, which is equivalent to avoiding the
consumption of 200 thousand tons/year of bauxite (or 100
thousand metric tons/year of alumina). The company can
produce up to 75 thousand tons/year of billets by completing
the shortfall in the volume of scrap by purchasing ingots.
In 2014, despite a decrease of 10% in the Brazilian market for
extruded products, our market share increased by 2.6
percentage points to 19%. This was due to our good relations
with the market participants, our production flexibility and our
wide product range consisting of a variety of alloys for a
number of different extrusion requirements, and a choice of
diameters, from 4 to 7 inches, and lengths, up to 6,200 mm.

22 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 23

 In the Polymetallics division, the zinc business has a
comprehensive range of products that enables it to
compete in many different market segments and
continually diversify its customer portfolio. In the zinc
oxide segment, our main focus is the Brazilian market.
We have developed special alloys for various market
segments according to the specific application
requirement, ensuring we are attuned to market
changes. Our product range includes zinc powder
and agricultural limestone powder, as well as
by-products such as, sulfur dioxide, sulfuric acid,
copper sulfate and cadmium.
The main focus of the nickel business is the
production of electrolytic nickel for electroplating,
a process used to treat metal surfaces in order to
prevent corrosion. We focus 100% of our attention
GALVANIZED REBAR CAN
REDUCE MAINTENANCE
COSTS AND AVOID
INTERRUPTIONS TO
THE WATER SUPPLY
A pilot project carried out by Votorantim Metais, in
partnership with TechConsult, for the Companhia de
Saneamento Bsico do Estado de So Paulo (Sabesp)
revealed that the utilization of rebar that had been
galvanized by dipping in molten zinc could reduce the
maintenance costs of the roofing structures of water
storage tanks by up to 40% and, as a result, reduce the
number of interruptions to the water supply due to
maintenance shutdowns.
THE MANUFACTURING PROCESS USES BILLETS MADE

on the Brazilian market with any surplus production
being destined for export.
Our Aluminum division offers a complete range
of both intermediate products (such as ingots, billets
and rebar) and transformed products (such as plates,
sheets and profiles), thus ensuring our presence in
a variety of market segments such as transportation,
packaging and construction.
The transportation market represents 20% of the
demand in the Brazilian market and we are the
leading player in this segment. Through
partnerships with our customers to develop
aluminum products and solutions, we are prepared
to meet the growing demand for the use of
aluminum in buses and in truck bodies, since the
metals lower density and its high mechanical
resistance are essential attributes to increase the
energy efficiency of these means of transportation.
In the case of the aluminum packaging market,
flexibility and speed are required in order to develop
innovative products which are capable of maintaining
the integrity of foods and drinks. Proximity to the end
customer is also a key factor to maintain a position as
a major supplier of aluminum in this segment.
Over a period of two years, 197 water storage tanks, in
locations on the coast and inland in the state of So Paulo,
were inspected. The main problem identified (in 45% of
the cases) was corrosion in the reinforced concrete roofing
structures made of common steel rebar, which, when
exposed to the atmosphere, underwent an accelerated
process of corrosion.
The inspection team analyzed the processes needed to
repair the damage and estimated the costs to increase the
durability of these structures by using galvanized rebar. The
conclusion was that their replacement by new structures
using galvanized rebar would result in a significant
increase in durability with a lower final cost. Furthermore
the reduced requirement for maintenance would result in
the reduction of indirect costs, and fewer water supply
stoppages, ensuring a higher level of service for the
customer population.
Galvanizing by hot-dipping in molten zinc is one of the
most efficient methods to increase the useful life of
reinforced concrete structures without in any way affecting
the steels mechanical properties in relation to handling,
storage, transportation and installation. Galvanized steel is
more resistant to corrosion because zinc corrodes at a rate
of 10 to 30 times lower than steel and it is also less
susceptible to pH variations in the concrete.
80%
WITH
OF PRE-CONSUMER ALUMINIUM
ECOPERFIL: VOTORANTIM METAIS FIRST ALUMINUM PROFILE
FOR ENVIRONMENTALLY RESPONSIBLE BUILDINGS
We developed the Ecoperfil range of profile products to serve the market for environmentally responsible buildings, which is a growing trend in Brazil.
This range of products is made from aluminum produced in a manufacturing process which uses recycled aluminum as its raw material. The Ecoperfil
brand was launched in April 2014 at the ExpoAlumnio trade fair, and is directed at a number of different applications in construction projects.
The manufacturing process uses billets made with 80% of recycled pre-consumer aluminum, that is, surplus material from the other primary
aluminum production processes in our aluminum plant. This process consumes less electrical energy and generates lower levels of greenhouse
gases compared to the conventional methods.
The production processes are strictly controlled to ensure the proportion of recycled material in its composition. Its physical and chemical
properties are fully preserved, assuring the same quality as the primary metal.
Another aspect that differentiates the Ecoperfil product range is a lower carbon footprint: 95% of the transportation of the raw material for
the production of primary aluminum is by rail, and our mines are located around 700 km away from the plant.
These characteristics, combined with traceability and a high percentage of recycled content enable the product to meet the specifications required for
environmental certification systems for buildings such as LEED (Leadership in Energy and Environmental Design) and AQUA (High Environmental Quality).

24 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 25


CUSTOMER RELATIONS
G4-PR5
To confirm whether our actions and our products, services
and service level are really in line with customer
expectations we carry out a survey on Customer
Satisfaction & Preference every two years.
The latest survey was conducted in 2013 by the Instituto
de Assessoria Mercadolgica & Mercadomtrica (IAM &
M). On a scale of 0 to 10 (highest), the overall rating for
Votorantim Metals was 8.46. In the previous survey, in
2011, the overall rating was 8.25.
This research covered both the Polymetallics and the
Aluminum Divisions. Our performance was evaluated
according to 41 indicators and the survey counted on the
participation of over a thousand customers, and the
responses were treated in a confidential manner. The
results were highly positive; but even more important than
the trends in the indicators themselves were the plans that
were made as a result and that lead to improvements in
the products, services and customer care provided by
Votorantim Metais.
The survey results also resulted in actions to promote
customer relations such as, visits to mines, workshops on
galvanization for customers in So Paulo, Santa Catarina
and Minas Gerais, and technical seminars for customers
and prospects. The actions resulting from the Customer
Satisfaction & Preference Survey were communicated
internally through the companys Develop newsletter.
26 SUSTAINABILITY REPORT 2014
THE VALUES
OF THE VOTORANTIM GROUP ARE REPRESENTED
BY THE ACRONYM
POLYMETALLICS DIVISION VOTORANTIM METAIS
CORPORATE IDENTITY
The Polymetallics division has sought to strengthen the G4-56
relations with customers and promote the development of
Our corporate identity is represented by a set of aspects that guide our actions and
the market segments for galvanization, oil and gas, Zamac
are expressed through our relationships, attitudes, behaviors and also in our products,
alloys and agricultural lime powder. With this aim, in
processes and results.
2014, we held a number of workshops and technical
seminars in various Brazilian states and opened our plants
These aspects are vision, values, management beliefs, sustainability principles, material
for customer visits.
issues and our code of conduct.
ALUMINUM DIVISION
Vision
In the last three years we have implemented organizational
To be a Brazilian metals and mining company which is globally diversified, reliable and
changes in our aluminum sales approach based on an
respected, and the fastest growing mining house in the world. To generate high and increasing
analysis of market processes and needs. We redefined roles
returns for our shareholders, through investments in base metals and other minerals.
and responsibilities, processes, metrics, customer service
levels and investments. This process has evolved rapidly and
the effects have already positively impacted our results. Values
The values of the Votorantim Group are represented by the acronym SEREU:
In this context, one of the actions taken was to implement
a new functional module in the SAP System, called
Available to Promise (ATP). The implementation of this
module, which began in 2013 and was completed in Solidity
To seek sustainable growth with value creation.
2014, helped us to integrate our processes and
contributed to increased customer satisfaction. The main
benefits of the module are: the sharing and transparency
Ethics
To act responsibly and transparently.
of information on deliveries, inventories, production and
shipment volumes; a greater degree of automation of Respect
processes; an improvement in business management and To respect people and be willing to learn.
planning; and a higher level of customer service.
Entrepreneurship
To have the courage to grow, innovate and invest.
Union
The whole is stronger than the sum of the parts.
SUSTAINABILITY REPORT 2014 27
 Sustainability Principles
These principles, which apply to all Votorantim Group companies, are as follows:

1. To be recognized by society as a socially and environmentally responsible company.

Management Beliefs
Our management beliefs complement our corporate identity
and are aligned to our values. They provide guidance for our
behavior and management approach:
Talent Development
We invest time and resources in developing
our talented people because we believe in and
trust them.
Meritocracy
We believe that people are individuals and deserve
to be treated fairly and in accordance with their
personal performance.
Excellence
We believe we can always do more and do better,
overcoming challenges with discipline, humility
and simplicity.
2. To have sustainability as a strategy, guiding governance, management, education, and
investment decisions, thereby creating value.
3. To consistently improve our economic, social and environmental performance, striving
to achieve world-class standards of efficiency and operational reliability.
4. To be recognized as a company that attracts, develops and retains talent to create
value and build a fair and inclusive society.
5. To be committed to the welfare, and health and Safety of our employees, customers
and partners.
6. To contribute to the development of the communities where we operate.
7. To encourage the cooperation and participation of all employees and stakeholders
in building partnerships and working together in order to generate value for all.
Pragmatism
We believe that it is essential devote time and effort to Our Material Issues
what is most relevant, with objectivity and without
losing sight of the big picture and the future trends. To provide direction for our work in sustainability we have identified the companys material
Open Dialogue issues and have established their respective long-term targets. They are as follows:
We believe that an atmosphere of trust fosters open
dialogue and ensures that all have room to speak
and to be heard, and that a diversity of opinions builds
better solutions.
Partnership
We believe that our success is the result of collaborative
efforts, strengthened by genuine relationships and
partnerships in which everyone wins.
Sense of Ownership ENERGY/EMISSIONS HEALTH
We believe in people who take on responsibilities, AND SAFETY
work with passion and lead by example, celebrating
their achievements and using mistakes as
WASTE
opportunities for learning.

LOCAL WATER
DEVELOPMENT

PEOPLE HUMAN
RIGHTS
SAFETY
For us, Safety is a non-negotiable value. We see Safety as the direct responsibility of all leaders, and they
are held strictly accountable by senior management. We provide employees with a set of specific methods,
training and procedures, which are continuously enhanced to mitigate risks to peoples physical integrity, Each material issue and its associated targets are described in detail in the section
and we insist that they strictly follow the Safety rules. Sustainable Practices in the chapter Our Strategy and Drivers.

28 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 29

 CODE OF CONDUCT Ombudsman

G4-HR3 G4-SO4
The Votorantim Code of Conduct, established in 2005, regulates the basic parameters of our business
activities and guides our day to day operations. The Code expresses the Groups commitment to ethical
behavior in its relations with customers, employees, shareholders, suppliers, unions, government, media,
communities and society in general.
It is an instrument for daily use, to guide actions and decisions. The Code is mandatory for all the
organizations employees and also acts as a standard for the Groups partners and suppliers.
The Votorantim Ombudsman service is available to external stakeholders, such as customers, suppliers,
local communities and the media, in Brazil and overseas, on any issue, but especially those addressed in
our Code of Conduct, such as harassment (moral, sexual), discrimination, suspected fraud, abuse of
power, embezzlement, unlawful acts and any other breaches of the Code.
All requests and complaints are treated confidentially (identification is optional) and with impartiality. The
Ombudsman service can be accessed in a number of ways, as follows:

Votorantim employees in Brazil or overseas, contract staff, partners, suppliers and other stakeholders
have access to the Code of Conduct, which is available in a number of languages at:
(http://www.vmetais.com.br/pt-BR/Institucional/Paginas/VisaoValoresCrencas.aspx).

In addition to the Code of Conduct, we have a framework of internal policies and standards such as the
Global Corporate Anti-Corruption Policy, which addresses issues such as bribery and payment facilitation,
rules for accounting records, establishment of internal controls and the management of relations with
third-parties. This policy applies to all our operations and is in line with the United States Foreign Corrupt TELEPHONE:
Practices Act (FCPA) and the United Kingdom Bribery Act.
0800 891 1729
In this sense, and aware of the importance of this issue, in 2014 we carried out a series of communication WEBSITE: WWW.VOTORANTIM.COM.BR/
initiatives and training courses to divulge this policy, through methods such as e-learning, specific training PT-BR/OUVIDORIA/SOBREOUVIDORIA/
materials and internal communication channels. In 2014, 139 new employees in Brazil and 53 in Peru, at PAGINAS/SOBREOUVIDORIA.ASPX
all levels, received information or underwent training on anti-corruption policies.

All complaints received by the Ombudsman are investigated by our Internal Audit area. The results of each
investigation are sent to the Ombudsman, which is responsible for responding to the complainant.

Complaints are discussed at bimonthly meetings between the Internal Audit area and the Conduct
Committees, and at the monthly Audit Committee meetings. Incidents related to harassment and abuse of
power are directed to the area of Human and Organizational Development (HOD), which is responsible for
the implementation of training for managers. The objective is to improve the organizational climate in
order to reduce the number of complaints and allegations received.

As a consequence of the new Votorantim governance structure, in addition to the Corporate Ombudsman,
each industrial company established its own Ombudsman.

G4-HR3 Total number of incidents of discrimination and the corrective actions taken.
Complaints received by the Ombudsman in 2014 263

Incidents under review 20

Incidents analyzed and considered unfounded 190
Incidents analyzed and considered valid 53

For the 53 complaints considered valid, corrective measures were taken, such as: verbal warnings,
suspensions and dismissals.

30 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 31

OUR
STRATEGY
AND DRIVERS
 OUR STRATEGY
The starting point to position our company to generate value is the
definition of a strategic direction, formulated through a structured
and consolidated strategic planning process, consisting of:
a) Strategic Dialogue: this is held every three years and involves
senior management and specialists from each business area. The
objective is to instigate the development of a critical view of the
business, the expected developments in industry sectors where we
operate, the global mega-trends and the related risks and
opportunities. Furthermore, we discuss strategy in a comprehensive
manner, questioning the market dynamics, our competitive position
and the outlook for the companys businesses. The final product of
this stage is the definition of the aspiration for each business and for
the company overall.
Based on this strategic dialogue, we then establish:
b) Strategic Plans: these are prepared in order to translate and
communicate the strategy to all stakeholders. The plans are reviewed
and updated annually, in order to enable each business area to
achieve the objectives defined in its aspiration.
This integrated cycle of value creation is completed by the systematic
monitoring of the strategic plans and the alignment of incentives
aimed at capturing the potential value.
Strategy in action
The objective of our strategy is to consolidate ourselves as a Brazilian
metals and mining company which is profitable, competitive and which
generates high and increasing returns for its shareholders. Moreover we
focus on developing high performance teams and consolidating the
incorporation of sustainability concepts and practices in the companys
management approach and strategy.
We are constantly seeking pathways to sustainable growth. One of our
strategic priorities is organic growth. This includes both the development
of green-field projects, for the exploration of new mineral deposits, and
brown-field projects, to optimize our operations and extend the useful
life of our existing mines. To achieve this we also prioritize operational
excellence, seeking constantly to maximize the utilization of our mineral
resources and industrial assets.
A second strategic priority is growth by acquisition or partnerships,
where we focus our search on new projects.
34 SUSTAINABILITY REPORT 2014
ORGANIC GROWTH
Operational excellence
We have a business model based on operational excellence, that is,
we seek to maximize the utilization of our mineral resources and
industrial assets. The Corporate Management area is continually looking
for opportunities to improve the management of the business and
administrative areas through the adoption of tools, methodologies, and
specific processes, thereby enabling the construction of a structured and
robust management approach.
In addition to the Corporate Management area, we have management
sectors in all the operating units which are responsible for implementing
the various management methods and tools aimed at improving
processes, such as PDCA (Plan, Do, Check and Act), SDCA (Standardize,
Do, Check and Act), TOC (Theory of Constraints), DRM (Daily Routine
Management), 7S (Strategy, Structure, Systems, Skills, Staff, Style and
Shared Values), and the Six Sigma Program, among other methods.
Maximizing the utilization of assets
The concept of operational stability in production and in maintenance is the
pathway to enable us to improve our industrial performance. We are constructing
a new culture, where we have abandoned the search for daily production records
and are giving value to predictability. A new methodology for the monitoring of
operational stability in Votorantim Metais was implemented in 2012. It started
with increasing the awareness of senior management, and then the concept was
disseminated throughout the entire organization.
Multi-annual stability targets were established for each unit, according to
each ones level of maturity, and these goals are being systematically
monitored. The monitoring process is based on the Operational Stability
Matrix and the Weekly Operational Stability Report, and focuses on two
main indicators. These indicators are the Operational Deviation Indicator
(ODI), which measures the daily deviation between the planned level and the
actual performance level, and the Operational Stability Indicator (OSI), which
measures how close this variable is to its technical limit. In general, the
objective is to operate the plant with minimal variations (low ODI) and at a
level close to the maximum production limit (high OSI). For 2017 the target
for ODI is 3% and the target for OSI is 100%.
We have already made significant progress, with measurable and tangible results.
All units have reacted positively and embraced both the concept and the changes
introduced into the industrial routine. In 16 of the 22 units the improvement in
the Operational Deviation Index was more than 20% compared to 2013. The
benefits came in the form of a reduction of inputs in general, reduced fixed costs
and decreased inventory levels for finished and semi-finished products.
SUSTAINABILITY REPORT 2014 35

These results indicate that the plants have achieved greater control of their operations, from planning to
the implementation of operational routines, enabling them to achieve a higher degree of predictability in
their activities. Without doubt, the progress made in increasing operational stability was reflected in our
EBITDA result.
As part of the new culture of operational stability, we are also reviewing the ways of giving recognition, by
valuing those employees who fulfill their routine within the expected parameters and discouraging efforts to
achieve daily production records that cannot be maintained in a sustainable manner.
In search of further progress
The Manufacturing Execution System (MES) Project, which is currently being implemented, at different
stages of development, in our units in Cajamarquilla (Peru), Trs Marias (MG), Vazante (MG) and the
aluminum plant in Alumnio (SP). It is planned to be fully implemented by 2017 and will contribute to
obtaining further significant advances in operational stability. The MES system will be integrated with
SAP and provide greater flexibility in terms of access to production information (volumes, consumption
levels, plant efficiency, etc.), and reliability, security and traceability of data, which will allow us to take
decisions with more confidently and more quickly.
Some of the benefits could already be felt during the project implementation, as we identified various
opportunities in the management of interfaces and in the automation of the capture of information
from improvements in processes. These opportunities are being evaluated and prioritized and could be
implemented depending on the companys return on investment.
Benchmarking against other companies indicates that the project will contribute to the improvement of
operational stability and could reduce the level of working capital by between 15 and 25%.
Another important impulse will come from a project that is being developed to implement the Leaf
System software package. This system, which is initially being deployed in our units in Alumnio (SP)
and Niquelndia (GO), uses the concept of fuzzy logic which allows the program to learn from the
operator and create rules to control the process and help reduce variations.
Even though it is still in the testing phase it has already contributed to reducing the fluctuation in the
bauxite digestion process at the Alumnio unit by 38% and the variation in the ammonia steam
consumption at the Niquelndia unit by 42%. We have estimated that the potential savings in at the units
where it was tested could be as much as R$ 1.2 million per year for an investment of R$ 400 thousand.
36 SUSTAINABILITY REPORT 2014
Extending the useful life of mines
In order to ensure a continuous increase in the useful life of our mines, we
are constantly investing in mineral exploration through exploratory and
detailed drilling and other practices that enable us to increase our mineral
resources. The drilling data is interpreted and processed according to the
Australian Joint Ore Reserves Committee (JORC) Code, which guarantees the
reliability and credibility of the information on resources and reserves that we
report. All stages of this valuation process are subjected to rigorous external
audits. The information is made available in the Mineral Resources and
Reserves Management System, which serves as the basis for the companys
strategic planning process and is approved by all the managers involved.
With a focus on continuous improvement we have an ongoing project
to develop mineral resources and reserves, which aims to increase the
reliability of our operations. Part of this project is dedicated to the
intensification of detailed drilling at two of our principal mines,
Niquelndia (GO) and Vazante (MG).
Another project is the deepening of the underground mine at Vazante
(MG) which will enable it to continue in production until 2028. These
WITH A FOCUS ON CONTINUOUS
IMPROVEMENT,
WE HAVE AN ONGOING PROJECT TO DEVELOP
MINERAL RESOURCES AND RESERVES
projects will require investments of more than R$ 500 million in the next
few years. The zinc concentrate produced will ensure the supply of raw
material for our plant in Trs Marias (MG), located 300 kilometers from
Vazante (MG).
The Ambrosia project is another initiative to extend the useful life of a
mine. This is a zinc mineral deposit, which was identified by drilling, in an
area close to our existing mine in Morro Agudo (Paracatu - MG), which is
currently forecast to have a useful life up to 2020. The beginning of
mining in this second area of mineral deposits is planned for 2017 and
will allow us to continue using the ore processing facilities at Morro
Agudo, up until 2029.
In Peru, we have also been drilling for zinc and copper with a view to
extending the useful life of Milpos mines. And, finally, we also have a project
to integrate the El Porvenir and Atacocha, mines which will increase the
volume mined, bring greater operational synergy and reduce the need for
investments by eliminating the need to raise the height of the tailings dam.
SUSTAINABILITY REPORT 2014 37
 Expansion and modernization projects

In our sector, one of the ongoing challenges is to plan and prepare today for the future. In this respect, the mission of
our Mineral Exploration area is to identify and develop new mineral deposits through exploration, thereby supporting MAIN PROJECTS IN BRAZIL
and enabling our growth aspiration in mining by generating a pipeline of projects in various stages of development. AND AROUND THE WORLD

The area is composed of a multidisciplinary team with specialists in five areas: exploration, mineral resources, mineral
development, mining rights and health, Safety and the environment (HSE). The Mineral Exploration area is involved
from the phase of the definition of the potential areas until the completion of the conceptual project study in the FEL1 SHALYPAICO* RONDON ALUMINA PROJECT
Underground mining project for zinc, The Rondon Alumina project is Votorantim Metais
stage, as shown in the process flow diagram below.
lead and silver. largest investment in Brazil, and is an integrated
facility consisting of a bauxite mine and an alumina refinery.
In addition, the Mineral Exploration area supports the development of projects after the phase of mineral exploration up to * Joint Venture between Votorantim Metals
and Pan America Silver. Location: Rondon do Par (PA).
the start of production at the new mine. The area supports all the mines currently in operation in the development of resource
BONGAR* Mineral resource: 1.6 billion metric tons of bauxite.
models, and in the estimation and reporting of mineral resources, which are consolidated in the Mineral Resources and
Underground mining project for zinc. Planned investment: US$ 3.7 billion.
Reserves Management System on the Votorantim Metais intranet.
* Joint Venture between Milpo
and Solitario Resources.
Mineral exploration Min. resources Min. development
Regional Projects
Peru
1 2 3 4 5 6
Resource VAZANTE BELT PROJECT
Definition Initial Exploratory Definition classification Scoping A project for the exploration ETOSHA
of potential exploration drilling of mineral (projects Study and
areas resource FEL 1 of zinc which is in the A project for the exploration
potential and units) exploratory drilling phase. of zinc in an early stage.
ARIPUAN PROJECT*
This is one of the largest deposits AMBRSIA PROJECT Nambia
Mineral rights of zinc and lead in Brazil and also A project for the exploration
contains copper, gold and silver as of zinc which is in the
by-products. exploratory drilling phase.
This multidisciplinary team consists of 61 people, mainly geologists and mining engineers, who are highly skilled specialists in
Location: Aripuan (MT).
their respective areas of activity,
of whom 18 hold masters degrees and 8 doctorates. Mineral resource: 34 million metric
tons of polymetallic ores including zinc,
The mineral exploration team has adopted the methodology of Front End Loading (FEL) for the development of Independent lead, copper, silver, and gold.
Project Analysis (IPA) projects. They follow best industry practices from the early stages of the projects, in accordance with the Planned investment: US$ 175 million.
SANTA MARIA PROJECT*
standards established by the Joint Ore Reserves Committee (JORC) of Australia and the National Instrument (NI) 43-101 of * Joint Venture between
Open-cast mining project located
Canada, thus ensuring reliability and conformity with international standards in the reporting of mineral resources. The HSE group Votorantim Metais, Milpo and Karmin Inc.
in an area with the potential for zinc,
in the mineral exploration area is responsible for obtaining all the operating licenses required for carrying out fieldwork and for lead and copper.
the relations with the local communities involved. It is also responsible for disseminating the companys Safety practices among
the employees of the Mineral Exploration area and all its service providers in order to ensure a safe working environment. Location: Caapava do Sul (RS).
Mineral resource: 26.4 million
Investment in green-field and brown-field projects is a key factor for the companys long-term business continuity and the metric tons of zinc ore.
Planned investment: US$ 197.2 million.
opportunities and proposals are analyzed and decided upon in the Investment Evaluation Committees. The pipeline of
projects is analyzed by a project maturity assessment methodology developed by the Votorantim Group.
* Joint-venture between Votorantim
Metais and Minerao Iamgold Brasil.
Our main geographical focus in the search for new mineral reserves is South America, especially Brazil and Peru. We are
primarily interested in zinc and copper. In 2014 we invested in 14 green-field projects, which we considered to be of high
priority and greater economic viability.

38 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 39

 In Brazil, the Rondon Alumina Project in the municipality of
Rondon do Par, 500 kilometers from Belm (PA), is one of our
major investments. The project plans to construct an integrated
facility consisting of a bauxite mine and an alumina refinery
which will have an annual production capacity of three million
metric tons of alumina and nine million metric tons of washed
bauxite. The project also incorporates the most modern
environmental practices available in the market, such as the
restoration of mined areas even during operations, energy and
steam co-generation, water reuse and dry waste disposal. Even
before the start of construction, we are developing a positive
agenda in the locality, which provides for risk mitigation and the
leveraging of opportunities, in anticipation of the main social
and economic impacts. In 2014, we obtained the preliminary
license to proceed with this project.
Another priority is the Aripuan project, a joint-venture
between Votorantim Metais, Milpo and Karmin Inc. This
project is for the production of zinc, lead, copper, gold and
silver. It is located in the municipality of Aripuan (MT), about
900 kilometers from Cuiab (MT), and is in the phase of
pre-feasibility studies. In 2014 we carried out a supplementary
drilling program to enable us to better categorize the mineral
resources and in 2015 the project should proceed to the stage
of feasibility studies. Due to the social, political and economic
history of the region, in 2015, we already began to construct a
positive and proactive agenda with the local community,
out voluntarily and in parallel to the discussions on licensing.
Aripuan will serve as a model for the construction of a social
license to operate for Votorantim Metais.
We are continuing the studies for the Santa Maria project for
zinc and lead in Rio Grande do Sul. It is an open-cast mine in
an area with the potential for zinc, lead and copper, located in
the municipality of Caapava do Sul. It is a joint-venture
between Votorantim Metais and Mining Iamgold Brazil.
In Peru, Milpo is moving ahead with green-field projects
which are in the feasibility study phase: Hilarion, Bongar
and Shalipayco (zinc), Magistral and Pukaqaqa (copper).
Shalipayco could be integrated into the current El Porvenir
mine operation and use its ore processing facilities.
As regards brown-field, projects the Mineral Exploration area
is developing a number of initiatives in existing mines and has
been able to increase the mineral resources and expand the
useful lives of all these operations. In the cases of the Vazante
and Morro Agudo mines, over the past decade, the useful
lives of these operations have been extended by five years and
specifically, in the case of Morro Agudo, there are projects
with the clear potential to extend its life by ten years.
At Milpo the brown-field activities also resulted in
increased mineral resources at all existing operations and
STRATEGIC DRIVERS
to positioning Votorantim Metais at the forefront of the sectors in which
People management and communication
G4-LA1 G4-LA9 G4-LA11 G4-MM4
Our people are at the core of our long-term strategy. It is they who will
steer Votorantim Metais towards its goal of being the fastest growing
metals and mining company in the world and the one that most
generates value for its shareholders.
Therefore, with regard to people management, our aim is to provide a
pleasant working environment, where we can build and retain high
performance teams. Our teams seek operational excellence, delivering
what has been agreed in terms of quality, timing and cost.
We encourage our people to be the best at what they do, to seek
excellence and value creation for the company, while always respecting
our corporate identity. Our development process aims to train the
Effectiveness
Build a high performance
organization.
leaders, experts and project managers of tomorrow, who will contribute
we operate through excellence and continuous improvement.
To this end, our Human and Organizational Development (HOD) and
Corporate Communication areas have made efforts on a number of fronts
and registered significant advances, particularly over the last two years.
One of these initiatives was the efforts made to align the actions taken by
the DHO area to the companys business strategies and aspirations in
Brazil, considering the short, medium and long-term challenges.
Moreover, we want to be a company that offers its people support and
growth opportunities, by delivering a benefit package which is complete
and aligned to the market and that is based on fair compensation
practices, which promote a culture of meritocracy.
To achieve this, we established long-term strategic objectives for the
areas activities, as indicated in the diagram below.
People
Create and sustain a high
level of employee engagement.

which includes two indigenous peoples. This work is carried there is still a high potential for future exploration. Effective governance Reliable process to attract talented people
Sustainable employee cost Effective management of talented
management (including a lean structure) people
Accurate manpower planning Efficient and ongoing employee
Command of critical business skills development
Human resources area which is Inspirational leadership
analytical and connected to strategy Competitive remuneration
Effective cascading down of targets Efficient employee relations
Organization which is up to date and and internal communication
constantly learning Behavior
and Culture

Organization
Build an organization which
is admired in the market.

Positive image and reputation

Strong brand
Values and beliefs embedded
Pleasant working environment
Diverse and inclusive

40 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 41

 In order to reflect upon these strategic objectives and provide
support for our aspirations, in 2014, we conducted an in-depth
study in which we interviewed a number of the companys leaders
and carried out an external benchmarking exercise to define the
core competencies necessary to ensure that Votorantim
Metais would be a leading company.
We constructed a long-term vision based on the identification of
our future needs and defined initiatives to strengthen, create
and develop the necessary skills for each business. We now
have all the necessary elements to detect eventual gaps and to
plan the development of the people who will occupy key
positions, prioritizing those who are highly talented.
As a result we implemented a new organizational structure for
Votorantim Metais, more aligned to our business strategies.
Following its approval by the Board, the new organizational
structure was put in place during 2014 and has already allowed
us to capture synergies and improvements.
One of the highlights in 2014 was the communication to
all units of the People Management of information on
the indicators that were defined in 2013. To calculate
these indicators we collected information on costs
42 SUSTAINABILITY REPORT 2014
(salaries, benefits and social charges), changes
in the workforce, turnover (at all levels), hours of
training, productivity, mobility, internal recruitment
and effectiveness in preparing employees to fill
vacant positions.
We increasingly seek to develop our talented employees and
actively promote a system of meritocracy. To this end, we are in
the final stage of building a succession pool, which will have a
high coverage rate in 2015.
Other important achievements in the area of People
Management in 2014 were as follows:
Intensification of the Open Dialogue initiative, an
instrument which promotes a high level of interaction
between senior management and employees. During
the year 15 Face to Face (managers and teams)
meetings were held with an average satisfaction rating
of 96.8%.
The number of terminations for the overall employee
population was reduced by 5.2 percentage points from
18.2% to 13%.
Strengthened labor relations, following the
implementation of a master plan for labor and union relations, which
generated positive results for the company.
Progress on policies that differentiated us in the market, including making
the variable remuneration of general managers more competitive.
Implementation of new work practices at the corporate head-office
including home office and short Friday. By the end of the year,
60 head-office employees had officially adhered to these practices.
Creation of the Valuing Diversity Program, including increasing the
percentage of women in the companys workforce from 6.4% in 2013
to 7.1% in 2015. The company also adopted practices to create
conditions to increase diversity, making the working environment more
attractive for women, for example, by setting up a breastfeeding room
corporate head-office in So Paulo.
STRENGTHENING
OF LABOR
RELATIONS,
WITH THE
IMPLEMENTATION OF A
MASTER PLAN FOR LABOR
AND UNION RELATIONS
WHICH GENERATED
POSITIVE RESULTS FOR THE
COMPANY AND EMPLOYEES
Definition of mandatory people management targets for leaders,
including establishing a succession plan and taking on a more
pro-active development role.
Structured actions to strengthen Votorantims DNA (the values,
principles and practices built up throughout the organizations
history), together with the other Group companies.
Developed the digital communication strategy with the objective of
strengthening Votorantim Metais positioning in social networks.
Improved the positioning of the companys image in spontaneous
media references, with an increase of 37% in the volume
of qualified exposure aligned to the companys strategic pillars,
compared to 2013.
WE INCREASINGLY SEEK
TO DEVELOP OUR
TALENTED
EMPLOYEES
AND ACTIVELY PRACTICE A CULTURE
OF MERITOCRACY
SUSTAINABILITY REPORT 2014 43
 Attraction, development and retention
of talented people - key factors
The implementation of the new organizational structure was
the starting point for a new process of planning, developing
and retaining talented people. We developed proposals for
clear strategies for the attraction, development and retention
of talented people, which were approved by the People
Management Committee and the Board.
We defined the main gateways to employment in the
company: the Internship Program and the Trainee Program,
which is coordinated by the Votorantim Group. In the latter
case, in 2014, we held a selection process, to start in 2015,
and hired 18 trainees, of whom 13 were women (72%).
2014 trainee selection process
769
2,631
4,309
10,138
Values questionnaire
The budget for training and development for 2015 is R$ 6
million, 13% higher than for 2014. This will be invested in a
number of important initiatives including an upgrade to the SAP
management system to enable us to improve the effectiveness
of the employee evaluation and development process.
By May 2015, all of our supervisors had completed the
Leadership Training Program, which lasts about nine
months. Moreover, the program for this year has already
been initiated with courses for coordinators, managers
and general managers.
In 2014, for our employees overall, we carried out an average
of 28 hours of training per person. In total we provided
344,037 hours of training.
18
124
493
In addition, within the development pillar, we have designed a number of career
tracks within Votorantim Metais, in which we described the challenges at each
level in the areas of strategy, finance, know-how, personnel management and
relations with stakeholders. We prepared Individual Development Plans (IDP) for
84% of all employees in salary groups GS 32 and above, with an emphasis on
highly talented individuals, which we have denominated blue boxes.
More important than merely fulfilling the numerical target for preparing
IDPs, our goal was to ensure that that these plans were of high quality
and truly provided the expected development of these employees so that
they were really prepared for new challenges and career opportunities.
As regards the evaluation processes, 96% of employees have annual
performance targets, established either as collective goals, for employees in the
operational levels (Profit-sharing Program - PPR), or individual goals in the case
of those employees eligible for variable compensation (salary group SG 29 and
above). All employees in this latter group also have a career development plan.
To assist managers, we have conducted training courses on the challenges of the
leadership role. This development process stimulates reflections on how to ensure
that leaders use their position effectively to motivate their teams to strive to
achieve results. It also provides practical guidance on how to give constructive
feedback and to draw up a consistent IDP, that is, one that can help support the
subordinate to overcome any development gaps and prepare him/herself for the
next growth cycle. We believe that our leaders must be prepared to act as a role
model for their teams and to actively engage with them.
In 2014, we introduced a number of retention strategies. The first initiative
was the home office policy, open to all employees, which has already
Union relations
We have established a department to provide support to the operating units in
developing a master plan for labor and union relations. The aim is to achieve
the effective management of negotiations with unions, and so generate results
which are beneficial for both the company and the employees.
In 2014, the master plan for labor and union relations for the aluminum
plant in Alumnio (SP), drafted in 2013, served as a model for the other
units. The master plan identifies and involves all stakeholders (employees,
media, local community, authorities and the union) and sets out the
actions to be taken in the case of conflicts.
Listening to people
Openness, transparency and sincerity are values which are increasingly exercised
in the company. During the year the CEO and the Director of HOD and Corporate
Communication visited most of our operating units to participate in events we call
Open Dialogue. In 2014 we organized a 14 structured meetings, and two other
events, called More VM, which in each case involved around one thousand
employees, from units in Brazil, Peru and the United States. Overall the meetings
received an average satisfaction rating of 96.8%.
We intend to expand the schedule of the Open Dialogue meetings, to cover
all units, and to continue with the Face to Face program, so that all leaders
can, in a structured manner, promote a dialogue with their teams. With
these initiatives, we seek to provide employees with access to information on
our strategies and encourage the exchange of ideas in both directions.

been adopted by more than 60 employees. We also initiated a short Also in 2014, we initiated the development of the Top Team program, which
Friday policy, for those who work in the corporate head-office. Finally, as are workshops involving the CEO and his direct reports. This development
Final selection
Applications

Online tests

a pilot program, we set up a breastfeeding room in So Paulo.This latter initiative also includes individual coaching sessions for members of the Top
Interviews
English

initiative was one of the actions taken by the Valuing Diversity Committee Team. The objective is to ensure that this team can, in fact, inspire a high
Logic

aimed at making the company a more attractive place of work for women.
GROUP STAGES VM STAGES
With these actions, we believe that there will be a significant reduction in the loss
of talented employees in the short term and in the medium term we will achieve
the retention of the talented people we need to ensure the continuity of the
Votorantim Metais we believe in. In 2013, 13.8% of the employees denominated
performance culture in the company.
Moreover, in 2015, we initiated a Mentoring program, whereby all directors and
the CEO act as mentors to certain general managers. The goal is to increase their
skills and identify opportunities for improvement through the sharing of personal
experiences and the provision of guidance within the organization. This is a

18 TRAINEE as blue boxes resigned from the company. two-way program where those involved develop in a mutual manner. The

POSITIONS
mentors underwent a training program and seven to ten mentoring sessions have
What we hope to achieve from all the initiatives already implemented, in been scheduled for directors and general managers up until December 2015.
WERE FILLED, OF WHICH addition to work areas planned for this year, is the consolidation of a
13 WERE OCCUPIED culture of openness, based on trust and transparency, where there is an In 2015 we will hold another organizational climate survey. This survey,

BY WOMEN appropriate balance between the employees professional and personal

lives, thereby creating a healthier and more enjoyable work environment.
which was previously annual and is now bi-annual, evaluates the following
aspects: clarity and direction; external image; leadership; principles and
values; quality and customer focus; compensation and benefits; respect and

44 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 45

 recognition; autonomy and empowerment; cooperation;
performance management; resources; occupational Safety
and training and development.
In the previous survey, held in 2013, with the participation
95% of employees, including all units in Brazil, USA and
Peru, the favorability rating was 69%.
Qualified exposure in the media
In the Corporate Communication area, the results for 2014 were
also significant. Thanks to a coordinated work effort between
the corporate center, the operating units and the mineral
exploration project groups, we increased the volume of our
qualified exposure in the media by 37% compared to 2013.
The annual plan for relations with the media, was prepared
together with the communication areas in the units, based on
contributions from the general managers of operations and the
strategies the companys business areas. Based on these
contributions we defined the priority themes that would be
emphasized in 2014 to support the companys strategy and
contribute to its image and reputation.
The main advance was that we managed to present Votorantim
Metais to various stakeholder groups through the media, from a
wider perspective and not only focusing on social environmental
responsibility, which until then had been the attribute most
visible in the media. During the year, we managed to
disseminate information on our businesses, operations,
economic performance, how innovation helps us reach a
differentiated level of competitiveness and the key attributes that
enable the company to attract and retain people.
This also occurred in relation to Votorantim Metais positioning as
one of the companies that most invests in technology in Brazil. We
managed to communicate our methodology for the governance
of open innovation, in both Brazil and overseas, thereby
strengthening the institutional links with our research partners.
In the pursuit of continuous improvement, and accompanying
market trends, in 2014, we conducted a detailed study on social
media and thought about how we should position ourselves in
these channels.
In 2015, we began to implement our strategy for digital
relations, which will serve as a pilot initiative for the other
companies of the Votorantim Group.
46 SUSTAINABILITY REPORT 2014
ALWAYS IN
THE FOREFRONT
In 1919, Pereira Ignacio, a co-founder of the
Votorantim Group, signed an agreement with
the employees establishing a series of rights that
would only become law, with the approval of
the Consolidation of Labor Laws, nearly
25 years later.
Under that agreement, Votorantim limited the
working day to eight hours, granted the right to
be paid extra for overtime and night-work, paid
equal salaries to men and women in the same
function and prohibited child labor in the
plant premises.
BY EXCHANGING KNOWLEDGE WITH UNIVERSITIES,
RESEARCH CENTERS AND PUBLIC INSTITUTIONS, WE THINK ABOUT AND CREATE
SOLUTIONS TO INCREASE THE COMPETITIVENESS OF THE METALS
AND MINING SECTOR.
Focus on innovation and technology
Our Technology and Engineering area focuses on identifying, developing,
adapting and implementing new technologies in our production processes.
We invest in innovation and technological development as pathways to
advance in competitiveness, cost reduction, flexibility, energy efficiency, water
efficiency, and the avoidance and reuse of waste (new sources of revenue).
People are at the center of our innovation management strategy
and dedicated to the search for solutions to overcome the challenges
of the future. Our team is composed of 70 professionals who have
extensive market experience and hold master, doctoral and
post-doctoral degrees.
By exchanging knowledge with universities, research centers and
public institutions, we think about and create solutions to increase
the competitiveness of the metals and mining sector.
This means that our researchers are not isolated in a research center, but
carry out their work directly in our industrial plants and mines. To
support their needs for additional information, studies and testing, we
have signed contracts with 10 important universities and institutes for
certain priority themes. These include the University of So Paulo (USP),
the University of So Carlos (UFSCar), the Federal University of Minas
Gerais (UFMG) and the Institute for Technological Research (IPT).
In the case of energy efficiency, for example, we have established a
partnership with the IPT where they provide support in our technical
discussions and in carrying out reliable measurements in a fuel testing
program at a pilot plant in our unit in Niquelndia (GO). In the case of water
efficiency, we have set up a partnership with the UFMG, where they have
contributed to theoretical research and to the planning of the laboratory and
pilot project testing that is conducted on our plants premises.
The productivity of the Technology and Engineering area and results
achieved so far are clear signs that the innovation model we have
chosen is on the right track. In 2014, we conducted 76 research and
development projects, and implemented a further 21 projects in our
industrial plants in the same year.
The total investment in R&D in 2014 amounted to R$ 32.3 million. Of
this amount, 70% was financed by FINEP (Financier of Studies and
Projects). Another important benefit arising from this financing
structureis the tax incentive under the so-called Good Law, which
enabled us to recover R$ 8.0 million/year.
SUSTAINABILITY REPORT 2014 47
 Another way to promote investments in technology and innovation, where we
have been successful, is by means of partnerships with the Brazilian Company
for Research and Industrial Innovation (Embrapii). Votorantim Metais has ten
innovation and technology projects ongoing in partnership with Embrapii, and
one has already been already been completed (for further information please
refer to the section Flexible combustion chamber). The approval of a further
nine projects in 2015 placed us among the major companies in the industrial
sector that have best taken advantage of this incentive model. It was created
in December 2011 by the federal government to stimulate technological
innovation in Brazil. Under our partnership with Embrapii, we are the company
with the largest number of approved projects and have been granted around
THE PROJECT, FINISHED IN a third of the total resources released in the pilot phase of the program.
Innovation creating value
In the Polymetallics division our innovation strategy is to develop and
broaden the applications for zinc. In recent years, we have developed
markets in Brazil for zinc oxide in various industrial sectors, such as:
pharmaceuticals, ceramics, tires and agriculture.
The Aluminum division is also constantly seeking to develop innovative
applications for its products. Currently, we have 15 ongoing innovation
projects, especially in the segments for transportation, construction, and carton
packaging, flexible and disposable. A good example is the truck-silo, which
was developed in partnership with a manufacturer of highway equipment. The
the transport authorities. Compared to a conventional truck, it will be two tons
lighter, which will decrease the wear and tear on the vehicle and reduce the
consumption of fuel per metric ton transported.
Since 2013, we have been participating in an open innovation
development project, called the Dry Cargo project, which is coordinated by
the Brazilian Aluminum Association (ABAL), together with other
participants in the aluminum industry. The project aims to develop an
aluminum body for dry loads, and a prototype is now undergoing field
tests. The idea is to stimulate the use of aluminum by replacing the current
wooden bodies by new ones made of aluminum. The aluminum body is
one ton lighter than a wooden one, which contributes to reducing fuel

LESS THAN A YEAR RESULTED
IN A NEW FLEXIBLE BURNER SYSTEM These projects, which represent a total investment of R$ 24.8 million,
THAT CAN USE RENEWABLE FUELS are being developed in partnership with SENAI-Cimatec, one of the three
AND REDUCE FOSSIL national science and technology institutions accredited by Embrapii. The
FUEL CONSUMPTION funding is divided equally among Votorantim Metais, SENAI-Cimatec and
Embrapii, which operates with funds from the National Development Fund
for Science and Technology (FNDCT), administered by FINEP.
FLEXIBLE COMBUSTION CHAMBER
One of the projects developed by Votorantim Metais together with SENAI-Cimatec, with financial support from Embrapii, was
one to increase the flexibility of the burner system in the combustion chamber at our unit in Niquelndia Unit (GO). The project
resulted in a new burner system that can use renewable fuels and reduce the consumption of fossil fuels.
This innovation, which can be adapted to all of our plants that consume fossil fuels, has already been tested in pilot plants and
has undergone industrial trials. By replacing a proportion of the fossil fuels with renewable fuel oils, such as Biobpf, we have
estimated that we can save up to R$ 10 million/year compared to current costs. The environmental impacts will also be
reduced. The potential for reducing greenhouse gas (GHG) emissions is estimated to be 105 thousand tons of CO2eq/year.
Furthermore there will be an important social gain. The production of biomass creates jobs and increases income in the region
close to the plants. For these producers, it is important to have the security of a supply contract with a large company.
prototype is being tested in field trials and has been submitted for approval by consumption, and is more durable.
UNIVERSITY CHALLENGE
The Polymetallics division sponsored the Battle of Concepts for the second time. This is a
Dutch initiative for an open innovation model that has been replicated in Brazil since 2009.
The model seeks to bring external solutions into the internal environment of organizations,
by bringing together young talented people from the most innovative companies.
In 2014, we launched the university challenge, an initiative which aimed to identify
new solutions for the use of zinc in the sectors of agribusiness and human health.
We received 39 projects, which were evaluated by a panel of experts from
Votorantim Metais. As a result we awarded prizes to 10 projects, produced by
students from six universities.
The winning project was a proposal for a biodegradable plastic bag enriched with
zinc, called BioZin. The products differential in relation to existing biodegradable
bags was that the new bags, by being enriched with zinc, could be reused in
agriculture after disposal, helping to rebuild zinc levels in the soil, since it is an
important element for the production of food. The authors of the project were Petry
Carvalhal Melo and William Frondoli Romeiro, both 20 years old and students in
the 3rd year of the Environmental Engineering course at the So Carlos (SP) campus
of the University of So Paulo (USP). The project placed second in the contest, with
the title of Zn Food, proposed the creation of an agricultural program aimed at
adding value to foodstuffs rich in zinc. The third placed project, called Seal + Z,
proposed the creation of a quality label that informed consumers about which
products would benefit their health because of being rich in zinc.

Further information on all ten winning entries, which were awarded a total of R$ 15
thousand in prize money, can be found on the website: www.sougenial.com.br/.
Following the prize-giving ceremony, the winning authors visited the companys facilities.

48 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 49

 Supply management
G4-12 G4-EC9 G4-EN32 G4-LA14 G4-SO5
G4-SO9 G4-HR5 G4-HR6 G4-HR10
The proper management of suppliers is a basic premise for
realizing our growth plans, and it is also a critical factor in our
relations with the local community. To this end, we have
increasingly sought to prioritize the contracting of local suppliers,
since we understand that this one of the most important legacies
we can leave in the regions where we operate and one of the
ways to generate value for our operations. In 2014, we had a total
of 40,487 approved suppliers, from which we purchased R$ 4.4
billion of goods and services. Of this total, 42.5% was
purchased from local suppliers.
We have established a Supplier Management Program, which
evaluates suppliers in four areas: quality (including health, Safety
and environmental aspects), contractual compliance
(compliance with the terms and conditions of the contract and
the applicable legislation), approval process (compliance with
tax aspects and holding the required licenses) and pricing.
Our contracts and associated orders are dependent on
compliance with environmental and labor laws, including
appropriate working conditions and respect for human rights,
including the prohibition of child labor and forced or compulsory
labor. In addition, our register of approved suppliers
automatically blocks companies if they are included in the
Blacklist issued by the Ministry of Labor and IBAMA.
One of the challenges for our Procurement area is to
improve this process by developing a program that
encourages suppliers to take action to prevent, mitigate
and/or remediate social and environmental impacts. Such
50 SUSTAINABILITY REPORT 2014
a program would enable us to build a register of suppliers
that are pro-active in relation to risk management.
Good for both sides
We have invested in automating our processes, in order to
gain greater speed in decision-making,strengthen relations
with our supply chain, and enable us to approve suppliers
that are capable of providing a level of service which is
sustainable and of high quality.
One of the paths chosen was the search for productivity
gains and operational improvements. A good example of
our efforts was the case of the unloading of caustic soda
and coke at our plant in Alumnio. The unloading time
was reduced from seven or eight hours down to three
hours, by making changes in internal procedures and
prioritizing certain actions. As a result, the carrier
optimized the use of the truck and the drivers time,
allowing him to do more trips.
However, a further point in relation to truck drivers is that
making more trips requires thinking about. A question that
has attracted our attention is the increased contracting of
independent truck drivers for one-off deliveries. Although
we understand that this is an acceptable practice in
periods of peak demand, we have noticed that is has been
increasingly adopted by carriers to reduce labor costs,
which could lead to an increase in the risks.
were selected in which to focus the actions of the program, which was
Starting in 2015, we are sending a specialist to participate
in the analysis and handling of transport accidents,
wherever in the country they occur. Up until 2014, our
policy only stipulated our involvement in accidents
occurring within a radius of 200 kilometers of our units.
Development of local suppliers
In all units, we seek to accompany and support the development of local
suppliers so that they can both serve our needs and even further expand
their portfolio of customers. We believe this to be a strategic way to
facilitate our existing operations and also our new projects, since, as a
mining company, we must maintain close relations with the communities
where we operate and a strong involvement in local development.
As an example, in 2012 we entered into a partnership with the mining
companies Anglo American and Anglo Gold, to establish a Supplier
Development Program in the state of Gois. The three companies are the
program sponsors, and the program partners responsible for delivering the
program are the Euvaldo Lodi Institute and the Federation of Industries of
the State of Gois (FIEG).
The program is focused on the development of a chain of local suppliers in the
Center-North region of the state, and one of the highlights of the program is the
fact of being sponsored by a group of companies all operating in the same
industrial sector. We joined together to leverage our power to transform and seek
solutions, and also because of our understanding that we shared common values
and faced similar challenges.
In order to develop local companies to meet the supply of goods and services being
demanded, one of the programs objectives is to enable them to increase the
number of customers in their portfolios.
After analyzing the social and economic circumstances and potential of
the region, which is composed of 12 municipalities, five municipalities
launched in December 2013. The program established four principal lines
of action: articulation of partners and resources, training, strengthening of
class associations and business origination meetings.
IN 2014,WE HAD
A TOTAL OF 40,487
APPROVED SUPPLIERS
FROM WHOM WE PURCHASED
R$ 4.4 BILLION
IN GOODS AND
SERVICES
IN 2014, 74 COMPANIES PARTICIPATED IN
TRAINING PROGRAMS, INVOLVING 118
PEOPLE AND 592 HOURS OF
CONSULTING WITH THE
BRAZILIAN SERVICE FOR
THE SUPPORT OF MICRO
AND SMALL BUSINESSES
(SEBRAE)
A survey carried out by IEL identified that strategic planning, financial
management, people and team management and effective negotiation
skills were the main training needs required by the 143 companies that
signed up for the program. In 2014, 74 of them participated in training
activities, involving 118 people and 592 hours of consulting time with the
Brazilian Service for the Support of Micro and Small Enterprises (Sebrae).
Business origination meetings were held in the municipalities of Niquelndia,
Crixs and Barro Alto, with the participation of 65 companies, and potential
business of around R$ 500 thousand was identified.
Another important front included initiatives aimed at strengthening trade
and industry associations, seeking to stimulate them to assume a leading
role in the planning of new projects focused on local self-development.
Strategic plans, where the vision, mission, strategic goals and objectives
were defined, were developed for the trade and industry associations of
Barro Alto, Goiansia, Niquelndia and Uruau. The municipality of Crixs
is still in the process of setting up such entities.
In 2015, a survey will be carried out to measure the progress made by the
companies participating in the training courses and business origination
meetings and to monitor the activities of the trade and industry associations.
In February 2015, the agreement between the sponsors and the IEL was
renewed. As a result, a plan for new training courses will be prepared and a study
will be undertaken to structure quality control systems for use by suppliers.
SUSTAINABILITY REPORT 2014 51
 RISK MANAGEMENT
G4-14
Our risk management processes are based on the ISO
31000 standard, which defines criteria to identify, analyze
and evaluate risks in order to establish the best options for
the organization to address them.
The identified risk events are evaluated in terms of seven
categories of impacts: health and Safety, financial, social,
environmental, reputation, legal, customers and suppliers.
After analysis and evaluation, each risk is classified in a
Risk Matrix. The risks that are classified as critical and
high, are prioritized and monitored based on action
plans developed by specialists in each risk category and
accompanied also by the Risk Management area.
The management of financial risk encompasses the
management of market, liquidity and counter-party risks as
well as those related to debt management and insurance.
The aim of the management of market risk is to protect the
companys cash flow and its operational and financial
components against adverse events such as fluctuations in
exchange rates, interest rates and commodity prices. The
aim of the management of liquidity risk is to protect the
company against the risk of not meeting its commitments
in the short term or from doing so with increased costs.
The aim of the management of counter-party risk is to
mitigate the risk of non-performance by financial or
non-financial institutions in relation to their financial
obligations with Votorantim Metais.
SUSTAINABLE PRACTICES
G4-18 G4-19 G4-20 G4-21 G4-24 G4-26 G4-27
Sustainability strategy
In 2010, Votorantim Industrial defined the material issues that represented the priorities
for action by the Votorantim Group as a whole. They were based on the Sustainability
Principles developed in 2009. In line with the guidelines set by Votorantim Industrial, in
2010, Votorantim Metais defined how it would proceed in relation to sustainability.
In 2010, in order to define the material issues relevant to our businesses, we referred to
industry documents such as the Brazilian National Mining Plan for 2030 and the World
Scenario Series - Mining and Metals 2030, which indicated there were significant
concerns for the sector in Brazil and globally. We also conducted a survey to identify
which companies were considered to be the best national or global benchmarks on
sustainability issues in our three main business segments. In addition, we surveyed our
customers to establish their level of perception and needs on these issues. As a result of
this work, which was complemented by internal consultations with our key managers,
we defined eight material issues. These material issues are: waste, greenhouse gas
emissions, energy, water efficiency, products, social and environmental development,
IN 2010 VOTORANTIM METAIS
culture of open dialogue and Safety.
We also address regulatory, operational, social,
DEFINED , HOW IT WOULD
PROCEED IN RELATION TO
Since then, we have continued to discuss the theme of sustainability in the company
environmental and reputation risks where we aim to
SUSTAINABILITY
and how it relates to our strategic objectives, and have established long-term goals for
anticipate and prevent situations that might lead to the
each material issue.
interruption of productive areas.
The reporting and monitoring of these risks is carried out
in various internal forums, such as at meetings of the
directors, the Audit Committee and the Board.

SOCIAL RISKS WORK-GROUP

In 2014 we participated in a initiative, which involved all Votorantims industrial companies and Votorantim
Institute, to establish a methodology to identify and classify the impacts of social risks. The methodology was
developed to support the evaluation and implementation of social investments and local development actions.

We made significant progress in developing the concepts and methods and prepared a survey of the potential
social impacts according to the type of business, as well developing a rule for categorizing the impacts in terms of
their level of severity and the level of vulnerability of the affected population.

Although this tool was designed to be the social component of business risk management, it can also be used as a
reference for the contracting of impact studies, analysis of social investment projects.

52 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 53

 In the last five years we have made significant progress in addressing some of the challenges
related to each material issue, for example:

Waste: implementation of the Zero Waste project, eliminating the generation of

mining waste at the unit in Morro Agudo (Paracatu MG). We also implemented a
waste recycling process in the Polymetallics division plant at Juiz de Fora (MG) and we
made progress in reusing the slag generated at the Fortaleza de Minas (MG) unit, as
an input to the cement industry. The volume recycled increased from 27 to 100
thousand metric tons per year;
Water efficiency: developed a tool to calculate water efficiency and implemented projects
to reduce the withdrawal of fresh water, for example, in our unit in Trs Marias (MG).
Greenhouse gases (GHG) and energy: developed projects to increase energy
flexibility including the reduction of GHG emissions as one of the decision parameters;
Products: conducted a Life Cycle Analysis (LCA) for our three primary products.
Social and environmental development: we initiated a project to develop local
suppliers (for more information please refer to the section Supplier Management in
this chapter) and established a partnership for training the local labor force. We
reviewed our strategic planning process in relation to social action and strengthened
our social investment in more vulnerable locations.
Safety: over the last three years we have reduced the accident frequency rate, with
and without lost days, from 4.98 to 2.74.
Culture of open dialogue: we were recognized by the magazine Guia Exame
Sustentabilidade as the best performing company in the sector in 2013; we were
awarded the Hugo Werneck Prize for our water resource program, among other awards. Sustainability material issues and long-term targets

In 2014, motivated by the Groups new governance structure, and the publication of our Material Issues Targets for 2025
first independent sustainability report, we took the opportunity to reflect upon and
update our material issues, and our sustainability strategy and targets. Water Increase water efficiency to 75% and reduce the specific consumption of fresh water.

To do this, we first revisited the documents that had guided our positioning in 2010, then Achieve progress in the social indicators established for each location, ensuring 90% efficiency in the plans for
Local Development
we analyzed the major players in the metals and mining sector in relation to their community development and relations that were established for the prioritized locations.
material issues, and finally we involved more than 30 of our leaders, including directors,
general managers and managers, in a collaborative effort to review our sustainability Human Rights Ensure that our suppliers meet the conditions in the program for the prevention and mitigation of environmental risks.
strategy. We redefined our material issues and their respective long-term targets.
Reduce emissions of greenhouse gases (GHGs) by 5%, by investing in energy efficiency and energy mix flexibility,
Energy and Emissions
focusing on renewable sources and technological innovation projects.
Our challenge for the coming years will be to incorporate the material issues as an
essential element in the strategic planning process, breaking down the targets for these
People Promote the valuing of diversity and achieve a proportion of 22% of women employees in Votorantim Metais.
issues on a year-by-year basis.

Reduce the specific generation of mining and metallurgical waste by 50% and reduce the environmental impact of waste
Waste
disposal by focusing on investments in process efficiency, use of new technologies and creation of economic value.
Achieve an accident frequency rate with and without lost days that is less than or equal to the global benchmark for the
Health and Safety metals and mining sector, and a Safe Behavior Index (SBI) greater than 90% for all units and companies controlled by
Votorantim Metais.

54 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 55

 Inside the organization Outside the organization Inside the organization Outside the organization
Material Issues Aspects Qualitative Analysis
Water Water is a vital input for Votorantim
Metais extractive and industrial
General processes. The company has been
making an ongoing effort to quantify
consumption, sources and the
Compliance
allocation of water resources.A system
for monitoring water use has been
Water Environmental grievance installed and the company has a
mechanisms target of recycling 75% of its process
water, thereby increasing its water
Biodiversity efficiency.
Environmental assessment The company seeks to understand
of suppliers the relationship of interdependence
between our operating units and the
Public policies local communities, to act responsibly,
and to contribute to, and create,
alliances so that, together with other
Compliance
stakeholders, it becomes possible to
leverage the opportunities for these
Supplier evaluation for
communities. Votorantim Metais
impacts on society
social investment activities go far
beyond the legal and regulatory
Community complaints requirements The company has
mechanisms adopted innovate initiatives in green-
field projects and maintains a strong
and respected presence in the
Local Biodiversity
existing operations. To achieve this,
Development we can count on established
Indigenous rights
processes for the planning and
management of the many different
Local communities forms of social solutions. The social
dimension is a cross-cutting theme in
all our business activities. Our social
Artisanal and small-scale
initiatives are intended to contribute
mining
positively to the social indicators of
the municipalities, as well as
Resettlement maintaining our Social License to
Operate (SLO), thereby optimizing
Decommissioning mutual opportunities and benefits.
56 SUSTAINABILITY REPORT 2014
RELEVANCE Qualitative Analysis
Fresh water is a natural resource that
is becoming increasingly scarce in the
world. In Brazil, the crisis related to
the supply and usage of water
resources has worsened in recent
years. Although the cost of
withdrawing water from rivers is still
low, it is expected to increase so it has
become increasingly important to
reduce consumption and increase the
rate of reuse. This is true not only for
Votorantim Metais, but also for its
entire value chain.
Mineral resources are not generally
exploited in large urban centers,
where there is a larger availability of
more capable suppliers able to meet
the demands of large companies
such as Votorantim Metais. The
arrival of a mining company in a
remote region radically effects the
local society and economy. However,
the day will come when this activity
will cease and, consequently also the
related jobs and tax revenues. Thus,
it is essential that mining companies
understand their role in contributing
to helping these localities to seek
alternative ways to generate
employment and income and to
support and stimulate the
development and training of local
suppliers, thus expanding their
business potential.
High
Medium
Low
RELEVANCE Material Issues Aspects Qualitative Analysis RELEVANCE Qualitative Analysis RELEVANCE
Supplier evaluation for
Votorantim Metais strictly conforms
labor practices
to the labor laws and requires the
same behavior from its suppliers who
Investments must undergo approval process in
Brazil is a country of significant
which their labor practices are
social and economic differences.
Non-discrimination analyzed. Moreover, the company is
Despite the progress made in recent
a signatory to voluntary agreements
years, it is still common to
regarding worker protection and the
Child labor encounter incidents of child labor,
eradication of child labor and forced
disrespect for labor rights, informal
or compulsory labor. We are starting
Forced and compulsory work, and forced and compulsory
Human to study how to create mechanisms
labor labor. The Ministry of Labor
Rights to monitor labor practices in our
publishes a black list of
supply chain. Internally, we seek to
companies involved in incidents of
Supplier evaluation for stimulate a culture of respect for
forced or compulsory labor.
human rights practices diversity and maintain specific
communication channels for
reporting and handling complaints
Human rights grievance
by employees.
mechanisms
Historically, Brazil always been proud
Energy consumption and therefore of its hydro-electric system, which is
greenhouse gas emissions are responsible for over 60% of the
inherent to our production processes, production of electrical energy.
especially in the case of aluminum. However the current water crisis has
Energy and emissions
We have established programs that already impacted the national
focus on reducing the consumption of production of electrical energy. In
General
energy per metric ton of product addition, the country has not
produced and have made efforts to invested sufficiently in the
Conformity increase energy flexibility by diversification of its energy mix. The
Energy/
substituting non-renewable energy contingency plan is based entirely on
Emissions Environmental grievance sources by renewable sources such as thermal-electric plants, and there is
mechanisms biomass and bio-diesel, among still little investment in the search for
others. Furthermore, the majority of renewable alternatives. The cost of
the energy we consume is generated energy is high in Brazil, especially for
by hydro-electric power plants. consumers that are intensive users of
electrical energy.
High
Medium
Low
SUSTAINABILITY REPORT 2014 57
 Inside the organization Outside the organization Inside the organization Outside the organization
Material Issues Aspects Qualitative Analysis
Votorantim Metais believes that
Employment
people are its greatest asset. In the
last two years, we have restructured
Health and safety our People Management System,
introducing reliable indicators, policies
Training and education and tools that guide our development
initiatives to prepare employees to to
achieve the companys aspirations
Diversity and equal
and to promote their own
opportunity
professional and individual growth.
Historically, the mining sector has
Equal pay for men and always been a more attractive career
People women
environment for men. Over the past
two years, Votorantim Metais
Supplier evaluation for Diversity Committee has been
labor practices working on increasing the level of
internal awareness and taking actions
to increase the proportion of women
Relations between labor
in the company, thereby reducing the
and management
gender imbalance.
Mining activities generate a
significant volume of waste.
Materials Votorantim Metais Technology
Department is searching for
Effluents and waste alternatives to recover the waste in
our tailings dams. In some cases, it
General has been possible to extend the life of
existing dams, and in others, solutions
were developed for recycling the
Compliance
waste. Waste was removed from the
dams and processed into products,
Waste
Environmental grievance thus reducing the amount sent to
mechanisms landfills. New projects are being
designed with technologies that do
Responsible materials not require the construction of
management additional tailings dams. The goal is
to search continuously to reduce the
generation of waste.
58 SUSTAINABILITY REPORT 2014
RELEVANCE Qualitative Analysis
Although they have made progress
in terms of achieving a higher level
of education, Brazilian women still
earn less than men in the same
function and face more difficulties
in progressing in their careers.
There is increasing pressure from
stakeholders to improve solid waste
management in Brazil, for example,
the law that was passed regarding
the National Solid Waste Policy
(PNRS). In addition to this regulatory
pressure, the company seeks to
reduce the environmental impacts,
such as the contamination of soil
and groundwater, on the local
communities where we operate.
Medium
RELEVANCE Material Issues Aspects Qualitative Analysis RELEVANCE Qualitative Analysis RELEVANCE
Employment
The Statistical Yearbook published by
Health and safety Our operations, by their nature,
the National Institute for Social
inherently involve risks to the health
Security revealed that there had
and safety of our employees and
Training and Education been a decrease in the number of
contract staff. The health and safety
accidents and work-related deaths in
of our workforce are priorities for
Brazil. However, the statistics
Diversity and equal Votorantim Metais. For this reason,
included only those employees with
opportunity we invest continually in improving
a formal labor contract, which covers
training and working conditions. The
less than 50% of the countrys
Health Supplier evaluation for company has been continually
working population.In addition to
and Safety labor practices progressing in its health and safety
the fact that half the working
performance through initiatives,
population was not included in the
indicators and tools that enable the
Relations between labor occupational safety statistics, there is
improvement of management and
and management a culture in Brazil of under-reporting
controls.
accidents at work.
Transportation
High
Medium
Low
High
Low
SUSTAINABILITY REPORT 2014 59
PERFORMANCE
This chapter presents the companys economic
and financial performance, and also its
achievements in relation to social and
environmental issues.
 ECONOMIC AND FINANCIAL PERFORMANCE
G4-9 G4-EC1
Market context - global market
In 2014, the developed economies showed encouraging signs of recovery following several
years of poor performance due to two crises: the global financial crisis of 2008 and the
European fiscal crisis of 2009. However, the effects of this improved performance by the
developed economies were partially offset by the slowdown in some of the main emerging
market economies. Although China grew at a rate of over 7% p.a. in 2014, this was its
lowest growth since 1990. Brazil and Russia, countries whose economic performance had
been prominent in recent years, were adversely affected by local economic policy decisions
and, in the case of Russia, by political sanctions imposed by other countries. These signs of
recovery positively influenced the global market for base metals, according to the specific
fundamentals of each metal.
Financial Performance
The reality of the situation in 2014 proved to be better than
the scenario we had forecast for the year. EBITDA, which grew
significantly, rose to R$ 2.2 billion and we also had a strong
generation of free cash flow, which contributed to reducing
the companys leverage.
This improvement was due to an increase in average metal
prices on the London Metal Exchange (LME), the devaluation of
the R$/US$ exchange rate, and improved operational stability.
In 2014 our net revenues totaled R$ 9.2 billion, 5% higher than
the previous year. The zinc business accounted for R$ 4.6 billion;
aluminum, for R$ 3.6 billion; and nickel, for R$ 1.0 billion.

In the case of zinc the average price quoted on the London Metal Exchange (LME) in 2014 was
13.4% higher than in the previous year. The increase in the average price for zinc compared to
2013 was due to the demand being higher than production, leading to a market deficit for the
year and, consequently, a 26% reduction in the volume of global metal inventories.
In the nickel market, Indonesia, which is the largest global producer of nickel ore, banned
the export of raw nickel ore in 2014. The objective was to stimulate the vertical integration of
the domestic mining sector, and this led to shortfalls in raw materials for countries like China
and Japan which import these ores for their domestic production. The ban led to an increase
of 12.4% in average metal prices on the London Metal Exchange (LME), compared to 2013.
In 2014, in the case of primary aluminum, both the average prices on the LME and the regional
premiums increased. Excluding China, over 3 million metric tons/year of primary aluminum
production capacity have been shut down since the end of 2013. At the same time, global
demand has grown due, among other factors, to the increased use of the metal in European
and American automobile production. This reduces the cars weight and therefore its fuel
consumption and is a trend that is expected be increasingly important in the years to come.
This combination of reduced supply and increased demand also resulted in a reduction of 23%
in the volume of aluminum inventories registered at the LME, compared to the previous year.
Zinc revenues in Reais increased by 15% due to the combined
effect of the increase in the average price in US Dollars on the
LME, and the devaluation of the R$/US$ exchange rate. Nickel
revenues decreased by 28%, due mainly to the lower level of
production caused by the temporary suspension of activities at
the Fortaleza de Minas plant. Metal prices increased in Reais,
partially offsetting the effect of the lower volume.
The Aluminum divisions revenues increased by 6%, due to
the increase in average price of the metal in Reais and the
income from the sale of surplus energy. This was made
possible due to the lower level of production due to reduced
demand by the construction and transportation sectors.
In Milpo, revenues totaled R$ 1.8 billion in 2014, 15% higher than in 2013, due to the
The cost of goods sold totaled R$ 7.3 billion, a decrease of 1% increased volume of concentrate sales and the higher average LME price for zinc which
compared to 2013. The costs for zinc increased by 13%, due to offset the impact of the lower LME prices for copper and silver. The cost of goods sold
the price increase for concentrate in Peru and Brazil. The costs rose by 15%, due to the higher sales volumes and increased costs for maintenance and
for nickel fell by 35%, reflecting the lower volume of sales. The development at the Cerro Lindo mine, where the run-of-mine (ROM) capacity was
costs for aluminum remained stable at R$ 2.8 billion. increased from 15 to 18 thousand metric tons/day.

However, going against the trend for the other base metals, the price of copper on the
LME fell by 6% in 2014. Among the factors that caused the metal price to fall in 2014
were the strengthening of the dollar against other global currencies and reduced demand
from China. Copper supply exceeded demand for the fourth consecutive year. In 2015, the
growth forecast for the supply of copper is again higher than the expected demand.
However, the growing difficulties of commissioning new mines, due to greater resistance
by local communities, could contribute to putting the market back into balance.
Selling, general and administrative expenses reduced by
5% in 2014, totaling R$ 1.0 billion. This was due mainly to
a reduction in freight costs for zinc operations in Brazil, as
a result of the lower volume exported, and the lower
volume of nickel sales.
Selling expenses, general and administrative remained stable, totaling R$ 142 million.
There was a 9% reduction in administrative expenses, due to the lower expenses of the
corporate office, which was offset by an increase in selling expenses resulting from the
higher volume of concentrates sold. EBITDA increased to R$ 622 million in 2014, 13%
higher than the previous year, mainly due to the increased sales volumes of concentrates.

62 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 63

 HEALTH AND SAFETY
PERFORMANCE
G4-LA6

Safety is a core value for Votorantim Metais and is the direct responsibility
of leadership. Therefore, increasingly, we spare no effort, we provide the
resources, we carry out awareness campaigns and audits, we invest in
training and we constantly review our Safety procedures, looking for ways
to detect non-compliant behavior. We give the subject of Safety our full
attention and apply all of our expertise to the continuous improvement of
our management system.

We have developed a Critical Risks Control Program to manage the risk

control of activities that could lead to serious injury or death. We identified
14 risks as being the most critical in our operations and inherent in our
types of our activities. For each of these critical risks we developed
procedures for their control whenever our employees become exposed to
them. The critical risks are: energy lockout and tagout; access to a
confined space; handling of suspended loads; electrical installations;
working at heights; machinery protection; light vehicles and mobile
equipment; hazardous chemicals; hand tools; handling and storage of
pressurized gases; burns with liquid metal; unstable rock falls (rock
fragments that fall from the ceiling or sides of the galleries in underground
mines); poisonous animals; and excavations (underground, open-cast, and
civil construction).

One of our most important initiatives in 2014 was to carry out a thorough
review of the procedures, aligning them to best practices. We also
reviewed the metrics and audit methods and went back to carrying out
internal audits, which had been suspended since 2011. We have a team
of 50 internal auditors, made up of technical and Safety engineers, and
representatives of the operational areas that support them in the
implementation of the procedures. In 2015, we will put an emphasis
``on those activities involving critical risks that caused the most serious
accidents over the last two years, as follows: light vehicles and mobile
equipment; energy lockout and tagout; machinery protection; and
unstable rock falls.

A Safety method that is worthy of mention is the Management Inspection,

in which the general manager and other managers and coordinators
conduct an inspection to detect conditions and behaviors in the workplace
that could lead to accidents. In addition, this inspection is a clear
demonstration of the involvement of senior management in Safety at each
unit, and serves as an example for other employees in leadership positions.
In 2014, approximately one thousand such inspections were carried out.

64 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 65

 Another important initiative is the Safe Behavior Program in which 100% of our employees, including our units in Peru,
are trained in Safety behavior. It is a simple procedure, but it can produce important results. The observer walks round the
unit and analyzes an activity, aiming to identify risk behaviors that could lead to accidents.
This information is then entered into a system and generates statistics that are analyzed and addressed by two
committees, the Executive Committee which is composed of representatives from all the operational areas and the team
for occupational health and Safety, and the Steering Committee, composed of managers and the general manager.
In 2015, the Safe Behavior program will be revitalized. The main initiative will be to create an indicator that shows the
trends in peoples behavior and in the causes of risk behaviors. This is a leading indicator that will demonstrate the trends
in the types of behavior that could lead to accidents.
The Safety management system has other important tools that encourage changes in behavior and assist in the
implementation of measures to mitigate the risk of accidents. Examples are:
Quick Contact - Procedure for employees to communicate, in a simple and rapid manner, risk situations and
instances of incorrect behavior that could lead to accidents involving people or the environment. The procedure
encourages the person who identified the incident to act in a preventive manner.
Daily Safety Dialogue (DSD) - This is a daily discussion aimed at making employees more aware of the risks
involved in their daily activities. The person responsible for the implementation of the DSD is the supervisor of the
work team, but he can choose someone from the group to present the chosen theme. The discussion lasts between
10 and 15 minutes and deals with issues related to health, Safety and the environment, among other issues.
VM Family Program - Implemented in Milpo and Cajamarquilla, in Peru, and in the Poos de Caldas (MG) and
Vazante (MG) units in Brazil, this program provides training for the wives and children of employees in Safety concepts
and techniques for use in the home. They participate in various activities, such as monthly meetings, training courses,
visits to industrial units, Safety discussions, risk observation and Safety campaigns. The objective is to engage the
employees families as partners in the prevention of accidents at work. In 2014 there were 420 participants.
Safety Committee Meetings, also called Pro-Action Meetings - They are weekly meetings, with the
participation of the units management, to deal with matters related to health, Safety and the environment.
66 SUSTAINABILITY REPORT 2014
The programs indicators and the units results are presented at these
meetings. Operational staff may attend the meetings by invitation. In
2014, around 500 Pro-Action Meetings were held.
Preliminary Risk Analysis (PRA) - This is a tool that enables the
identification and analysis of the risks which are inherent to the task
before the start of activities in order to enable the worker(s)
individually or collectively to neutralize all the possible personal
accident, material or environmental risks. This helps employees to
develop the habit of perceiving and reporting potential risk situations
existing in their areas and the means of mitigation.
Permission to Work (PTW) - This is also a tool for the preliminary
analysis of the risks involved in the work activity. This tool applies to
non-routine services and critical activities, considering and guiding the
work team and those responsible for the risk assessment in the
identification and elimination of risks, comprehensively and effectively.
Golden Rules - A Safety policy that defines practices that must be
strictly followed. Failure to observe them implies the immediate
application of the rules of the consequence management process.
Planned Task Observation (PTO) - This is an assessment made by
those responsible for the processes and/or the areas that implement
operational procedures. It is carried out while the activity is being
conducted by team members, in order to ensure the safe execution of
critical activities regarding health, Safety and the environment by
correcting the deviations found during the implementation of
operational standards, seeking continuous improvement.
Occupational Risk Observation (ORO) - This is a management tool
used to change employee behavior. It is based on a learning
methodology that aims to help people discuss the Safety issues
present in the workplace, in such a manner that it leads to
strengthening safe behavior and changing risk behavior.
Significant progress in Safety
In recent years we have achieved significant reductions in our accident
frequency rates.
The accident frequency rate, with and without lost days, in 2014 was
2.74, 5% lower than that the rate of 2.88% recorded in 2013. In 2014,
the highlight in reduction of the accident frequency rate with and without
lost days was the Aluminum division, where the rate reduced from 4.71 to 3.08.
However, there was an increase in the accident frequency rate for the Polymetallics
division, from 1.25 to 2.06. Although overall we are in a process of evolution, we
did record two fatalities in 2014, one in Vazante (MG) and the other in Milpo (Peru).
Due to a high turnover rate and the high number of contract staff in
Milpo, health and Safety management has been a major challenge. Thus,
in 2014 a number of workshops were carried out with the leadership to
identify the programs which were most appropriate for contract staff.
Following these initiatives there was a reduction in the accident severity
rate and the number of fatalities in the Milpo units.
Since 2013, we have incorporated Safety performance in the program for
the variable compensation of all leadership positions, including the
corporate areas. Up until recently accidents only impacted the
compensation of the employees in the areas where they occurred. From
2015, they will also affect the compensation of all directors and managers
in the corporate areas, including the companys CEO.
Our long-term target for Safety is to reach 2025 with an accident frequency
rate with and without lost days below 1 in all units, without any fatalities.
SUSTAINABILITY REPORT 2014 67
 Progress in healthcare
As well as Safety, the health and welfare of our employees are also priorities for
Votorantim Metais. We are continually making improvements to our Health
Management System, as was the case in 2014. During the year, we conducted a
review of our methods of diagnosing occupational health risk exposures,
particularly to chemicals. Based on this review, which was carried out in all our
units, we are planning initiatives for 2015 that focus on prevention and the
improved control of these agents.
Also in 2014 we conducted an analysis of our restaurants, including aspects of
nutrition, in all Votorantim Metais units and, we are currently reviewing the menus
offered in order to ensure that the meals are balanced from a nutritional perspective.
With regard to the prevention of chronic diseases, we are adopting a
management model called Population Health Management (PHM), supported by
a technical manual on health which aims to empower and engage the doctors
and the other health professionals in the companys health department.
The adoption of these practices will identify which diseases are related to
absenteeism in our units. On the basis of indicators, we will be able to prepare
plans for prevention and healthcare for each group of employees. To this end we
created the Population Health Profile which is a questionnaire to collect
information on: weight, height, eating habits, sedentary lifestyles, medication,
sick leave and family history. They are completed by employees and generate a
report on the specific needs of each person.
In 2014, the questionnaire was introduced, on a voluntary basis, in our units in
Vazante (MG), So Miguel Paulista (So Paulo - SP) and Cajamarquilla (Peru). In
2015, the questionnaire will become part of the health record of each employee
and be applied to the whole employee population.
WE ACHIEVED A
SCORE OF 67%
FOR HEALTH AND SAFETY, SEVEN
PERCENTAGE POINTS HIGHER
THAN IN THE PREVIOUS SURVEY
effectiveness and alignment with public policies, helping to strengthen them.
Local Development
G4-26 G4-EC7 G4-SO1
Local development and community relations are an integral part of the
Votorantim Groups business strategy. The objective is to ensure that the
presence of a Group company contributes to the development of the locality
where it operates.
Since 2002, the Votorantim Institute has been responsible for our social
responsibility strategy and the approval of the operating units external
social investment. The Institute has also supported our social initiatives by
contributing to the evaluation and management of their impacts and the
implementation of social and cultural projects.
Each business area defines and accompanies the projects which it supports by
means of careful strategic planning processes and social monitoring, which
takes into account the specific needs and social dynamics of each location.
Our social initiatives are aimed at both promoting community relations
(Social License to Operate) and stimulating local development. We seek to
mitigate negative impacts and generate positive results for the community
and the company. We work to stimulate local development in coordination
with other sectors of the economy.
The projects we support are especially important in remote locations which have
greater infrastructure and labor needs. We do not attempt to assume the role of
government, but we take actions to create the necessary conditions to ensure the
viability of our operations. Our methods have been recognized for their
Total Investments
The projects contribute to the empowerment of communities, and we seek
to encourage them take the leading role in promoting the necessary social
transformations in their regions and thus avoid creating a high level of
dependence on the mining activities.
We contribute to local development in four dimensions: human capital,
institutional capital, social capital and economic dynamism. The same
project can impact more than one dimension and cover more than a single
topic, which include: education, employment, culture, sports, childrens and
adolescents rights, entrepreneurship, training of NGOs, support for public
administration, promotion of family farming, among other topics.
In this regard, in 2014, Votorantim Metais invested a total of R$ 10.3 million in its
social strategy. These investments included social projects, donations to local
organizations and company initiatives such as volunteering, diversity,
development of local suppliers and environmental education, both in existing
operating locations and areas near green-field projects (Brazil and Cajamarquilla).
Of this amount, R$ 4.5 million were financed from the companys own cash
resources, and the remaining R$ 5.8 million from funds managed by Votorantim
Institute. The total investment was channeled to around 46 projects involving
70 initiatives, in the areas where the company operates.
In 2014, Milpo invested a total of R$ 38 million in its social activities. This
was financed by R$ 13.6 million from the companys own cash flow, R$ 8.5
million from tax incentives in Peru and R$ 15.9 million from the government
and other institutions. This investment was directed to 80 projects in the
areas where the company operates.

In recent years, in the case of our mines and plants, we have invested in the
refurbishment of rest rooms, locker rooms and restaurants. One of the R$ 2,781,043 R$ 3,752,961

highlights was the plant in Alumnio (SP), where we refurbished the infirmary Eco
nom
l ic
and restructured the occupational healthcare service. Also, in January 2015, ita

Dy
p
Ca
an area close to the plant was refurbished and equipped to focus on

na
an

mis
Hum
preventive health services. The aim is to provide health services for

m
employees for health problems that are not directly connected to work
activities. In the same unit we created smaller dining areas for workers who
are located far away from the main restaurants. R$ 10,264,487
These improvements have contributed to increasing the health and Safety

it a l
Soc
performance in the units and this has been reflected in a higher level of employee

Cap
i al
satisfaction. In the most recent internal climate survey, conducted in 2013, we ap
on

al
C
it a l u ti
received a score of 67% in this regard, seven percentage points higher than in R$ 311,292 I n stit R$ 2,739,264
the previous survey.
Other investments
R$ 679,927

68 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 69

 Learn about our projects
In the table below we have highlighted some examples of the initiatives where we invest regularly over a number or years.

Dimension Project Name Description Results achieved Dimension Project Name Description Results achieved

There were improvements in the education development The program aims to modernize public administration
indices (IDEB) in the cities where the program was and reduce the infrastructure deficits in the This is a training program to improve management skills (planning,
Public
implemented. The index for Basic Education increased by 0.32 municipalities served. It provides municipal managers execution, monitoring and evaluation) in non-governmental
Administration
Votorantim This program aims to contribute to the improvement points (from 4.7 to 5.02) and the index for Primary Education and staff with training, and methodologies and tools organizations that are having difficulties in structuring projects for
Support Program
Partnership for of public education in the municipality, through 1 and 2 increased by 0.5 points (from 3.43 to 3.93). This for increasing revenue and improving the fund-raising.
Education (PVE) social mobilization and the training of public school program was recognized by the Banco do Brasil Foundation as Institutional management of the municipalitys resources.
Program administration. a social technology that was worthy of being shared and Capital
replicated. The program also received the award for Latin This is a training program to improve management In addition to the helping with the structuring of projects, the
American Basic Development granted by the Inter-American NGO skills (planning, execution, monitoring and program also resulted in improvements in issues such as:
Foundation and RedEAmrica. Capacity- evaluation) in non-governmental organizations that administrative and financial management, partnerships and fund
building are having difficulties in structuring projects for raising, knowledge management, monitoring and evaluation of
This project, held in So Paulo since 2006, has trained a total fund-raising. selected NGOs.
The project prepares participants to work in
of 451 young people, in socially vulnerable situations,
The "Future in Our metalworking and the installation and maintenance The Building the Future Together Program, in Fortaleza de
between 18 and 24 years old. About 60% of those who
Human Hands" Project of aluminum frames. The participants also receive Minas (MG), began in November 2013. In February 2014,
completed the course were able to find employment in the
Capital talks about citizenship. This program was set up following the temporary with the support of a specialized consulting firm, a survey was
market. In 2014, 80 young people participated. Building the
suspension of activities at the Fortaleza de Minas prepared, which was presented to the community in March.
FutureTogether
This program was made possible due to the support of (MG) unit in November 2013 and aims at find Since then, the unit has organized monthly meetings with the
Program
the Municipal Council for the Rights of Children and economic alternatives to mobilize the local economy. stakeholders involved. The most significant result of these
Social
Family Social Adolescents (CMDCA). The need for a community center The program was also extended to residents of the meetings was the setting up of work groups to foster local
Capital
Center Program had been identified in 2012. It offers psychosocial care, municipality of So Gonalo do Abaet (MG). It initiated its development in Fortaleza de Minas.
(VIA) educational, recreational and professional training activities in 2014 and benefits 70 people per year.
workshops and therapeutic care to children and The aim is to strengthen our stakeholder
adolescents in socially vulnerable situations. Stakeholder engagement strategy as an integral part of the Construction and review of the key stakeholder engagement
Engagement companys management approach, generating value plans in our aluminum operation.
Since 2011, this program has provided access to for both the company and our stakeholders.
cinematographic and audiovisual works for about 24 thousand
Itinerant Cinema This project aims to train young people in
people, residing in the municipalities of Trs Marias, Paracatu
"Conscienciarte" audiovisual processes.
and Vazante. In addition it has provided training to more than
200 adolescents and young people in audiovisual processes.

A partnership with the National Bank for Economic

and Social Development (BNDES) to promote
inclusive business. The funds are invested in projects
ReDes
on a 50:50 basis by the BNDES and Votorantim, and
("Networks")
are not refundable. In addition to financing projects,
Program
program also includes the development and support
Economic of Community Participation Groups in the
Dynamism municipalities where we operate.
Through the program we have provided support to 12
associations and cooperatives in inclusive business, involving 387
beneficiaries, and fostered 6 Community Participation Groups
regarding local development in the communities near our units in
Trs Marias (MG), Vazante (MG), Morro Agudo (Paracatu - MG)
and Niquelndia (GO).

This program aims to improve the community's Since 2012, the program has provided training for 37 families
Quality of Life and
quality of life through the development of a supply breeding pigs, belonging to two organizations in the
Sustainable
chain and improvements in hygiene and sanitation Cajamarquilla region. In 2014, the training focused on
Practices for Pig
and safety conditions, in pig breeding in marketing their products and taught them how to prepare
Breeders
Cajamarquilla (Peru). long-term strategies.

70 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 71

 FISH, SWEETS AND DELICACIES
Votorantim invested over R$ 2 million, in 2015 in projects in the areas
of education, modernization of public administration, development of
local suppliers and the promotion of productive chains.

One of the programs that helped local communities to develop

economic activities and a source of income is the ReDes Program,
carried out with the support of Votorantim Institute and in partnership
with the National Bank for Economic and Social Development (BNDES).
Since 2011, the ReDes Program has invested more than R$ 2.3 million,
in the state of Gois alone.

In 2014, for example, the ReDes Program fostered a fish-farming

production chain, by supporting the creation of the Lago Serra da
Mesa Fish Farmers Cooperative (Cooperpesca) in Uruau (GO), a candy
and preserves facility run by the Rio Vermelho Womens Association
(Amurv) in Niquelndia (GO) and a project to strengthen the dairy
production chain in Colinas do Sul (GO). The ReDes program is also
active at the units in Trs Marias (MG), Vazante (MG) and Morro Agudo
(Paracatu - MG) and in a further 24 municipalities where companies of
the Votorantim Group have operations. In the municipalities where
Votorantim Metais operates there are 13 projects with a wide variety of
activities, such as the production of milk, poultry, agribusiness,
smallholder family farming, fashion, fruits, etc., and using various
business models, such as cooperatives and associations.

ECOS DA MATA (FOREST ECHOES)

Initiated in 2010, it aims to create the foundations for sustainable regional development in the Zona da Mata
region in Minas Gerais, and involves government, the private sector and third-sector organizations. In 2014, it was
a finalist in the category Best Example in Social Mobilization, in the 5th edition of the Hugo Werneck Sustainability
& Love of Nature Awards. The project benefits 300 thousand people and the main results were as follows:

Training of Public Administrators: an initiative which provided training courses for 80 government
officials, 14 social workers and community leaders.
Regional Sustainable Development Forum: the forum held nine meetings in different locations focusing
on preparing a Regional Development Plan. The forum was active in setting up the Ecos da Mata
Development Agency (Ademata), a civil society institution that is a multi-sector body, with a regional
character, which acts as a forum for the development of regional projects.
Community Rural and Ecological Tourism: this initiative provided training courses for 109 participants in
11 workshops. Furthermore, three Rural Tourism Development Plans were drawn up, which were then
broken down into 21 business plans.

72 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 73

 Training courses in Par
Our commitment to the development of the locations where we have our operations
begins earlier and earlier, sometimes well before the start-up of operations. A practical
example of this is the case of the municipality of Rondon do Par. This municipality has a
population of under 50 thousand, an HDI of 0.602 (2010), a per capita income of
between R$ 170 and 255 per month and around 4 thousand people employed.
Even before we initiated the green-field project to produce bauxite and alumina, we
recognized the importance of working with the municipal government and set up the
Support for Public Administration Program, in partnership with the Votorantim Institute
and the National Bank for Economic and Social Development (BNDES). The program offers
specialized technical support and training to municipalities to enable them to prepare
projects to modernize the system of public administration and to develop plans to improve
the municipal infrastructure.
In Rondon do Par, we are carrying out a series of preparatory actions, including: making
a survey of the situation of the basic industrial sectors; training public officials and civil
servants to prepare them to make plans for their areas; participating in the joint
development of projects for funding; and, finally, engaging in fund-raising, both
interest-bearing loans and grants, from state and federal entities.
The start-up of operations of the project, which is scheduled for 2019, could generate
around 9,000 jobs during construction and 1,600 jobs when in operation. So, at the
moment, we are investing in the training of local labor force, which may subsequently be
hired by the project. This training will also improve the employability of these people in the
labor markets in general. In 2014, more than 2,300 people were trained in 112 courses,
including: accounting and human resources assistant; social projects agent; computer
assembly and repair; systems programmer; and lathe operator.
In 2015, we plan to provide around 3,700 places in training courses both in Rondon de
Par and in the neighboring municipalities of Abel Figueiredo and Dom Eliseu, also
located in the state of Par. This kind of professional training is catered for by the National
Program for Access to Technical Education and Employment (Pronatec). It is carried out
through a partnership among the Rondon do Par municipal government, the National
Industrial Training Service (SENAI), the National Rural Training Service (SENAR) and the
Federal Institute for Education, Science and Technology of the state of Par (IFPA).
THE RONDON ALUMINA PROJECT
COULD GENERATE AROUND
9,000 JOBS
DURING CONSTRUCTION
AND 1,600 JOBS WHEN IN OPERATION.
74 SUSTAINABILITY REPORT 2014
People: Diversity
G4-LA12 G4-LA13
We have established a Valuing Diversity Committee which is composed of
employees from the areas of Health, Social Responsibility, Sustainability, Legal,
Human and Organizational Development and Communication. The committee
has established a priority of promoting the inclusion and equality of opportunity
for women.
Currently women occupy 5.3% of our leadership positions, including one Board
member and three general managers (increasing from one during 2014). The
overall average percentage of women employees in Votorantim Metais at
year-end 2014 was 6.9%. This represented a small advance compared to
year-end 2013, when 6.5% of our employees were women.
In 2014, we initiated the first year of our Diversity Policy with a campaign to
increase awareness of the question among managers and the presentation of
our goals. One of the highlights of the policy is our guarantee to treat women
equally in selection processes and performance evaluations. We believe that
women are increasingly prepared to take on challenges and compete on equal
terms for jobs that were once the strongholds of men, such as the operation of
heavy equipment in underground mines.
This policy has been personally championed by our CEO, who has
emphasized that the idea is neither to create advantages nor
disadvantages. Our long-term objective is to reach a level of 22% of
women employees in Votorantim Metais by 2025, expanding their
participation in both the industrial operating units and the corporate center.
Several actions are already underway, such as: increasing the awareness
of managers with respect to the issue; the Breakfast with the CEO
initiative; and the development of processes that make the company a BREAKFAST WITH THE CEO
more attractive working environment for women, such as offering
As a sign of recognition of the importance of diversity the CEO of
maternity leave of six months, establishing a breastfeeding room at the
Votorantim Metais, Tito Martins, invited 64 women in leadership
head-office and the implementation of a counseling program for pregnant
positions, from various areas and units, to a breakfast meeting.
women. Furthermore we have established a policy for green-field projects
The aim was to talk about the main challenges of women in the
to recruit employees on a 50:50 basis for men and women.
sector and the trends in the labor market. Tito emphasized that,
independently of gender, the company needed to find the best
Another key point is that we are not seeking diversity just to follow the market
employees available and so it was essential to provide an
trend. Our policy is based on our conviction that a diverse environment is more
attractive and stimulating environment for all employees The
creative and more productive.
event, held in September 2014, was also attended by the director
In relation to diversity issues in general, although we decided to start with the
for Human and Organization Development and Communication,
emphasis on women we intend to gradually initiate discussions, planning and
metrics for other diversity issues such as age group, ethnic origin, income level,
Arlene Domingues, the only woman on the Board of
Votorantim Metals.
sexual orientation and nationality.
SUSTAINABILITY REPORT 2014 75
 Human Rights ENVIRONMENTAL PERFORMANCE (Paracatu - MG) unit. This avoided the need to build a new tailings dam every
G4-HR2 G4-HR3 G4-HR5 G4-HR6 G4-HR12 three years and also created a new source of revenue (for more information
Waste please refer to the section Limestone Powder: from waste to product).
G4-EN23 G4-MM3
For the development of new projects, one of the guidelines is to include a
As a signatory of the United Nations Global Compact, we
In 2011, we established an internal goal to reduce the volume of metals and study on the possibilities of reducing waste in the design phase. When this is
support and respect the protection of human rights. We
mining waste in all Votorantim Metais units. We reviewed this situation and not possible, we will search for alternatives with a lower impact. For
have adopted a management approach that comprises a
established a new goal for 2025 which is to reduce the specific generation of example, the solution for waste disposal for the projects in Bongar (Peru)
set of practices to ensure the non-violation of these rights,
mining and metallurgical waste by 50% and reduce the environmental and Aripuan (MT), is the replacement of traditional tailings dams by storing
including in our supply chain (for more information please
impact of waste disposal by focusing on investments in process efficiency, waste in heaps. Despite the complexity of handling, this method has a lower
refer to the section Supplier Management in the chapter
the adoption of new technologies and the creation of economic value. risk of collapse and allows the area to be rehabilitated more rapidly.
Our Strategy and Drivers).

In 2014, we generated 28.7 million metric tons of waste, of which 4.3 million Furthermore, we have identified excellent business opportunities, such as
In our Code of Conduct we have explicitly repudiated ant
metric tons were industrial waste and 24.4 million metric tons were metals and the use of waste generated in one unit as an input in another, either
kind of harassment practices whether they be moral or
mining waste. within the company itself or in one of the Groups other businesses, thus
sexual in nature. We reinforce our position in the
reducing costs and eliminating environmental liabilities. An example of
integration courses for newly-hired employees and in
Our challenge is greater than simply achieving the environmentally appropriate this is the reuse of the spent pot liner (SPL) waste generated in the
courses for existing employees such as recycling, updating
booklet with recommended guidelines. Furthermore, in 2014, disposal of waste. Our Technology and Engineering area is working on projects to pot-rooms at our aluminum plant in Alumnio (SP). This waste is being
and leadership training. In these courses we make it clear
we held a training course on electromechanical maintenance. add value to waste. The best example of this is the Zero Waste project, which co-processed in cement plants and, in the future, will be sent to our unit
which kinds of behavior we value and which we repudiate.
In 2015, we will hold additional training sessions on the eliminated the generation of metals and mining waste at our Morro Agudo Niquelndia (GO) and to the steel industry.
prevention of injuries to the hands, with a special emphasis on
We conduct specific training courses on our human rights
restaurant service providers, since this is a highly relevant risk
policies, both for own employees and contract staff. In
in this type of activity.
2014, we provided a total of 6,245 hours of training,
covering 2,027 employees.
In 2014, the Supplier Approval area evaluated 331 suppliers 3,000,000EN23 | MM3 - Waste (metric tons)1,579
considered critical to the organization. In this evaluation, they
2,962,621
We maintain communication channels available to any 289
stakeholder that may feel prejudiced, discriminated against considered the following aspects: legal, fiscal, financial, labor, 4,730
651
or harassed. Employees have recourse to the areas of environmental, occupational health and Safety and social 1,982
3,000,000 1,579 1,298,900
responsibility. Suppliers which have been rejected can be 1,290,000
Human and Organizational Development (DHO) areas, 2,962,621 6,929
reassessed and approved provided they resolve the pending 289
880
Compliance, or the Ombudsman, and even, the companys 4,730 0
issues identified, except in cases of: disqualification on the 2,800,415 Others
1,982 5,400 20.8
senior management. We encourage our leadership to inspire
grounds of bad faith; serious incidents with the rejection being 2,850,000 51,430
an atmosphere of trust that enables people to come forward
requested by the unit or the Procurement area or for 880 0
with their questions and complaints about the behaviors and 2,800,415 Others
non-compliance with Safety rules. In 2014, we had 38 cases 1,240,000 55
attitudes of their peers, leaders, subordinates and managers. 2,850,000
21,067

(million tons)
of suppliers of products and/or services that failed to meet the 812 3.6
All formal complaints are analyzed, handled and monitored
required standards and had their contracts terminated, 11 0 3.0
by the director of HOD and Corporate Communication and 21,067 1,240,541 Others 1.3
without prejudicing the flows of supplies to the industrial
by the Conduct Committee. 136,410 Non-hazardous Hazardous
units, since substitute suppliers were contracted in good time.
136,410
In 2014, there were no cases of complaints or claims related 2,700,000 Non-hazardous
1,190,00
Hazardous Types of Waste
Perigosos
We have established a goal for the coming years to ensure 2,700,000No perigosos Metals and mining
to impacts on human rights. Moreover, none of our operations
that our suppliers are in compliance with our program No perigosos Industrial waste
were identified as being at risk for the occurrence of child
to prevent and mitigate social and environmental risks.
labor and/or forced or compulsory labor.
Under this program we will analyze all of the categories Types ofTypes
Disposal
of Disposal
Storage
Storage on site on site Co-processing/processing
Co-processing/processing Recovery Recovery
of segments of activities regarded as critical to the
The training of suppliers is another ongoing process. In Industrial landfill
Industrial landfill
Incineration (or use as a fuel)
Incineration (or use as a fuel)
Others
Others
company in order to identify and mitigate potential Sanitary landfill Underground injection
December 2014, we organized a meeting of all the transport Sanitary landfill Underground injection
deviations from our policies. Composting Reuse/recycling
carriers operating at our plant in Alumnio in order to make a Composting Reuse/recycling
presentation on road Safety. The participants also received a

76 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 77

 WE INVESTED R$

521 MILLION
IN THE POLYMETALLICS PROJECT WHICH
TRANSFORMED OUR ZINC UNIT

JUIZ DE FORA: CONTRIBUTING

LIMESTONE POWDER:
FROM WASTE TO PRODUCT
Since July 2010 our unit at Morro Agudo (Paracatu MG)
no longer generates waste in its zinc refining process. After
an investment in new technology the industrial limestone
dust that had previously been considered waste is being
used as a raw material to produce a new product,
agricultural limestone powder (ALP). Our product has been
approved for use in agriculture by the Ministry of Agriculture
and its quality has been certified by the Federal University of
Lavras (MG). As a result, this unit was the first one in
Votorantim Metais achieve the goal of zero waste.
Furthermore, the industrial limestone dust that
was generated and accumulated between 2008 and
2010 and deposited in a tailings dam is now being
reprocessed, to recover zinc and lead as well as an
input for agricultural limestone powder. We are now
producing 700 thousand metric tons/year of ALP.
The product, in its very fine grain form, is used in
agriculture to correct soil pH. In addition to
counteracting soil acidity, the use of ALP enhances
the effects of fertilizer thus contributing to increasing
the soils productivity, thanks to the presence of zinc
in its composition.
TO SUSTAINABILITY
We invested R$ 521 million in the Polymetallics Project, which has transformed our
zinc plant in Juiz de Fora (MG) into a recycling operation for the zinc production
chain, recovering zinc from the processing of alternative sources of raw materials.
This is a strategy to reduce the volume of primary zinc sulfides which are imported.
Until recently, the unit used 100% of imported raw materials in the production of
zinc, zinc alloy, copper sulfate, sulfuric acid and silver concentrate.
Following our investments in a Waelz furnace, which has a strong environmental
appeal, we are now able to process materials with low zinc concentration levels,
which had not previously been used. These materials include the waste generated
internally, in our unit in Juiz de Fora Unit and in our zinc mines in Brazil, and also
electric arc furnace (EAF) dust, produced by the steel industry. EAF dust is classified as
a Class 1 hazardous material which is generally disposed of in controlled landfills.

The Polymetallics Project is a pioneering project and highly identified with the
theme of sustainability: in addition to reducing the zinc production cost it also

KEEPING AN EYE provides an appropriate form of disposal of hazardous wastes, such as EAF dust.
ON THE BEACONS
The production of zinc from secondary sources has been growing. In 2012, the
recycling of EAF dust allowed us to replace 13% of our primary zinc
We are pioneers in the area of tailings dam management. We
requirements. The following year, this proportion increased to 16% and in 2014,
have developed a proprietary model based on the most stringent
the proportion of zinc from secondary sources rose to 19.5%.
environmental laws. We are in the forefront on this question, and
in line with systems used in the United States and Canada.
Considering the available capacity of our Waelz furnace for processing other
materials containing zinc, we have the capability to process approximately 85%
Our system, which is monitored and audited by an independent
of the total EAF dust generated in Brazil, which is equivalent to the total amount
company, encompasses the management of tailings dams and waste
of EAF dust generated in the state of Minas Gerais.
storage areas (heaps). It consists of ten modules, including the control
of all documentation, risk management, emergency plan, monitoring,
Another environmental gain from this project comes from the adjustment of the
training and the planning of the useful life of the waste facilities.
hydro-metallurgical process at the Juiz de Fora plant, which will no longer generate
jarosite, a type of sulfate which represents 80% of the waste currently generated.
The system monitors the companys 27 tailings dams and 25 storage
areas and is based on a network of beacons which are controlled by
a software package and the data is then analyzed by a specialist.

78 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 79


Water
G4-EN8 G4-EN10 G4-EN31
Water is a critical input for the company because our activities
require high levels of consumption, inherent to hydro-
metallurgical processes. For this reason we treat the
management of this resource as a high priority and have
sought, for many years, to implement actions to optimize and
reduce the withdrawal of fresh water and improve the level of
reuse in our industrial processes.
Our concerns with water management and conservation
predate the current water supply crisis, which has affected
particularly the Southeast Region of Brazil. For efficient water
management it is essential to collect information on the
various specific types of consumption, establish common
metrics, evaluate the quality of data and quantify withdrawals,
discharges and losses.
In 2011, we began to implement a method for preparing a
water balance, as a basis for the standardization and
dissemination of information and the establishment of
operational performance improvement targets. In the process
of selecting this method, we evaluated 19 methodologies and
opted for the MCA SMI model, developed by the Australian
Council on Mining (MCA), in partnership with the Sustainable
Minerals Institute (SMI) of the University of Queensland.
Before we implemented this standard method, each operating
unit had accounted for its water use using different
methodologies and data analysis, making it difficult to
compare their performances.
In 2012 and 2013, we made progress and gained experience
80 SUSTAINABILITY REPORT 2014
Due to its complexity, the application of the program will require adjustments over We also participate in the water governance program for the state of Minas
time in the individual units. This process of taking ownership of the methodology is Gerais. We have supported community initiatives to develop projects for
still under way. We also have a goal to create a consolidated database of the submission to the Mining Institute of Water Management (IGAM) with the
information on the current situation and the trends in the availability and cost of aim of obtain financing from the Fund for the Recovery, Protection and
water use in the regions. This includes both the regions where we have existing Sustainable Development of the River Basins of the State of Minas Gerais
operations and those where we are studying the implementation of new projects, (Fhidro). At present, one of our projects is in the final stage of evaluation.
prioritizing areas with higher levels of water stress. The project, which is called the Environmental Assessment of Watershed of
Ribeires do Cgado, Meia Pataca and Crrego do Caracol and Adjacent
In 2014, we invested R$27.4 million in initiatives and new projects related to Areas within the Municipalities of Cataguases and Santana de Cataguases
water resources management and R$ 36.7 million in water-related operating was prepared by an NGO, called Environmental Pact.
costs. In the previous year, the expenditure was also significant, with expenditures
of R$ 32.9 million in investments and R$ 11.5 million in operating costs.
in using the new method. As a result of this experience, we
developed a Water Governance Program, launched in 2014, G4-EN8 Total water withdrawal G4-EN10 Percentage and total
by source (m3) volume of water recycled and reused
which aims to continuously improve water management in our
industrial operations, and provide consolidated information for 24,312,385 43,414,974
water accounting and the construction of a water risk 19,102,589
management matrix. Furthermore, we defined 2014 as The
Year of Water in Votorantim Metais, thus accompanying the
global efforts on this theme. 374,520
21,431,729
2,506,136 The total volume
of water recycled was
In order to implement the program we trained more than 200 equivalent to
technicians in a number of areas including Processes,
Environment, Utilities, Technology and Engineering, among 24,312,385
79%
of the total volume
Volume (m3) of water withdrawn.
other areas. This water inventory model provides for the
production of four types of reports and provides clear and Surface water Total volume of water recycled
Underground water by the organization We recycled 44% of the total volume
accurate information, for example: of water used in our processes.
Water supply companies Total volume of water withdrawn
reported in the indicator G4-EN8
I - Summary table of total water flows broken down by types of
use, that is, inputs, outputs (discharges and losses), deviations
and variations in inventories during the study period.
II - D
 etermination of the percentage of recirculation based
on the total volume of water required for the process;
III - Estimate of the accuracy of the data.
IV - Data contextualized for local conditions.
Our water balance in 2014 revealed that the total volume of
water used in Votorantim Metais processes is around 43.4
million m3/year, and our reuse of water is 19.1 million m3/
year, which represents an average rate of recirculation for all
units of 44%, excluding Metalex and Milpos mining
operations. Our target is to re-circulate 75% of our process
water by 2025.
SUSTAINABILITY REPORT 2014 81
 Energy and emissions Energy mix features 2014 consumption have already contributed to reducing GHG emissions. In
G4-EN3 G4-EN5 G4-EN15 G4-EN16 G4-EN17 G4-EN18 the casting process, we are developing a project to optimize the
gas-fired torches and are continuing seeking to reduce fossil fuel
Including the energy supplied by Votorantim Energia, 88% of the electrical energy consumed in our production units,
came from internal self-generation sources including large and small hydro-electric plants and co-generation in our boilers
39%
Non-renewable
61%
Renewable
consumption in the pot-room furnaces.

in the Niquelndia and Cajamarquilla units. GHG emissions

Units
The cost and security of supply of energy are increasingly key points for business sustainability. For this reason, our Description 2012 2013 2014
(tCO2eq)
Technology and Engineering area has been working on projects to improve energy efficiency and reduce greenhouse gas Stationary
1,962,612 1,832,110 1,704,043
emissions (GHGs), in two main ways: combustion
Mobile sources
124,547 85,646 64,735
Energy Efficiency - improve the specific energy consumption of processes, reducing the consumption of energy - owned
Process 1,341,170 1,210,394 877,381
inputs (electrical energy, natural gas, coke, fuel oil, etc.).
Waste
Energy Flexibility - substitution of fossil fuels by alternative fuels. In our strategic plan 247 166 -
We are conducting a number of research projects, applicable to Votorantim treatment
Soil - limestone 257 200 235
Metais as a whole, including: the use of renewable fuel oils and bio-gas;
We established a target to reduce greenhouse gas (GHG) emissions by 5%, by investing in energy efficiency and energy Soil - nitrogen
heat recovery aimed at reducing steam consumption; automation focusing
mix flexibility, focusing on renewable sources and technological innovation projects. fertilizer
on the reduction of energy consumption; and the use of bio-mass. Electrical
Scope 2 781,075 1,201,553 1,257,569
In 2014, total consumption of renewable and non-renewable fuels was 55.6 million GJ, a decrease of 16% compared to energy
One of the initiatives that facilitated the development of these projects was Mobile sources
2013. Our energy mix included 34.1 million GJ of energy from renewable sources representing 61% of total energy needs. Scope 3 76,994 383,259 39,430
the modernization of the Niquelndia (GO) pilot plant, in which we invested - outsourced
Total 4,286,901 4,713,329 3,943,393
R$ 2.2 million in 2013. In 2015, we are modernizing the Juiz de Fora (MG)
Renewable (R)
Energy Mix (GJ) 2012 2013 2014 pilot plant, with approximately R$ 2.6 million in investments. As a result, we
Non-renewable (NR)
were able to develop a project, in partnership with the Brazilian Research GHG emissions (thousand tCO2eq)
NR Coke 6,876,601 7,128,847 7,795,855
and Industrial Innovation Company (Embrapii), to use alternative fuels to S
NR Fuel Oils 10,643,362 12,401,955 8,508,415
replace coke, such as bio-mass, shredded tires and waste derived fuel (WDF). 4,713
NR Natural gas 5,899,581 6,178,000 5,107,779
NR Other non-renewable inputs 682,677 106,641 152,684 4,287 S
Our GHG emissions, for 2014, were estimated at 3.9 million tons of 3,943
R Other Renewable Inputs 13,711 12,996 447
CO2eq, which represented a decrease of 16% compared to the 2013 T
R Purchased EE - Other Sources 31,966,936 11,292,611 4,246,773

Escopo 1
emissions of 4.7 million tons of CO2eq. In 2014, we created
R Self-generated EE 21,204,461 29,451,816 29,872,926
procedures to standardize the preparation of the GHG emissions inventory. P
TOTAL (GJ) 77,287,330 66,572,866 55,684,878
C
The combined emissions of our units in Trs Marias (MG) and
Energy Mix Profile - 2014 Niquelndia (GO) account for 30% of the companys total emissions. In F
the Trs Marias (MG) unit, we have installed heat recovery equipment for
77,287
steam production; in the Niquelndia (GO) unit, we are testing the use E

E.3 E.2
66,573 of bio-mass in the boilers. These projects are being developed in
conjunction with SENAI-Cimatec and receive financial support from the F
Brazilian Research and Industrial Innovation Company (Embrapii). The
2012 2013 2014
55,685
T
Self-generated EE implementation of these projects will reduce the use of fossil fuels, Process
which, in addition to reducing costs, will reduce our GHG emissions by

Scope 1
Purchased EE - Other Sources
Stationary combustion
Natural gas 105 thousand tCO2eq/year (for more information please refer to the inset
Mobile sources - owned
Fuel Oils Flexible Combustion Chamber in the section Technology and
Innovation in the chapter Our Strategy and Drivers). Electrical energy

S.2
Coke
Mobile sources - outsourced

S.3
Our plant in Alumnio (SP), accounts for 51% of the companys total
TOTAL
emissions and is one of the main focuses of our attention in this regard.
2012 2013 2014 In terms of energy mix, 25% of the total is generated from natural gas.
The improvements in the units operational stability and specific energy

82 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 83

 Honors and awards
Our efforts and initiatives in support of our business
strategies, projects and responsible practices or innovative
actions have been recognized by the market and society,
through honors and awards.
In 2014, the highlights were as follows:
National Innovation Award
This is granted by the Business Mobilization for Innovation
(MEI), an initiative of the National Industry Confederation (CNI)
and the Brazilian Service to Support Micro and Small Enterprises
(Sebrae). We were finalists for the award for best Innovation
Management in the Large Company category. This was in
recognition of our contribution to increasing the competitiveness
of domestic industry through the use of systems and techniques
aimed at improving the management of innovation.
Minas Gerais Environmental
Management Award (PMGA)
In May 2014, our unit in Trs Marias (MG) received the
PMGA, which is officially recognized by the government of
the State of Minas Gerais and the United Nations. The
PMGA award is granted by the Brazilian Union for Quality
(UBQ) and recognizes companies that demonstrate that
they have comprehensive and effective environmental
management systems that foster sustainable development.
The award granted to the Trs Marias unit recognized the
important advances in its environmental management
system and its history of the pursuit of excellence over its
44 years of operations in the municipality. In the last three
years, we have invested more than R$ 200 million in
environmental initiatives, such as the management of
effluents with a high percentage of recirculation and water
treatment in the plant. The construction of the Murici
waste storage area, which is a sealed area that receives
the waste contained in the companys old tailing dams
company, is considered to be one of the largest
environmental investments in Brazil: R$ 420 million.
9 Edition of the FIESP Award for Water
Conservation and Reuse
In March, the unit in Aluminio (SP) received an honorable
mention for its project Reuse of Water from the Bauxite
Tailings Dam. The award aims to recognize companies that
adopt effective measures to reduce water consumption and
wastage, thus generating environmental, economic and social
84 SUSTAINABILITY REPORT 2014
benefits. The unit developed a technical solution to enable it
to recover water from the tailings dam. This resulted in a
reduction of 7% in the withdrawal of fresh water.
The project Water Resource Management System, also
entered by the Alumnio (SP) unit, was a finalist in the
awards. Now, all of the units effluent (liquid waste) is sent
to a treatment plant, allowing it to reuse this water in the
production process. As a result the external withdrawal of
water for industrial use in the unit reduced by 25%.
Green Mine Award for Contributions
to Sustainable Development
The project Future in Our Hands was also one of the winners of
this award, which was granted in July by the In the Mine
magazine, which specializes in coverage of the mining industry.
The award was for the category Community Action - Education.
Award for Excellence in the Brazilian
Metals and Mining Industry
Among the 158 projects submitted, three Votorantim Metais
units received this award. It was sponsored by the magazine
Minrios e Minerales with the aim of disseminating the
technologies, processes and methods applied in mining
companies. The award ceremony took place in May. We
received awards in the following categories:
Extraction Category: for a case study, developed by
mining engineer Gilberto Haruo Hashimoto, on the
Optimization of the mechanization of unstable rock
removal at the underground mine in Morro Agudo. It
presents a technique that improves the detonation
process, preventing accidents from unstable rocks, and
reducing the removal time by 30%. Identifying the
presence of unstable rocks is extremely important for the
Safety of people working in the mine.
Energy category: the award-winning project, developed
by the Processing and Thermal Metallurgy area in our unit
in Niquelndia (GO), related to a new technique for
combining liquid fuel (type 2A fuel oil) and solid fuel
(petroleum coke) for use in the units Nichols-Herreshof
furnaces. The mixture allowed the unit to reduce its
consumption of type 2A fuel oil by 36%, thus reducing
total costs since pet coke is cheaper. This represents a
potential savings of R$ 1.7 million per year, while
maintaining the quality of the gases and the thermal
profile and performance of the furnaces.
Environmental category: the award-winning project, developed by the
Bauxite and Aluminum Technology area, related to the work done to extend
the useful life of the Palmital tailings dam, in our aluminum business, that
otherwise would have exhausted its storage capacity by 2020. By installing
filter presses to separate the liquid and solid materials, less space in the dam
is used. Because of this change in the waste disposal process, the useful life
of the dam has been extended by 27 years. During these studies, we also
identified the possibility to recover 94% of the caustic soda present in the
residues going into the dam. Caustic soda is the third largest cost item for
our plant in Alumnio (SP). Its recovery will reduce the environmental
liabilities and costs, by R$ 24 million per year, in addition to postponing the
need for an investment of R$ 300 million for a new dam.
Brazil Brand Award
In September, the plant in Alumnio (SP) received the Brazil Brand Award for
2014, for investments in its relations and partnerships with customers. In total,
44 brands of companies and organizations were honored in 63 categories
covering 14 economic sectors. Votorantim Metais received an award in the
category Extruded Aluminum Profile Manufacturer for its innovation capacity
and value delivered to customers. Our Aluminum Profile Surface Treatment
Center is the largest and most modern of its kind in Latin America. The Brazil
Brand Award is considered one of the most important forms of recognition in
Brazilian business circles. The awards are based on the votes of the readers of
technical journals for the participants market segments. They elect the
outstanding companies in each year, in a direct, transparent, objective and
democratic way. The receipt of this recognition is a clear sign of customer
satisfaction, which validates our entire business strategy.
Participations in Trade Fairs,
Conferences, Exhibitions and Seminars
In 2014, we intensified our participation in trade fairs, conferences,
exhibitions and seminars. The aims were to increase brand awareness,
emphasize institutional and commercial relations and engage in market
development. Among the various events the highlights were:
ExpoAlumnio 2014 - So Paulo - April
At this trade fair we emphasized our investments in innovation and in
social and environmental management. The event is organized by the
Brazilian Aluminum Association (ABAL) and held every two years. This
edition of the event attracted around 12 thousand visitors and buyers. In
parallel to the fair, there was a trade conference and a recycling seminar.
We exhibited the product line made at our aluminum plant in Alumnio
(SP). The highlights were our range of Ecoperfil products (for more
information please refer to the section Organizational Profile in the
chapter Who we are) and our Aluminum Profile Surface Treatment
Center, the largest and most modern of its kind in Latin America.
19th Edition of the Agricultural Exhibition in
Niquelndia (GO) - July
The Niquelndia (GO) plant presented its social and environmental projects
developed in the state of Gois. The exhibits in our stand were linked to
the campaign on the responsible use of water, called Agua, Bem Presente,
which was carried out in the companys units in 2014.
35th Edition of the Energy and Utilities Seminar
- So Paulo - August
The theme of the event was: Energy efficiency: the management challenge.
Our specialist staff made six presentations and participated in the
roundtable on Energy Efficiency Management, where they described the
projects which were developed by our Technology and Engineering area and
are now in the process of patent registration. The concept and research and
development plans (R & D) of some projects were developed in-house and
aimed at specific applications appropriate to the particular characteristics of
Votorantim Metais production processes. The event highlighted certain case
studies of projects related to the optimization of energy use in the production
processes, commonly used by the metals and mining companies.
Equipo Mining 2014 - Santa Luzia (MG) - August
The event attracted around 12 thousand participants, including
representatives of the leading companies in the metals and mining, steel and
civil construction sectors. Votorantim Metais made presentations on three
projects related to cost reduction and increased production, as follows:
The project to optimize the consumption of ore which enabled us to
increase the bauxite mass recovery rate at our Mira (MG) unit from
38.3% to 41.5%. The project required an investment of R$ 200
thousand and returned savings of R$ 1 million in the first 10 months
Our plant in Alumnio (SP) installed a pioneering software system based
on fuzzy logic to reduce the variability in the alumina concentration/
caustic soda content (A/C) ratio, which fell by 38%. There were further
gains from reductions in the consumption of bauxite and steam in the
ore digestion process and increased plant productivity.
With the involvement of a number of their operational areas, the units
in Vazante (MG) and Morro Agudo (Paracatu-MG) built a databank of
geo-metallurgical and strategic information to support its
technological research and development. This effort resulted in an
increase in the ore recovery rate from 21% to 43% and contributed to
the doubling of sales at the Vazante (MG) unit.
SUSTAINABILITY REPORT 2014 85
 Metallurgy Fair 2014 - Joinville (SC) - September NATIONAL VOLUNTARY COMMITMENTS
We exhibited our range of products and solutions for the casting market segment. We presented the complete product
lines of our Aluminum and Polymetallics division. These products have Votorantim Metais guarantee of quality for all Open Letter to Brazil on Climate Change: Votorantim Industrial is
stages of the production chain. a signatory to this initiative, signed in 2009, in which the participating
companies have assumed a number of commitments to reduce the
Our stand exhibited a model of our aluminum plant located in Alumnio (SP). This plant receives bauxite as a raw material impacts of climate change and have also made proposals on actions
for processing into alumina which is then used in the production of primary aluminum. This is then transformed into to the federal government.
manufactured products such as extruded profiles, sheets and foil for consumer goods, civil construction, packaging,
transportation, among other sectors. More information is available at: http://www.forumEmpresarialpeloclima.org.br/
The Polymetallics division presented its products and services for the casting market for zinc, nickel and other metals. One Vision Brazil 2050: Votorantim Industrial participated in the
of the highlights was the Zamac product range, which is used for pressurized and centrifuged casting. They include the elaboration of the guidelines of the document Vision Brazil 2050, in
Zamac alloys 3, 5 and 8, as well as Zamac Flux. which the participating companies defined lines of work. The results
were presented at the Rio+20 Conference in June 2012.
External commitments More information is available at: http://cebds.org/publicacoes/visao-brasil-2050/
G4-15 G4-16
As a company of the Votorantim Group, Votorantim Metais is a signatory of and/or voluntarily adhered to the following commitments: Through its plant in Alumino (SP), the company is a member of the
Green Building Council (GBC) - Brazil, an NGO affiliated to the
GLOBAL VOLUNTARY COMMITMENT World Green Building Council. The goal of the GBC is to promote the
development a sustainable construction industry, through solutions for
UN Global Compact: Votorantim Industrial has been a signatory of the UN Global Compact, since 2011. This the construction market. By being a member of this association, we are
is a United Nations initiative which aims is to mobilize the business community to adopt fundamental values and
reaffirming our commitment to the sustainable development of the
internationally accepted practices in human rights, labor relations, the environment and the fight against corruption. construction industry and to conducting our activities in a safe and
responsible manner, seeking to offer products that meet the interests of
More information is available at: http://www.unglobalcompact.org/ our various stakeholder groups. An example is our Ecoperfil range of
products, made with a high percentage of recycled aluminum.
Certifications
Standard Description
ISO 9001 Quality Management System
ISO 14001 Environmental Management System.
OHSAS Occupational Health and Safety
18001 Management System
ISO 17025 General Competence for Laboratory Testing
86 SUSTAINABILITY REPORT 2014
Memberships of associations
Standard Description
Tito Chairman of the Board of the Brazilian Aluminum
Martins Association (ABAL).
Vice President of the Agency for Technological Development of
Jones
the Brazilian Mining Industry (ADIMB) and Board Member of
Belther
the Brazilian Mining Institute (IBRAM).
Carlos
Chairman of the Board of the Non-ferrous Metals Institute
Marcelo
(ICZ) and President of the Latin American Zinc Association
Gonalves
(LATIZA).
Henriques
Certifications help organizations to put together a set of methods and
systems that enable them to manage the business processes and risks
more efficiently. At Votorantim Metals we have obtained certifications of
our management systems for quality control, the environment,
occupational health and safety, social responsibility and laboratory testing.
They demonstrate that we follow best market practices and help us
improve our relations with customers and other stakeholders. Since a
large proportion of our production is directed to serve other industries
(business to business), we adopt the certification criteria that are
required by them.
The highlights were as follows:
Certified units
Alumnio (SP), So Miguel Paulista (So Paulo SP), Trs Marias (MG), Morro Agudo
(Paracatu MG), Vazante (MG), Juiz de Fora (MG), Milpo (Peru) and Cajamarquilla (Peru).
Alumnio (SP), So Miguel Paulista (So Paulo SP), Niquelndia (GO), Fortaleza de
Minas (MG), Trs Marias (MG), Morro Agudo (Paracatu MG), Vazante (MG), Juiz de
Fora (MG), Milpo (Peru) and Cajamarquilla (Peru).
Niquelndia (GO), So Miguel Paulista (So Paulo SP), Trs Marias (MG), Morro Agudo
(Paracatu MG), Juiz de Fora (MG) and Milpo (Peru).
Vazante (MG) and Juiz de Fora (MG).
SUSTAINABILITY REPORT 2014 87
 The Trs Marias Unit: defending Old Chico together with
the community

Over the past decade, our unit in Trs Marias (MG), located near the So Francisco River (known as Old
Chico), has evolved significantly in its environmental management practices, such that it won the most
important award in this area in the state, the Minas Gerais Environmental Management Award (PMGA).
Among a number of factors, one of the most important was the evaluation of the companys investments
to improve the storage of waste. The unit built a waste storage area in accordance with the
most stringent environmental requirements, and the management of judicial requirements.

But just as important as the PMGA award, is the recognition by the community that the
company is committed to social and environmental issues and has been taking care of
these matters in an extremely transparent and serious manner. A sign of this recognition
was the presence of the fisherman Norberto Antonio dos Santos in the audience at the
PMGA ceremony, sitting alongside representatives of Votorantim Metais.

Born and raised on the banks of So Francisco River, Mr. Norberto, who is one of the companys
neighbors, has been a fisherman for 56 years. No one else knows better how important it is to
keep the river alive. There is a production chain linked to the river, including hotels and sport
fishing. Not only people, but animals depend on it as well, said Mr. Norberto.

At Votorantim Metals, we have developed close relations with the local community and today
we are taking a leading role in the region as regards initiatives to protect the river. One such
initiative is the creation of environmental monitors, who are fishermen who photograph, weigh
and record the features of the fish found dead in the So Francisco River and other rivers in the
region. In this way we have built up a database from information collected over the last ten
years which is now available for use in research. In order to develop these initiatives we entered
into partnerships with specialized centers in prominent universities, such as the Federal
University of Minas Gerais and the Federal University of So Carlos, in So Paulo.

The initiatives to promote closer relations between the company and the community included
the development of social projects, environmental education initiatives and presentations to
fishermen andother communities of river dwellers on the history of the river and its species of
fauna and flora. We also created a dedicated telephone service (0800-0319261) to receive
complaints, warnings and suggestions. All queries and comments received are analyzed by
the responsible areas and replies are sent to the senders. Alternatively, people can visit the
unit in person and be received by a company representative.

These and other initiatives have made the Trs Marias unit a benchmark for environmental
management. The unit receives visitors from other units of Votorantim Metais, Group companies
and other companies. One of the great advantages of our management system is that it is not
cast in concrete, but is very dynamic and open to contributions from stakeholders. We have a
lot of contact with the community, says environmental analyst John Eudes Pereira, responsible
for monitoring the river and for attending the dedicated telephone number.

I have followed the work of Votorantim Metais in recent years and I see a transparent attitude
and a real interest in solving environmental issues. I see you are looking to do the best you can
and you welcome us with open arms when we have something to say, said Mr. Norberto.

88 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 89

 ABOUT THE
The objective of this report is to present an account of our activities during the year, in a
transparent, responsible and structured manner. The report contains information on our business

REPORT
model, business strategies, material issues and our initiatives to engage with our main stakeholder
groups, that is, senior management and employees, institutional investors, governments, social and
class entities, regulatory agencies, the media, the media, trade unions, non-governmental
organizations, suppliers and customers.For the first time, we are publishing our own annual report,
called the Votorantim Metais Sustainability Report 2014.
G4-3 G4-17 G4-22 G4-23 G4-24 G4-25 G4-28 G4-29 G4-30 G4-31 G4-32 G4-33

The preparation of the report was based on the most recent version (G4) of the
Global Reporting Initiative (GRI) guidelines. The report integrates both financial
and non-financial information in a single narrative which is permeated by the
aspects which are most relevant for Votorantim Metais such as, corporate
identity, governance structure, strategic approach to sustainability, strategic
positioning of its business activities and its performance.
Our Sustainability Report provides information on Votorantim Metais
strategies, projects and initiatives, products and services, operations and
business activities, with the primary focus on its performance in 2014.
Regarding the information related to the GRI indicators, any limitations on
the scope or boundary of a specific indicator are indicated in the Table of
GRI Indicators or in commentaries in the text of the report.
The social and environmental information presented in this report cover
the business and operations of our Aluminum and Polymetallics division
for the units located in Brazil and Peru, as follows:
Votorantim Metais head-office (So Paulo SP), Alumnio (SP), Itamarati de
Minas (MG), Mira (MG), Poos de Caldas (MG), Araariguama (SP)
Metalex, So Miguel Paulista (So Paulo SP), Niquelndia (GO), Fortaleza
de Minas (MG), Juiz de Fora (MG), Morro Agudo (Paracatu MG), Trs
Marias (MG), Vazante (MG), Cajamarquilla (Peru), Milpo (Cerro Lindo, El
Porvenir, Atacocha). The report does not include information on our unit in
Sorocaba (SP) since this unit has only recently been acquired.
The economic and financial results presented herein refer to the following
three legally constituted companies: Votorantim Metais Zinco S.A,
Votorantim Metais S.A. and Companhia Brasileira de Alumnio.
Our external auditors, PricewaterhouseCoopers, have audited the financial
information in the report and have provided limited assurance for certain
non-financial data. In addition the Global Reporting Initiative (GRI) has
reviewed the report in relation to the aspect of Materiality Disclosure.
Although it is not required by internal policies, the external verification
process was a requirement set by senior management.
The printed version of the Sustainability Report is being distributed to
representatives of our stakeholders, including, investors, governments,
economic and market analysts, community leaders, social and class
entities, regulatory agencies, the media, among others.
In addition to the printed version, the report will be available in a PDF version.
The full report may be accessed on the Votorantim Metais website at:
www.vmetais.com.br.
The report is being published in Portuguese, English and Spanish.
Your opinion is very important to us. Please send your feedback,
comments or questions to: faleconosco@vmetais.com.br

90 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 91

GRI LIST OF CONTENTS/
INDICATORS
Disposal of HAZARDOUS waste External
5. Stakeholder Engagement Page (Supplementary Data and/or DMA)
Assurance
External
1. Strategy and Analysis Page (Supplementary Data and/or DMA) G4-24. Stakeholder groups engaged 53, 90
Assurance

G4-1. President's Statement 4 G4-25. Basis for identification and selection of stakeholders 90

External G4-26. Engagement approach 53

2. Organizational Profile Page (Supplementary Data and/or DMA)
Assurance G4-27. Key topics and concerns identified and the organization's response 53
G4-3 . Name of organization 90 External
6. Report Profile Page (Supplementary Data and/or DMA)
Assurance
G4-4. Primary brands, products and / or services 8,18
G4-28. Period covered by the report 90
G4-5. Location of the organization's headquarters 8,126
G4-29. Date of most recent previous report 90
G4-6. Geographical coverage 8
G4-30. Reporting cycle 90
G4-7. Legal form 18
G4-31. Contact point 90,126
G4-8. Markets served 8,18 G4-32. Report "in agreement" option Essencial pages 90 and 124
G4-9. Scale of the organization 8, 12, 18, 62 G4-33. External assurance policy 90

G4-10. Total number of employees 8 External

7. Governance Page (Supplementary Data and/or DMA)
Assurance
In Brazil, 100% of employees covered by collective
G4-11. Percentage of employees covered by collective bargaining agreements G4-34. Governance structure 15
bargaining agreements

G4-12. Supply chain 50 External

8. Ethics and Integrity Page (Supplementary Data and/or DMA)
Assurance
G4-13. Significant changes in the organizational structure 15
G4-56. Values, principles, standards and norms of behavior 27
External
3. Commitments to External Initiatives Page (Supplementary Data and/or DMA)
Assurance
ECONOMIC PERFORMANCE
G4-14. Precautionary principle 52
DMA ASPECT: ECONOMIC PERFORMANCE
G4-15. List of charters and Initiatives 86
Votorantim Metais is a privately-held company que adopts the accounting and governance practices of publicly-listed companies. The company has a
G4-16. Memberships of associations 86 Board que establishes the companys long-term direction and preserves the companys values and management beliefs. The company has corporate
policies for investments and debt que aim to maintain the companys investment grade rating. The companys long-term plans are based on macro
External economic scenarios, demand and availability of raw materials and energy. The strategic planning cycle encompasses all the material aspects of
4. Aspects and Material Boundaries Page (Supplementary Data and/or DMA)
Assurance sustainability the guiding parameters.
Budgets are made based on the year 1 of the strategic plan and short and medium-term targets are set for all the companys executives. The
G4-17. List of entities included in financial statements 90
remaining employees also have targets based on the breakdown of its units overall targets. The control of the execution of the budget includes an
G4-18. Report content and Aspect Boundaries 53 analysis of the Distribution of Value Added (DVA). This analysis demonstrates the taxes paid and the amounts distributed to the companys main
stakeholder groups.
G4-19. Material Aspects 27, 53 The strategic plan includes a risk analysis of all the aspects material, including those related to climate change. The companys management approach
includes the use of insurance policies, mainly for issues directly related to the manufacturing operation and the supply of raw materials.
G4-20. Aspect Boundaries 53

G4-21. Aspect Boundary outside the organization 53

G4-22. Effects of significant restatements of information 90

G4-23. Significant changes from previous reporting periods in Scope and

90
Aspect Boundaries

94 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 95

 External DMA ASPECT: MARKET PRESENCE
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Votorantim Metals' compensation policies and practices are in line with the market. The company does discriminate salaries by gender. The salaries for
G4-EC1 Direct economic value generated and distributed, including 12, 62 employee categories are divided into salary groups (SG). The variations in salaries within each SG are due to merit, competence and the length of time
revenues, operating costs, employee compensation, donations in the job.
and other community investments, retained earnings and
payments to capital providers and governments. External
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Components of Value Added (R$ million) 2014
G4-EC5 V
 ariation of the ratios of the standard entry level salary,
DIRECT ECONOMIC VALUE GENERATED broken down by gender, compared to the minimum wage
1) Revenues at significant locations site of operation.
1.1) Sales of products and services 6,952,462 During the year 2014, two employees in the Morro Agudo unit
1.2) Other net operational revenues (expenses) 560,412 Variation between the standard entry level salary and the minimum received compensation below the local minimum wage. However,
1.3) Reduction (increase) in the reserve for doubtful credits (21,273) wage location. having identified these cases, the company made salary adjustments,
valid from 2015.
1.4) Total revenues 7,491,601
2) Inputs acquired from third parties Omissions
2.1) Cost of goods sold and services provided (3,136,151) Omitted Information Reasons for Omission Explanation for Omission
2.2) Materials, energy, outsourced services and others (519,858)
Variation between the standard entry level salary and the minimum Information was not reported to
2.3) Impairment of fixed assets (523,324) Confidential information
wage location. ensure employee safety.
3) Gross value added 3,312,268
3.1) Depreciation, amortization and depletion (516,489) Comments:
4) Net value added produced 2,795,779 1. Does not include the costs incurred by Metalex. Information not available.
5) Value added received in transfers DMA ASPECT: INDIRECT ECONOMIC IMPACTS
5.1) Result of equity investments 61,876 The indicators for Votorantim Metals' social projects are the monitored through the Votorantim Social Projects Management System, under guidelines
5.2) Financial revenues 1,344,746 from the Votorantim Institute. Each social organization prepares a progress report on its activities, each semester, and the social site project manager
Total value added received in transfers 1,406,622 prepares a call report to validate the shared information.
6) Total value added to be distributed 4,202,401 In addition, an outside consultant hired by Votorantim Metais visits each locality four times a year to check the indicators, targets, achievement of
results, accountability, organization management potential and the social site project manager. The consultant prepares a report on each visits
7) Distribution of value added providing information on the status by project, unit and functional area.
7.1) Salaries and social charges / benefits 1,092,195
External
7.1.1) Salaries 616,206 Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
7.1.2) Social charges 351,542
7.1.3) Benefits 124,447 G4-EC7 D
 evelopment and impact of infrastructure investments 69
7.2) Taxes, tariffs and contributions 685,004 and services supported.
7.2.1) Federal 653,286
Type of Investment Amount (R$) Size Location
7.2.2) State 474,854
7.2.3) Municipal - More than 5
Commercial 88,943 thousand Brazil
7.2.4) Deferred taxes (443,136) beneficiaries
7.3) Remuneration of third-party capital 2,437,893
More than 5
7.3.1) Financial expenses 2,394,787
Other types 15,988,529 thousand Brazil and Peru
7.3.2) Rents 43,106 beneficiaries
7.4) Remuneration of own equity (12,691)
Infrastructure Investments or supported services (R$) 2014
7.4.1) Net income (loss) for period (12,691)
8) Distribution of value added 4,202,401 Total Investment 16,077,472
Comments: Comments:
1. Consolidated Statement of Value Added at December 31st, 2014 for the companies: Votorantim Metais Zinco SA; Votorantim Metais SA; and Companhia
1. Although Metalex is included in the list of units it is not considered to be the priority for social action.
Brasileira de Aluminio. Does not include the units of Metalex, Milpo and Cajamarquilla

96 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 97

 DMA ASPECT: PROCUREMENT PRACTICES Comments:
1. F or the purposes of this indicator Votorantim Metais adopted the practice of informing the main materials used by each unit. These consist of
Procurement of low-value non-critical services are delegated to the operating units. One of the goals of this initiative is to promote the development of mineral ores and chemicals. An input was considered significant when its consumption was equal or greater than one ton per month.
the local markets, due to the proximity of our operations. There are no policies Which require the hiring of the local suppliers. However, in practice, 2. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
there is a preference for hiring the local suppliers as a tie-breaking factor in the event of equivalent competing offers. 3. Indicator does not include information for the Metalex unit. Not managed.
External External
Aspect Indicators Page (Supplementary Data and/or DMA) Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance Assurance
G4-EC9 Proportion of spending on Local suppliers at significant 50
locations of operation. G4-EN2 Percentage of materials used that are recycled materials

Amount Spent with Local Suppliers 2014 Amount Spent with Local Suppliers 2014
Amount spent with the local suppliers R$ 1,885,739,595 Total recycled materials used 123,316
Total amount spent with suppliers R$ 4,436,655,791 Total materials used (EN1) 21,769,911
Proportion of spending with the local suppliers 43% Percentage of recycled materials 1%
Comments: Comments:
1. The results included the spending also made by Votorantim Energias suppliers since it does not have its own procurement department. Votorantim Energia is 1. Indicator applicable only to the Juiz de Fora and Metalex units.
responsible for contracting services and non-recurring materials up to R$ 2 thousand. For other contracts, the company is responsible for generating the order,
issuing a purchase request and the instructions for the subsequent processing steps which are carried out by Votorantim Metais. DMA ASPECT: ENERGY
2. Does not include the costs incurred by Metalex. Information not available.
The energy demand by segment is defined in the strategic plan. Action plans are prepared to meet this demand with medium and long-term
supply contracts. For day-to-day energy management, the units have energy efficiency programs to optimize the use of inputs and the
ENVIRONMENTAL PERFORMANCE technology and development areas research the possibilities for new processes and energy sources.

DMA ASPECT: MATERIALS External

Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
All Votorantim Metals raw materials are managed based on: a five-year demand forecast (strategic plan); available stocks of resources (renewable and non-renewable);
management of licenses for mining and production; and production capacity. Each year the budgeted amounts of inputs are fine-tuned for the following year. During 82
G4-EN3 Energy consumption inside the organization
the current year sales and production are planned on a monthly basis to manage flows material.
External Comments:
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance 1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
2. Not applicable to the So Paulo administrative office.
G4-EN1 Materials used by weight and volume 3. T he data presented are managed by means of the energy balance of the units and are included in the greenhouse gas emissions (GHG) inventory
which is prepared based on ISO 14064-1/07 and the Brazilian GHG Protocol program. For the cases where the Brazilian GHG Protocol program
has not defined the methodology the IPCC guidelines were used. This inventory received a limited assurance review by PwC.
Consumption of main materials (metric tons) Type 2014
External
Zinc ore Non-renewable (Internal Supply) 1,416,697 Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Bauxite ore Non-renewable (Internal Supply) 2,162,598
82
Bauxite ore Non-renewable (External Supply) 1,749,740 G4-EN5 Energy Intensity
Nickel ore Non-renewable (Internal Supply) 3,286,407
Milpo ore Non-renewable (Internal Supply) 10,832,285 Renewable and non-renewable energy sources, inside and outside the organization
Carbonate Non-renewable (External Supply) 41,096
Rate
Nickel concentrate Non-renewable (External Supply) 12,126 Main products
(GJ/t)
Cobalt concentrate Non-renewable (External Supply) 1,375
Zinc sulfate concentrate Non-renewable (External Supply) 221,358 Aluminum 16.33
Silica concentrate Non-renewable (External Supply) 332,430 Zinc 13.21
Zinc concentrate Non-renewable (External Supply) 629,739 Nickel 375.50
Other non-renewable materials (External Supply) Non-renewable 336,542
Comments:
Other non-renewable materials (Internal Supply) Non-renewable 747,517
1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
Other renewable materials Renewable 0 2. Not applicable to the So Paulo administrative office.
Total volume of main materials (metric tons) - 21,769,911 3. Indicator does not include information for the Metalex unit. Not managed.

98 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 99

 DMA ASPECT: WATER DMA ASPECT: EMISSIONS
Water consumption in the manufacturing and mining operations comply with the terms of water licenses. The aim is to optimize the internal use of water All of the parameters for the authorizations for air emissions and particulate matter comply with the legal aspects and the values indicated
in their
in operations, either by recirculation, sequential use in a number of processes, and the reduction of wastage and consumption. The goal is always to seek licensing processes.
ways of closing the loop for the use of water. Effluents are treated and monitored, and Their discharge into water bodies complies with the applicable The company has a goal of reducing emissions per metric ton of production in all its processes, related to greenhouse gases.
legislation. The monitoring of discharges is part of the environmental control system.
External
External Aspect Indicators Page (Supplementary Data and/or DMA)
Aspect Indicators Page (Supplementary Data and/or DMA) Assurance
Assurance
82
80 G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
G4-EN8 Total water withdrawn by source
82
2014 G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Surface water 21,431,729

G4-EN17 Other indirect greenhouse gas (GHG) emissions, 82
Underground water 2,506,136
by weight (Scope 3)
Water supply companies 374,520
Total water withdrawn 24,312,385 Comments:
1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
Comments: 2. Not applicable to the So Paulo administrative office.
1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended. 3. Indicator does not include information for the Metalex unit. Not managed.
2. Information is not available for the administrative office (So Paulo). Unit not included. 4. T he data presented is included in the greenhouse gas emissions (GHG) inventory which is prepared based on ISO 14064-1/07 and the Brazilian GHG
External Protocol program. For the cases where the Brazilian GHG Protocol program has not defined the methodology the IPCC guidelines were used. This
Aspect Indicators Page (Supplementary Data and/or DMA) inventory received a limited assurance review by PwC.
Assurance
80 External
Aspect Indicators Page (Supplementary Data and/or DMA)
G4-EN10 Percentage and total volume of water recycled and reused Assurance

Total amount of water recycled and reused by the organization 2014 G4-EN18 Emission intensity of greenhouse gases
Total volume of water withdrawn, reported in the indicator G4-EN8 24,312,385
Total volume of water recycled by the organization 19,093,137 Types of
Main Products Rate (tCO2eq/t) Gases included
Energy
Total volume of water used in the processes 43,405,523
Percentage of the total volume of water recycled compared to the total water used in the processes 44% Own and
Aluminum 1,14 CO2, CH4, N2O, CF4, C2F6
Purchased
Percentage of the total volume of water recycled compared to the total water used in the processes 79%
Own and
Comments: Zinc 0,83 CO2, CH4, N2O
purchased
1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
2. Not applicable to the administrative office (So Paulo). Own and
Nickel 30,24 CO2, CH4, N2O
3. Does not include the units of Metalex, Milpo and Cajamarquilla Not managed. purchased
Comments:
1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
2. Not applicable to the So Paulo administrative office.
3. Indicator does not include information for the Metalex unit. Not managed.

100 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 101

 DMA ASPECT: EFFLUENTS AND WASTE DMA ASPECT: PRODUCTS AND SERVICES
We comply with all the legal requirements concerning effluents and waste and with the values specified
in the licensing process. We have a corporate goal The high proportion of Votorantim Metals products are sold to other industries (B2B). Therefore, we follow the criteria demanded by customers related to
which aims to reduce the generation of waste per metric ton produced in all processes. To achieve this our technology teams seek to develop new techniques these issues. For the products destined to direct consumption we have developed best practice manuals including information on their use and disposal.
and technologies, for more sustainable and profitable alternatives for the waste generated, as well as other relevant aspects.
External
External Aspect Indicators Page (Supplementary Data and/or DMA)
Aspect Indicators Page (Supplementary Data and/or DMA) Assurance
Assurance
G4-EN28 Percentage of products and their packaging recovered in relation
77
G4-EN23 Total weight of waste by type and disposal method to the total products sold, broken down by product category

2014
Total Weight of Waste (metric tons) 2014
In the Aluminum Division, the main initiatives are related to the metal packaging of the sheets of coils sold, which are 100% returned to the aluminum plant for reuse.
Disposal of NON-HAZARDOUS waste 2,962,621 Additionally, a portion of the aluminum scrap resulting from the processing of our products is returned by customers to be reprocessed and resent to customers in the
Composting 880 form of products, thus creating a closed cycle. Expanding these initiatives is one of our business goals.
In the Polymetallics Division, our main initiative is the return and reuse of the packaging of the zinc products sold by the Trs Marias unit. In 2014 about 1,100 metric
Reuse / Recycling 21,067 tons of big bag packaging was recovered, which represented 48% of total sales. Furthermore we recovered 100% of plastic and pack less pallets for reuse,
Recovery 0 totaling 1,130 metric tons.
Incineration (or use as a fuel) 136,410 Comments:
Landfill 1,982 1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
2. Indicator does not include information for the Metalex unit. Not managed.
Co-processing / processing 0
Storage on site 1,579 DMA ASPECT: COMPLIANCE

Underground injection of waste 2,800,415

A high proportion of Votorantim Metais products are sold to other industries (B2B). We follow all the criteria demanded by customers related to these
Industrial landfill 289 issues. For the products destined to direct consumption we have developed best practice manuals including information on their use and disposal.
Disposal of HAZARDOUS waste 1,298,900
External
Composting 0 Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Reuse/Recycling 1,240,541
G4-EN29 M
 onetary value of significant fines and the total number
Recovery 11 of non-monetary sanctions for non-compliance with
Incineration (or use as a fuel) 55 environmental laws and regulations

Landfill 0 Period 2014

Co-processing / processing 51,430
Total number of sanctions 26
Storage on site 651
Total monetary value of significant fines 2,338,072
Underground injection of waste 812
Legal actions filed through arbitration mechanisms 0
Industrial landfill 5,400
TOTAL Waste disposal 4,261,521 Comments:
1. This item included the demands received and amounts paid, including both legal actions filed and administrative proceedings.
Composting 880 2. Indicator does not include information for the Metalex unit. Information not available.
Reuse / Recycling 1,261,608
Recovery 11
Incineration (or use as a fuel) 136,465
Landfill 1,982
Co-processing / processing 51,430
Storage on site 2,230
Underground injection of waste 2,801,227
Industrial landfill 5,688
Comments:
1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.

102 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 103

 DMA ASPECT: TRANSPORT DMA ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT

Regarding its own fleet of vehicles, each unit updates the control system on a monthly basis by entering the amount of fuel consumed. In the case of We evaluate suppliers in terms of environmental criteria with regard to their eligibility, registration and capability. In the phase of eligibility and
the third-party companies providing logistical services, we request them to provide data on fuel consumption and mileage. All this information is then registration, 100% of new suppliers are subject to an assessment of their Conformity Certificates. The evaluation of supplier capability also includes
consolidated to calculate the GHG emissions using the methodology established by the Brazilian GHG Protocol Program. relevant environmental criteria.

External External
Aspect Indicators Page (Supplementary Data and/or DMA) Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance Assurance
G4-EN30 Significant environmental impacts resulting from G4-EN32 P
 ercentage of new suppliers that were screened using 50
transporting products and other goods and materials environmental criteria
used for the organizations operations, and the
transportation of its employees Total
Number of new suppliers that were screened using environmental criteria
In 2014, Votorantim Metals recorded a total of 39,430 tons of CO2eq 2014
associated with the transport of supplies by its own and outsourced
Greenhouse gas emissions vehicles. The gases included in the calculations were CO2, CH4 and Total number of new suppliers 999
N2O
Total number of new suppliers that were screened using environmental criteria 116
Comments:
1. Indicator does not include information for the Metalex unit. Not managed. Percentage of suppliers screened using environmental criteria 12%

DMA ASPECT: OVERALL Comments:

1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
The budget for environmental issues and CAPEX projects are decided during the strategic planning process, which defines the allocation of resources 2. Indicator does not include information for the Metalex unit. Not managed.
for the next five years. The next step of the management process is the completion of the annual budget, where the investments are detailed and
approved for implementation. The monitoring of the budget is performed monthly using data available in SAP and is discussed in internal meetings DMA ASPECT: ENVIRONMENTAL GRIEVANCE MECHANISMS
held at each unit. CAPEX projects are monitored monthly, at Engineering area meetings, in accordance with the CAPEX Manual.
The units have established channels of communication with the companys main stakeholders, and participate in meetings with the community and
External
Aspect Indicators Page (Supplementary Data and/or DMA) professional associations. Grievances are received by letters, phone calls or personal contacts and are registered in the Votorantim Management System (GQI).
Assurance
The system also records information on the stakeholder who made the complaint, the action plans and area (s) responsible for implementation.
G4-EN31 Total Investments and expenditures on environmental 12, 18
External
protection, by type. Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance

2014 G4-EN34 Number of grievances related to environmental

Environmental investments and expenditures (R$) impacts filed, addressed and resolved through formal
CAPEX OPEX Total mechanisms
Environmental education. 0 584,012 584,012 Number of grievances related to environmental impacts received during the reporting period 2014
Environmental management 679,903 14,200,196 14,880,099 Total number of grievances related to environmental impacts registered in formal mechanisms 15
Conservation, reforestation and biodiversity 226,846 10,704,973 10,931,819 Total number of grievances related to environmental impacts that have been addressed 15
Environmental protection 17,080,941 2,857,537 19,938,479 Total number of grievances related to environmental impacts that have been resolved 15
Treatment of air emissions 17,545,719 46,555,020 64,100,739 Total number of grievances relating to registered environmental impacts prior to the reporting period that were resolved during this period 0
Waste treatment 7,146,292 25,640,285 32,786,578 Comments:
1. Does not include the units of Metalex, Milpo and Cajamarquilla Not managed.
Effluent treatment 27,365,292 36,715,789 64,081,081
HOD - Environmental Area 95,000 6,214,384 6,309,384
Decommissioning / remediation of contaminated areas (soil and water) 1,135,772 8,014,382 9,150,154
Environmental insurance 0 0 0
Other environmental costs 1,245,247 1,905,220 3,150,467
Total 72,521,013 153,391,798 225,912,811
Comments:
1. Not applicable to the administrative office (So Paulo).

104 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 105

 SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK DMA ASPECT: OCCUPATIONAL HEALTH AND SAFETY
DMA ASPECT: EMPLOYMENT Votorantim Metais seeks to use best practices for the efficient management of the health and safety of its employees and third parties. In 2014 the
company developed a series of programs to raise awareness and strengthen safety aspects at all levels of the company. These initiatives involved:
Human resource guidelines and policies are common to all the Votorantim Groups companies, and include:
fostering awareness among managers; specialist lectures; information campaign aimed at the employees families; and the training of supervisors, with
1. Hiring: the company values competence,
with fair and equitable opportunities for all.
the aim of them applying their knowledge to ensure the safety of themselves and their teams. Furthermore, the company carried out safety workshops
2. Career management: the company values: meritocracy, pragmatism, excellence, open dialogue for all questions, and a sense of belonging. Career
with the companies providing transportation services and a review of a number of programs, such as: occupational hygiene, nutrition, food security.
management includes setting short and long-term targets, management of an opportunities pipeline and professional training, including courses at
We also monitored and controlled the rate of absenteeism, the training of the occupational medicine team and the flu vaccination campaign.
the university corporate (Votorantim Academy).
3. Termination: a questionnaire of the degree of satisfaction/motives for leaving is conducted for both voluntary and involuntary terminations in order External
to understand the circumstances and improve the management of the subject. Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
External G4-LA6 Type of injury and rates of injury, occupational diseases, 12, 65
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance lost days, absenteeism and total number of work-related
41 fatalities, by region and gender
G4-LA1 Total number and rates of new employee hires and employee
turnover by age group, gender and region Own employees and permanent third-party workers

Brazil 2014
Occupational Health and Safety Indicators Votorantim
Age Group Brazil Overseas
Metais
Between Man-hours worked 31,325,678 19,345,979 50,671,657
2014 Men Women Less than More than
30 and 50
30 years old 50 years old
years old Total no. of injuries (Level 1) 254 130 384

Total employees 8,560 636 2,396 6,124 676 Total no. of injuries without lost days (Levels 2 and 3) 58 36 94

Employees hired 1,155 263 869 527 22 Total no. of injuries with lost days (Levels 4, 5 and 6) 19 29 48
Terminations 1,710 310 952 906 162 Fatalities 1 1 2
Rate of new hires 13% 41% 36% 9% 3%
No. of lost days 952 915 1,867
Turnover 20% 49% 40% 15% 24%
Injury Rate (TL) 0.49 0.67 0.56
Overseas
Occupational Disease Rate (TDO) 0.03 2.02 0.79
Age Group
Lost Days Rate (TDP) 6.08 9.46 7.37
Between
2014 Men Women Less than More than
30 and 50 Absenteeism rate (TA) (Work-related Accidents) 9.84 219.45 89.87
30 years old 50 years old
years old
2014
Total employees 2,174 130 234 1,489 581 Occupational Health and Safety Indicators
Votorantim
Brazil Overseas
Employees hired 246 41 92 176 19 Metais

Terminations 299 56 45 197 113 Absenteeism rate (TA) (Occupational Disease) 32.56 0 20.13
Rate of new hires 11% 32% 39% 12% 3% Absenteeism rate (TA) (Non-occupational disease) 439.58 1,093.04 682.41
Turnover 14% 43% 19% 13% 19%
Absenteeism rate (TA) (Accidents outside work) 2.19 199.04 76.52

Comments: TOTAL absenteeism rate (TA) 484.16 1,511.53 868.92

1. The data reported included all Votorantim Metais units but excluded interns, apprentices and employees absent for any reason except maternity leave.
Frequency rate of accidents with and without lost days 2.46 3.36 2.80

Frequency rate of accidents with lost days 0.61 1.49 0.95

106 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 107

 Omissions Comments:
1. This indicator comprises training conducted by VID (Votorantim Academy) and training conducted by each unit.
Omitted Information Reasons for Omission Explanation for Omission 2. Does not include training carried out by the Metalex and Fortaleza de Minas units.
Gender Not available Not managed. External
Aspect Indicators Page (Supplementary Data and/or DMA)
Information on occupational diseases, non-occupational diseases and Assurance
accidents outside work for third-party contract staff (permanent, temporary Not available No information available. G4-LA11 Percentage of employees receiving regular performance 41
and those working on CAPEX projects). and career development reviews, by gender and
Comments: employee category.
1. V otorantim Metais has an accident classification system, which considers the severity of the injury and the financial impact, and classifies accidents into six
distinct categories. There is a distinction between the total injuries (levels 2 and 3) and those with lost days (levels 4, 5 and 6). For the purposes of Brazilian 2014
law, and the rates reported above, the accidents reported are those with lost days that led to an injury (levels 2-6). Accidents while commuting to/from work Variable
are not included in the rates. Performance Evaluation Gender Profit
Remuneration
2. Votorantim manages the health and safety information that comprise this indicator according to NBR 14280. Sharing (PPR)
3. T he calculation of the frequency rate of 2.74, which is reported on pages 12, 54 and 67, is based on information from the following units: U.S. Zinc, Milpo (RV)
administrative office, Milpo Projects, distribution centers, ore transshipment yards, in addition to the units considered in the calculations for the other social
Women 0% 100%
and environmental indicators. The value of 2.80 for this indicator does not consider the units of U.S. Zinc or the projects because they are not included in the President / Director
scope of this report. Men 18% 82%
DMA ASPECT: TRAINING AND EDUCATION Women 0% 100%
Each unit develops training plans based on the technical and management needs of its operations. For management positions there is a Corporate University Manager
(Votorantim Academy), where courses are given on leadership development and the preservation of the companys values and
management beliefs. Men 3% 97%
Performance evaluations are carried out annually. The objectives and the targets to be achieved during the current period are defined for each position. Women 7% 91%
In January each year, the results are evaluated using a standard format. A bonus is paid according to the consensus classification of performance Coordinator / Consultant
agreed between the manager of the area and the employee. Men 5% 91%
External Women 17% 76%
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance Technician / Analyst / Supervisor
Men 22% 67%
G4-LA9 A
 verage hours of training per year per employee broken
down by gender and employee category. Women - -
Trainee
Total hours of training 2014 Men - -
Women 25,799 Women 100% 0%
Operator
Men 318,238 Men 86% 0%
TOTAL 344,037
Performance Evaluation 2014
Average number of
Employee category Gender Percentage of employees receiving performance evaluations (PPR) 26%
training hours
Women 82 Percentage of employees receiving performance evaluations (RV) 70%
President / Director
Men 32 Percentage of employees receiving performance evaluations. 96%
Women 82 Career Development Review
Manager 2014
Men 35
Percentage of employees reviewed 100%
Women 29
Coordinator / Consultant Comments:
Men 41
1. Does not include the Metalex unit. No data available.
Women 33
Technician / Analyst / Supervisor
Men 38
Women 56
Trainee
Men 43
Women 19
Operator
Men 26
Women 20
Intern
Men 23
Women 19
Apprentice
Men 22

108 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 109

 DMA ASPECT: DIVERSITY AND EQUAL OPPORTUNITY DMA ASPECT: EQUAL REMUNERATION FOR MEN AND WOMEN

Votorantim Metais policies and practices for remuneration are in line with the market. The company does not discriminate salaries by gender.
All new hires in Votorantim Metais are based on competence criteria and there is no distinction between genders, age groups, minorities, ethnic groups, etc.
The salaries for employee categories are divided into salary groups (SG). The variations in salaries within each SG are due to merit, competence and
the length of time in the job.
External
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance External
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
G4-LA12 Composition of governance bodies and breakdown of 75
employees per employee category according to gender, G4-LA13 R
 atio of basic salary and remuneration of women to men, by 41, 75
age group, minority group membership, and other employee category, by significant locations of operation
indicators of diversity.
2014
Age Group Average Employee category
length of Salary Remuneration
Between
Employee categories Gender Total employees Under Over service Director/President Not Reported Not Reported
30 and 50
30 years old 50 years old (years)
years old Manager 1.17 1.39
Women 1 0% 100% 0% 1
President/Director Coordinator Consultant 2.00 0.74
Men 11 0% 36% 64% 6
Technician/Analyst/Supervisor 1.24 0.81
Women 20 0% 100% 0% 7
Manager Trainee 1.00 1.00
Men 171 0% 64% 36% 9
Women 165 19% 78% 3% 6 Operator 2.97 0.34
Coordinator/Consultant
Men 717 12% 73% 14% 8 Intern 1.66 0.81
Technician/Analyst/ Women 277 41% 53% 6% 5
Apprentice 1.09 0.92
Supervisor Men 1535 13% 68% 19% 14
Omissions
Women 1 100% 0% 0% 1
Trainee
Men 7 100% 0% 0% 1 Omitted Information Reasons for Omission Explanation for Omission
Women 302 47% 51% 2% 2 Number of women in this
Operator Base salary and remuneration of the Director/President category Confidential information
Men 8293 25% 66% 9% 9 functional level

Women 118 97% 3% 0% 0 Comments:

Intern
Men 101 96% 4% 0% 0 1. Does not include the Metalex unit. No data available.
Women 72 100% 0% 0% 0 DMA ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICES
Apprentice
Men 142 100% 0% 0% 0
We evaluate suppliers in terms of environmental criteria with regard to their eligibility, registration and capability. In the phase of eligibility and registration,
Composition of minority groups in the organization 2014 100% of new suppliers are subject to an assessment of their Conformity Certificates (Federal Taxes, Social Security (INSS) and FGTS payments). The evaluation
Employees over 50 years old 1,257 of supplier capability also includes relevant environmental criteria.
Women 956
External
Composition of governance body 2014 Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Men 11
G4-LA14 Percentage of new suppliers that were screened using labor 50
Women 1 practices criteria
Composition of governance body 2014
Under 30 years old 0 Number of new suppliers that were screened using labor practices criteria 2014
Between 30 and 50 years old 5 Total number of new suppliers 1,025
Over 50 years old 7 Total number of new suppliers that were screened using labor practices criteria 689
Comments: Percentage of suppliers screened using labor practices criteria 67%
1. The figures include only the number of active employees at 31/12/2014. They do not include 270 employees in the United States and China units.
2. Does not include employees who are absent, for any reason. Comments:
1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
2. Indicator does not include information for the Metalex unit. Not managed.

110 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 111

 SUB-CATEGORY: HUMAN RIGHTS DMA ASPECT: CHILD LABOR
DMA ASPECT: INVESTMENT Votorantim does not permit any form of child labor, or forced or slave-like labor. The issues related to this topic are addressed in the Code of Conduct
The subject is dealt with in the Code of Conduct, which is available to all internal and stakeholders. All new hires must undergo specific training and also in operational control audits. Complaints about such incidents should be sent to the Ombudsman.
courses on human rights policies and related topics. Upon registration, suppliers must sign a Commitment Agreement (based on standards and legislation) in which these issues are treated. In addition,
the Procurement and Supplier Management area makes technical visits to some suppliers. Companies identified as non-compliant are not included
External in, or are removed from, our register of approved suppliers.
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
External
G4-HR2 T otal hours of employee training on human rights policies or 76 Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
procedures concerning aspects of human rights which are
relevant to operations, including the percentage of employees G4-HR5 O
 perations and suppliers identified as having significant 76
trained risk for incidents of child labor, and measures taken to
contribute to the effective abolition of child labor.
Employee category 2014
Director/President 0 2014
Manager 138 Number of operations with the risk of occurrence of child labor 0
Coordinator/Consultant 1,072 Number of operations with the risk of having young workers exposed to hazardous work 0
Technician/Analyst/Supervisor 2,382
Number of suppliers with the risk of occurrence of child labor 0
Trainee 0
Number of suppliers with the risk of having young workers exposed to hazardous work 0
Operator 2,554
Comments:
Intern 43 1. A
 nnual audit plans are prepared, which include suppliers, in order to evaluate the main risks. These plans are discussed and validated with the
Apprentice 57 companys senior management so that there is a reasonable level of coverage considering the number of operating units, using also the rotation of
emphasis. Additionally the existence of an Ombudsman area, supported by a proven system, facilitates access by employees and other stakeholders
Total 6,245 if they observe deviations.
Percentage of employees trained in the reporting period 2014 2. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
3. Results do not include information for the Metalex and Cajamarquilla units. Not managed.
Number of employees trained in policies or procedures related to aspects of human rights 2,027
DMA ASPECT: FORCED OR COMPULSORY LABOR
Percentage of employees trained in policies or procedures related to aspects of human rights 17%
Comments: Votorantim does not permit any form of child labor, or forced or compulsory labor. The issues related to this topic are addressed in the Code of Conduct and also in
1. Indicator does not include information for the Metalex unit. Not managed. operational control audits. Complaints about such incidents should be sent to the Ombudsman.
Upon registration, suppliers must sign a Commitment Agreement (based on standards and legislation) in which these issues are treated. In addition, the Procurement and
DMA ASPECT: NON-DISCRIMINATION Supplier Management area makes technical visits to some suppliers. Companies identified as non-compliant are not included in, or are removed from, our register of
Votorantim Metais monitors the data generated in the Ombudsman system on a daily basis. This information is reported monthly to the Audit Committee, and approved suppliers.
bimonthly to the Conduct Committee, as a basis for the discussion of the strategies to be adopted. Incidents related to harassment and abuse of power are directed External
to the area of Human and Organizational Development (HOD), which is responsible for the implementation of training for managers. These training courses aim to Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
improve the organizational climate and decrease complaints/reports received.
G4-HR6 O
 perations and suppliers identified as having significant risk 76
External
Aspect Indicators Page (Supplementary Data and/or DMA) for incidents of forced or compulsory labor, and measures
Assurance
to contribute to the elimination of all forms of forced or
G4-HR3 Total number of incidents of discrimination and the 76 compulsory labor.
corrective actions taken.
2014
Discrimination incidents considered valid 2014 Number of operations with the risk of occurrence of forced or compulsory labor 0
Complaints received by the Ombudsman in the period covered by the report 263 Number of suppliers with the risk of occurrence of forced or compulsory labor 0
Incidents received in the reporting period under review (2015) 20
Comments:
Incidents analyzed and considered unfounded 190 1. A nnual audit plans are prepared, which include suppliers, in order to evaluate the main risks. These plans are discussed and validated with the
companys senior management so that there is a reasonable level of coverage considering the number of operating units, using also the rotation of
Total number of discrimination incidents considered valid. 53
emphasis. Additionally the existence of an Ombudsman area, supported by a proven system, facilitates access by employees and other stakeholders
Comments: if they observe deviations.
1. For the 53 incidents considered valid, corrective measures were taken, such as: dismissals, verbal warnings, suspensions and/or transfers. 2. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
2. The category Other included incidents such as: persecution, violations of labor laws, conflicts of interest, disrespect, discrimination, or accusations 3. R esults do not include information for the Metalex and Cajamarquilla units. Not managed.
associated with health, safety and the environment.

112 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 113

 DMA ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT External
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Upon registration, suppliers must sign a Commitment Agreement (based on standards and legislation) in which these issues are treated. In addition,
G4-SO1 Percentage of operations with implemented community 69
the Procurement and Supplier Management area makes technical visits to some suppliers. Companies identified as non-compliant are not included
in, or are removed from, our register of approved suppliers. engagement, impact assessments and development programs.

External Operations/Units that have community engagement, impact assessments and development
Aspect Indicators Page (Supplementary Data and/or DMA) Total de operaes avaliadas
Assurance programs
Total number of operations 17
G4-HR10 Percentage of new suppliers that were screened using 50
Total number of operations with local community engagement 16
human rights criteria
Percentage of operations with local community engagement 94%
Total number of new suppliers 1,635 Comments:
1. Although Metalex is included in the list of units it is not considered to be a priority for social action. However, the unit contributes with fiscal
Percentage of new suppliers that were screened using human rights criteria 7 incentives destined to culture, sport, health and the rights of children and adolescents.
Percentage of suppliers screened with human rights criteria 0.4% DMA ASPECT: ANTI-CORRUPTION
Comments: The companys governance structure for fighting corruption includes: the Ombudsman; anti-corruption policy; policy for transactions with stakeholders;
1. Votorantim Energias supply chain is managed by Votorantim Metais, so the total number of suppliers reported in this indicator is for both internal audit; internal controls; and compliance.
companies. Training sessions on these policies are held annually for managers. All other stakeholders are informed about them through Votorantims Code of Conduct.
2. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended. External
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
DMA ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS
G4-SO4 C
 ommunication and training on anti-corruption policies 30
Votorantim Metais monitors the data generated in the Ombudsman system on a daily basis. This information is reported monthly to the Audit Committee, and and procedures
bimonthly to the Conduct Committee, as a basis for the discussion of the strategies to be adopted. Incidents related to harassment and abuse of power are
directed to the area of Human and Organizational Development (HOD), which is responsible for the implementation of training for managers. These training Total number Percentage of
Total number Percentage of
courses aim to improve the organizational climate and decrease complaints/reports received. of employees employees
of employees employees
Total number of informed informed
External 2014 Employee category who received who received
Aspect Indicators Page (Supplementary Data and/or DMA) employees (G4-LA12) about the about the
Assurance anti-corruption anti-corruption
anti-corruption anti-corruption
training training
policies policies
G4-HR12 N
 umber of grievances about impacts related to human 76
rights filed, addressed and resolved through formal Director/President 12 1 8% 1 8%
grievance mechanisms Manager 139 8 6% 8 6%
Number of grievances related to human rights impacts received during the reporting period 2014 Coordinator/Consultant 681 40 6% 40 6%

Total number of grievances related to human rights impacts registered in formal mechanisms 0 Technician/Analyst/
1,236 90 7% 90 7%
Supervisor
Total number of grievances related to human rights impacts that have been addressed 0 Brasil
Trainee 0
Total number of grievances related to human rights impacts that have been resolved 0 Operator 7,103 0 0% 0 0%

Total number of grievances related to human rights impacts 0 Intern 182 0 0% 0 0%

Apprentice 214 0 0% 0 0%
Total number of grievances related to human rights impacts registered prior to the reporting period that were resolved during this period 0
Total 9,592 139 1% 139 1%
SUB-CATEGORY: SOCIETY Director/President 0
DMA ASPECT: LOCAL COMMUNITIES Manager 52 23 44% 17 33%
In recent years, Votorantim Metais has increasingly focused efforts on improving the quality of its strategic planning of social activities, as well as in Coordinator/Consultant 201 11 5% 10 5%
relation to its communication with stakeholders. The discussions on social risks and impacts have matured and strengthened and progress has been Technician/Analyst/
551 14 3% 10 2%
made in relation to our control of social projects. Supervisor
During the strategic planning process a survey of the locations where we operate is carried out. This survey analyzes both social and economic Peru
Trainee 8 0 0% 0 0%
indicators and also the level of dependence and interaction between the unit and the region. The main impacts and stakeholder groups are identified
in order to have a proper picture of this interaction. Throughout the year, in the monitoring process, the issues raised are monitored and worked on by Operator 1,492 5 0% 5 0%
the unit through social investment, meetings and other initiatives. Intern 37 0 0% 0 0%
In addition, Votorantim Metais has been innovative in developing concepts and methodologies to identify the social impacts in its risk management. Apprentice 0
This is a joint effort between the risk management and social responsibility areas, and is coordinated by Votorantim Institute. In 2014 the work-group
defined the concept of social risk for the Group, identified the main impacts and incidents recorded in each sector and defined the social analysis Total 2,341 53 2% 42 2%
criteria for the evaluation of the identified impacts. Votorantim Metais addresses the fight against corruption through its Code of
Commercial partners to which the anti-corruption policies and Conduct which can be accessed by internal and external stakeholders. In
procedures adopted were communicated by the organization addition, internally, it communicates specific standards and policies such as the
Global Corporate Anti-Corruption Policy which is applicable to all employees.

114 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 115

Comments: DMA ASPECT: COMPLIANCE
1. Training courses communicating compliance with anti-corruption policies were carried out through e-learning for all the employees of the
Votorantim Metais corporate center, considering both the Aluminum and Polymetallic Divisions. The management of legal compliance is accomplished through the Legal Departments internal processes, which are applied to the whole of the
2. Does not include training carried out by the Metalex and Fortaleza de Minas units. Not managed. organizations operations. This includes the use of specialized and dedicated systems to ensure the review by, and approval of, the Legal
Department. In addition, we have intensified the management of procedures and corporate policies, with the establishment of procedures for all
External areas affected by legal aspects and liable to corruption. We also implemented programs of continuous training, especially on the topics of
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance anti-corruption and anti-trust.
50 External
G4-SO5 Confirmed incidents of corruption and actions taken Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance

G4-SO8 Monetary value of significant fines and total number of non-

Total number of corruption monetary sanctions for non-compliance with laws and regulations
Total number of corruption
Total number of confirmed incidents of cases leading to termination
Year incidents in which employees
corruption in the period covered by the report or non-renewal of contracts Period 2014
were punished or dismissed
with business partners Total value of significant fines R$ 307,643,507
2014 1 0 1 Number of non-monetary sanctions 0
Comments: Legal actions filed through arbitration mechanisms 0
1. Our unit in El Porvenir, Peru, recorded an incident of an attempted delivery of cash by a supplier. After analyzing the incident, it was decided
to terminate the service contract and the supplier was blocked in the companys register of approved suppliers . Comments:
1. This item included the fines and sanctions received and amounts paid, including both completed legal actions and administrative proceedings.
2. Does not include information for the Metalex unit. Information not available.

DMA ASPECT: PUBLIC POLICY DMA ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY

On a daily basis we monitor legislative actions, parliamentary committees and on-going projects in Municipal Councils, and the National Congress and Senate, Votorantim Metais makes a more accurate evaluation of those suppliers considered to be strategic to the business, to avoid risks in raw material supplies, inputs and
which are relevant to our business sectors or activities. As part of this monitoring activity, we identify the various instances of government and their agencies services that could compromise the final product or damage the companys image. In this process, we analyze whether the suppliers are in compliance with local
and entities that relate to Votorantim Metais projects and initiatives, which ensures that our efforts are focused. legislation and international standards such as ISO 9001, ISO 14001, OHSAS 18001. On the basis of this analysis the supplier will be approved or not. However, at
In addition, we are in constant contact with the State Governments and municipalities of the regions where we operate, seeking to participate in discussions present the evaluation of the suppliers impact on society is not one of the criteria in the contracting process.
about public policies and to support the development of local communities. We also participate in forums at various levels of government, such as Ministries,
External
Secretariats and other public bodies, to discuss and to propose regulations. Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
We have prepared a Manual for Conduct in Public Elections that guides our relations with candidates for public offices, ensuring that they are institutionally and
legally secure. This manual provides support information and recommendations that serve as a reference for the Votorantim Groups corporate conduct during 50
G4-SO9 Percentage of new suppliers that were screened using
electoral processes.
criteria for impacts on society
With specific regard to electoral donations, we have a Corporate Policy for Electoral Donations, which supplements the Manual for Conduct in Public Elections
and reinforces the scope of the organizations governance and participation in these processes.
Number of new suppliers that were screened using criteria for impacts on society 2014
External
Aspect Indicators Page (Supplementary Data and/or DMA) Total number of new suppliers 999
Assurance
Total number of new suppliers that were screened using criteria for impacts on society 0
G4-SO6 Total value of political contributions by country
and recipient/beneficiary. Percentage of suppliers screened using criteria for impacts on society 0%

Comments:
Total monetary value of
1. Does not include the Metalex unit. No data available.
Year Country Recipient / Beneficiary direct and indirect political
contributions
2014 Brazil R$ 8,080,000.00

Comments:
1. More information is available on the website of the Superior Electoral Court (TSE).(http://inter01.tse.jus.br/spceweb.consulta.receitasdespesas2014).
2. Does not apply to the Metalex, Milpo and Cajamarquilla units.

116 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 117

 DMA ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY DMA ASPECT: COMPLIANCE

The units have established communication channels with the companys main stakeholders, and participate in meetings with the community and professional The management of legal compliance is accomplished through the Legal Departments internal processes, which are applied to the whole of the
associations. Grievances are received by letters, phone calls or personal contacts and are registered in the Votorantim Management System (GQI). The system organizations operations. This includes the use of specialized and dedicated systems to ensure the review by, and approval of, the Legal Department. In
also records information on the stakeholder who made the complaint, the action plans and area (s) responsible for implementation. addition, the management of procedures and corporate policies has been intensified, by creating procedures for all areas affected by legal issues.
External
External Aspect Indicators Page (Supplementary Data and/or DMA)
Aspect Indicators Page (Supplementary Data and/or DMA) Assurance
Assurance
G4-PR9 M
 onetary value of significant fines for non-compliance
G4-SO11 Number of grievances related to impacts on society
with laws and regulations concerning the provision and
filed, addressed and resolved through formal grievance
use of products and services
mechanisms

Number of grievances related to impacts on society received during the reporting period 2014 Monetary value of fines 2014

Total number of grievances related to impacts on society registered in formal mechanisms 0 Value of fines received in the year R$ 149,263

Total number of grievances related to impacts on society that have been addressed 0 Value of fines paid in the year R$ 1,279,437

Total number of grievances related to impacts on society that have been resolved 0 Number of fines 2014

Total number of grievances related to impacts on society 0 Number of fines received in the year 5
Number of fines paid in the year 2
Total number of grievances relating to impacts on society registered prior to the reporting period that were resolved during
0
this period Comments:
1. The processes of a civil law nature, including arbitration proceedings, are related to claims for material and moral damages, moved by service
Comments: providers, suppliers and customers.
1. Does not include the Metalex, Milpo and Cajamarquilla units. No information available. 2. Does not include information for the Metalex unit. No information available.

SUB-CATEGORY: PRODUCT RESPONSIBILITY

DMA ASPECT: PRODUCT AND SERVICE LABELING SUB-CATEGORY: MINING AND METALS SECTOR

Every two years Votorantim Metais carries out a customer satisfaction and preference survey. The survey seeks to identify the strengths, points DMA ASPECT: BIODIVERSITY
for improvement, opportunities and threats to the expansion of the technical and commercial relations with customers. From the results it is
All our mining areas have plans for environmental rehabilitation in accordance with the development of mines and the remediation costs are on the companys
possible to take strategic measures to minimize gaps and enhance our strengths.
balance sheet. The company has a department which manages the release of the area and its environmental rehabilitation (LARA). This department also
External prepares plans for the management of green areas, and the closure plan, in accordance with Votorantim Metais Management Standards.
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
External
Aspect Indicators Page (Supplementary Data and/or DMA)
26 Assurance
G4-PR5 Results of customer satisfaction surveys
G4-MM1 Amount of land (owned or leased, and managed for production
activities or extractive use) disturbed or rehabilitated.
Year 2011 2012 2013 2014
Customer satisfaction rating 8.25 8.46 Area of disturbed or rehabilitated land (hectares) 2014
Total area of land disturbed and not yet rehabilitated 4,348
Comments:
1. The results are classified on a scale of 0 to 10, according the following criteria:- 0 to 2: Very dissatisfied; 2 to 4: Dissatisfied; 4 to 6: Neither satisfied Total area of land disturbed during the reporting period 150
nor dissatisfied; 6 to 8: Satisfied; 8 to 10: Very satisfied.
2. Survey carried out covering all the units in Brazil, except Metalex. Total area of land rehabilitated during the reporting period, considering the agreed end use 261
Total area of land disturbed and not yet rehabilitated 4,237
Comments:
1. Not applicable to the industrial plants and the administrative office (So Paulo).

118 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 119

 External DMA ASPECT: LABOR / MANAGEMENT RELATIONS
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Management is proactively seeking to identify the requests of employees and their union leaders, and to comply with the terms of the collective
G4-MM2 T he number and percentage of total sites identified as agreements in each of the operational areas.
requiring biodiversity management plans (BMP) according to Monitoring of relations with employees continually gives throughout the year, with meetings between supervisors and their teams to address the identified
stated criteria, and the number (and percentage) of those sites problems anticipating union demands. The aim is to achieve a friendly and ongoing relationship with the unions in order to anticipate critical situations.
with plans in place.
External
Aspect Indicators Page (Supplementary Data and/or DMA)
Year 2014 Assurance

Total number of units 17 G4-MM4 N

 umber of strikes and lock-outs exceeding one weeks 41
duration, by country.
Total number of units identified as requiring a BMP 4
Number of units which have a BMP in place 3 In 2014 there were no cases of strikes or stoppages longer than a week. However, there was a strike which lasted for one day at the aluminum plant in
Alumnio (SP) in the month of February.
Percentage of units which have a BMP in place 75%
DMA INDIGENOUS RIGHTS
Comments:
1. Criteria used for the definition of the requirement of a BMP Even though Votorantim Metals does not currently have operations in, or adjacent to, indigenous lands, the company considered that this possibility could arise
(a) If the unit is close to a conservation area (within a radius of up to 10 km); in future projects and created the Committee for Traditional Communities with the task of preparing guidelines and procedures to deal with the issue. This
(b) If the unit is in the closure process; committee is composed of representatives of the areas of communication, mining, sustainability, environment, legal and the Votorantim Institute. These areas
(c) If the unit has license restrictions or has formally agreed changes with relevant authorities (TAC) related to biodiversity. work jointly on the preparation of plans and actions.
2. Currently the Morro Agudo unit is the only one which has not started the implementation of a BMP. However the unit already carries out monitoring
to evaluate the status of biodiversity conservation in its legal reserve areas (wildlife monitoring). Also, in relation to biodiversity conservation, the External
Aspect Indicators Page (Supplementary Data and/or DMA)
unit carries out the regular maintenance of firebreaks and fences around the legal reserves, and ensures the identification and signing of areas. Assurance
3. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended.
G4-MM5 T otal number of operations taking place in, or adjacent
DMA ASPECTO EFLUENTES E RESDUOS to, indigenous peoples territories, and number and
percentage of operations or sites where there are formal
All waste from overburden, rock, tailings and sludge are measured and deposited in appropriate locations in accordance with relevant legislation and best agreements with indigenous peoples communities.
practices available. Targets for reducing the generation of these materials are established annually, in order to eliminate them.
None of Votorantim Metais units is located on, or adjacent to, indigenous peoples territories.
External
Aspect Indicators Page (Supplementary Data and/or DMA) DMA ASPECT: LOCAL COMMUNITIES
Assurance
77
Votorantim Metals does not manage this indicator. However it does have monitoring actions carried out by the Traditional Communities Committee.
G4-MM3 Total amounts of overburden, rock, tailings and sludge
and their associated risks. External
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Amount of mining-metallurgical waste 2014 G4-MM6 Number and description of significant disputes relating
Amount of hazardous mining-metallurgical waste (sterile) 0 to land use, customary rights of local communities and
indigenous peoples.
Amount of hazardous mining-metallurgical waste (tailings) 3,619,697
There were no cases of significant conflicts with local communities or indigenous peoples.
Total amount of hazardous mining-metallurgical waste 3,619,697
DMA ASPECT: ARTISANAL AND SMALL-SCALE MINING
Amount of non-hazardous mining-metallurgical waste (sterile) 13,386,046
Votorantim Metais does not have areas of artisanal or small-scale mining. Votorantim Metais environmental management system requires that a risk
Amount of non-hazardous mining-metallurgical waste (tailings) 7,372,630 assessment be carried out for any new project or any change in the operations of the existing units.

Total amount of non-hazardous mining-metallurgical waste 20,758,676 External

Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Total amount of mining-metallurgical waste 24,378,373
G4-MM8 N
 umber (and percentage) of company operating units where
Comments: artisanal and small-scale mining (ASM) takes place on, or
1. Indicator not applicable to the Fortaleza de Minas unit, since its activities have been temporarily suspended. adjacent to, the site; the associated risks and the actions taken
to manage and mitigate these risks.

Votorantim Metais does not have areas of artisanal or small-scale mining.

120 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 121

 DMA ASPECT: RESETTLEMENT DMA ASPECT: MATERIALS STEWARDSHIP

The management of materials depends on the characteristics of each project and can be performed by the unit which is developed or the
Votorantim Metais has standard for health, safety, environment (HSE) and sustainability for projects and this standard requires that any need for resettlement be
administrative unit (So Paulo). The projects are in the process of the development and identification of the opportunities related to the materials
registered. Over the past five years no new mining areas have been opened. Thus, there was no need for re-allocations or payment of compensation.
supply chain, serving internal and external demands.

External External
Aspect Indicators Page (Supplementary Data and/or DMA) Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance Assurance
G4-MM9 S ites where resettlement took place, the number of G4-MM11 P
 rograms related to materials stewardship and the
households resettled in each, and how their livelihoods progress made.
were affected in the process.

In 2014 there was no need to create a resettlement program, because there were no families or individuals in this situation. Consultation and practical Identify programs related to the management of the materials supply chain
measures to restore an affected community were not necessary, as this did not occur due to the actions of our operations. Life-cycle Assessment
DMA ASPECT: CLOSURE PLANNING The company carried out a life-cycle assessment for the main products of the Aluminum and Polymetallic Divisions in Brazil. In this process we selected
the following categories: reduced consumption of natural resources, climate change, ocean acidification, nitrification/eutrophication, photochemical
Votorantim Metais has a corporate procedure that deals with the issues of the closure of installations. This procedure stipulates that each Votorantim smog formation, human toxicity, eco-toxicity, use of land for final disposal and land use. The recommendations of the ISO 14040 (2009a) and 14040
Metais unit must prepare a Closure Plan well in advance of its closure. Such plan consists of a coordinated set of measures, financial schedule and (2009b) standards were used for the methodological basis.
cost estimates.
Aluminum recycling
External
Aspect Indicators Page (Supplementary Data and/or DMA)
Assurance
Votorantim Metais, through its Metalex unit, operated in the market for recycling aluminum in two ways: the reprocessing of customers aluminum
scrap or ingots into billets (industrialization) and the direct sale of its own billets.
G4-MM10 Number and percentage of operations with closure
plans (Decommissioning Plan)
Polymetallics
Information / Year 2014
Total number of operations 17 The Juiz de Fora unit produces zinc from the co-processing of electric arc furnace (EAF) dust produced by the steel industry, thus eliminating an
environmental problem of another industry and increasing the units competitiveness.
Total number of operations that have closure plans 15
Percentage of operations that have closure plans 88%
Value of the total financial provision for the closure of operations R$ 614,376,393

Comments:
1. Not applicable to the administrative office (So Paulo).
2. Does not include information for the Metalex unit. No information available.

122 SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 123

 INDEPENDENT AUDITORS LIMITED ASSURANCE REPORT
ON THE SUSTAINABILITY INFORMATION INCLUDED IN
THE VOTORANTIM METAIS SUSTAINABILITY REPORT 2014
G4-32
To the Board of Directors
Votorantim Metais S.A.
So Paulo-SP
Introduction
We have been engaged by Votorantim Metais S.A. (Company) to present our limited assurance report on the compilation of the
sustainability information included in the Votorantim Metais Sustainability Report 2014 of the Company for the year ended
December 31, 2014.
Responsibilities of the management of the Company
The management of the Company is responsible for the preparation and fair presentation of the sustainability information
included in the Votorantim Metais Sustainability Report 2014, in accordance with the guidelines of the Global Reporting
Initiative (GRI-G4) and for such internal control as it determines is necessary to enable the preparation of information free
from material misstatement, whether due to fraud or error.
Independent auditors responsibility
Our responsibility is to express a conclusion on the sustainability information included in the Votorantim Metais
Sustainability Report 2014, based on our limited assurance engagement carried out in accordance with the Technical
Communication CTO 01 - Issue of an Assurance Report related to Sustainability and Social Responsibility, issued by the
Federal Accounting Council - CFC, based on the Brazilian standard NBC TO 3000, Assurance Engagements Other than
Audit and Review, also issued by the CFC, which is equivalent to the international standard ISAE 3000, Assurance
engagements other than audits or reviews of historical financial information, issued by the International Auditing and
Assurance Standards Board (IAASB). Those standards require that we comply with ethical requirements, including
independence requirements, and perform our engagement to obtain limited assurance that the sustainability information
included in the Votorantim Metais Sustainability Report 2014, taken as a whole, is free from material misstatement.
A limited assurance engagement conducted in accordance with the Brazilian standard NBC TO 3000 and ISAE 3000
mainly consists of making inquiries of management and other professionals of the Company involved in the preparation of
the sustainability information, as well as applying analytical procedures to obtain evidence that allows us to issue a
limited assurance conclusion on the information taken as a whole. A limited assurance engagement also requires the
performance of additional procedures when the independent auditor becomes aware of matters that lead him to believe
that the sustainability information taken as a whole might present significant misstatements.
The procedures selected are based on our understanding of the aspects related to the compilation and presentation
of the sustainability information included in the Votorantim Metais Sustainability Report 2014, other circumstances
of the engagement and our analysis of the areas in which significant misstatements might exist. The following
procedures were adopted:
124 SUSTAINABILITY REPORT 2014
(a)planning the work, taking into consideration the materiality and the volume of quantitative and qualitative information and the operating and internal
control systems that were used to prepare the sustainability information included in the Votorantim Metais Sustainability Report 2014 of the Company.
(b)understanding the calculation methodology and the procedures adopted for the compilation of indicators through interviews with the managers
responsible for the preparation of the information.
(c)interviews with the managers responsible for the information of the following units:
Companhia Brasileira de Aluminio - Alumnio-SP;
Corporativo Votorantim Metais - So Paulo-SP
So Miguel Paulista - So Paulo-SP;
(d)applying analytical procedures to quantitative information and making inquiries regarding the qualitative information and its correlation with the
indicators disclosed in the Votorantim Metais Sustainability Report 2014.
(e)obtaining evidence about the most significant GRI-G4 indicators included in the Votorantim Metais Sustainability Report 2014 and presented in the
GRI Index.
The limited assurance engagement also included tests to assess compliance with the guidelines of the Global Reporting Initiative (GRI-G4) applied in the
preparation of the sustainability information included in the Votorantim Metais Sustainability Report 2014.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our limited assurance conclusion.
Scope and limitations
The procedures applied in a limited assurance engagement are substantially less detailed than those applied in a reasonable assurance engagement, the
objective of which is the issue of an opinion on the sustainability information included in the Votorantim Metais Sustainability Report 2014. Consequently,
we were unable to obtain reasonable assurance that we would become aware of all significant matters that might be identified in a reasonable assurance
engagement, the objective of which is the issue of an opinion. If we had performed an engagement with the objective of issuing an opinion, we might
have identified other matters and possible misstatements in the sustainability information included in the Integrated Report for 2014. Therefore, we do
not express an opinion on this information.
Non-financial data are subject to more inherent limitations than financial data, due to the nature and diversity of the methods used to determine,
calculate and estimate these data. Qualitative interpretations of the relevance, materiality and accuracy of the data are subject to individual assumptions
and judgments. Furthermore, we did not consider in our engagement the data reported for prior years, nor future projections and goals.
Conclusion
Based on the procedures performed, described herein, no matter has come to our attention that causes us to believe that the sustainability information
included in the Votorantim Metais Sustainability Report 2014 of Votorantim Metais S.A. has not been compiled, in all material respects, in accordance
with the guidelines of the Global Reporting Initiative (GRI-G4).
So Paulo, September 08, 2015
PricewaterhouseCoopers Andr Pannunzio Candido Oliveira
Contadores Pblicos Ltda Contador CRC 1SP-196603/O-1
CRC 2SP023.173/O-4
SUSTAINABILITY REPORT 2014 125
 REPORT PRODUCTION Limited Assurance of GRI indicators
PwC Auditores Independentes
G4-5 G4-31

General Coordination and Production Translation

Management board, Sustainability, Strategic Planning and English: Richard Wightwick
Market Intelligence General Management of Sustainability Spanish: Sylvia Gmez y Artigas Belhot

Responsible: Felipe Baldassari Guardiano

General Management of Sustainability Photographs
Banco de Imagens Votorantim, Pisco Del Gaiso
Antonio Eymard Rigobello
Environmental and Sustainability Management
e Acervo Memria Votorantim
Ana Claudia de Araujo Lima
Production Team: Aricely Lamontanha (coordination),
Elaine Yumi Notoya, Thaiza Clemente Couto Bissacot,
Juliana Pinheiro Gonalves, Flavia Helena Moraes de Graphic Design
fmcom
Oliveira, Davi Ribeiro dos Santos, Daniela Rocha de Novoa,
Jessica Aparecida Marques, Vanessa Aparecida Pereira
Sales, Bruna da Silva Lima e Lais Lucas Moreira
Info-graphic
Felix Reiners
Corporate Communication: Camila de Oliveira Dias
Marquesin, Fernanda Diniz Bolzan de Oliveira and Bruno
Vinicius Carrilho de Souza
Printing and finishing
Stilgraf
Contributors: We appreciate the support and cooperation
Print Run: 300 copies
of the managers and other colleagues involved in the
Paper: D  uo Design 300g capa
corporate areas and industrial units of Votorantim Metais,
Couhe fosco 150g couche fosco miolo
Memria Votorantim and Instituto Votorantim, in the
collection and analysis of information.
Typography
Frutiger, Adrian Frutiger, 1975

Publication date
Editorial advisory September/2015
Eduardo Dantas

Report writing Contact:

Votorantim Metais
Abgail Cardoso e Maria Ins Caravag
Av. Eusbio Matoso, 1375 12 andar
CEP 05423-180 So Paulo SP
Revision
C/O Sustainability General Management
Luiz Teodoro de Souza
faleconosco@vmetais.com.br

GRI Consulting
Deloitte Touche Tohmatsu

126 SUSTAINABILITY REPORT 2014

www.vmetais.com.br