The CBMM Science and Technology Award values the technical and scientific careers of Brazilian professionals and encourages young researchers to contribute to the development of the country. Learn more at the website (content in Portuguese).
We transform and improve materials through niobium technology
We transform and improve materials through niobium technology
Sustainable solutions for mobility, infrastructure and the generation and distribution of energy start with more efficient and smarter materials.
We believe that people are the driving force for creating and promoting improvements and innovations that can transform everyone's life.
Having qualified, motivated people working in a safe environment with space to pursue ideas is critical, as is building and maintaining genuine, transparent relationships with our partners in over 50 countries.
We maintain an open dialogue with stakeholders to develop activities that are environmentally sound, socially just and economically viable. We strive to constantly reduce negative impacts and continually improve, seeking to build a better, more sustainable world.
Continuing to generate economic and social value through the transformation and co-development of smarter materials is what motivates us every day
We’ve built our history on strong investments in the development of niobium technologies and applications with our customers and partners in over 50 countries.
In 2019, we acquired the option to become a shareholder in 2DM, a Singapore-based company that is a world leader in the development of graphene, an advanced material with special properties. The potential synergy between graphene and niobium may spark the production of a new generation of more sustainable, safe electric batteries, which could help to accelerate the transformation to more sustainable mobility, as well as provide smarter energy storage and distribution systems for cities.
Within our sustainable growth strategy, in 2019, we generated net revenue of R$8,4 billion, 7,8% above 2018. Net profit grew by 6,2% over the previous year, reaching R$3 billion.
Aiming to expand and guarantee stable supplies for all our customers, in 2019 we made record investments in our industrial complex to increase production capacity to 150.000 tonnes of niobium products annually by 2020, the expected date of completion of the expansion work.
To support our sustainable growth model, governance, risk management and compliance practices have been enhanced to detect business exposures, mitigate them and leverage opportunities to improve practices, policies and strategies.
We continue to develop programs designed to optimize resources, reduce greenhouse gas emissions – we aim to be a zero carbon (net emissions) company by 2050 – and preserve Cerrado biodiversity, among other activities linked to our material topics and Sustainable Development Goals, including economic, social and human development.
We are guided by the principle of excellence and our employees generate positive impacts for society by participating in the sustainable development of the company. Good performance is linked, simultaneously, to respect for people and the environment, positive interaction with the communities where we operate and financial results.
CBMM's sustainability is the result of a strong relationship with our stakeholders. We are committed to ensuring that these relationships continue to be based on candor and respect.
Urgent solutions for a sustainable economic model demand the use of smarter materials in applications in mobility, infrastructure and in the generation and distribution of energy. We understand that our expertise in transforming materials and solutions through the vast potential and versatility of niobium is even more vital in the current context and for the future.
Eduardo Ayroza Galvão Ribeiro
CEO
Throughout our 64-year history, we have been dedicated to developing technologies to produce niobium products and discovering niobium applications. We are proud to be a Brazilian company with customers and partners in over 50 countries around the globe.
The value proposition of niobium is to transform the properties of materials. It is recognized and applied at scale in sectors like mobility, infrastructure and in the distribution of transitional and renewable energy.
We are passionate about and motivated by discovering and developing – together with our customers and partners around the world – new applications and solutions where niobium has a relevant role.
The total research and development budget in 2019 was R$138,4 million, representing 1,64% of consolidated net revenue. During the year, we worked on 208 projects with research institutes, universities, customers and others.
In addition to São Paulo, we operate subsidiaries and offices outside of Brazil (China, USA, Netherlands, Singapore and Switzerland) that are responsible for customer relationships and activities related to developing new applications and markets.
We also rely on distributors and commercial representatives, including CITIC Metal in China and Sojitz Corporation in Japan, South America, India and Taiwan.
To ensure a steady, stable supply of niobium products, CBMM maintains a network of 26 warehouses strategically located near our customers in over 50 countries around the globe.
Araxá, Minas Gerais is the site of the world’s largest known geological resource of pyrochlore currently being mined, with 829 million tonnes containing on average 2,5% of niobium (Nb2O5).
Several aspects of CBMM’s operations make it a stand-out among global niobium producers, including high quality, high grade niobium ore; an open-pit mine; optimized mining and production processes; ongoing investments in infrastructure improvements at the industrial complex; commercialization of a range of niobium products and consolidated partnerships.
Since 1972, mining operations have been carried out through a partnership between CBMM and the State Economic Development Company (CODEMG), formerly CAMIG. The current contract runs through 2032.
During 2019 we defined a range of commitments to the United Nations’ 2030 Agenda
Considering strategic topics and the principles of the Sustainable Development Goals (SDG) most aligned with our business and company culture, we established goals that are directly related to our activities and those that provide the most positive impacts.
The following table lists our key corporate goals related to the SDGs categorized across environmental, social and governance (ESG) dimensions and according to strategic topics identified as material, which have also been revised during the year.
| ESG + Material topics | Sustainable Development Goals | CBMM Commitments |
| SOCIAL Contributions to regional economic and social development |  | • By 2025, together with local entities and funding agencies, encourage the formalization and growth of entrepreneurship in the city of Araxá, including cultural and sports activities. |
| SOCIAL Occupational health and safety | | • Maintain continuous improvement processes for work conditions and safe practices at CBMM and its suppliers. |
| SOCIAL Development of innovative technologies and products |  | • Promote international awards for young scientists and professionals to stimulate and improve communication skills. • Sponsor international awards for the best published work on niobium science and technology. |
| SOCIAL People development | | • Maintain through 2024 a national (Brazil) award to enhance the technical and scientific careers of professionals and encourage young researchers to contribute to the country’s development. |
 | • Support through 2025 the implementation of the National Common Curriculum in Araxá. • Create social investment policy in vocational training and entrepreneurship initiatives by 2025. | |
| ENVIRONMENTAL Environmental management and climate change |  | • Ensure water availability with reforestation upstream of freshwater dams and promote intelligent water management. • Evaluate alternative processes for effluent treatment and remediation with lower impacts. • Encourage supplier companies to optimize the use of natural resources and the adoption of clean energy. |
 | • In 2020, study the implementation of solar power generation at the industrial complex to increase the use of clean energy and evaluate the mix of purchased energy. •Improve indicators to monitor energy performance, aiming at improving energy efficiency and the use of clean energy. | |
 | • Regularly monitor and report energy, water and materials consumed and treated in business operations and improve efficiency through reuse/recycling. | |
 | • Become a zero carbon company (net emissions) by 2050. • In 2020, add topics related to climate change and a culture of prevention to the curriculum of community-based environmental education. | |
 | • Maintain Cerrado conservation activities, including research projects, management and reproduction of biome plants and animals, as well as educational activities. | |
| GOVERNANCE Relationships and open dialogue with stakeholders |  | • In 2020, define indicators to measure participation and responses to observations generated from tools that are already deployed. |
| GOVERNANCE Governance and transparency | | • Reinforce in 2020 practices related to the Our Commitment program launched internally in 2019. |
* Visit https://www.un.org/sustainabledevelopment/development-agenda/ to learn more
1. Calculation based on the investment made in 2019 using the methodology published by BNDES.
2. CBMM’s GHG Inventory is available at https://registropublicodeemissoes.com.br/
3. The calculation for purchased electricity used the location basis. To quantify scope 2 GHG emissions, the integrated national grid emission factor was used.
4. As certified by Cemig, 100% of the electricity consumed by CBMM came from renewable sources (hydroelectric). Thus, the calculation of electricity consumed by the company was performed using the market-based option and therefore registering no scope 2 emissions.
We strive to build strong relationships and open dialogue, continuously valuing the contributions of our partners
We strive to build strong relationships and open dialogue, continuously valuing the contributions of our partners
Open, transparent relationships increase the synergy between CBMM and our stakeholders. This enables us to maintain our social license to operate in the community and enhances our resilience and capacity to respond to needs, in both positive and negative scenarios.
We are an important driver of the local economy since we attract and encourage new businesses, plus our commitment to social responsibility has positively impacted the quality of life in Araxá.
Our stakeholder relationships are characterized by candor and respect
During 2019 we invested in stakeholder relationships and communications. The aim is to be transparent and proactive in the face of various issues that concern our business in Brazil and abroad.
In addition to topics related to niobium production, we want to convey our institutional and strategic positioning, including new business, the expansion of operations and sustainability actions.
Through these efforts, we strengthen our relationship with the media in Brazil and abroad, expand our proprietary channels in the digital environment and on social networks, disseminate in real-time the actions and events in which we participate, revitalize and expand the perception and presence of our institutional brand (CBMM) in addition to our exclusive technology and product brand (Niobium).
We also disseminated our support of sports and cultural projects, such as the sponsorship of the Minas Gerais Philharmonic Orchestra and Fliaraxá, an important literary event. Additionally, in 2019 we supported the São Paulo State Orchestra’s trip to China to mark the beginning of the 40-year commemoration of CBMM’s partnerships in China.
CBMM was the recipient of the Friend of Sports award, given by the Ministry of Citizenship through its Special Secretariat of Sports. Due to the volume of investments made through the law to incentivize sports, we ranked first among contributors in the state of Minas Gerais and third in the country.
Throughout 2019, various activities were implemented to better engage and communicate with stakeholders. To accomplish this, we reinforced and created functions and a team dedicated to marketing and communications. Topics considered important for engagement include products, price, promotions, socio-environmental impacts, dams, community actions, as well as organizational climate, ombudsman and performance.
We contributed to the development of public policies through participation in discussion forums, such as mineral forum, research and development forum and Araxá Environmental Policy Council (CODEMA). Additionally, we have maintained for years, solid and productive partnerships with the three spheres of government.
Our interactions with associations are meant to disseminate technological best practices related to the use of niobium, the transformation of materials and the development of more sustainable solutions. We support the Brazilian Association of Metallurgy, Materials and Mining (ABM) and we have a relationship with research institutes like Institute for Technological Research of the State of São Paulo (IPT) and the Center for Innovation and Technology (CIT/SENAI/FIEMG). We are also associated with the Brazilian Institute of Mining (IBRAM), through which we participate in dialogues with the business sector.
For 40 years we have maintained lines of research with China’s Central Iron and Steel Research Institute to develop niobium steels for all market segments.
Technical consortia comprising CBMM’s customers and universities are other important tools to develop the niobium market. The most active currently are with the Colorado School of Mines in the United States, Shanghai University and the University of Science and Technology in Beijing. We also participate in technical standards committees, foremost among them is ASTM (American Society for Testing and Materials) in the United States.
We are closely linked to the city of Araxá, Minas Gerais and we invest resources there with a focus on initiatives related to education, health, culture and sports
We generate value in the community where we operate. By being integrated with the city of Araxá, our impact goes beyond simply increasing the tax base and investments in the education of employees and their families.
Our model prioritizes sponsorships and investments that have the power to transform Araxá into a more autonomous city. We have evolved in terms of monitoring the application of these resources and have formed a partnership with a consulting firm to optimize the management of our social investments, work that will be completed in 2020. In 2019, we invested R$48,7 million, through incentivized and non-incentivized funding, in cultural, educational and health initiatives, among others, and those destined for education and health were highlights for the year.
We have also been working to encourage entrepreneurship. An especially relevant example is our participation in HousingPact, a social impact initiative that involves a network of 12 institutions focused on developing job opportunities, products and services related to the housing sector for at-risk individuals. Learn more at the HousingPact website.
| Type2 | Actual or expected impacts on local communities and economies | Amount | ||
| 2017 | 2018 | 2019 | ||
| Education | Promote quality education for Araxá residents | 232.097 | 305.671 | 2.807.318 |
| Health | Encourage businesses to continue doing the best for the health of the communities served | 3.954.495 | 4.164.607 | 8.822.093 |
| Sport | Encourage sports practices in the community | 5.076.244 | 5.067.630 | 4.059.138 |
| Culture | Stimulate interest in and general knowledge of culture | 18.346.209 | 23.082.435 | 21.015.929 |
| Other | Improve the quality of life in specific communities | 12.488.536 | 11.260.285 | 11.956.327 |
| Total | 40.097.581 | 43.880.629 | 48.660.805 | |
1. 2017 and 2018 data were revised. All data contemplate incentivized and non-incentivized funding.
2. Investments in Safety and Environment have been incorporated into other types of investments or removed from the calculation.
To strengthen our presence and physical proximity to key customers and markets, in 2019 we expanded our commercial, technical assistance and market development teams in Asia, Europe and North America
Also in 2019, we established communication channels and fortified our presence in digital environments with the creation of dedicated proprietary channels for customers and the value chain, delivering technical content and success cases, as well as real-time transmission of events and launches of products featuring niobium technology.
Our industrial complex in Araxá welcomes customer visits. In 2019, we received customer delegations from China, Japan, South Korea, Luxemburg, Sweden, Russia, the United States and Brazil.
A customer survey conducted in 2018 showed that we maintained our customary high level of satisfaction, with a 95% satisfaction rate, and that there is a strong partnership relationship for the development of niobium applications.
We recognize and value the contribution of our business partners in building our history
While maintaining equal conditions, we prioritize local suppliers. In 2019, 89,5% of products were purchased in Brazil and the remainder came from the United States, Spain, Mexico, China, Germany and others.
We ended the year with a supply chain composed of 9.116 registered companies, including manufacturers, distributors, resellers and direct service providers. Of this total, 38% were from Minas Gerais. A total of 2.113 suppliers were contracted in 2019, of which 368 were based in Araxá and we acquired 15% in value of products or services in Araxá, totaling R$340 million.
We invest in the development of new suppliers and help them to improve their processes through initiatives such as qualification courses and health and safety training. Our procurement practices address the traceability of raw materials and inputs and the management of negative impacts on the chain. We use the SAP/R3 system to monitor performance, in addition to meetings, technical and commercial visits, market and regulatory research to ensure compliance.
In 2019, we completed the restructuring of the supply chain department. There was a complete revision of the purchasing model, which added new types of contracts – including those with long-term (five years) duration – and other kinds of suppliers, like companies with different logistics modals and manufacturers of equipment for the construction of a new furnace for the Dephosphorization Plant.
To learn more, visit the Suppliers page on our website.
We believe that scientific and technological knowledge generates economic, social and environmental contributions, which are fundamental to a country's development. To encourage the production of innovative scientific and technological research, in 2019 we launched the CBMM Science and Technology Award, which reinforces our commitment to a legacy beyond the worldwide development of the niobium market.
In the Science category, which recognizes researchers who put Brazil in the spotlight on the world scientific stage, the winner was Marcelo Viana, researcher and director general of the Institute of Pure and Applied Mathematics (IMPA). In the Technology category, which honors professionals whose work generated relevant impacts in the development of practical applications in Brazil, the award was bestowed on João Batista Calixto, a retired professor of pharmacology at the Federal University Santa Catarina (UFSC). Each recipient received a prize of R$500.000.
During the awards ceremony, US economist and the 2018 Nobel Laureate in Economics, Paul Romer, delivered a presentation on the theory of endogenous growth, positing that investments in the development of people, innovation and knowledge significantly contribute to the growth of countries.
The CBMM Science and Technology Award values the technical and scientific careers of Brazilian professionals and encourages young researchers to contribute to the development of the country. Learn more at the website (content in Portuguese).
We also support other prizes, like the Charles Hatchett Award, which was created in 1979 and is bestowed annually on the authors of the best work published on the science and technology of niobium and its alloys. A selection committee comprised of renowned international specialists is tasked with identifying relevant work and choosing the annual recipients.
CBMM has sponsored the award since its inception with the objective of publicizing niobium and its applications. London-based Institute of Materials, Minerals and Mining (IOM3) grants the medal, which is minted in niobium and bears the likeness of the man who discovered element 41. Learn more at the Charles Hatchett Award website.
Since 2011 we have been the lead sponsor of the Young Persons’ World Lecture Competition, an annual event that seeks to promote the communications skills of engineers and scientists under the age of 28. The competition is organized by London-based Institute of Materials, Mineral and Mining (IOM3). Learn more at the competition’s website.
2019 performance was the best in our history
In 2019, we increased production capacity to 110.000 tonnes and made important advances in the work to expand annual capacity to 150.000 tonnes, with completion expected in 2020.
Net revenue reached R$8,6 billion (16,2% above the previous year) and net profit registered R$3 billion, up 6,2% compared to 2018.
1. Exports include sales to the market and to restock supplies for future needs.
2. Mainly high purity niobium oxide, optical grade niobium oxide, vacuum grade ferroniobium, vacuum grade nickel-niobium, niobium metal, carbon ferroniobium and ferroalloy.
3. Sales to the market minus domestic sales.
We prioritize workplace safety, healthcare and a positive work environment. We also provide professional development, encourage challenges and expand opportunities
We prioritize workplace safety, healthcare and a positive work environment. We also provide professional development, encourage challenges and expand opportunities
It’s a company’s people that promote the key improvements and innovations that are so critical to an enterprise’s success. Having staff who are qualified, motivated and given the proper space to develop is fundamental to business continuity.
The safety of employees, visitors and others who access our industrial complex is non-negotiable. Occupational health and safety are foundational values for us and extend to all our stakeholders. This approach ensures the ongoing operation of the company.
We encourage professional development through training and qualification courses and initiatives that expand diversity and inclusion
In 2019, we hired 250 employees, increasing our workforce by about 11%, which was accompanied by reinforced governance around occupational safety.
CBMM has instituted gateway programs to foster the entry of talented workers. One of them is the Young Apprentice Program, in partnership with Senai, which develops skills related to jobs at the company, like operators and technicians. In 2019, 54 young people participated in the program and they will start jobs at CBMM in 2020. Another initiative, the Trainee Program, began in 2019 and is open to candidates from all over Brazil.
Seeking to strengthen our culture and values, we have invested in programs and projects to retain talented professionals. In 2019, an Employee Engagement and Prosperity Survey was conducted by consultant Mercer. All employees received an online questionnaire with 47 closed and six open-ended questions. The survey had a 77% participation rate and registered an engagement level of 86%. While areas with room for improvement were identified, overall the survey results were positive.
Note: 2017 and 2018 data revised to reflect CBMM employees only (Board members, apprentices, interns and trainees are not included).
CBMM provides a robust benefits package that covers healthcare, education, retirement, housing and wellness services. A plan to encourage home ownership that in the past created residential areas, currently provides R$38.000 directly to employees to be used towards the purchase of a home or to pay off a mortgage.
Additionally, in partnership with the Metallurgical, Mechanical and Electrical Material Labor Union of Araxá, we support the House-Raising Project, a collaborative project to construct homes, and we established an agreement with a financial institution for low-interest home loans for employees.
One of CBMM’s most significant employment benefits is educational assistance. Besides motivating staff to study, whether a technical course or for a university degree, the company also extends the coverage to dependents.
Children of employees receive subsidies during every stage of their education through college graduation. Children from four months to five years of age have no-cost access to CBMM-sponsored Human Development Center (CDH), which since 1980 has offered a methodology that stimulates language development, reasoning skills and socialization.
Approximately R$4,8 million was invested in actions aimed at improving and developing the skills of employees in 2019
A new performance evaluation system that is based on organizational competencies debuted in 2019 among a group of 85 managers. The system is administered through the human resources department and aims to address not only performance, but also professional and career development.
To promote interaction between employees and encourage their feedback, the CBMM Ideas program was created, especially for the areas of quality, process improvement (production and administrative), safety, health and well-being and the environment. The program is hosted on the company’s intranet site where employees can log in and register their suggestions.
In 2019, we implemented a new program called Our Commitment, which is a set of attitudes and behaviors employees are expected to exercise in their daily activities. The five organizational commitments are Candor, Leave it to Us, Building the Future, Excellence in Every Detail and Performance Defines Us. For leadership, there are two additional commitments – Leaders Developing Leaders and Always Connected. Each of the commitments are defined in detail and include attributes and skills such as motivation, discipline, critical thinking, collaboration and prioritization. Training and awareness campaigns were conducted throughout the year to ensure that employees understand the expectations, learn ways to incorporate the commitments into their work life and evaluate their progress.
Two new internal communications channels were introduced in 2019 to optimize the sharing of ideas between and among employees, departments and leadership. The Talk to Eduardo (CBMM’s CEO) channel is designed to encourage frank, transparent conversations with the company’s top executive. Direct Connection, on the other hand, is a way for any employee to send suggestions, criticisms or questions to help in the development of the company. Users of the Direct Connection channel can choose to send messages anonymously or identified. These channels are in addition to the Compliance Hotline and Ideas Program.
Workplace health and safety are absolute priorities at CBMM and are an essential element of daily routines
Employees have a hands-on role in the management of workplace health and safety. Several initiatives work in an integrated manner to prevent accidents and occupational illness, including the Internal Commission for Accident Prevention (CIPA), the Safety Engineering and Occupational Medicine Specialized Service (SESMT), the Emergency Response Action Brigade (BARE) and the Occupational Health and Safety Facilitators.
Note: Starting in 2019, the ABNT norm was adopted (1.000.000 hours worked) to calculate the rates. Previously, the calculation applied the OHSAS norm (200.000 hours worked).
Zero occupational illnesses
CBMM’s Occupational Health and Medical Control Program establishes criteria for onboarding, periodic, return to work and dismissal examinations. The program, along with the Environmental Risk Prevention Program, helps to track and control illnesses in both the employee and service provider population.
To prevent and treat specific diseases, we promote activities related to obesity and hyperlipidemia, prostate cancer, tobacco use, women's health, influenza vaccination, hypertension, diabetes and mental health. Another set of initiatives aims to address workplace health and safety issues, including ergonomics, respiratory protection, hearing protection, inorganic lead control, medical sharps accident prevention and health services waste management.
We are committed to respecting stakeholders and developing processes, products and services that are environmentally sound, socially just and economically viable
We are committed to respecting stakeholders and developing processes, products and services that are environmentally sound, socially just and economically viable
Adequately addressing environmental issues and operational licenses is critical to operational continuity, and assumes even more importance as our customers, investors and communities are increasingly concerned about climate issues.
CBMM’s Environmental Development Center (CDA) is composed of the Wild Fauna Scientific Conservation Breeding Center, Plant Nursery, Environmental Education Program and the Native Cerrado Species Arboretum
The CDA covers approximately six hectares within our industrial complex. Through the CDA, we develop initiatives to conserve the biodiversity of the Cerrado, including research projects, studies related to the management and reproduction of the plants and animals of this biome and associated educational actions.
The Environmental Education Program was created in 1992 and has evolved over the years. In addition to activities carried out in partnership with educational institutions in Araxá and the region, a current project called Eyes on the Future, engages employees, service providers and interns with the goal of strengthening the culture of sustainability.
Since the beginning of our operations, we have adopted best engineering practices and invested in continuous improvements in our dam management system
With one dam for sediment contention, one for freshwater accumulation and four for waste/tailings disposal from the niobium concentration process, our industrial complex in Araxá has six dams designed by specialized companies in accordance with best engineering practices.
All dams, from the start of operation, are monitored, inspected and undergo routine maintenance to ensure they are safe. We constantly invest in the adoption of new monitoring and inspection technologies, in addition to improving our procedures and processes. In recent years, we have implemented the automation of the reading of dam monitoring instruments and in 2019, we inaugurated the Integrated Monitoring Center (IMC). Through the IMC, skilled technicians monitor and inspect our dams in real-time, 24/7.
In addition, we count on technical support from national and international companies that provide highly qualified, multidisciplinary professionals who work to ensure that best practices and the best available technologies are adopted.
We meet all legal requirements and current best practices. In 2019, we enhanced the input data for our Dam Emergency Action Plan by completing a socioeconomic survey to identify, qualify and record all the properties located in the valleys downstream from our dams. These downstream areas do not include any urban zones. The survey revealed that no individuals reside in the self-rescue zone (considered to extend for 10 kilometers downstream of the dams or areas that would be impacted by flooding in 30 minutes). In addition, we simulated the operationalization of the Dam Emergency Action Plan, with the support and participation of the Civil Protection and Defense Agencies.
Visit our webpage to learn more about our dam management (content in Portuguese).
Recirculated water has been used in our industrial processes since the beginning of our operations
CBMM uses Dam 7 as a source of fresh water. The reservoir is the result of damming Pirapitinga stream. Located on company property, the capture of fresh water is duly licensed and CBMM pays for the exclusive capture rights of the water it uses.
Since the start of operations, we have used recirculated water for industrial processes. Recirculated water is process water that is treated chemically and then submitted to a natural clarification process in the tailings dam to make it suitable for reuse in the manufacturing process. In 2019, we exceeded the minimum water recirculation target of 96%, reaching 96,4%, even with an increase of about 32% in ferroniobium production.
Specific procedures help to extend the life cycle of materials and promote their proper recycling, co-processing or disposal
Waste is segregated and stored separately in the production areas for later collection and storage at a temporary yard to coordinate final distribution for internal use, external use, donation or commercialization. We systematically inform the relevant environmental agencies regarding the destination of each type of waste. Overburden, the mining material that does not contain niobium, is mainly used for construction projects on CBMM’s grounds.
The engineering department developed a new process that recovers niobium from metallurgical slag, thereby increasing production. The initiative resulted in a gain of 3.000 tonnes in 2019. In the same year, controls related to Waste Transport Manifests were implemented in accordance with Minas Gerais legislation.
1. Overburden is non-hazardous, inert waste (Class IIB). The 46,5% increase in 2019 is related to mine expansion and dam decommissioning activities.
2. Mining waste is non-hazardous and not inert (Class IIA). The 23,2% increase in 2019 is related to increased production levels.
Cemig Geração e Transmissão S.A. generated and supplied to CBMM 100% hydroelectric electricity, a source considered clean and renewable
Our energy consumption in 2019 totaled 2.459.548 GJ, a 27% increase over the previous year. The jump in consumption is related to expanded production activities.
We were able to reduce the consumption of energy from non-renewable sources by 4,5%, even with the increased production in 2019; of the energy we consumed, 73,8% derived from renewable sources (renewable fuels and electricity).
The figures do not include fuel consumed during rail transport.
We’ve participated in the Brazilian Greenhouse Gas Protocol since 2013 and we invest in disseminating the potential of niobium to reduce emissions
As a member of the Brazilian GHG Protocol, CBMM has provided an inventory of emissions for public consultation since 2013. The calculations cover scopes 1, 2 and 3, meaning that we report emissions related to our own production and energy consumption, as well as those of key service providers.
In 2019, the 18,5% increase in direct CO2 emissions (scope 1) and the 18,8% rise in indirect CO2 emissions (scope 2) are primarily related to higher ferroniobium production (+28%). The 51,9% jump in other indirect greenhouse gases (scope 3) is linked to the construction of the Dephosphorization Plant, closure work on Dams 4 and 5 and Dam 8 operational activities.
* Using the purchased energy methodology, the emission of scope 2 was zero in 2019 because 100% of our purchased electricity from a hydroelectric source.
Note: CBMM’s 2019 greenhouse gas inventory can be found here http://registropublicodeemissoes.com.br
We’ve strengthened our governance, risk management and compliance practices, and incorporate sustainability into our daily activities with engagement across all levels of the organization
We’ve strengthened our governance, risk management and compliance practices, and incorporate sustainability into our daily activities with engagement across all levels of the organization
Transparency with stakeholders and a governance structure that enhances management are fundamental for companies with a long-term vision, like CBMM. Visibility for shareholders and the local community are key to achieving transparency.
We have invested in refining our corporate governance practices and growing our transparency
Our governance structure contemplates a Board of Directors and executive management team, as well as five advisory committees: People, Strategy, Technology, Audit and Risk and Finance. The Board oversees the company’s overall performance, including issues related to sustainability, risk and opportunities.
Board members are also responsible for setting the overall direction and business strategy of the company; approving the results and capital budgets; setting general compensation criteria and benefits policies for management; monitoring the performance of management; electing, removing and defining functions of executive management and other duties as defined in CBMM’s by-laws and current legislation.
Chairman Pedro Moreira Salles
Vice-Chairman Fábio Colletti Barbosa
Members Demosthenes Madureira de Pinho Neto
João Fernando Gomes de Oliveira
Mauro Agonilha
Mitsunori Okimura
Youngseob Jang
Maurício Novis Botelho
Zhihai Wang1
Sun Yufeng
CEO Eduardo Augusto Ayroza Galvão Ribeiro
Directors Adalberto Guimarães Parreira
Alex Silva e Amorim²
Carlos Alberto Bezerra de Moura³
Ricardo Fonseca de Mendonça Lima
Rogério Contato Guimarães
1. Replaced Chen Qun in March 2019.
2. Elected in October 2019.
3. Departed in September 2019.
1 Individual investors are Fernando Roberto Moreira Salles, Pedro Moreira Salles, Walther Moreira Salles Junior, João Moreira Salles, Lucas Espínola Moreira Salles and André Espínola Moreira Salles.
2 Brasil Warrant is controlled by Fernando Roberto Moreira Salles, Pedro Moreira Salles, Walther Moreira Salles Junior and João Moreira Salles, all of whom hold equal shares.
In line with the evolution of our compliance practices, we treat risk management as a critical tool to detect business exposures, mitigate them and leverage opportunities to improve practices, policies and strategies
The goal, in addition to reducing risks and protecting our reputation and business, is to strengthen the corporate governance structure, increase levels of transparency through relationships and communication with stakeholders and meet short- and long-term targets per budget planning.
In 2019, two new policies were institutionalized: Conflict of Interest and Anti-Corruption. We have zero tolerance for corrupt practices and our anti-corruption efforts are strengthened through:
Through the Compliance Hotline we receive reports of conduct that may be illegal or violate our Code of Ethics and Conduct. The channel is confidential and is managed by an independent, specialized firm.
Contact numbers
Brazil: 0800 721 0754
Singapore: 800 852 3836
USA: 1 800 982 0934
Netherlands: 0800 022 2352
Switzerland: 0800 835 088
24 hours a day
7 days a week
Website
www.cbmmcompliance.com
E-mail
cbmm@cbmmcompliance.com
Letter
Caixa Postal 521, CEP 06320-971
Brazil
In person
with a Compliance Department staff member
Based on compliance with the requirements of relevant international standards, our Integrated Management System is regularly audited by ABS-Quality Evaluations
We promote and invest in the continuous improvement of our processes, products and services. We were the first mining and metallurgy company in the world to earn ISO 14001 (environment) and we have incorporated into our management system other important certifications, such as ISO 9001 (quality), OHSAS 18001 (occupational health and safety) and ISO/IEC 27001 (information security).
We have established eight commitments as part of our management system that is designed to ensure world-class operations
To develop new products and technologies, we invest in research, foster partnerships and apply best practices
To develop new products and technologies, we invest in research, foster partnerships and apply best practices
Since the earliest days of the company, we have worked to develop industrial process technologies, the niobium market and niobium applications. This long-term approach has been a decisive factor in our success.
Our relationships in the various sectors where we operate depend on the quality of our products and the value niobium adds to applications. Urgent solutions for a sustainable economic model demand the use of smarter materials in applications in mobility, infrastructure and in the generation and distribution of energy.
We transform niobium from ore to high value-added products using advanced, efficient processes developed in-house
One of the most comprehensive niobium research centers in the world, CBMM’s Technology Center in Araxá aims to optimize natural resources, input materials, ore processing and product industrialization. In 2019, 58 researchers worked on 57 new projects associated with innovative technologies linked to the niobium supply chain, in addition to 100 ongoing projects. Facilities include laboratories, pilot plants for ore processing and treatment (grinding, classification and flotation), pilot plants for metallurgical assays (pelletization, sintering and fusion) and pilot plants for chemical assays, in addition to infrastructure for environmental research and physio-chemical characterization of materials.
Within the Technology Center, we operate a Laboratory capable of collecting samples, running environmental tests and analyzing all intermediate and final niobium products, in addition to participating in research and new process and product development. Our Laboratory is accredited by NBR ISO/IEC 17025:2005 with scopes covering raw and residual water, atmospheric emissions, potable water and ferroniobium. Nadcap accreditation was achieved in 2017 for chemical and metallographic analyses in nickel alloys (Inconel), material developed at CBMM’s Metallurgical Processes and Materials Research Center.
CBMM’s Metallurgical Processes and Materials Research Center houses an innovative vacuum induction melting furnace and uses processes that involve three patents and accreditation by global aerospace regulatory authority, Nadcap. The equipment enables the development of superalloy prototypes for rapid insertion of innovative new products containing niobium in the aerospace, energy generation and oil and gas markets.
We are the only company present in all niobium market segments
Our portfolio of niobium products has the capacity to transform the properties of materials that are used in the mobility and infrastructure sectors, as well as for the generation and distribution of transitional and renewable energy resources.
There are also niche applications in medical equipment, precision optics and aerospace that demand special products with high technological grades, applications which we co-develop with partners around the globe.
The niobium products that satisfy all these demands are manufactured at our integrated plant in Araxá.
When employed in the steel industry, in addition to enabling enhanced steel properties, niobium can help mills reduce their greenhouse gas emissions, water and energy consumption during the steelmaking process.
Our products are recognized by the European Chemicals Agency (ECHA) as safe and inoffensive to health and the environment. The reports emitted by reference laboratories were evaluated and authorized without restriction by ECHA.
Since 2011, CBMM has satisfied the requirements of REACH (Registration, Evaluation, Authorization and Restriction of Chemical Substances). REACH is a European Union initiative that is concerned with the health and safety of the users of chemical products and requires from industry a higher level of responsibility in managing the quality of its products and the information it provides on the safety of the chemical substances marketed in Europe.
We understand that niobium technology is a potential ally in the search for solutions to some of society’s most pressing challenges
And, we believe that the dissemination and exchange of knowledge is the expectation for companies and others working in this context. In 2019, we invested in initiatives in the digital environment to increase the frequency and reach of our dissemination activities and success cases.
One of the year’s main initiatives was the launch of www.niobium.tech, a digital platform that was designed to integrate with proprietary social media channels. Key target audiences for this new platform include the scientific community, customers, material designers and end-users. Sustainable solutions for the mobility, structural and energy sectors drive the content on the platform, which focuses on how niobium technology can transform materials to achieve end products that are efficient and cost effective.
Check out some of the work we did in 2019 to develop and disseminate niobium technologies that offer solutions to today's challenges.
Niobium is playing a key role in a new generation of batteries by helping to develop materials with shorter charge time, higher energy density, increased safety and enhanced durability. Learn more about niobium’s role in energy storage.
Niobium helps solve complex engineering challenges cost-effectively and makes modern projects more efficient. Smarter materials lead to greater design freedom and lower material consumption during construction, an attractive solution for the structural sector. See how niobium is applied in tall buildings.
Niobium has important applications in the automotive sector, enabling materials to be stronger, lighter and safer. Extreme E is a motorsport race that will use electric SUVs for off-road racing in remote regions of the planet that are threatened by climate change. Niobium is used in the structures of these robust vehicles. CBMM's relationship with Extreme E represents an opportunity to build new partnerships to further develop the expanding potential of sustainable mobility, and also to raise public awareness about the use of niobium in the creation of cleaner technologies. Learn more about niobium solutions in the mobility sector.
CBMM is the only Brazilian company sponsoring Formula E, an ecosystem that includes leading global technology companies and serves as a platform for accelerating the development, testing and validation of new sustainable solutions for electric mobility in cities.
Niobium technology contributes to the safety and integrity of the world's natural gas transmission and distribution infrastructure, an important energy source for the transition from the fossil-fuel based economy to renewable resources. Niobium steels provide the required properties for high-pressure pipelines that transport gas over long distances. Watch representatives of the production chain describe how niobium was essential to one of the biggest pipeline projects in recent times.
To learn more about how niobium can improve various materials used in mobility, structural and energy applications, check out the Niobium Hub, a collection of digital content containing almost 500 items.
Our report covers activities in Brazil and abroad, reflects our sustainability efforts and links to Sustainable Development Goals
Our report covers activities in Brazil and abroad, reflects our sustainability efforts and links to Sustainable Development Goals
CBMM’s (Companhia Brasileira de Metalurgia e Mineração) Sustainability Report summarizes the company's main attributes, achievements and challenges for the period from January 1 to December 31, 2019.
The material topics defined in the materiality process carried out in 2017 were confirmed in 2019 through a reassessment by the executive team (CEO, vice president, industrial director, commercial director and chief financial officer). The exercise considered, among other aspects, studies associated with global sustainability and the main sectors where CBMM acts directly or indirectly, such as technology, steel and mining.
The report was prepared in accordance with Global Reporting Initiative (GRI) Guidelines, Standards version, Core option. External assurance of the GRI indicators was performed by PwC. The information presented in the report reflects CBMM’s activities in Brazil and abroad. Foreign subsidiaries are not included in the GRI indicators since they were determined to not be significant units for data collection.
Based on confirmed material topics, we aligned corporate objectives with select United Nations Sustainable Development Goals.
For clarifications or suggestions about this publication, please contact comunicacao@cbmm.com.
CBMM – COMPANHIA BRASILEIRA DE METALURGIA E MINERAÇÃO
www.cbmm.com
Córrego da Mata, s/n.
38183-903
Araxá (MG) – Brazil
+55 (34) 3669-3000
Avenida Brigadeiro Faria Lima, 4285, 9º andar
04538-133
São Paulo (SP) – Brazil
+55 (11) 3371-9222 or +55 (11) 2107-9222
CBMM TECHNOLOGY SUISSE SA
Avenue Pictet-de-Rochemont, 8
1207
Geneva, Switzerland
+41 (22) 318-4050
CBMM ASIA PTE. LTD.
10 Collyer Quay
#26-10 Ocean Financial Centre
Singapore
+65 6303-0290
CBMM EUROPE BV
WTC H-Tower - Zuidplein 96 / 1077 XV
Amsterdam, Netherlands
+31 (0) 20 881-3140
CBMM NORTH AMERICA, INC.
1000 Omega Drive, Suite 1110
Pittsburgh (PA) 15205 – USA
+1 (412) 221-7008
CBMM Beijing
B1199, 01-1106, F10, No. 1 Building No. 8 Yard
North Road of the Workers Stadium
Chaoyang District
Beijing, China
+86 1381138-7305
CBMM Shanghai
Suite 4704-A5
47F Hong Kong New World Tower
No. 300 Huai Hai Zhong Road
Huangpu District
Shanghai, China
+86 (21) 5116-2822
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CBMM
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