SAMARCO SALVAMAR PROJECT ONE COMPANY, ONE IDEA On one hand, the natural beauty of beaches and mangroves, on the other, the strength of an industrial plant and a harbor, important both to the company and the country’s economy. Converging on them, old fisherfolk communities live from the sea. What to do to harmonize all this? How to guarantee recuperation and preservation of the environment and to ensure continuity and development of modern and traditional economic activities? The answer given by Samarco, a mining company, and Guarapari’s community, a city on the Brazilian coast, is a partnership between company and community, based on a new way of understanding and acting. A project, developed from the idea of a sailor working in a company’s tugboat, helps to avoid the discharge by fishermen of large amounts of oil into the sea - an event comparable to a large accident -, ensures income improvements for them and is an example of a new kind of harmony between company, community and their environment. It is a straightforward project with significant environmental and social reach. It is also a symbol of a new manner of making things happen: empowerment, participation and articulation with stakeholders. What characteristics and actions of Samarco made this program possible, from the origin of the idea to its launch? What can and should a company do to multiply opportunities like that? THE COMPANY1 Samarco produces iron-ore pellets, for use in direct reduction and blast furnace metallurgical processes, and concentrated ore fines. Its yearly production capacity is 12 million tons of iron ore pellets and 1 million tons of concentrated ore fines. Samarco was born 25 years ago as a project linked to steel-producing companies (Samitri, of the Belgo-Mineira Group, and Marcona, a North American company). Due to incorporation, privatization and selling processes, the control over the company became equally shared (50% to 50%) by Companhia Vale do Rio Doce and BHP Billington, a company belonging to the Australian group The Broken Hill Proprietary Company Limited. Only under this shareholding configuration has Samarco truly started to operate directly on the global pellet market and not through Samitri or BHP. Today, Samarco is the second largest player in the pellet sea borne trade. To guarantee closer proximity with and better service for clients, Samarco established offices in Europe (Amsterdam) and Asia (Hong Kong). A processing plant and the Alegria Mine constitute the Germano Unit, in the cities of Mariana and Ouro Preto, state of Minas Gerais. Its deposits amount to 5.6 billion tons. In the city of Anchieta, state of Espírito Santo operates the Ponta do Ubu Unit, a complex formed by two pelletization mills and their own maritime terminal. The two cities are linked by a 396 km-long iron ore pipeline capable of transporting up to 14 million 1 More information in the site: www.samarco.com tons per year. The duct transfers concentrated ore produced in Minas Gerais to the pelletization unit in Espírito Santo. BUILDING A SUCCESSFUL ENVIROMENT The ore pipeline and the conveyor belt system used in the mining process enabled economic exploration of Itabirite, a low iron content ore formerly rejected. The need of using state-of-the-art technology and innovating processes was a necessary condition for the enterprise’s viability since the very beginning. The iron market depends directly on the steel market. In the last few years, it experienced an intense process of consolidation. Today, 80% of the global production comes from three companies: Rio Tinto, BHP and Vale do Rio Doce, two of them Samarcos’ shareholders (BHP and Vale). In the last four years iron ore’s prices dropped 20% and, although some recuperation is expected, it will hardly reach previous levels. A more competitive market, higher quality requirements and the increased importance of environmental concerns have all represented great challenges for Samarco and required intensive efforts towards development, modernization and increase in profits and profitability. In 1990, Samarco analyzed 250 profitable companies and selected 25 as objects for case studies. Based on the reasons found for their success, development projects were designed, including implementation of the management process. The following table contains the implementation timetable for some of these projects: 1991 1992 Normatization QTS - Sol Project - Maspet Beginning of the ISO 9000 Project 1993 Routine Management 1994 ISO 9000 Certification 1995 Beginning of the ISO 14000 Project and Implementation of Management Systems and Managing by Directives 1996 Benchmark 1998 ISO 14000 Certification and Knowledge Management 1999 Analysis and Solution of Problems These projects are part of the Management Model and are important steps in the developing process proposed for the company that began with the implementation of internal process and normatization, followed by quality, environmental, occupational health and safety management models. The establishment of a focus on the client, a global benchmark, and a search for domestic and international recognition completed such developing process. The statement of Mission, Objectives and Values of Samarco lead the steps of this process. The Management Model contributes for the internal dissemination of such strategic definitions, cause the participation and commit the employees with the objectives and goals of the company. The following diagram represents the planning process: Gestão Estratégica na Empresa MANAGEMENT MODEL KNOWLEDGE MANAGEMENT MOTIVATED PERSONNEL Gerenciamento pelas Diretrizes Managing Gerenciamento by Directives pelas Diretrizes PRODUCING VALUE FOR THE SHAREHOLDER Samarco Planejamento Business Review Estratégico Management Seminar Diretoria QCAMS QCAMS Board of Conselho Directors Montly Meeting 4-month Meeting 2-month Meeting Carta para o “Diretrizes Q Biênio” C ______________ Letter ______________ A M S ______________ Directives ______________ ______________ Biannual Melhorias Improvement Seminário Bianual Seminar Q C A M S AnnualRotina Routine Seminar Seminário Anual ______________ ______________ ______________ Budget ______________ ______________ 2001 Consumers/Clients Suppliers PlanoCorporate Anual Annual Goals Plan Corporativo de Metas Q C A M S ______________ ______________ ______________ ______________ ______________ Community Government and Society Values and Transparency Environment Internal Public 4-month Meeting 3 Generation Report Goals Planos de Plan Metas Routine Unidades Management Gerenciais Monthly Evaluation Meeting Control items and PA for improvements and critical items The starting point is the so-called “Quality House”, which values the success conditions of the company. Next, there is a longer stage of definitions, Samarco 2010 Vision, that was established after the presentation of scenarios and perspectives by Officers and Managers, at a one week seminar. This Vision unfolds in the Strategic Planning, in which the defined goals are considered directives for the Improvement Plans (Biannual Seminar) and the Routine Management Plans (Annual Seminar). Based on the definition of such seminars, the Annual Corporate Goals Plan is produced, and unfolds in the Goals Plans and Routine Management. Each plan has specific terms and mechanisms for its monitoring. The Monthly Routine Management Meetings involve management (Officers and Managers) and are open to any employee. Currently over 200 control items are evaluated and there is a rigorous failure analysis process. As per the words of the Human Resources General Manager, Benedito Waldson Pinto, the process of Improvement Development is an important success factor of the company: “Samarco has an overhead to think. Think, develops and tests technologies when those prove feasible they are incorporated and become routine very rapidly”. Even though its mechanisms may be eventually refined, the process as a whole has already been consolidated in the company. Currently there are roughly 700 rules, from the mine to the port, dealing with Quality, Environment, Health and Safety. The following diagram illustrates the “foundations” of the “Quality House”. ISO 9002 ISO 14000 OHSAS 18001 GIRH Human Resources Integrated Management Manual of Routine Management- Process Standards Specification and Operational Standards Computerized Management System To guarantee competitiveness for its products, the market requires the company to comply with international quality standards and to certify its products according to the largest possible number of them. Besides that, there is a great concern in avoiding the generation of financial, environmental or social liabilities. As per Francisco Dutra, the Management Risk General Manager, “at Samarco there is, currently, the consciousness in each department and employee that if it does not operate according to international standards it will not be generating any value to the company”. A common characteristic of these certification development processes is that Samarco does not contract external consultation packages. The company starts creating a study group to assess and analyze the necessary processes. The employees involved in such groups are removed from their functions in order to dedicate to such activity. Occasionally, these groups may rely on external consultants, but only to support their understanding of some subject. The result is the creation of a group of people who know the company and who are qualified to implement the necessary processes. An intense internal persuasive process is carried out. Voluntary professionals, the so-called “multipliers”, study and are prepared to spread the knowledge throughout the company and to mobilize the organization for the necessary changes. Several initiatives were conducted this way such as ISO 9000 and ISO14000, the Management System and many others. The same process is being carried out now for the PNQ and the risk management system. Samarco is considered a benchmark in terms of organizational atmosphere. An internal survey was recently carried out but results are still under evaluation. The previous survey, carried out in July 1999 by Hay do Brasil, showed that Samarco “not only sustained the leadership in Hay’s organizational atmosphere ranking but also increased its rate. The general satisfaction index reached 76%, compared to 74% in 1996. About 97% of employees participated in the survey”. The proximity between Samarco and its employees comes from the beginning of the company. During the enterprise installation, they constructed villages in Mariana and Ubu, to lodge employees close to the mill and the harbor. Up to 250 families used to live in the village in Mariana. The proximity of employees, their families and the company created a very close relationship between the parties. At this time the company being the great provider. In the village in Mariana, the company offered a communal restaurant open to the families of employees. The school was entirely maintained by the company. On the other hand, adhesion and solidarity offered by families was absolute. Aware of their dependence on the company, whenever sales dropped or any incident required interruption of activities, the women would gather and pray for a quick recuperation. Time changed this relationship, reducing dependency. The transition process was implemented in order to preserve the good relationship between company and employees. The school was transferred to the city’s administration but the company guaranteed technical support to keep quality standards. The houses were sold to employees but the company financed the transaction and reinvested the money in a housing program for the other employees. This transition for a culture of results was supported by actions of internal communications, such as events and specific publications, but, also through the development and valorization of leadership communicative behavior and of the planning and monitoring process. To Madelon Piana, Manager of Corporate Communications “when direct communication, made by leaderships, is not present and is not attentive to employee’s needs, it produces an expectation with regards to the formal means of communication that will hardly be achieved”. Therefore, communicability is one of the attributes analyzed during evaluation and a criterion for the promotion of managers. The company implements an evaluation process of 360 degrees. The negotiations are based on the definition of objectives. There is a defined capability chart and a variable remuneration system implemented. The turn over is traditionally low. There is a policy of investment on employee’s education and the instruction level indicators have been increasing due to such initiative. The following graphs show such evolution. 1996 1.480 employees SAMARCO’S ENVIRONMENTAL PROTECTION POLICY 2001 1.285 employees The growing importance of environmental matters generated, along the last two decades, several initiatives to stimulate volunteer measurement and release of information related to environmental impacts. This means a significant improvement in the understanding of the subject. Legislation in several countries established different assessment systems and the proliferation of indicators, though contributing to environmental improvements, resulted in a very narrow base for comparisons. Some of these initiatives established themselves gradually as important benchmarks in their own areas, among them those constituting ISO 14000. These regulations are intended to provide companies with criteria for the voluntary environmental management, so as to broaden their capability to manage impacts and risks and to improve processes that may lead to better environmental performance. Certification is based on the analysis of an extensive range of parameters and represents a challenge for the companies. To implement it with the necessary seriousness and comprehension, the company must carry out a true process of cultural change. In Samarco’s case, this implementation represented a third historical moment for its Environmental Protection Policy. Samitri, owned by Luxembourgian shareholders (ARBED Group) and Marcona, a North American company, both among Samarco’s original shareholders, brought from their original countries environmental concerns still not prevalent in Brazil. Stabilization ponds, for instance, were still considered unnecessary expenditures, in Brazil. Even so, the first moment is characterized as of “total reactivity”.4 In 1991, The Federal Environmental Protection Legislation and the subsequent creation of environmental protection agencies and implementation of environmental licensing procedures gave rise to the necessity of better structures to handle environmental issues. Samarco contracted out the first large environmental project, the PRAD – Programa de Recuperação de Áreas Degradadas (Degraded Areas Recuperation Program). The project signalizes the beginning of a second stage: instead of acting in response to external requirements, the company turned to a proactive attitude. Environmental Consultancies were created in Minas Gerais and Espírito Santo, each state where Samarco operated. However, since there was no well-defined environmental policy, each one of them acted at will, generating two distinct ways of action, disputes among them being the natural consequence. In 1996, the company’s president invited a mine-planning engineer, Vitor Feitosa, to coordinate the company’s Health, Safety and Environmental Protection initiatives, tasks formerly assigned to the Human Resources function. The Consultancies did not report to the coordinator himself but had to follow guidelines established by him. Samarco then started the development process of an Environmental Protection Policy that should lead to the ISO 14000 certification. As usual, no consulting package was contracted, the project being internally developed. An Environmental Management System (SGA) was created and is considered as the great differential: the SGA was developed based on international standards but in accordance with Samarco’s needs and profile. A great training effort was developed, carried out by “multipliers” recruited from several areas of the company. But like many other necessary initiatives, this was not free from conflict and debate: areas that did not want to offer their professionals to act as multipliers, resistance to changes - ‘because we have always done that this way’. Along the process, Samarco tried to deepen its relationship with the community. Previously, this relationship was restricted to sporadic donations without any strategic intent, a form of good-neighbor policy. Now, the goal to be achieved was transparency in the relationship. “The door had to be opened although we knew there would be strong criticism, and it happened exactly that way.” Samarco started to voluntarily promote public hearings to present environmental and social results of its activities. An interesting initiative took place within the Pelletization Division: the GAMA – Grupo de Amigos do Meio Ambiente (Group of Friends of the Environment). The Group gathers employees who voluntarily commit themselves to the monitoring of environmental control items impacted by their activities. Such monitoring is performed along the work process itself, during daily activities. There are groups for every shift and results are presented to all during periodic meetings. New goals and alternatives of improvement are also discussed during these meetings. The GAMA is led by employees elected by colleagues and is self-managed. Interest and results of its internal activities led the Group to extend its action to the external world, supporting activities of environmental protection, giving lectures in schools and associations and contributing to the community. As Sandrely A. Lopes, environmental protection analyst, said, “the environment is no longer the exclusive responsibility of Environmental Protection Divisions but of everyone”. Each area manages its own control items; the environmental concern flows over the walls of the company and ‘contaminates’ the employees’ quotidian routines, in the family and in the community. In 1998, Samarco was recognized as the first iron ore producer to obtain ISO 14001 certification for all stages of its production process. FIELD OF IDEAS The organizational atmosphere and the Social Responsibility and Environmental Protection Policies mold the concepts and explain the concern that gave birth to the Salvamar Project but it was the Field of Ideas (Campo de Idéias) program that made it operational and created the conditions necessary to its implementation. In 1989, a group of company’s executives participated in a managerial developmenttraining program. The final activity of the course was the presentation, by the executives, of a viable project of interest for the company and that would consolidate the knowledge acquired. The company’s president himself suggested to one of the groups the development of a reward system to stimulate employees to contribute with ideas and innovative suggestions that could improve routines or be relevant for the company’s strategy. The President was aware of one experience conducted within the Belgo Mineira Group, since Samarco, through Samitri, was also part of this Group. The Technical and Administrative Merit Award of the Belgo Mineira Group was conferred to employees that suggested and implemented innovative ideas. This suggestion was in accordance with the objectives that appear in Samarco’s Mission Statement “Continuous drive towards a high-performance organization, in which every individual accepts responsibility and is rewarded for results.” The project was developed and presented by the group in the Training Program but, back in the company, after conclusion of the course, the proposal was forgotten. Each member of the group belonged to a different sector and daily activities absorbed all their available time and efforts. As Vitor Feitosa commented: “Penido (Samarco’s President) never forgets! It must be implemented”, was the order given to the members of the group. The management area was indicated to manage the project. A process was defined, ranging from the presentation of the idea up to the rewarding process. c Chartflow 1 Phase IDENTIFICATION OF IMPROVEMENT OPPORTUNITY How Who Observing possible improvement according to: targets , routine management, processes, experience and perception. EMPLOYEE Filling out the form "Improvement Proposal" (PM - CI) for participation in the program Field of Ideas. Meeting the group coordinator. 2 P PROPOSAL ANALYSIS MANAGER Analysing financial and technical feasibility and alignment with Samarco targets and objectives up to 10 workdays after receiving the proposal. Completing the form "Improvement Proposal" ( PM - CI) N ? APPROVED ? Y Using the method agreed with the manager. D C N 3 ELABORATION OF ACTION PLAN GROUP 4 IMPLEMENTATION OF ACTION PLAN GROUP 5 CHECKING RESULTS ? RESULTS ACHIEVED? COORDINATOR / MANAGER Filling out the form "Action Plan"(PA - CI) and arranging the necessary support with the manager. Accomplishing planed actions. Measuring the attainement of the proposed target. Filling out the form "Checking Results (VR _CI). Y 6 STANDARDIZATION COORDINATOR / MANAGER 7 AWARD QUALITY SYSTEM A Setting a standard, if necessary, reassessing the targets and training the employees. Using the criteria stablished in the "Award Criteria for the Field of Ideas" standard. The Program is oriented according to the following objectives: Encouragement to the generation of ideas throughout the company Promotion of innovation and creativity Reward and recognize employees’ contributions Promotion of teamwork Works were distributed in two categories: Category 1, including proposals regarding Quality, Cost and Attendance and Category 2, including proposals regarding Environmental Protection, Safety and Morale. Approved and implemented ideas are presented during the Annual Fair. More than 2,500 people, including community members and Samarco’s employees, visited the fair in 2002. One hundred ideas were submitted along 2000, the first year of the “Field of Ideas”, since September 27, date of the Program’s introduction, to November 16. Of these, 75 were approved by their divisions and passed to the next stage, the elaboration of action plans. A total of 148 employees of Ubu and Germano units participated in the program, together with three other employees of contracted companies Rawmec, Incorpori and Construtora Ouro Preto, in Germano. Currently, the “Campo de Idéias” is an important complement to the formal process of improvement development, integrated with the Management Model. MISSION, VALUES AND OBJETICVES – “CASA DA QUALIDADE” – DIRECTIVES LETTER BUDGET DIRECTIVES – BUDGET - MBR REPORT MANAGEMENT SEMINAR ES TR AT ÉG I A GOALS PLANS IMPROVEMENT SEMINAR FIELD OF IDEAS ROUTINE SEMINAR GOALS PLAN 4-MONTH MEETING MONTHLY ROUTINE MEETING IMPROVEMENT ROUTINE OPERATION VERIFICATION PLANNING The program’s overall results along its three years of existence confirm the positive perspectives of the first year. They are: Average of three contributions per employee 87% of personnel have already presented improvement proposals to the program, at least once Financial return of US$11.01 per US$1.00 invested Of the 1,509 approved proposals between September 1999 and June 2002, 792 were implemented and 717 are currently being implemented. 59 of the proposed ideas address environmental improvements. Samarco already patented some of the ideas presented within this program. GAMA’s President, Gerson Oliveira, statement shows one of the reasons for the success of the Field of Ideas program and of Samarco itself: “I worked for several other large companies but never got as much satisfaction. Here, they are willing to listen, they like ideas.” THE SALVAMAR PROJECT The seventh idea submitted within the Field of Ideas program made history in the company. As part of the activities for the SGA (Environmental Management System) implementation, the sailor Sebastião Machado participated, together with other Samarco employees, in a training course offered by Petrobrás on the elaboration of an Oil Spill Emergency Plan. They were given instructions on how to elaborate such a plan, how to act in case of accident and information about the environmental impact of oil spills into the sea. Tião, as Sebastião is known, is son of a fisherman. Married, with two children, he lives in Perocão, a fishermen village, near Ubu. About 80 fishing boats arrive there every day. Back from the training course, he commented with other colleagues - among them Sandrely Amigo Lopes, an environmental protection analyst -, that the region’s fishermen discarded into the sea or buried in the sand all the oil used in their boats’ engines. Sandrely knew that “this kind of coastal environmental pollution is considered as one of the most harmful to the environment. Although frequent, the doses are small and hence considered to be inoffensive. Lacking information, most of the fishermen did not understand the impact on the environment.” They noticed the disappearing of some species, followed the disappearing of the mangrove’s flora and the loss of the “sun’s brightness reflected on the sea”2 But even uncomfortable, they did not care much about the oil’s final destination. The conversation between Tião and Sandrely awoke both the technique and the seaman for the necessity of doing something. The initial idea was to lay barrels in the areas used to park boats and collect the used oil. They wanted to do that immediately. Sandrely had to call for patience: “Let’s stay calm friends... we have experience and knowledge about oil spills but not about work with communities.” She talked to his boss and he agreed to the idea, committing himself to the necessity of finding a solution for the matter. The first factor required for success had been achieved: support of the area’s leadership. “The manager has to support the idea and I was lucky to have a very sensitive man as my manager”, says Sandrely. José Luís Ramos- fisherman- cit in the Annual Report- 2001 The harbor’s personnel proposed sending it to the Field of Ideas. The program had been recently launched and represented a channel to achieve a commitment that would go beyond the good will and the interest of the involved persons. If the idea were approved, it would become a company’s project. After the approval, the project had now to be detailed and executed. A careful planning started, including many conversations with fishermen, their associations (such as the Colônia, which is a kind of cooperative) and the Environmental Protection Agency of the Espirito Santo State. Enthusiasm and anxiety regarding the project had to be kept under control in order to allow consideration of all possibilities. This process of clear perception of the reality and of exchange of experiences gave birth to a project’s conception later implemented in Perocão. Samarco recycles the oil it uses and its Ubu plant has all the equipment necessary for the process: the centrifuge, the filters and the laboratory to check the quality of the oil. All this equipment offers unused capacity. According to the Salvamar Project, the oil would be collected, recycled and resold to fishermen at a price to cover processing costs. The fisherman who discarded at least 90% of the capacity of his oil tank would be awarded. This would stimulate more adequate engine maintenance, avoiding excessive burning of oil and consequent pollution of the sea. In turn, the fishermen would have to participate in environmental education courses aimed at sensitizing fishermen to the “environmental impacts of rejects resulting from fishing, whether garbage or oily residues.” The first community to be included in the project was that of Perocão’s fishermen. These are simple people, less than half of which have completed elementary school. Seventy percent of them have incomes in the 200-to-400 Real (US$ 60-to-120) range. They participated in meetings and courses. Besides acquiring knowledge on the environment, they developed their organization capabilities and learned to discuss and decide as a group. The fishermen were registered as well as their boats, including the oil volumes used in each watercraft, in order to quantify the amount of rejects. About 300 boats with approximately 900 crewmen joined the idea. Boats were equipped with adhesives identifying them as participants in the Salvamar Project. A 680-liter collector and a tank for the sale of recycled oil were installed and the project operations started. Samarco assigned an employee to take care of the Salvamar station. The choice ended up indicating Gilberto Machado, who lived in Perocão and was identified with the project’s ideas. However, haste in completing and operating the project raised one problem. The period necessary for filling the collector, collecting and recycling is approximately three months. Because of that, the fishermen would initially have to collect the oil for this period without having it back, recycled. Anxiety did not allow them to wait. Pressure and the wish to see the project succeed forced Samarco to commit Shell, a Samarco supplier, and they negotiated the supply of new oil at prices equal to production costs until completion of the first recycling period. When the recycled oil finally arrived there was strong resistance due to its color. Even after recycling, the oil keeps a darker color than new oil. And new oil sold at prices equal to production costs represented already savings. Pressure was then exerted aiming at a continued sale of new oil at production-cost prices. But this would compromise the whole concept of recycling. Fishermen are aware of the importance of the oil: “you know ... oil is the life of the engine.” Samarco tried to convince the fishermen to accept the recycled oil, to make them understand that the color was not related to quality but they didn’t change their opinion until now. After Perocão, the Salvamar project turned to the fishermen’s community in Anchieta. This time things proceeded differently. The fishermen themselves, after they became aware of results achieved in Perocão, looked for the city’s Environmental Protection Agency in search of help, but the Agency did not show much interest for the idea. The State Environmental Protection Secretariat interfered with the process and reinforced the request of the fishermen and, in November 2001, the project started operations in a similar way as in Perocão. Meetings, courses and visits to Samarco were previously conducted to present the oil recycling process and the laboratory, where adequacy for use was checked. The oil sold within the project was recycled oil, right from the start. Other fishermen communities are coming to Samarco and to Municipal Environmental Protection Agencies to ask for the implementation of the Salvamar Project in their areas. The initial problem regarding the use of recycled oil seems to be overcome. The Salvamar implementation leader in the community of Prainha de Muquiçaba, José Augusto Caudonazi, commonly named Deco, is already registering the fishermen. Regarding the quality of the recycled oil, he says: “There is no problem at all. When it comes from Samarco we believe.” Deco is an enthusiast of the Salvamar Project. “This is a fantastic project. I tell everybody: try and implement that in your community, too. The other day my boat stopped in Jacareípe. I talked to people over there. They already knew about the project and they want it too.” In Muquiçaba, they once installed barrels on the beach but there was neither collection nor recycling. The oil collected ended up in the sand and was taken into sea by the tide. Implementation in Muquiçaba started with the participation of all those interested. The community wanted it and went to the Municipal Environmental Protection Secretariat. They started participating as facilitators, scheduling a meeting with Samarco and supporting the communal discussion and mobilization process. In the Municipal Secretary Giovana Kill’s opinion, the process is a guarantee for the project’s permanence. Belonging to everyone, the project does not run the risk of discontinuance. The Salvamar Project received many awards. It won the first prize in the international contest promoted by BHP. Technicians and the tugboat sailor that created the idea were taken to Australia to receive the US$2,500 award, which they intend to invest in a new social project at Perocão, still under development. Salvamar’s annual budget reaches 15 thousand Reais (around US$ 4,000). To allow return for the company in terms of public image, it is necessary to publish information about the project and its results. But the cost of publishing the information is higher than the investment in the project itself In Sandrely’s opinion, the reason for the project’s origin is that “we learned so much that the knowledge ended up being brought into the community”. Because they have the knowledge, they recognize that there is much to be done and initiatives joining company’s social policies and employees’ volunteer actions are multiplying themselves. The Salvamar Project proceeds with its path. There is still no risk of overburdening Samarco’s recycling equipment but there is an increasing interest in finding partner companies that may expand the idea to other regions. Samarco would then contribute with the operational model, since they now understand about oil spills but are also able to jointly work with communities. AN IDEA THAT GREW The Salvamar Project presents a complete conception. From the environmental viewpoint, it encompassed the complete cycle of oil utilization, including oil recycling and reuse, and stimulated consumption reduction. From the social standpoint, it contributed to the development of the community, broadening its knowledge and its participation in issues important to the environment they are in, stimulating new values, increasing selfesteem, because every citizen contributes and participates, and enabling the reuse of oil, reducing costs and increasing the fishermen’s income. The average saving of R$70 (seventy Reais, around US$20) in the monthly consumption of oil is significant for the fishermen and a strong reason for initial adhesion, since only registered fishermen, participating in the project, were allowed to buy recycled oil. But, after the training course and the lectures, motivation towards environmental protection increases and fishermen change their habits regarding other rejects such as plastic bags, nets and fish leftovers. Most of them bring back trash to land and throw it in the barrels close to collectors. They even collect other objects they find on water for adequate disposal. Fishermen from other regions, still not participating in the Salvamar Project, are coming to the collection stations to dispose of oil after hearing their colleagues commenting on the impact of inadequate disposal. Since the beginning of the work, more than 2,000 liters of oil have been already collected, both in Perocão and in Anchieta. The project is in its final implementation phase in Muquiçaba and initial contacts have already been made with Iriri and Inhaúma’s communities, including meetings and visits to Samarco. In Perocão, the recomposition of the mangrove’s flora can be already noticed and it is common to hear fishermen saying: “The mangrove has to be preserved because it is the sea’s nursery”. Shareholders visiting the company want to know about Salvamar project, banks operating with the company include it in their sustainability assessment of the company. The recognition of its importance is a stimulus for other employees and the management to adopt and implement new ideas. Whenever the Salvamar Project is implemented in a new community, new knowledge and new improvement and action opportunities are discovered. Luiz Milagre, a fisherman, wrote a sentence in a text he prepared for the contest named Histórias de Pescador (Fishermen Stories), one of the Salvamar’s activities, that could very well be transposed to the management and daily life of companies, so that learning and transformation become permanent characteristics: “The sea is an infinite school and we never know all its mystery.” SOURCES Samarco Annual Report 2001 Olinta ........- Lecture at Mix ABERGE 2001 Interviews Samarco Ana Paula Gomes Costa - Management Internal Consultant Benedito Waldson Pinto - Human Resources General Manager Francisco Dutra - Management Risk General Manager Gerson Oliveira - GAMA’s President Madelon Piana - Corporate Communications Manager Sandrely A. Lopes - Environmental Protection Analyst Sebastião Machado – Sailor - Salvamar Creator Vitor Feitosa - Health, Safety and Environmental Protection Initiatives Coordinator External Stakeholders Giovana Kill - Environmental Municipal Secretary Meetings with: Perocão Fisherman Group Anchieta Fishermen Group Muquiçaba Fishermen Group