Boosting value creation Luciano Siani, CFO September 19, 2012 1 1 - - PowerPoint PPT Presentation

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Boosting value creation

Luciano Siani, CFO September 19, 2012

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“This presentation may include declarations about Vale's expectations regarding future events or results. All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties. Vale cannot guarantee that such declarations will prove to be correct. These risks and uncertainties include factors related to the following: (a) the countries where Vale

• perates, mainly Brazil and Canada; (b) the global economy; (c) capital markets;

(d) the mining and metals businesses and their dependence upon global industrial production, which is cyclical by nature; and (e) the high degree of global competition in the markets in which Vale operates. To obtain further information on factors that may give rise to results different from those forecast by Vale, please consult the reports filed with the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and with the U.S. Securities and Exchange Commission (SEC), including Vale’s most recent Annual Report on Form 20F and its reports on Form 6K.”

Disclaimer

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Agenda

• The China story isn’t over
• Leveraging on the world’s best iron ore reserves
• Managing capital to create value

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The China story isn’t over

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10 20 30 40 50 60 70 80 90 100 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Per capita GDP/US per capita GDP

%

Sources: Penn World Tables and Vale

India China Japan Korea Taiwan

There is still a long way for China in the process of convergence to the income standards of advanced nations

6 6

The pace of growth of Chinese steel demand is slowing, but will not peak for at least another decade

• Intensity of metal use is affected by many factors -

geography, industrial policy, technical capability, resource endowment, consumption standards.

• Typically each country follows a different path of steel

intensity.

• The experience of rapid growing Asian economies -

Japan, Korea, Taiwan - shows that steel intensity tends to peak when per capita GDP reaches between USD 15- 20,0001,2.

• Chinese GDP per capita is still around USD 8,000¹.

¹ PPP, 2005 prices. ² Steel intensity measured by tons per USD of GDP.

7 7 10 20 30 40 50 60 70 80 90 100 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Brazil Korea China I ndia

Urbanization rate

%

Source: UN Department of Economic and Social Affairs, “World Urbanization Prospects: the 2009 revision”.

Urbanization of China is projected to continue for another 15-20 years. Urban population is likely to expand by 300 million to 1 billion people

10 20 30 40 50 60 70 80 90 100 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

China W orld

8 8 Source: Demographia World Urban Areas, July 2012

To accommodate massive urbanization, large Chinese cities tend to resemble densely populated Asian cities full

• f high-rise buildings

Cities by population and population density

5 10 15 20 25 30 5 10 15 20 25 30 35 40 Density, ‘000 people per sq km Millions of people

Population Population density

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0% 20% 40% 60% 80% 100% 2000 2010 2020E

China is estimated to have a rising share of multistory apartment blocks with much higher steel consumption per square meter

Source: McKinsey Global Institute.

> 35 floors 16-35 floors 7-15 floors < 6 floors

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In addition to the large impact on housing investment, urbanization will continue to produce

• ther important effects on the demand for steel
• Investment in non-residential floor space.
• Investment in urban infrastructure.
• Increase of passenger cars.

11 11 Source: GaveKal

Upgrading of existing poor quality housing and the alleviation of housing shortage are other important sources of growth

million Urban households Housing stock, units Forecast Housing shortage

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Chinese car production

¹ Steel represents around 70% of light vehicle weight and only 2% of its cost. Sources: CEIC and Haver Analytics

China became the world’s largest car manufacturer, the most metal intensive consumer good¹, but the penetration is still low

2 4 6 8 10 12 14 16 18 20 2000 2002 2004 2006 2008 2010 Million units

Passenger cars per 1,000 people 2010

Source: World Bank

3 6 1 3 2 1 5 8 1 6 7 2 0 5 2 4 8 3 2 5 4 5 1 4 8 7 World Brazil Mexico Russia Korea Japan United States European Union China

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Machinery and transport equipment 51% Garment 3% Textile, rubber and metal 17% Food & live animals 3% Others 25% Non-food raw materials 1%

As part of its industrial development, China is scaling up the value chain. There is a rising share of metals-intensive heavy industry exports, while light manufacturing has been declining

China exports - 2 0 1 0

Source: Datastream

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The threat of scrap as a substitute for iron ore in the Chinese steel industry is not material

• Construction and capital goods represent 80%
• f Chinese steel consumption.
• In addition, large scale scrap supply requires the

building of a specific infrastructure which is not in place.

• More than 95% of Chinese steel capacity is

made of BOF, where substitution is limited by technical factors¹.

¹ Use of scrap is limited to about 20% of the charge, given the need to balance mass and heat.

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A lower price environment forces the shutdown

• f a significant portion of global iron ore capacity

and the cancellation of projects

• Shutdowns are already taking place: even with average iron
• re prices at US$ 136/ton this year, Chinese imports

increased much faster (8.7%) than steel output (2.1%)¹.

• The share of China’s iron ore imports from non-traditional

suppliers expanded to 21% from 5% between 2000 and 2012.²

• A large number of high-cost suppliers from more than 40

countries were attracted by the higher prices since 2005.

• Even in countries such as Brazil and Australia there are high

cost producers, who cannot afford a US$ 100/ton price.

¹ Average IODEX for January-August 2012. ² Non-traditional suppliers: suppliers from countries other than Australia, Brazil, India and South Africa.

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Leveraging on the world’s best iron ore reserves

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Improving the quality of iron ore in the Southern/Southeastern Systems

Capacity Mpty Capex US$ billion Estimated start-up Conceição Itabiritos 12 1.2 2H13 Vargem Grande Itabiritos 10 1.6 1H14 Conceição Itabiritos II 19 1.2 2H14 Cauê Itabiritos 24 1.5 2H15

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The Itabiritos projects involve processing plants with additional stages of crushing, screening and milling1,2

• Replacement of 41 Mtpy of existing capacity.
• Net capacity expansion of 24 Mtpy until 2017.
• Increase of Fe content to above 65%.
• Fall of silica content to below 4.5%.

¹ Additional plants: Conceição Itabiritos and Vargem Grande Itabiritos. ² Adaptation of existing plants: Conceição Itabiritos II and Cauê Itabiritos.

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Conceição Itabiritos: construction of an additional concentration plant

20.4 11.1 11.1 11.1 11.1 11.1 21.1 23.1 23.1 23.1

2012 2013 2014 2015 2016 2017

Mt

Project Location Capacity Start-up Total Capex US$ million Capex / t US$ ∆ capacity 2012-2017 Conceição Itabiritos Southeastern System 12 Mtpy 2H13 1,174 98 2.7 Mt Conceição Conceição Itabiritos SF PF SF PF Fe 64.7% 68.5%

• 67.7%

SiO2 6.3% 1.2%

• 0.8%

20 20

20.4 11.1 11.1 11.1 11.1 11.1 10.1 12.0 12.0 12.0 21.2 27.0 27.0 27.0

2012 2013 2014 2015 2016 2017

Mt

Project Location Capacity Start-up Total Capex US$ million Capex / t US$ ∆ capacity 2012-2017 Conceição Itabiritos II Southeastern System 19 Mtpy1 2H14 1,189 63 6.6 Mt Conceição Conceição Itabiritos Conceição Itabiritos II SF PF SF PF SF PF Fe 64.7% 68.5%

• 67.7%

66,5% 68.8% SiO2 6.3% 1.2%

• 0.8%

3,8% 0.9%

Conceição Itabiritos II: adaptation of the existing processing plant

1 31.6% SF, 68.4% PF.

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Vargem Grande Itabiritos: construction of an additional concentration plant

20.0 20.0 20.0 21.0 21.0 21.0 21.0

31.0 31.0 31.0 31.0

2012 2013 2014 2015 2016 2017 2018

Mt

Project Location Capacity Start-up Total Capex US$ million Capex / t US$ ∆ capacity 2012-2018 Vargem Grande Itabiritos Southern System 10 Mtpy 1H14 1,645 165 10.0 Mt Vargem Grande Vargem Grande Itabiritos SF PF SF PF Fe 66.1% 65.9%

• 67.8%

SiO2 2.8% 2.8%

• 1.2%

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Mt

Project Location Capacity Start-up Total Capex US$ million Capex / t US$ ∆ capacity 2012-2018 Cauê Itabiritos Southeastern System 24 Mtpy1 2H15 1,504 63 5.1 Mt Cauê Cauê Itabiritos SF PF SF PF Fe 63.6% 66.8% 65.3% 68.6% SiO2 7.0% 3.5% 4.4% 1.0%

Cauê Itabiritos: adaptation of the existing processing plant

1 29.2% SF, 70.8% PF.

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The distribution centers add flexibility to our

• perations: minimization of time to market and

enablement of blending capability

Tubarão PDM

Teluk Rubiah Oman

Guaíba & Itaguaí

• Oman DC is already operational.
• Teluk Rubiah is coming on stream in 1H14.

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The Carajás expansion: low opex, high quality and opportunities for future low capex brownfield projects

Capacity Mpty Capex US$ billion Estimated start-up Serra Leste 6 0.5 1H13 Additional 40 Mtpy¹ 40 3.0 2H13 Serra Sul S11D¹ 90 8.0 2H16

¹ Only mine and plant.

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Managing capital to create value

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Picking winners

• Focus on iron ore projects and other world-class

assets such as Moatize.

• Conclusion of projects already under construction

such as Tubarão VIII, Salobo II, Konkola North and Long Harbor.

• Streamlining of R&D expenditures will imply a future

pipeline with fewer projects and real high returns.

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The upside in base metals

• Living within its own means.
• Resuming pre-strike productivity levels at Sudbury.
• Ramp-up of VNC already resumed.
• Salobo - 200,000 tpy of copper and 322,000 ozpy of

gold.

• First phase of Salobo already ramping up.
• Nickel remains as a core business but it is non-core

for capacity expansion.

• Non value-adding assets will be divested.

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Our best days are still ahead of us

• Our goal is to be the best natural resources company by

return to shareholders, not the largest.

• Capex in line with expected cash flow. The preservation
• f our investment-grade rating¹ is a key priority.
• Stronger discipline in capital allocation.
• Focus on organic growth and stricter criteria for project

approval.

• Continuation of the non-core asset divestiture program,

unlocking capital to finance core asset development.

• Exploration of opportunities for partnerships where

appropriate.

¹ Vale is rated investment grade since July 2005. Current credit ratings: A- S&P, BBB+ Fitch, BBB (High) DBRS and Baa2 Moody’s. According to Moody’s KMV EDF implied rating is A1.

Vale’s Northern System:

Enriching iron ore production

Lucio Cavalli September 19, 2012

Vale’s richest reserves are in the Northern System with an average grade of 66.7% Fe

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Reserves¹ Mt % Fe Southern System 4,210 47.8 Southeastern System 3,508 49.4 Midwestern System 35 62.2 Average without Northern System 7,753 48.6 S11 4,240 66.7 N5 1,025 67.1 Northern System – other mines 2,118 66.5 Northern System 7,383 66.7 Total 15,136 57.4

¹ Tonnage is stated in millions of metric tons of wet run-of-mine.

In 1H12, Vale achieved two environmental milestones: N5S operation license and S11D preliminary license

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S11D

N5 South

The N5S mine is essential for the Northern System to ensure the supply of high quality iron ore

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Northern System’s ROM

Carajás current

• perations

Mill

0% 25% 50% 75% 100% 2012 2013 2014 2015 2016 N5S

N5S pit’s pre-stripping started in 1H12

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S11D was customized to minimize environmental impact, receiving the preliminary license in June/2012

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Pit Waste Rock Piles Plant All of S11D’s industrial facilities will be built on previously deforested areas. Waste rock piles

The S11D reserves have a large potential in terms of quality and size

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67% 66% 64% 62% Cut-off (%Fe) Operational Flexibility Billion tons 65% 63% Significant reserves can be added by decreasing Fe cut-off grade.

Annual production of 90 Mt

Fe (%) Si02 (%) Al203 (%) P (%) Mn (%) LOI (%) 66.4 1.2 0.48 0.042 0.055 3.17

Illustrative

The project is simple, functional and low cost

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S11D Vale

(without S11D)

~ 50% lower Operational costs Truckless system

• 77% less fuel consumption.

Dry processing

• 93% reduction in water consumption.
• 18,000 MW of electricity saved every year.
• No need of tailing dams.

The Carajás S11D iron ore project:

A major change in the iron ore landscape

Katsuo Homma September 19, 2012

• The Northern System expansion
• Data, challenges, execution

– S11D – CLN 150 – CLN S11D

Agenda

São Luis Railway - 892 km Ponta da Madeira Carajás mining site Carajás

PA MA

Existing railway - 892 km

Vale’s Northern System is composed by the Carajás mining site, the railroad and the Ponta da Madeira maritime terminal

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Carajás S11D project will deliver a major change to Vale’s iron ore production

 S11D will supply additional 90 million metric tons of iron ore per year.  When it reaches full capacity, Vale’s total iron ore production in Carajás should reach 230 million metric tons per year.

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230 1985 2011 S11D operating at full capacity

230 109.8 1

Northern System million metric tons

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SERRA SUL Extension: 120 km Area: 48,000 ha

SERRA NORTE (IRON BODY) SERRA LESTE (IRON BODY)

Carajás National Forest

S11D Extension: 9.5 km Area: 1,400 ha

Carajás S11D leverages Serra Sul’s massive ore reserves, targeting its S11 ore body, block D

(IRON BODY)

S11 BODY

…Block D : 3.48 billion metric tons of reserves. Huge mining potential of ore body S11…

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Vale is also investing in the Carajás railroad and PM rail terminal expansion to support S11D, keeping its strategic mine-to-port integrated system Integrated Logistics – Competitiveness

The CLN S11D logistics expansion builds on CLN 150’ s infrastructure

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Carajás S11D associated logistics will require US$19.5 billion in investments

Mine and plant US$ 8.04 billion Logistics infrastructure US$ 11.45 billion Total US$ 19.49 billion

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Executed capex – Mine and plant1 US$ 1.3 billion Executed capex – Logistics infrastructure1 US$ 344 million

1 Executed capex as of 30 June 2012

Carajás S11D iron ore

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S11D project – key data

■ Nominal production: 90 Mtpy. ■ Capex: US$ 8.04 billion. ■ Stripping ratio: 0.27 ton/ton (current Northern System: 1.4). ■ Mass recovery: 100% (current Northern System: 93%). ■ Power capacity: 150 MW. ■ High productivity – goal 50,000 t/H/year. ■ Low operating cost of mine and mill. ■ Workers for construction: 9,129 (peak); 4,050 (average). ■ Processes: truckless mining, crushing and dry screening.

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Mine Beneficiation plant

Project Layout

Overland belt Conveyor system

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59% of S11D project’s purchasing packages have already been contracted, covering about 41% of the project’s capex 27% 14% 59%

Number of packages

29% 30% 41%

Value of capex

In progress To start Contracted

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Beneficiation Plant Load bins Product yard Stock yard Secondary crushing Tertiary crushing Secondary screening

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Licensing is an increasingly key challenge for mining projects around the world

ISSUED 1H13 1H16

Execution of infrastructure works and equipment purchase Start-up of processing plant construction Start-up of mine and processing plant Preliminary license Installation license Operation license

 S11D project has already obtained its preliminary license and the license for the Southeast Pará site. Licensing of Carajás S11D

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Key to the licensing strategy was the location of both the beneficiation plant and canga and waste dump, allowing for the preservation of the natural forest

Pit Plant Canga dump Waste dump

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Belt-wagon use for top bench mining Belt-wagon use for bottom bench mining Final position

S11D’s truckless system also brings meaningful benefits for the environment, increasing productivity

14

Planning, engineering and site access are challenges faced to gain speed and meet the earliest possible start-up date Project schedule – from engineering to start-up

Mine and plant Detailed engineering Access road Pre-assembly Civil Works Assembly Commissioning

2H16 2H17

Start-up Conclusão

Conclusion Start-up

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S11D project was developed with 3D technology allowing for engineering improvements and detailed planning Beneficiation plant

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Carajás S11D developed an off-site modularization engineering process to expedite implementation

M odules 3D design M odules assembling at yard M odules transportation to site M odules assembling at site

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Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Secondary crushing

Innovation and technology Secondary crushing module – 3D CURRENT STATUS

The site was designed to allow for early purchase, receipt and assembly of large structures

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The modules are being built to be later transported to the final plant site, gaining valuable time on the overall schedule

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The 47 km access road is being built to allow for the transportation

• f future modules and other equipment

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The two bridges and road required to access S11D’s site are already in advanced stage of construction Jun/2012 Sep/2012

Araras river bridge

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Access road

S11D physical completion is advancing in line with its construction plan Monthly progress

Accumulated estimated Accumulated performed 1st line startup

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25.33% 41.14% 59.18% 80.32% 91.45% 98.11% 100.00%

954 2,220 3,429 4,760 6,564 9,129 5,363 499 Pico 2010 Pico 2011 Pico 2012 PICO 2013 PICO 2014 PICO 2015 PICO 2016 PICO 2017

# of workers

Peak 2010 Peak 2011 Peak 2012 Peak 2013 Peak 2014 Peak 2015 Peak 2016 Peak 2017

Labor is a critical resource to meet the construction schedule. Vale is working on several initiatives to overcome this challenge

Vale has specific initiatives to meet that challenge. Professional training Specific project career

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In just 3 years after initial production, S11D will reach the same level

• f production Carajás took three decades to achieve

10 20 30 40 50 60 70 80 90 100 2016 2017 2018 2019 2020

Projected production ramp-up Mtpy

Iron ore logistics expansion

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São Luís

Rosário Açailândia Parauapebas

Carajás M ine

Santa Inês Marabá

PA MA TO PI

Santa Rita Alto Alegre do Pindaré Bom Jesus da Selva Cidelândia Curionópolis Ponta da Madeira maritime terminal

Serra Leste

Northern logistics capacity expansion CLN 150 Mtpa Northern logistics capacity expansion CLN S11D

42 duplicated railway section

2 CDs 2 Yards 2 Rec 1 Stacker 2 CDs 4 Yards 2 Rec 1 Stacker 2 SRs Pier IV - SB Pier IV - NB

S11D

Serra Norte

Carajás Railway

11 duplicated railway section

Northern logistics capacity expansion (CLN) projects allow for transportation of current expansions and S11D volume

CD: car dumper Rec: reclaimer SR: stacker reclaimer SB: South berth NB: North berth

CLN 150 project

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CLN 150 project – key data

 Investment: US$ 4.1 billion¹.  Capacity target: 150 Mtpy (rail and port).  Duplicated railway: 125 km.  Bridges and overpass: 9.  Railway track: 197 km.  98% of CLN 150 project’s equipment and service suppliers have been contracted.

¹Including wagons and locomotives

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CLN 150 project was split into four sub-projects for implementation purposes

CLN 150 Mtpy railway

• 43% physical completion
• Start-up: 2013 to 2014

CLN 150 Mtpy

• ffshore
• 91% physical completion
• Start-up: 2H12

CLN 150 Mtpy

• nshore
• 90% physical completion
• Start-up: 2H12

CLN 150 Mtpy PM rail terminal

• 81% physical completion
• Start-up: 2H12

CLN 150 Mtpy

• US$ 4.1 billion¹
• 79% physical completion

¹Including wagons and locomotives

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ISSUED

Sep/2009

1H13 Installation license Operation license Package 1 2H10 Package 2 1H13 2013 - 2014 ISSUED

Oct/2009

1H13 ISSUED

Jul/2009

1H13 CLN 150 Mtpy railway CLN 150 Mtpy PM rail terminal CLN 150 Mtpy

• nshore

CLN 150 Mtpy

• ffshore

Key licenses for CLN 150 project were already granted

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CLN 150 project’s railway is scheduled to start up from 2013 to 2014

 Double tracking of 11 sections (125 km railway).  5 new bridges.  2 road bridges and 1 railway

• verpass.

 1 underpass.  Construction of new machine shop in Açailândia (MA) and empowerment of the machine shop in Maraba (PA).

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CLN 150 project railway: final concreting of upper slab in Marabá/PA

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CLN 150 project – Ponta da Madeira rail terminal is scheduled to start up in 2H12

 Construction of 73.9 km new lines.  Construction of rail loop to passenger train.  Access line to the car dumpers (5 and 6).  New facility buildings.

Line and rail spur - earthmoving of loading yard

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CLN 150 project – Mapaúra lagoon and classification yard, lines 6,7,8

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CLN 150 project onshore is scheduled to start up in 2H12

 2 car dumpers.  2 stock yards.  1 stacker.  2 iron ore reclaimers.  Conveyor belts.

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Aerial view of construction of car dumpers

CLN 150 project onshore: car dumpers first loaded tests were conducted with success

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CLN 150 offshore is on time, scheduled to start up in 2H12

 Construction of South berth.  Access bridge (1,600 m).  Loading line (16,000 t/h).  Ship loader (16,000 t/h).  Berthing and mooring system and environmental monitoring.  Tugboat pier.

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CLN 150 project offshore: South berth overview

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CLN 150 project schedule

2009 2010 2011 2012 2013 2014 2015

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

CLN 150 EEFC PM rail terminal ‘ ONSHORE OFFSHORE

IL EEFC (5 sections) Start-up Start-up Last start-up

RAILWAY PORT

Project approval IL EEFC (6 sections) First start-up Start-up Start-up

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CLN S11D project

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CLN S11D project - key data (1/2)

 Investment: US$ 11.4 billion¹.  Capacity target: 80 Mtpy.  Workers for construction: 19,472 (peak), 10,555 (average).  Railway track: 937 km.  Bridges and overpasses: 81.  Power transmission lines: 918 km.

¹ Including wagons and locomotives

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CLN S11D project - key data (2/2) Project was split in five sub-projects for implementation purposes

CLN S11D rail spur

• Start-up: 1H16

CLN S11D railway

• Start-up: 2014 to 2018

CLN S11D PM rail terminal

• Start-up: 1H15

CLN S11D

• nshore
• Start-up: 1H16

CLN S11D

• ffshore
• Start-up: 2H15

CLN S11D

• Capex US$ 11.4 billion¹

¹ Including wagons and locomotives

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100% 100% 100% 72% 100% 5% 100% 44% 100% 100% 100% 5% 100% 100% 100% 80% 100% 1% 100% 21% 100% 18% 0% 20% 40% 60% 80% 100% 120% Basic Detailed Basic Detailed Basic Detailed Basic Detailed Basic Detailed Basic Detailed Basic Detailed Basic Detailed Basic Detailed Basic Detailed Basic Detailed Lines and Spurs Fixes Inst. Signlalization Lines and Spurs Special art works Signlalization Lines and Spurs Special art works Signlalization Civil works Civil works TFPM EEFC Rail Spur On Shore Off Shore

CLN S11D project has completed its basic engineering and has nearly finished detailed project engineering

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Construção de novas linhas, totalizando 120 km. Construção de pera ferroviária exclusiva para Trem de Passageiros. Novas oficinas e estruturas de apoio. Obras já licenciadas, iniciadas em 2010.

New technologies will be applied in the CLN S11D project, such as the NTC – New Track Construction…

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Construção de novas linhas, totalizando 120 km. Construção de pera ferroviária exclusiva para Trem de Passageiros. Novas oficinas e estruturas de apoio. Obras já licenciadas, iniciadas em 2010.

…and the usage of a sleeper layer to increase safety and productivity in building the railway infrastructure

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Key licenses for CLN S11D project were already obtained

NA 1H13 2014 - 2018 Preliminary license Installation license1 Operation license1 ISSUED May/2012 1H13 1H16 NA ISSUED Dec/2009 1H15 NA ISSUED Dec/2009 2H15 NA ISSUED Dec/2009 2H16

Licensing of CLN S11D project

CLN S11D rail spur CLN S11D railway CLN S11D PM rail terminal CLN S11D

• nshore

CLN S11D

• ffshore

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1 Expected.

CLN S11D project – rail spur is forecasted to start up in 1H16

 Rail spur with 101 km from S11D stock yard to EFC railway.  Loading yard.  2 intersection yards.  1 maintenance yard.  9 bridges and overpasses.  4 tunnels.  8 facility buildings.

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CLN S11D project – New railway sections will be delivered from 2014 until 2018

 42 double trackings (504 km).  55 remodelings (226 km).  43 bridges (railway).  31 overpasses (roads).  68 facility buildings.  17 overpasses (community).  Replacement and expansion: signaling system electrical energy telecommunication

63

Northern System: mine, railway and port

CARAJÁS CARAJÁS SÃO LUI S SÃO LUI S AÇAI LÂNDI A AÇAI LÂNDI A MARABÁ MARABÁ

57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 58

Bridge over Tocantins river Norte Sul railway CLN 150: 11 sectors CLN S11D: 42 sectors 5 non-duplicated sectors

CLN S11D project will duplicate 42 sections of EFC railway, from Carajás to São Luís

64

CLN S11D project – PM rail terminal is forecasted to start up in 1H15

 Car dumpers lines CD7 e CD8.  Checkpoint and supplying station

• f locomotives.

 Wagon wheels replacement and maintenance site.  Maintenance yard.  Construction overpass F – modules 06 e 07.  35 km railway lines.  Signaling and lighting lines.

65

CLN scope

CLN S11D project – Layout of PM rail terminal

FACILITY BUILDINGS – 122 million m2 CLASSIFICATION YARD – 28.2 km FORMATION YARD – 6.4 km

Medical Office TANKS MAINTENANCE YARD AND GLL RAIL CTR & CMR Passengers rail looping 66

CLN S11D project – onshore is forecasted to start up in 2Q16

 2 car dumpers (CD7 e CD8).  2 discharge conveyors.  4 stockyards.  5 yard machines (1 stacker, 2 reclaimers and 2 stacker/reclaimers).  1 loading line.

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Yard R Yard S Yard T Yard O, P and Q

CLN 150 CLN S11D

CLN S11D project – onshore will build 4 additional stockyards next to CLN 150’s yards

68

CLN S11D project – onshore: new stockyards will leverage CLN 150’s transfer lines for shipment

Yard O Yard P Yard Q Yard T

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CLN S11D project – offshore is forecasted to start up in 2H15

 Pier IV (North berth).  1 shiploader.  1 transfer line for shipment (6th line).

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CLN S11D project – offshore: North and South berths 3D view

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CLN S11D project schedule

2012 2013 2014 2015 2016 2017 2018

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

PORT CLN S11D EEFC PM rail terminal ‘ RAIL SPUR ONSHORE OFFSHORE

IL Start-up Start-up Start-up IL Start-up Start-up Last start-up First start-up

RAILWAY RAIL SPUR

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162 13,299 19,472 17,984 7,612 3,904 1,150 2012 2013 2014 2015 2016 2017 2018 EEFC PM rail terminal Rail spur Onshore Offshore # of workers

To face the labor challenge, CLN S11D project will benefit from CLN 150 project’s workforce, which is already trained

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