Disclaimer This presentation may include statements that present - - PowerPoint PPT Presentation

2

Disclaimer

“This presentation may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we

• perate, especially Brazil and Canada; (b) the global economy; (c) the capital

markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and The Stock Exchange of Hong Kong Limited, and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.”

Agenda

• Delivering value through higher efficiency and

lower costs.

• Financing growth initiatives.
• Excellence in project execution.
• Consolidating the global leadership in iron ore.
• Improving the performance of base metals.
• Coal and fertilizers: leveraging opportunities.

3

Murilo Ferreira

Chief Executive Officer

Delivering value through higher efficiency and lower costs

Strategy to be the best global natural resources company in long-term value creation

• Life comes first: focus on health and safety, training and a

great place to work.

• Sustainability is a key element of our strategy.
• Lean structure, excellence in execution.
• Commitment to transparency, investment-grade ratings and

shareholder value creation.

5

Defusing uncertainties

• Enormous progress in environmental permitting, allowing

for high-quality iron ore expansions

• Around 100 licenses granted in 2012.
• Gradual resolution of state and federal tax issues
• TFRM, ICMS, CFEM, CFC1 tax litigation.

6

¹ Controlled foreign companies.

Commodity prices have increased sharply in the last decade, in contrast to the decline of the 20th century

20 40 60 80 100 120 140 160 180 1900 1928 1956 1984 2012 ¹ Prices in 2012 US$/metric ton. Sources: USGS, Bloomberg and Vale.

Real iron ore prices¹ 1900-2012

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 1900 1928 1956 1984 2012

Real nickel prices¹ 1900-2012

Growth was the most critical source of value

• creation. The new scenario requires stronger focus
• n discipline in capital allocation and efficiency
• A more moderate expansion of

the global demand for metals.

• More reliance on greenfield

projects.

• Higher capex costs and taxes.
• New world-class assets

increasingly located in more remote and complex regions.

8

• Focus on the marginal

volume.

• Opportunities for brownfield

expansions.

• Slow response of industry

supply.

Last decade New scenario

Discipline in capital allocation, higher productivity and lower costs

• Priority shifted from the marginal volume to the capital

efficient volume.

• Growth only through world-class assets – long life, low

cost, expandability and high quality output.

• Major focus on iron ore to increase capacity at lower

costs and higher quality.

9

Luciano Siani

Chief Financial Officer

Financing growth initiatives

Addressing the growth trilemma: reconciling investment financing with a strong balance sheet and dividends

11

D

• Peak year in 2012.
• 2013 capex focused
• n world-class

projects.

• Stabilization of

sustaining expenditures.

• Slashing of R&D

expenditures.

• Preservation of credit

ratings is a key priority.

• Unlocking working

capital.

• Asset divestment.
• Partnerships.
• Clearing tax issues.

Dividends

• Dividends

associated to cash flow.

• Flexibility: no

promise of progressive dividends.

• Return of excess

cash to shareholders.

Lower costs across-the-board Investments Balance sheet

6.5 5.8 8.2 11.7 11.3 10.1 2.7 2.2 3.3 4.6 4.8 5.1 1.1 1.0 1.1 1.7 1.4 1.1 10.2 9.0 12.7 18.0 17.5 16.3

2008 2009 2010 2011 2012E 2013B

Projects Sustaining R&D

2013 capital and R&D expenditures budget: capital expenditures of US$ 15.2 billion and R&D expenditures of US$ 1.1 billion

Capital and R&D expenditures

US$ billion

12

E = Estimated B = Budgeted

13

Growth initiatives US$ million

Carajás expansion¹ Iron ore 2,112 Itabiritos² Iron ore 1,129 Distribution network³ Iron ore 758 Moatize / Nacala Coal 1,439 Long Harbour Nickel 1,216 Salobo Copper 525 Rio Colorado Fertilizers 611 CSP4 Steel 439 VLI projects General cargo 335 Main growth initiatives 8,564 Total projects capex 2013 10,126

¹ Includes Additional 40 Mtpy, Serra Leste, CLN 150 Mtpy, S11D, CLN S11D. CLN S11D to be approved by the Board of Directors. ² Includes Conceição Itabiritos, Conceição Itabiritos II, Vargem Grande Itabiritos and Cauê Itabiritos. ³ Includes Teluk Rubiah and shipping.

4 Relative to Vale’s stake in the project.

A smaller and more focused set of organic growth initiatives

Capex 2013

50 100 150 2011 2012E 2013E 2014E 2015E 2016E 2017E

Equivalent iron ore production unit basis

Aggregate production growth1,2,3

¹ Index encompassing the output of all Vale's products translated into iron ore units through relative prices, base 2011=100. ² Not including attributable production of non-consolidated companies. ³ Serra Sul S11D will reach full capacity in 2018.

Brownfield projects Greenfield projects 83

Delivering output growth and value

Current operations 119 139

14

2.2 2.7 2.2 3.3 4.6 5.0 5.1

2007 2008 2009 2010 2011 2012² 2013B

Sustaining capex in US$ billion

Keeping sustaining expenditures under control

15

5.4% 4.6% 4.2% 4.5% 5.1% 5.1% 5.0%

2007 2008 2009 2010 2011 2012² 2013B

Sustaining investment / asset base¹

¹ Property, plant and equipment + intangible assets + investments in affiliated companies, JVs and other investments. ² Last twelve-month period ended at Sept 30, 2012. B = Budgeted

Sustaining capex: main initiatives

16

Iron ore – US$ 2.4 billion – Replacement of mine and logistics equipment – US$ 989 million. – Operations enhancement - US$ 597 million. – Tailing dams and waste dumps – US$ 809 million. Base metals – US$ 1.4 billion – Operations enhancement – US$ 494 million. – Clean AER – US$ 213 million. – Rebuild of Onça Puma furnace #1 – US$ 188 million. – Replacement of equipment – US$ 181 million. – Mine development – US$ 90 million. Fertilizers – US$ 506 million – Equipment replacement at Uberaba, Cubatão and Araxá – US$ 105 million. – Sustainability – US$ 195 million. Coal – US$ 241 million – Degassing & mine extension – US$ 66 million. – Social investments (passenger train, resettlement) – US$ 61 million. – Equipment replacement – US$ 42 million. IT – US$ 297 million – ERP implementation – US$ 172 million. General cargo – US$ 170 million – Replacement of VLI assets – US$ 137 million.

564 417 703 638 382 360 581 915 826 465 85 138 124 172 206 1,008 1,136 1,742 1,635 1,053

2009 2010 2011 2012¹ 2013B

Mineral exploration Feasibility studies² Technological innovation

Streamlining R&D will imply a smaller but more selective and higher return portfolio of projects in the future

in US$ million

¹ Last twelve-month period ended at Sep 30, 2012. ² Conceptual, pre-feasibility and feasibility studies.

17

Total R&D¹ Mineral exploration

Iron ore 25% Nickel 12% Copper 36% Coal 9% Fertilizers 13% Others 5% Mineral exploration 36% Conceptual, pre-feasibility and feasibility studies 44% New processes, technological innovation and adaptation 20%

Total US$ 1.1 billion Total US$ 382 million

Allocation of R&D expenditures

18

¹ US$ 73 million is budgeted for oil & gas exploration. Oil & gas assets will be divested.

 Iron ore  Nickel  Copper  Coal  Potash  Phosphates  Advanced projects Brazil Argentina Chile Peru USA Canada South Africa Mozambique Angola Zambia DRC Australia Indonesia Philippines Papua New Guinea Guinea Mexico

Iron ore and nickel are the main priorities for brownfield exploration while copper is the focus

• f greenfield exploration

19

Greenfield 59% Brownfield 41%

Optimizing capital management

• Partnerships to leverage growth and value creation.
• VLI¹.
• Nacala Corridor.
• Divestitures to improve capital allocation and unlock funds to

finance world-class projects.

• Reduction of working capital needs:
• Deals with banks to provide credit to suppliers.
• Revision of processes and counterparties to shorten the

number of days of sales outstanding.

• Restrictions in advances to suppliers and longer payment

terms.

20

¹ Valor Logística Integrada, encompassing the general cargo logistics business.

TFRM¹

• Vale has paid amounts due - R$ 532 million - to the states of Pará

and Minas Gerais.

• Agreements with both states to reduce the TFRM.

– Pará: reduced by 2/3. – Minas Gerais: reduced by 60%. – Estimated savings of about R$ 950 million per year.

• The legal proceeding initiated by CNI² is still pending of judicial

discussion before the Brazilian Supreme Court (STF). ICMS – Minas Gerais

• Basically cease the litigation for 2006 (R$ 1.2 billion³), 2007, and

tax assessments for the following years.

An overview of tax matters (1/2)

21

¹ State mining fees. ² Brazilian National Industry Confederation. ³ As of December 31, 2011.

CFC¹ profits litigation

• Final decision on Vale’s injunctions still pending in Brazilian

Superior Courts.

• Coamo² leading case still pending in STF.
• Administrative decision for reduction of R$ 1.6 billion in the tax

assessment covering the years of 1996-2002, relative to exchange rate variation effects³. CFEM (royalties)

• Total amount provisioned of R$ 1.4 billion relative to deductibility of

transportation expenditures.

• Reduction of R$ 1.2 billion reached by committee composed of

Vale and DNPM4.

• The other thesis remain under discussion.

An overview of tax matters (2/2)

22

¹ Controlled foreign companies. ² Cooperativa Agropecuária Mourãoense. ³ Including interest and penalties.

4 Departamento Nacional da Produção Mineral, an agency of the Ministry of Mines and Energy of the Brazilian government.

Lower costs across-the-board

• Initiatives to streamline the cost structure.

– Shutdown of loss-making mines and plants. – Using procurement to cut costs and boost efficiency. – Curbing SG&A expenses by around 20%¹.

23

¹ Relative to the last twelve-month period ended at Sep 30, 2012.

Galib Chaim

Executive Officer, Capital Projects Execution

Excellence in project execution

Our project development methodology has brought consistency and reliability to project execution

• Disciplined methodology: more timely, cost efficient,

sustainable and transparent.

• Stronger integration with environmental licensing

team.

• Reinforced long-term agreements strategy for

equipment and construction services.

25

A more proactive and knowledge-based approach to the application for environmental permits is bearing fruit

• Around 100 licenses granted in 2012, supporting the

continuity of operations and allowing expansions.

• Key licenses.

– LO Carajás N5 South mine. – LP Carajás S11D mine and plant project. – LI CLN S11D – Carajás railway expansion . – LO Salobo copper mine.

26

Note: LP: Preliminary License. LI: Installation License. LO: Operating License.

Carajás S11D – mining and plant - largest project in Vale’s history and in the iron ore industry

27

• Nominal capacity: 90 Mtpy.
• Start-up: 2H16.
• Physical progress¹: 37%.
• Total capex: US$ 8.04 billion.
• Capex 2013: US$ 658 million.
• Stripping ratio: 0.27.
• Mass recovery: 100%.
• Truckless mining, dry ore processing, no

need for tailing dams and 50% cut in the emission of greenhouse gases.

• Low cost, 4.2 billion metric tons of proven &

probable reserves @ 66.7% Fe.

Processing plants 3D Design Modules’ equipment stockyard

1 As of September 30, 2012.

Carajás S11D

28

CLN S11D1 – logistics to support S11D

• Enlargement of the existing logistics infrastructure.
• Start-ups: from 1H15 to 2H18.
• Estimated capex of US$ 11.4 billion.
• Five sub-projects: rail spur with 101 km, new railway

sections with dual tracks, rail terminal and onshore and

• ffshore investments.
• Increase Northern System logistics capacity to 230 Mtpy.

29

1 This project is subject to the Board of Directors approval

Logistics expansion

30

São Luís

Parauapebas

Carajás PA MA TO PI

Ponta da Madeira maritime terminal

Serra Leste

Northern logistics capacity expansion CLN 150 Mtpa Northern logistics capacity expansion CLN S11D 42 duplicated railway sections

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

Northern Range Carajás Railway

11 duplicated railway sections

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

PDM – offshore: North and South berths

31

3D view

PDM Pier IV – CLN 150

32

Leveraging the best iron ore reserves in the world and expanding our logistics capacity

• CLN 150 Mtpy

– Start-ups: from 1H13 to 2H14. – Physical progress¹: 81% – Total capex: US$ 4.114 billion. – Capex 2013: US$ 498 million.

• Carajás Additional 40 Mtpy

– Start-up: 2H13. – Physical progress¹:76% – Total capex: US$ 3.475 billion. – Capex 2013: US$ 548 million.

33

1 As of September 30, 2012.

Carajás Additional 40 Mtpy

34

Itabiritos projects (1/2)

35

Conceição Itabiritos

• Additional nominal capacity of 12 Mtpy.
• Start-up: 2H13.
• Physical progress¹: 93%.
• Total capex: US$ 1.174 billion.
• Capex 2013: US$ 208 million.

Conceição Itabiritos II

• Nominal capacity of 19 Mtpy, with no

net additional capacity.

• Start-up: 2H14.
• Physical progress¹: 50%.
• Total capex: US$ 1.189 billion.
• Capex 2013: US$ 197 million.

1 As of September 30, 2012.

Cauê Itabiritos

• Nominal capacity of 24 Mtpy, with net

additional capacity of 4Mtpy in 2017.

• Start-up: 2H15.
• Physical progress¹: 12%.
• Total capex: US$ 1.504 billion.
• Capex 2013: US$ 206 million.

Itabiritos projects (2/2)

36

Vargem Grande Itabiritos

• Additional nominal capacity of 10 Mtpy.
• Start-up: 1H14.
• Physical progress¹: 68%.
• Total capex: US$ 1.645 billion.
• Capex 2013: US$ 518 million.

1 As of September 30, 2012.

Tubarão VIII and Teluk Rubiah: boosting productivity in pellet production and expanding

• ur global distribution network

Tubarão VIII

• Nominal capacity of 7.5 Mtpy.
• Start-up: 1H13.
• Physical progress¹: 89%.
• Total capex: US$ 1.088 billion.
• Capex 2013: US$ 158 million.

37

Teluk Rubiah DC

• Handling capacity of 30 Mtpy.
• Start-up: 1H14.
• Physical progress¹: 40%.
• Total capex: US$ 1.371 billion.
• Capex 2013: US$ 443 million.

1 As of September 30, 2012.

Moatize II - leveraging our rich coal resources in Mozambique

• Moatize I is ramping up.
• Moatize II is being executed

– Start-up: 2H14. – Physical progress¹: 21%. – Total capex: US$ 2.068 billion. – Capex 2013: US$ 344 million. – Increase Moatize production capacity to 22 Mtpy.

38

1 As of September 30, 2012.

Moatize II

39

Nacala Corridor – railroad and maritime terminal to support Moatize

40

• Expand logistics to transport coal from Moatize to the Nacala-à-Velha

maritime terminal.

• Construction of 230 km of new railway and rehabilitation of 682 km of

existing railway.

• 30-year concession agreements with the governments of Mozambique and

Malawi.

• Start-up: 2H14 and physical progress of 8% (as of Sep 30, 2012).
• Total capex: US$ 4.444 billion.
• Capex 2013: US$ 1.079 billion.

Section 2 Greenfield Mz 62.5km Section 3 Greenfield Mw 138.5 km Section 5 Brownfield Mw 98.6 km Section 6 Brownfield Mz 79.1 km Section 8 Greenfield Mz 29.3 km Mine Port

6 7 8 9 2 3 5

Section 7 Brownfield Mz 504.2 km

Nacala- à-Velha 1

MOZAMBIQUE

Nacala Corridor track sections

Nacala-à-Velha port - Nacala Corridor

41

José Carlos Martins

Executive Officer, Ferrous Minerals and Strategy

Consolidating the global leadership in iron ore

Adding value to the iron ore business

• Iron ore demand still far from peaking.
• Industry cost curve and depletion of existing

mines will sustain prices even in a moderate growth scenario.

• Projects being developed will unlock high quality
• re at lower costs.
• High focus on cost and quality.
• Maximizing asset value based on “time to

market” and “tailor to market” strategy.

43

44

Iron ore demand still far from peaking

• Emerging countries still have a significant gap of housing

and infrastructure requirements.

5 10 15 20 25 30 35 World India S America Brazil China Middle East UK France South Korea Germany USA Japan Accumulated steel 1961 to 2011 (‘000 Kg/capita)

Sources: WSA, Roland Berger Minimum level of infrastructure and housing/capita* Average for steel intensive goods exporting countries * Accumulated steel for developed countries with low level of steel intensive goods exports

• Brownfield growth options

are gone.

• Higher capex costs and

taxes.

• New frontiers: complex

regions, lacking basic infrastructure and stable investment environment.

• Increasing environmental

pressures.

• Lack of skilled labor.

Several challenges and constraints should continue to impact global mining supply

50 100 150 200 250 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 1995 2000 2005 2010 2015 2020 2025 2030 Histórico Vale (cenário base) 50 100 150 200 250

Volume for Replacement

Bi t Mt

Volume to supply additional demand

IO Seaborne x IO Replacement Volume

Average Mine Life (years) 40 33 28 24 20 17 15 15

45

CIF Cost China ($/t)

• 20

40 60 80 100 120 140 160 180 200 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 1150 1200 1250 1300 1350 1400 CIF Cost China ($/t) Volume (mt)

The cost curve of seaborne IO landed in China is a strong fundamental that sustains price levels in the long term

Vale’s new projects will keep our landed curve within the 1st quartile

Pressure to increase costs due to exchange rate volatility, labor and energy cost rises, depletion, deterioration of quality of ROM

46

1st quartile 2nd quartile 3rd quartile 4th quartile

Landed Cost China $/t Landed cost China $/t Landed cost China $/t Volume (Mt)

* Volume seaborne CFR China + Chinese local concentrate Source: Macquarie

Vale is well positioned to thrive through the cycles

47

• Production is expected to

rise to about 400 Mt by 2017, primarily based on Carajás high-grade ores. – Low-cost structure. – World-class asset base. – Project pipeline quality. – Flexibility.

306 326 364 369 402 2013 2014 2015 2016 2017 Operations Projects

Iron ore production

million tons

New environmental licenses contribute to boost growth and quality while reducing costs in the Northern System

• Operation of the N5 South mine, 67.1% Fe

content, providing 25% of the Carajás ROM in 2013.

• Additional 40 Mtpy coming on stream in 2H13,

66.5% Fe content.

• Carajás Serra Sul S11D 90 Mtpy coming on

stream in 2H16.

• Serra Leste, additional volume of 6Mt.

48

■ Construction of new iron ore processing plant . ■ Estimated additional nominal capacity of 10 Mtpy. ■ 100% pellet feed. ■ 67.8% Fe content. ■ 1.2% silica.

Vargem Grande Itabiritos

■ Adaption of the plant to process low-grade itabirites. ■ Estimated nominal capacity of 24 Mtpy, with net additional capacity of 4Mtpy in 2017. ■ 29% sinter feed with 65.3% Fe content and 4.4% of silica. ■ 71% pellet feed with 67.8% Fe content and 2.8% silica.

Cauê Itabiritos

■ Construction of a concentration plant. ■ Estimated nominal capacity of 12 Mtpy. ■ 100% pellet feed. ■ 67.7% Fe content. ■ 0.8% silica.

Conceição Itabiritos

■ Adaption of the plant to process low-grade itabirites. ■ Estimated nominal capacity of 19 Mtpy, without additional capacity. ■ 31.6% sinter feed with 66.5% Fe content and 3.8% of silica. ■ 68.4% pellet feed with 68.8% Fe content and 0.9% silica.

Conceição Itabiritos II

To counteract the effects of ageing of our Southeastern and Southern Systems resources technology will be key: Itabiritos projects

49

2.0 2.5 3.0 3.5 4.0 4.5 5.0 2009 2011 2013 2015 2017 2019

Significant quality improvement from 2013 onward

50

Silica content % 61 62 63 64 65 66 2009 2011 2013 2015 2017 2019 Fe content % Australian Fe average = 62% Australian SiO2 average = 4.5%

Shale gas as a new booster for U.S. industry can reactivate direct reduction plants in the United States, increasing the demand for pellets

• Nominal capacity of 7.5 Mtpy.
• Total capex: US$ 1.088 billion
• Benefits from the existing

infrastructure of the Tubarão port.

• Use of state-of-the art technology in

terms of productivity, safety and environmental control.

• Open circuit milling with high

productivity and plant with high level

• f automation.

51

Modernization of pelletizing capacity, with shutdown of old plants and ramp-up of brand new Tubarão VIII to support this new market scenario

Iron ore pricing has become increasingly spot- linked, which results in higher short-term volatility determined by demand and supply dynamics

• In 2010, almost 100% of our shipments were

contract based and priced according to the 3-month average price index with one-month lag (VRP).

• In 3Q12, the distribution of our sales by pricing

system was 16% VRP, 32% current quarter average, and 52% spot and monthly average.

• Moisture, freight, premium for quality, product

portfolio and the composition of pricing terms can create differences between our realized average price and the reference index.

52

DC Malaysia

Time to Market

Valemax

Economy of Scale and Lower Carbon Emissions

Valemax FTS (Philippines)

DC Malaysia & FTS

Initiatives to support a time to market & tailor to market strategy

• CFR sales, Valemax, own fleet and distribution center are our solution

for time to market, blending quality, lower quantities.

IO Seaborne Ytade 2000 2005 2012 2020 2025 China 70 275 737 1115 1201 14% 39% 63% 68% 69% Total Asia 262 472 957 1392 1491 52% 66% 82% 85% 86% Total World 503 711 1165 1632 1743

53

1 3 4 5 8 9 13 17 18 20 22 26 32 36 37 41 46

3 8 10 22 28 31 43 75

• 5

5 15 25 35 45 55 65 75 85 Ma… Jul… Se… No… Ja… Ma… Ma… Jul… Se… No… Ja… Ma… Ma… Jul… Se… No… Ja… Ma… Ma… Jul… Se… No…

Mt

Valemax Discharge capacity

Valemax fleet

2012 18 2013 35

The Valemax logistics is ready. Negotiations for start-up in China are being conducted at a diplomatic level, and also with ship-owners, ports and clients. We expect to deliver results during 2013, eventually.

Rotterdam Malaysia DC

(Jun/2014)

Taranto Oita Kwangyang Kashima Kimitsu Mindanao Sohar FTS

Conclusion

• Despite the expected slowdown, demand for iron ore is

still far from peaking.

• Slower demand growth will be offset by increasingly

difficult supply response.

• Vale’s iron ore business is well positioned to meet market

needs by delivering low cost volumes, improved product quality and supply chain reach.

• World-class projects will create value for shareholders

and consolidate Vale’s global leadership in iron ore business.

55

Peter Poppinga

Executive Officer, Base Metals

Improving the performance of base metals

Strategy to maximize value and ensure the long- term sustainability of the base metals business

57

• Nickel remains as a core business but is non core for short-term greenfield

capacity expansion.

• Divestiture of non core assets and simplification of the overall flowsheet.
• Integrated operation at VNC resumed in October – economics to be assessed

at the end of 1Q13 .

• Rebuilding one furnace at Onça Puma and ramp-up forecast for 2H13.

– Ramp-ups. – Lower costs. – Higher productivity.

• Paradigm shifts:

– Feed smelters only with high value feed from a revised and optimized mine plan. – Link increased Indonesian matte production to the Canadian flow sheet to guarantee refineries at full capacity. Live within our means Maximize value instead of volume

Long Harbour – enhancing nickel smelting and refining capacity

• Fully integrated hydrometallurgical flowsheet.
• 50,000 tpy of high purity and high value nickel cathodes, 4,500 tpy of LME

grade copper cathode and 2,500 tpy of high purity cobalt.

• Additional concentrate and nickel matte processing capacity, allowing for

retirement of older assets and lower sustaining capex.

• Guarantees continuity of access to the rich deposits of Voisey’s Bay.
• Benefits from the new technology :

– Integrated smelting and refining process with lower operating costs. – Eliminates SO2 and particulate emissions. – Increases metals recovery. – Higher efficiency and reduced energy consumption.

58

• Flowsheet designed to improve nickel recovery by 4%, similar to mining

a small nickel mine.

• Lower operating cost and simpler design.
• Improve concentrate quality and reduce variability for downstream

smelter operation.

• Started to operate in 4Q12.

CORe: technology innovation allows for additional volumes at Clarabelle Mill

59

Lubambe: our first project in the rich African copperbelt – on budget, on schedule

60

■ Underground mine, plant and related infrastructure in Zambia. ■ Lubambe produced its first copper concentrate in October 2012. ■ Nominal capacity of 45,000 tpy

• f copper in concentrates.

■ Total capex of US$ 235 million.¹

¹ Capex relative to Vale’s stake in the project. Vale holds 50% of the joint venture that controls the project.

Salobo

61

■ Salobo I obtained the operating license in November 2012, is ramping up, currently at a 50% capacity pace. ■ Salobo II is being executed, expected to start-up in 1H14. ■ Total capex – Salobo I & II - of US$ 4.214 billion. ■ Nominal capacity of 200,000 tpy of copper in concentrates and 322,000

• zpy of gold.

■ 1.112 billion tons of proven and probable reserves, with an average grade of 0.69% of copper and 0.43 grams of gold per ton.

Salobo: increasing copper & gold exposure

Salobo I Salobo II

62

Roger Downey

Executive Officer, Fertilizers and Coal

Coal and fertilizers: leveraging opportunities

Moatize is transformational to our coal business

• The first large scale integrated coal operation in the world.
• Large p&p reserves - 952 Mt - and low-cost open pit mining.
• High-quality, high-margin HCC business.
• Chipanga premium HCC brand being consolidated.
• Sena-Beira: improvements underway to grow shipments.

64

• Nacala corridor:

integrated mine-rail- port infrastructure.

Australia: turnaround and execution being delivered

• Turnaround: To deliver competitive, stable and reliable
• perations
• Important presence in Bowen Basin and Hunter Valley.
• JVs with Customers and

key players.

• Focus on coking coal.

65

APCT

Northern Bowen Basin Southern Bowen Basin Hunter Valley

Belvedere DBCT + DPCT RGT/WICET PWCS Integra APCT Degulla Galilee North

Galilee

CD, IP, EL, ED, RH OC, RH LE, RH GO, BW, WO

• Why fertilizers?
• Brazil:
• One of the world´s largest agricultural bases.
• 4th largest consumer and importer of fertilizers.
• Availability of large areas of arable land for expansion¹.
• The world’s largest deposits of fresh water².
• Vale:
• Tradition, vocation and expertise.
• Logistics and distribution: removing bottlenecks.
• Solid market recognition

66

Leveraging a global agricultural powerhouse: Brazil

¹ Brazil is estimated to have an unexploited arable land equivalent to 13% of its territory. ² According to FAO estimates, Brazil has about 15% of world’s renewable water resources.

50 100 150 200 250 300 88 91 94 97 00 03 06 09 Fertilizer consumption Agricultural production Harvested area

Fertilizer consumption in Brazil increased by 4.7% p.a.

• ver the last 25 years, faster than agricultural production

and harvested acreage

Source: ANDA 1988=100

CAGR 1988-2011 % Fertilizer consumption 4.7 Agricultural production 3.8 Harvested area 1.0 11

67

Given the high growth potential of Brazilian agriculture, its demand for fertilizers is expected to continue to expand rapidly

68

4.5 1.0 0.9 4.5 4.6 4.6 RoW EU US India China Brazil

Source: IFA Agriculture

Fertilizer demand

CAGR 2011-2016 % 3.1 1.2 0.7 2.7 1.4 3.9 RoW EU US India China Brazil Potash – Mt K2O Phosphates – Mt P2O5

Value creation through growth and performance

• f existing operations
• A portfolio of growth options in potash and

phosphates to meet Brazilian demand: Carnalita I & II, Bayovar II and Salitre.

• Leverage from Vale’s logistics to de-bottleneck
• Room for margin increase of phosphates through
• perational improvement.
• Divestiture of non value-adding assets.

69

Rio Colorado : adjusting to the context

• Rio Colorado Potash (PRC): a world class resource,

lowest delivered cost to Brazil.

• Overall project execution: 42%.
• Adjusting to the context:
• Slowing down pace of project execution.
• Discussions with potential partners.

70

71

Creating long-term value