Paris November 26, 2007 1 Disclaimer This presentation may - - PowerPoint PPT Presentation

1

Paris

November 26, 2007

2

Disclaimer

”This presentation may contain statements that express management’s expectations about future events or results rather than historical facts. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements, and CVRD cannot give assurance that such statements will prove

• correct. These risks and uncertainties include factors: relating to the Brazilian

and Canadian economies and securities markets, which may exhibit volatility and can be adversely affected by developments in other countries; relating to the iron ore business and its dependence on the global steel industry, which is cyclical in nature; and relating to the highly competitive industries in which CVRD operates. For additional information on factors that could cause CVRD’s actual results to differ from expectations reflected in forward-looking statements, please see CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários and the U.S. Securities and Exchange Commission.”

3

Roger Agnelli

Chief Executive Officer

On the growth path

4

• Our value proposition
• The long-term fundamentals
• Shaping the future: investing US$ 59 billion
• Capex budget for 2008
• Vision and values

Agenda

5

Our value proposition

6

Simultaneously with investment in successful acquisitions, 72% of our capex has been dedicated to growth¹

Growth investment/Capex in %

2002 2003 2004 2005 2006 9M07

Projects R&D

60.5 67.9 68.6 77.4 71.9 69.9

¹ Project and research & development

7

The growth process has been firmly anchored on a rigorous discipline on capital allocation

¹ PP&E + working capital + R&D

2 before income taxes 3 excludes effect of extraordinary inventory adjustments

Return on capital invested

1 2

5.4 7.5 11.1 43.3 31.2 46.8% 54.7% 64.4% 52.1% 54.3% 2003 2004 2005 2006³ LTM 3Q07³ Capital invested US$ billion ROIC %

8

Our value proposition is being delivered: a steady and strong growth

LTM EBITDA US$ billion

16.9 15.6 12.6 10.1 8.3 7.3 7.2 6.5 5.8 5.0 4.0 3.7 3.3 2.9 2.4 2.1 2.0 1.9 1.8 1.8 1.7 1.6 1.5

1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06¹ 1Q 07¹ 2Q 07¹ 3Q 07¹ 1 excluding extraordinary effect of inventory adjustment

Quarterly EBITDA volatility Total 0.82 % upward 72% % downward 28%

9

Growth spearheaded a dramatic increase in market capitalization and high TSR performance - 65.5% p.a.¹

20 40 60 80 100 120 140 160 180

2002 2003 2004 2004 2006 2007

CVRD’s market cap US$ billion

1 January 1, 2002 to November 15, 2007

10

Thriving in the global arena: becoming one of the largest companies

Position among the 500 largest companies in the world by market cap

2002 2003 2004 2005 2006 March 2007 November 15, 2007 Ranking

Source: Financial Times – FT 500 and Bloomberg

500 400 300 200 100 1

33

74

117

153

275

334

446

11

The long-term fundamentals

12

Low inflation rates. Low real interest rates. High productivity growth. Globalization and emerging markets secular growth. Despite short-term volatility, we are confident on the strength of the long-term fundamentals of the global economy

13

Global GDP growth is being driven by emerging market economies, the drivers

• f minerals and metals demand increase

Contribution to global GDP¹ growth

Developed economies 46% USA 19% China 22% Emerging market economies 54%

Average 1989-98 3.2% p.a.

Emerging market economies 73% China 33% USA 10% Developed economies 27%

Average 2005-07 5.3% p.a.

1 Global GDP at PPP. Emerging market economies are responsible for 48% of global GDP and 84.7% of world population

Source: IMF

14

Urbanization – Housing – Infrastructure – Consumer durables Industrialization Emerging market economies are expected to continue to produce a structural change in the demand for minerals and metals

15

China will have an increasing influence

• n the global demand for minerals and

metals

2000 2006 2011E Iron ore¹ 15.4 45.0 54.0 Nickel 4.9 17.3 31.0 Aluminum 14.0 25.5 41.0 Copper 12.7 21.0 30.0

Chinese share in global consumption %

¹ share of Chinese imports in seaborne trade Sources: CRU and CVRD

16

Shaping the future: investing US$ 59 billion

17

Acceleration of investments: US$ 59 billion for next five years against US$ 18 billion¹ during 2003-2007. Focus on organic growth:project development and mineral exploration Massive investment in the development of world-class assets – iron ore, pellets, coal, nickel, copper, bauxite and alumina. Enhancement of infrastructure (logistics and power generation) to support the expansion of our activities.

Confidence on long-term global fundamentals underlies the continuity of our strategy to deliver strong and steady growth

¹ does not include expenditures in acquisitions

18

Execution of the organic growth pipeline will give rise to a significant production expansion

2003 2007E 2008E 2012E CAGR CAGR 07-12 03-07 Iron ore 186.0 300.0 325.0 422.0 7.1% 12.7% Pellets¹ 13.0 17.6 20.0 33.0 13.4% 7.9% Coal

• 2.9

7.6 15.2 39.3%

• Nickel 2,3
• 260.0

280.0 507.0 14.3%

• Copper²
• 290.0

300.0 592.0 15.3%

• Alumina

2.3 4.3 5.3 8.2 13.8% 16.9%

million metric tons

Running at 450Mtpy

¹ does not include production of JVs (Samarco, Nibrasco, Hispanobras, Kobrasco, Itabrasco). Attributable production in 2007 is expected to reach 18 Mt. Samarco 3rd pellet plant (7.6 Mtpy) is coming on stream in 1H08. ² 1,000 metric tons ³ includes volumes of finished nickel produced under tolling agreements with concentrates purchased from third parties

19

Financing of the organic growth pipeline is our highest priority. Maintenance of a sound balance sheet with a low-risk debt profile. Satisfaction of dividend aspirations of our shareholders.

No changes in our priorities for cash flow allocation

20

Skilled labor. Environmental permits. Supply of equipment and engineering services. Energy. The challenges

21

Capex budget for 2008

22

The capex budget for 2008: US$ 11 billion

The largest annual investment program ever for a mining company. US$ 8.4 billion – 77% - dedicated to growth (project development and R&D). Development of 30 major projects.

23

Capex budget 2008

US$ 11 billion

Projects 68.7% Sustaining capex 23.3% R&D 8.0%

By category

1 US$ 349 million will be invested in mineral exploration

By business area

Coal 3.5% Logistics 17.0% Power generation 4.3% Other 5.8% Ferrous minerals 29.6% Aluminum 6.9% Non-ferrous minerals 32.9%

24 Canada Brazil Mozambique

Project development on a global scale

Iron ore & pellets Nickel Coal Copper Bauxite & alumina Phosphates Logistics Power generation

Peru Chile Australia New Caledonia Indonesia Oman China

25

Iron ore & pellets Nickel Coal Copper Bauxite & alumina Phosphates Logistics Power generation Steel

Brownfield Greenfield

2008 2010

Goro

Developing an exciting pipeline of world-class assets

2009 2011 2012

Reference

US$ 1 billion Onça Puma Itabiritos Fazendão Northern Corridor Alunorte 6&7 Paragominas II Papomono Carajás 130 Mtpy Southern Corridor Carborough Downs Equatorial Barcarena Salobo I Tubarão VIII Oman Estreito Bayovar Karebbe Voisey’s Bay Paragominas III Southern Range NAR Moatize Litoranea Totten Maquiné-Baú Vermelho Eastern Range CSA CSV Setentrional

26

Vision and values

27

Our growth initiatives are driven by our long-term vision… “To become the largest mining company in the world and to excel in research, project development and operations“

28

Ethics and transparency. Performance excellence. Entrepreneurship. Corporate social responsibility. Deep respect for life and diversity. Proud to be CVRD. … and sustained by our core values

29

Carla Grasso

Executive Director of Human Resources and Corporate Services

Managing the change: HR and procurement

30

CVRD HR . Policies with focus in Brazil . Brazilian staff . Support to operations in Brazil . Beginning of Organizational Development support HR Brazil: . Policies with focus in Brazil . Support to operations in Brazil . Organizational Development support by business.

CVRD HR structure – “Process evolution”

2004 2005 2007 2006

Up to 2004:

HR Brazil

From 2005 up to June 2007:

HR Brazil + International HR

Global HR:

• Global Policies and

Processes

• Regional HR working on

local policies

• Organizational

Development support by business International HR:

• Development of

corporate HR guidelines to support international

• ffices
• Organizational

Development support by region/continent.

From July 2007:

Global HR

Transition National Global

31

HR strategic planning – “The basis”

CVRD Strategy 5 years outlook with annual check-ins :

HR strategy prioritizing Education & Internal Development

HR Strategic Planning Organic growth New projects M&A’s Ongoing needs

“CVRD HR Starting point” “The enabler, the basis of an HR that make sense”

32

Employee Assessment Career& Succession Committees

More than 400 in 2006… Coaching & Development Succession Planning Retention Strategies External Recruitment Internal Talent Pool

Employee Feedback

Team Development Plan Variable Payment Career & Succession follow ups

Leader & Employee dialogue

Career & succession – “Cycle & numbers”

92% of managerial

position filled internally Succession Readiness :

81% Internally

19% Externally

33

Valer Corporate University

Valer represents the company’s corporate education strategy, driving the learning and development of the professionals in the CVRD value chain. It is focused on articulated projects, with an overriding emphasis on sustained professional formation, the development of production capacity and the formation of leaders empowered to transform.

CVRD Corporate University

34

VALER in numbers

Education programmes - responsible for 60% of CVRD’s technical positions :

• Strong social inclusiveness tool increasing employability and
• Support the company sustainability strategy.

Commitment with CVRD’s growth - CVRD has increased 10 times its investments in Education over the last 5 years. Doing more with less - CVRD educational strategy has increased hours of training in relation to benchmark with excellence and efficiency.

35

VALER strategic partners

36

Across all capital intensive industries, companies treating procurement as a strategic function, generate faster and higher value

Procurement related activities within capital intensive organizations

Supplier related optimizations lead to: revenue/margins increase, loss minimization and cost reductions (up to 4% increase over previous savings); In mergers and acquisitions processes, procurement related synergies are often higher than 30% of the total merger value; Supply Management best practices unlock significant value in large Capex projects (~ 25% more value); Expanding procurement perimeter along the spending categories generate compliance and savings (> 5% higher); Organizations have to guarantee that suppliers are aligned with their main compliances structures such as social and environmental responsibility;

Source: Booz Allen & Hamilton, CAPS Research and The Executive Board

37

Global Procurement at a glance: Commercial reach

Chile Shanghai, China Japan Argentina China South Africa Australia India Brazil HQ

Canada

Strategic Suppliers Procurement Offices

• USD 5.5 bi total spending from strategic categories and

projects implementations for 2008

• 400 Suppliers, 152 international from 29 countries
• 23 categories with long-term strategic alliances

USA France

Switzerland Germany Austria Finland

UK

Holland Norway Italy Greece Sweden

Belgium

Brazil

38

CVRD uses leading-edge processes/negotiation tools

Benchmarks and Trends source: Aberdeen Group, The Executive Board, Quadrem, Gartner Group, ATKearney

Acts as a global procurement team with centers of excellence in Brazil, Canada, Europe and Asia Establishes global partnerships in order to sustain its growth strategy and operations improvement Uses product lifecycle sourcing (design-to-source) in order to address Low Cost Countries (LCC) Adopts flexible bidding processes enabling suppliers to add value on the negotiation Manages nearly 100% of its total spend through its ERP system (Benchmark = 78%) Electronically enables all its suppliers via its ERP/Procurement Portal System (Benchmark = >50%)

39

Procurement success is driven by a large source of value creation drivers

People Processes Tools

Global demand consolidation network Supplier Profile Database Price analysis and evolution tools CAPEX price evolution toolkit Contracts P&L monitoring Price benchmarking among industries Online access to bids historical record Electronically enabled negotiation tools (RFx, Reverse Auctions, Quotes Comparison) Global procurement structure Centralization of main processes for all global

• perations

Specialized category managers Renewed procurement staff Diversified talent portfolio background VALUE CREATION Strategic sources every single category Uses TCO methodology to set negotiation targets Vendor list enhancement throughout a global network Supplier integration for operational improvement Monitor technical KPIs and continuous development Develops commercial agreements optimizing tax and logistics

40

Outstanding achievements by enabling procurement as a core value

3.465 3.884 1.910 6,81% 7,38% 12,54%

500 1000 1500 2000 2500 3000 3500 4000 4500

2005 2006 2007 YTD

• 5%

5% 15% Strategic Spend Savings

3,14% 6,03%

• 1,53%
• 2,21%

2006 2007 YTD

Accumulated Brazilian Inflation CVRD Accumulated Inflation Index

Cost saving programs sponsored by top management Multi-functional technical groups to challenge specifications and stimulate innovation Combined action plans with suppliers aiming productivity increase and total cost

• ptimization

Contingency and crisis management plans in place to assure production continuity

Procurement Commercial Performance

US$ Millions 2007 YTD until August

Note: Inflation Index only consider operational expenses

&

41

Demian Fiocca

Executive Director Information Technology and Corporate Management

42

A track record of fast organic growth

0.4 0.9 1.1 2.9 3.0 4.9 7.5 2 4 4 3 3 7 4 2002 2003 2004 2005 2006 2007e 2008p Capital invested US$ billion Projects delivered

Capex Projects

43

CVRD - Operations CVRD INCO – Operations CVRD INCO – Commercial Exploration / Proyect CVRD - RDs

CVRD Samarco Itabrasco Kobrasco Nibrasco Hispanobrás TVV Valesul Urucum Albrás Alunorte CADAM MRN PPSA Ferro Gusa Carajás MBR FCA RDM RDME RDMN RD Asia Tokyo Docenave Arg. RD Asia Shanghai Rio Doce Austrália Rio Doce índia CVRDI Bayovar CLMA CMTR CVRD Venezuela Rio Doce Argentina Rio Doce South Africa Rio Doce Mozambique Tethys Mining Yankuang Longyu Belvedere Goro AMCI

Geographic and product diversification accelerated by M&A

CVRD Inco PTInco

44

A renewed challenge to excellence

Rapid expansion brought unprecedented size and diversity Strong growth opportunities to capture within a market with solid long term fundamentals. Need to keep corporate foundations in good shape to cope with new complexity and preserve efficiency

45

Corporate performance: at par with comparable global companies (HR, IT, Procurement…….) according to independent studies Focus on excellence in corporate functions: dedicated area of Information Technology and Corporate Management To keep CVRD fast growth under close coordination To improve performance and increase reliability through global standards, processes and systems To increase asset productivity and provide a safe environment by sponsoring a broader adoption of automation technologies

Excellence as a world class company

46

… through some key initiatives …

Flexibility Local Needs Local Agility Standardization Global Simplicity Global Agility

To steadily leverage economies of scale and integrate new acquisitions efficiently, CVRD is continuously perfectioning its corporate foundation…

47

… international deployment of its core processes and corporate systems, …

2007 2008 Beyond

ERP Brazil - 5000 users More 9 companies 2100 users CVRD International, FCA, MBR… Roll out to other companies

Until 2006

48

Production control Inventory control Parts management Logistics Order control Purchasing

...

Where do we create more value?

… an Enterprise Business Intelligence Model, …

Production control Inventory control Parts management Logistics Order control Purchasing

Niquel

Production control Inventory control Parts management Logistics Order control Purchasing

Copper

Production control Inventory control Parts management Logistics Order control Purchasing

Iron Ore

CVRD’s Business Intelligence

Which trends can I benefit most of? Which will the best product portfolio in the coming years?

49

Resulting in:

• Better asset utilization
• Higher productivity
• Higher efficiency
• Improved Safety
• Reduced operational risk

.. and broader adoption of automated solutions for mining and logistics …

15 15 30 60 200 30 84 118 210 330 2004 2005 2006 2007e 2008p New Projects Optimization

CVRD Automation Improvement Investments (US$ MM)

50

… to accomplish our mission

To achieve the IT Strategic goals through the establishment

• f guidelines, architecture development e solutions
• ptimization

To apply automation technologies that contribute to

• perational excellence, safe workplace e environmental

sustainability To lead and coordinate corporate excellence efforts, pursuing continuous improvement in governance, processes, rule making and compliance. Information Technology and Corporate Management Area

51

CVRD Logistics Supporting Growth

Eduardo Bartolomeo

Executive Director of Logistics

52

Logistics overview and strategic drivers Logistics performance and investments

Iron ore and coal General cargo

Operational excellence drivers

“Green railroad”

53

OPERATIONAL FIGURES 10,179 kilometers railroad network 1,008 locomotives and 41,761 wagons 6 Ports and Terminals THESE ASSETS PROVIDE FOR… 16% of cargo transported in Brazil and 30% of the cargo handled in Brazilian Ports 230.9 million tons of iron ore shipped through CVRD Port Complexes in 2006 24.6 million tons of general cargo shipped through port terminals in 2006

EFC EFVM FCA Port Terminals Multimodal Terminal FNS (EFC operation) FERROBAN Trackage right

CVRD provides integrated logistics services including railroads and ports terminals

54

We want the reputation of being the safest and most efficient logistic provider

Increase competitiveness in mining operations, mainly iron ore and coal In general cargo, focus on high margin and volume products, mainly steel industry and agribusiness Log-In has been created to be competitive in the inter-modal business More than 27 thousand individual and institutional investors purchased company shares during the IPO

Beginning of General Cargo

• perations

DCNDB Docenave Argentina Beginning of conteiner transportation in FCA

Log-In IPO

2001 2002 2003 2004 2005 2006 2007

...

Beginning of TVV

• perations

(1998)

CVRD logistics strategy Log-In

55

Investments in safety Focus on accidents reduction Preventive actions Operational efficiency Investments in infrastructure, automation, technology and training CVRD environmental policy is an action based on ethics and social commitment

Productivity growth is supported by focus on operational safety and socio- environmental actions

Socio Environmental Responsibility Productivity Safety Strategic drivers

56

Logistics overview and strategic drivers Logistics performance and investments Iron ore and coal

General cargo

Operational excellence drivers

“Green railroad”

57

1Q 03 2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07

CVRD has increased its shipments at 10.7% per year...

Iron ore shipments

million metric tons

39.2 Mt 65.5 Mt

CAGR: 10.7%

58

…investing US$ 3.3 billion to expand its railroad and port capacity to meet demand growth…

1,092 649 784 484 274 2003 2004 2005 2006 2007

Logistics investments 2003 to 2007 – US$ 3.3 B

US$ million

59

Vitória a Minas Railroad – EFVM

…in the Southern System…

Vitória a Minas Railroad investments Tubarão Port Complex investments

Implemented: Increase of 110 locomotives and 5,100 wagons in the last 5 years Duplication of Railroad between Brucutu and Costa Lacerda Expansion of railroad yard at Costa Lacerda In progress: Expansion of railroad yards at Drummond and Ipatinga Expansion of railroad yard in Tubarão Complex 28 locomotives and 900 wagons (2008/09) In progress: Overall and services of all existing car dumpers 5th car dumper construction (start-up: 1st Q, 2008) Performance improvement of conveyor belts and replacement of 2 ship loaders

60

Tubarão Port – construction of 5th car dumper

61

Carajás Railroad - EFC North South Railroad - FNS

…as well as in the Northern System

Carajás Railroad investments Ponta da Madeira Terminal investments

Implemented: Increase of 87 locomotives and 4,856 wagons in the last 5 years Construction and expansion of 10 railroad crossing yards In progress: Expansion of 56 railroad crossing yards Expansion of Carajás and São Luis railroads terminals 40 locomotives and 3,128 wagons (2008/09) Implemented: Addition of Pier III Construction of 4th and 5th ship loaders at pier III Addition of 3rd and 4th loading tracks Addition of storage yards G and H, stackers/reclaimers and conveyors Addition of 3rd car dumper In progress: 4th car dumper Stock yard I, stacker/reclaimer and conveyors

62

Railroad crossing and port stock yards

Stock yards G and H – Ponta da Madeira Terminal Expansion of Carajás railroad crossing yards – Location 43

63

Carajás Railroad

1 pier 2 ship loaders 2 loading tracks 4 car dumpers 6 stock yards New railroad spur in Carajás region Carajás main line duplication 97 locomotives and 6,613 wagons

Carajás Railroad - EFC North South Railroad - FNS

Expansion of Ponta da Madeira Terminal

In addition, new logistics projects are being developed in the Northern System to attend growing demand in iron ore

64

New pier and 2 ship loaders

Expansion of Ponta da Madeira Terminal

6 new stock yards 2 new loading tracks 4 new car dumpers

65

Coal in Mozambique will be transported from Moatize through the Sena Line to Beira Port, where it will be loaded into a self-unloading handymaxes Coal will be transshipped on to Panamax and Cape Size vessels fifteen kilometers offshore 1st stage system capacity: 14 Mty

Logistics solutions are being studied for

• ur overseas operations

66

Logistics overview and strategic drivers Logistics performance and investments

Iron ore and coal General cargo

Operational excellence drivers

“Green railroad”

67

General cargo gross revenues increased at 31% per year…

253 411 548 651 745

Gross revenue evolution

US$ million 1S 03 1S 04 1S 05 1S 06 1S 07

By industry sector

(2006 basis)

7.2% 6.4% 45.1% 38.3% 3.0%

Fuel Building materials Others Steel Agriculture

CAGR: 31%

68

FCA Ferroban – FCA Right of Way Southern Coastal Railroad (in construction) Multimodal Terminal

…improving Operational & Financial performance of Centro Atlântica Railroad

Centro Atlântica Railroad - FCA

• Railroad sections renewal
• Improvement of locomotive fleet
• Business re-engineering
• Cost reduction program
• EBITDA turnaround

FCA EBITDA turnaround

US$ million

31.0 36.4 (34.6) 2005 2006 1S 2007

69

Plan to develop new logistics infrastructure in Espírito Santo state

Anchieta Viana

Litorânea Sul Railroad

New section that will connect Vitória a Minas railroad to Ubu Port and the south of Espírito Santo state Attraction of steel companies and new general cargo flows 165 km in length Potential demand can exceed 20 mty

Litorânea Sul Railroad

Ubu Port

New terminal feasibility study

70

The Norte Sul railroad will provide a new general cargo corridor

Estrada de Ferro Carajás - EFC Ferrovia Norte Sul - FNS Ferrovia Norte Sul – FNS (em construção) Ferrovia Norte Sul – FNS (planejada)

On October 3rd CVRD was awarded the concession to

• perate the 720 Km of FNS

Focus on general cargo exports (mainly soybean, rice and corn) CVRD’s commitment to socio-economic development in Brazil 361 km to be built

Norte Sul Railroad - FNS

71

Logistics overview and strategic drivers Logistics performance and investments

Iron ore and coal General cargo

Operational excellence drivers

“Green railroad”

72

“Green Railroad” commitment…

By December 2007, CVRD will become the biggest B20 consumer in Brazil This volume equates to the annual CO2 emissions from a city of 27 thousand inhabitants Or it would be necessary to plant an area equivalent to 369 Maracanã stadiums of native forest per year

Until december 2007, EFC and EFVM B20 consumption will be 33 million liters/month

Biodiesel - CVRD is the first Brazilian company using B20 in its locomotives

Approximately 1 million steel sleepers will be installed at EFC and EFVM railroads Environmental impact will be reduced by substituting wooden sleepers with steel sleepers that have double the lifecycle of wood

Railway sleepers replacement

About 400,000 steel sleepers will be replaced per year in both railroads

73

…and to be the safest logistic provider…

Initiatives to improve safety

Development of Operational Policy focused on Safety Training centers for train drivers with simulators Automation and process control

Accident rate

(per million train Km)

• 10

20 30 40 50 60 70 80 2002 2003 2004 2005 2006 1H 2007 Centro Atlântica Railroad Vitória a Minas Railroad Carajás Railroad

74

…in order to achieve operational excellence

Initiatives to achieve excellence

Longer trains Efficient locomotives Installation of on board computers Higher axle loads Improved operational model

1Q 03 2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07

Locomotives Fuel Efficiency

(Liters / GTM x 1000 )

Carajás Railroad trains/day

(Number of trains per day)

AAR* 2006 5.6

* AAR –Association of American Railroads 6.9 12.0

2.15 2.19 2.27 2.32 2.38 2003 2004 2005 2006 1S 2007

75

Only possible because we are continuously investing in our employees

Investments in technical know-how, enabling logistics staff to face new challenges Promoting the qualification and development of more than 4,000 technical professionals

2006 training numbers Professional Qualification Program 1,748 employees Rail Operations Trail 785 employees Machinists Qualification 713 employees Rail Operations Regulation 367 employees Rail Engineer Program 110 employees

76

José Lancaster

Executive Director Copper, Coal, Aluminum

CVRD’s non–ferrous business In focus

77

Strategy, highlights and visions

78

CVRD continues implementing its strategy for the non-ferrous minerals business

Non-ferrous minerals includes copper, coal, aluminum and others (potash, phosphate, kaolin) business units. Additionally handles CVRD’s global mineral exploration - a key driver of growth. Key strategies Efficient low cost operations (concentrate on cost cutting and efficient maintenance strategies). Develop a consistent pipeline of high quality projects (Paragominas, New Alumina Refinery, Salobo, Moatize). Continuous growth through an organic strategy, JV’s and / or opportunistic acquisitions.

79

CVRD continues implementing its strategy for the non-ferrous minerals business

Main focus Aluminum: to develop high quality, low cost bauxite and alumina operations. It also looks for opportunity to vertically integrate the business. Copper: to continue organic growth through implementation of Salobo I

• project. Development of Salobo II, Papomono (Chile), 118, Cristalino, Alemão

projects. Coal: to become a large player in the coal business by 2015, producing more than 30 Mtpy of metallurgical and thermal coal . Potash & phosphate: to position CVRD as a global supplier of raw materials for fertilizers (P & K). Mineral exploration: to continue worldwide efforts to provide efficient resource replacement and additional growth.

80

2007 highlights

Paragominas first phase (5.4 million metric tons of bauxite) is completed and operating at a 85% rate. This is the first bauxite pipeline to operate in the world. Phase 3 of Alunorte Refinery (70 % complete) is progressing with total capacity reaching 6.3 MT of alumina by 2008. Salobo I construction of mine-mill copper concentrate complex (100 Kt) started in August 2007, and commissioning is expected for mid-2010. First long term contract signed with a major European copper smelter. Acquisition 100% of AMCI HA (Australia) coal company opening an important new frontier for growth. In 1H07, Chinese coal JV’s (Longyu and Yangkuang) performance exceeded expectations (15% above budget). Implementation of Bayóvar project underway with commissioning in 2010 (world class phosphate deposit in Northern Peru). Total production capacity of 3.9 Mt of phosphate concentrate to be reached in 2013.

81

Aluminum industry – CVRD Vision

Access to reliable bauxite source is vital. CVRD holds key resources in the Amazon basin and Africa. Medium and long term market fundamentals should remain strong in the coming years: Aluminum global consumption grew 7% per year between 2001-2006. We expect a similar growth in the next 5 years. Most of the growth driven by the Chinese demand (20% p.a.) . The primary aluminum stocks show a decreasing trend since 2002 (from 9 to 6 weeks). Higher demand from emerging economies (BRICs, Middle East) and rising production costs (mainly alumina and energy) provide a good support to current prices. It is forecasted that supply will keep up with demand. However, given the current scenario (high costs, equipment and personnel shortage) we believe some of new projects may face delays. Therefore, we remain optimistic about the medium–term prices.

82

Copper industry – CVRD Vision

Global demand will grow over 4.1 % in 2008-9 (about 600,000 metric tons of new copper production). Copper prices have risen over the past three years given the strong demand and limited

• supply. We are bullish on the prices for 2008-9 and on the long term fundamentals.

China and Southeastern Asia continues to drive overall copper demand growth (10%). European demand is moderate (1.7%), while USA remains flat. Forecasted demand growth will require new supply from greenfield projects under significant pressures: The head grade on major copper operations is decreasing over time; CAPEX and OPEX have risen systematically pressured by both technical and structural factors (ex.: weak dollar); Delay of long lead equipment deliveries (e.g. mills) and short to medium term pressure on key operational items (e.g. tires); Permitting is more complex and lengthier; Important projects are located in remote areas and/or challenging political environments.

83

Coal industry – CVRD Vision

CVRD is still a small player in the coal market (~ 2.9 Mt in 2007) with a portfolio focused on metallurgical coal. Our goal is to reach 30 Mtpy of coal through development of CVRD Australia projects, Belvedere, Moatize and other projects by 2015. Current strategy is to supply the steel industry located in Brazil and other markets. We foresee a balanced seaborne market for coking coal, however potential regional unbalance may generate windows of opportunity.

84

Fertilizer industry – CVRD Vision

• A number of factors has impacted the agricultural production worldwide:
• “It is still a food game”: world population and GDP growth (about 5 %) will trigger the

increase in food consumption (e.g. an average of 1.4 Mha/y of additional land harvested in China);

• Rising investments in the production of alternative energy (e.g.: ethanol should double

by 2015, according to FAPRI¹);

• Limited additional agricultural land available has led to the improvement of soil

efficiency through higher consumption of fertilizers.

• During the last 12 months, P & K prices increased more than 70%², and industry forecasts

remain bullish.

• CVRD’s Bayovar Project (Peru) represents the only greenfield phosphate rock project

under implementation that targets the seaborne market.

¹ FAPRI - Food & Agricultural Policy Research Institute ² Phosphate rock: from US$ 45/t to US$ 85/t (70-72 BPL, FOB Morocco) and KCl: from US$ 140/t to US$ 240/t. (FOB Vancouver).

85

Operations & projects

86

68 98 144 152 167 188 243 254 280 289 327 354 346 327 358 377 429 640 638 674 649 724 $0 $100 $200 $300 $400 $500 $600 $700 $800

1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07

aluminium business quarterly gross revenues

MRN expansion to 16.3Mt Alunorte line 3 start up Albras consolidation Alunorte lines 4&5 start up Albras expansion to 406 ktpy Albras expansion to 430 ktpy MRN (16.7Mt), Alunorte (2.5Mt) and Albras (435kt) production records MRN (17.2Mt), Alunorte (2.6Mt) and Albras (446kt) production records MRN (17.8Mt), Alunorte (3.9Mt) and Albras (456kt) production records Valesul consolidation Paragominas start up

Efficient project execution and higher prices drove CVRD’s aluminum business revenues to a record high in the 2Q07

Aluminum

87

Aluminum operation and expansion

Paragominas project

Paragominas first phase ramp-up nearly completed (5.4 Mtpy):

First bauxite mine in the world to use

a pipeline for ore transportation. First batch received by Alunorte in March.

Expansion to 9.9 Mt of bauxite is

67% completed. The third expansion will consolidate Alunorte position as the largest alumina refinery in the world

• Global physical progress over 70%

completed. Total refinery capacity to reach 6.3 Mtpy.

• To be commissioned in 1H08.

Alunorte expansion

88

The development of a new refinery will strength CVRD asset base in the upstream of the aluminum chain. There is still room for growth.

CVRD signed a MoU for the development of a new alumina refinery with an initial production capacity of 1.86 Mtpy. The new refinery will replicate Alunorte experience. Bauxite will be supplied by Paragominas. Given its world class bauxite deposits, CVRD can expand the new refinery up to 7.44 Mtpy.

Alumina project under development

89

Copper operations

Sossego mine

First CVRD copper mine with 3 full years of operation: 90 % of capacity (125 kt Cu)

• achieved. Exceeded financial returns due to the good startup timing and soaring of

copper prices. More than 1.4 Mt of concentrate already mined and shipped through long term contracts, since the beginning of the operation. Experience at Sossego consolidated CVRD’s copper mining knowledge to be applied in the development of the Carajás copper project pipeline (Salobo implementation underway).

90

Copper project under construction

Salobo

Construction started in August 2007. Phase 1 designed to produce 100 kt of copper-in-concentrate (@ 38% Cu and 15g/t Au). Total investment: US$ 897 M. First long term agreement already signed with a major European copper smelter. 2nd phase of Salobo under evaluation (an additional of 100 kty contained copper).

91

Hydrometallurgical copper plant (UHC)

Application of new technology for complex ores

• CVRD is currently at 90% of construction of a 10 ktpy hydrometallurgical-

copper-plant located in Carajás. The purpose is to consolidate hydromet technology in treating copper sulphide concentrates, using CESL technology.

• Workforce for operation already trained.
• Start up scheduled for 1Q08.

92

Copper projects under development at different stages

Cu kty Cristalino Estimated production Project 118 (Sx-Ew) 36 Alemão* 100

• Reserves

Proven & probable

(Concentrate) Cu % Au (g/t) ROM content

Papomono, Chile

0.95 0.66

• 64

379

• 0.15
• Mt
• *PFS ongoing.

Papomono*

• (Sx-Ew)

93

Australia Mozambique China

Yankuang JV (25%) 2.0 Mtpy – Coke ¹ Longyu JV (25%) 6.0 Mtpy – Anthracite ¹

Moatize 11 Mtpy Coking/Thermal coal Belvedere (pre-feas. phase) 8 Mtpy Coking coal/PCI

CVRD Australia 11 Mtpy Coking coal/PCI/Thermal

¹ Total production capacity

CVRD coal operations and projects Potential production

94

CVRD Australia

• In April 2007, CVRD acquired 100% of AMCI Holdings Australia Pty Ltd (AMCI HA).
• CVRD Australia owns and operates several coal mines and holds mining rights in

Australia, through equity unincorporated joint ventures

• About 2.9 Mt are estimated to be the CVRD Australia’s production in 2007.
• The Australian operations allow CVRD to have an experienced workforce in both

underground and open pit operations. JV’s in China

• Longyu anthracite JV’s performance in 1H07 exceeded expectations with

production of 2.8 Mt compared to a budget of 2.4 Mtpy.

• Yankuang coking JV production in 1H07 was also above budget: 0.6 Mt compared

to 0.5 Mt. Coke quality is mainly grade A (high quality) and methanol production has already started.

Coal operations

* Mines have not reached production @ full capacity. By 2010, it is expected coal production of 11 Mt (US GAAP) equivalent to 8 Mt on equity basis

95

Moatize

• Following the approval of the project development plan by the Mozambican

authorities in early June, the Government of Mozambique approved the mining right for the development and implementation of the Moatize coal project.

• The project involves the exploitation of an open pit mine (> 30 years life), with an

estimated average annual production of 11 Mt of coal products – 8.5 Mt of metallurgical coal and 2.5 Mt of thermal coal. Belvedere

• CVRD has exercised a call option to acquire a 51% interest in the Belvedere Coal JV

(hard coking coal with high quality).

• CVRD has a further option to raise its stake in the project up to 100% by acquiring

the remaining 49% interest at a fair market value to be determined at the time of the exercising of the option.

• Feasibility study underway.

Coal projects

96

Potash

UOTV, Carnalite & Neuquén

Sole domestic producer, contributing with 12% of Brazilian consumption. ROM production capacity achieved 3,000 ktpy. Two other significant opportunities being investigated: Carnalite (Sergipe - Brazil) Potash project (Neuquén - Argentina).

97

Phosphate rock

Bayóvar

Located in Sechura desert (Peru), Bayóvar project startup is scheduled for mid-2010. Estimated production of 3.9 Mt of phosphate concentrate. Life of mine: 27 years. Total investment (Capex): US$ 479 million, including infrastructure Implementation phase underway: Permits and licenses already granted (sea area for pier construction & operation; sea water supply). Team already defined. Commercial highlights Initial approach with potential customers underway. Target markets: South and North America, Oceania and Asia.

98

Mineral exploration

99

CVRD remains focused on long-term

• rganic growth

With the recent acquisitions of INCO and AMCI, CVRD has consolidated its exploration activities under a single “Global Mineral Exploration” hat. Such consolidation allows more efficiency and agility integrating exploration, and mineral technology activities under a global organization. Total budget for 2007 R&D: US$ 452 million Pre-F/S, F/S and technology: US$ 302 million Mineral exploration & project development to pre-feasibility: US$ 150 million

Copper Nickel Iron Ore Bauxite Potash Other

Cordillera- S.America Africa Australasia Eurasia North America South America

2007 budget per region 2007 budget per mineral

100

Previous offices New offices Exploration programs & projects

A global and multi-commodity exploration program

13 exploration offices

101

New projects worldwide in 2007

Papomono Papomono Copper Project Copper Project Chile Chile New grassroots New grassroots programs for programs for copper in copper in Democratic Democratic Republic of Congo Republic of Congo (new office) (new office) Copper Copper Program in Program in Kazakhstan Kazakhstan Coal Coal project in project in Mongolia Mongolia New Office New Office in Colombia in Colombia Bauxite Bauxite Project in Project in Guinea Guinea Grassroots Grassroots programs in Canada programs in Canada including U & Cu including U & Cu Grassroots programs Grassroots programs in Australia including in Australia including U & coal U & coal

102

Making it happen

José Carlos Martins

Executive Director of Ferrous Minerals

103

Steel & iron ore market trends CVRD strengths and initiatives Cost-reduction efforts

104

Global crude steel production grew by 100 Mt in 2006 and is expected to reach almost 1.5 billion tons in 2010. Such level of growth has no parallel in

• history. China continues to be the main driver of steel production growth.

Global crude steel production

722 748 787 783 816 222 281 356 423 905 580 182 '02 '03 '04 '05 '06 '10f 904 970 1,068

CAGR 05-10 +5.4% +10.3% +2.9%

World Rest of the world China

1,139

Sources: IISI and CVRD estimates

1,485

Mt

CRUDE STEEL PRODUCTION (Mt) CRUDE STEEL PRODUCTION (Mt)

1,239

105

Forecasts of crude steel production have missed by far the actual achievements of the steel industry. We are trying to catch up with such speedy development.

Global crude steel production

816 782 762 782 805 193 248 314 366 798 401 423 '06 mar/02 mar/03 mar/04 abr/05 abr/06

World Rest of the world China

Sources: IISI and CRU

Mt

1,239 975 1,010 1,096 1,171 1,199

Past Forecasts of Crude Steel Production for 2006 Past Forecasts of Crude Steel Production for 2006

• 264 Mt
• 40 Mt
• 68 Mt
• 143 Mt
• 229 Mt

A c t u a l

106

2006 2007e 2008f

+9% +6% +8% +12% +7% +5% +15% +4%

• 5%

+11%

Source: IISI Oct, 2007

IISI forecasts world steel consumption to keep strong in the coming years Others China Asia ex. China EU (27)

1,279 1,198 1,121

CIS & other Europe

+6.8% +6.8% +6.8% +6.8%

World

Steel consumption

NAFTA

+4% +2%

Apparent consumption of finished steel (Mt) Apparent consumption of finished steel (Mt)

107

A new growth cycle

Asia (Ex. China) North America China World South America Western Europe Africa / Middle East Eastern Europe / CIS

Source: IISI, CVRD

135 137 39 62 25 47 212 279 127 580 178 205 130 178 848 1.485

2000 2010e

Crude steel production (Mt) Crude steel production (Mt)

CAGR 6% CAGR 6% CAGR 0% CAGR 0% CAGR 1% CAGR 1% CAGR 5% CAGR 5% CAGR 3% CAGR 3% CAGR 16% CAGR 16% CAGR 3% CAGR 3% CAGR 7% CAGR 7%

108

60 80 100 120 140 160 180

abr/94 abr/95 abr/96 abr/97 abr/98 abr/99 abr/00 abr/01 abr/02 abr/03 abr/04 abr/05 abr/06 abr/07

ind ex

CRUspi Global Index

Jun ‘07 Jun ‘07 New New Record! Record!

Source: CRUspi

Steel industry – Prices performance

Steel prices continue to fluctuate at higher levels.

Average ‘03 to ’07 141 pts China Boom! Average 94 to ’02 92 pts

109

Seaborne demand is not being fulfilled due to supply restrictions.

Seaborne iron ore trade

Sources: IISI, UNCTAD, CVRD

Demand

+14.2%

373 389 400 400 405 455 148 203 270 320 525 111

´02 ´03 ´04 ´05 ´06 '10f

484 725 537 603 670

+7.9% +2.6%

World

China as a % of total

27% 37% 54%

Rest of the world China

CAGR 05-10

980 Million tons

110

Chinese iron ore consumption

Source: CVRD and Tex Report

Chinese iron ore consumption profile Chinese iron ore consumption profile

If there is

availability from Seaborne suppliers, further increase in imports can be achieved through replacement of domestic ore

If there is

availability from Seaborne suppliers, further increase in imports can be achieved through replacement of domestic ore Imported iron ore has been gaining substantial share in China. Limited seaborne supply availability restricted further gains in 2005 and 2006

100 200 300 400

1999 2000 2001 2002 2003 2004 2005 2006e

(M tons) 30% 60% 90%

Domestic ore (conc.) Imports Domestic / total

• - 45%

70%

Low Fe content and

currency appreciation, reducing local iron ore competitiveness.

Low Fe content and

currency appreciation, reducing local iron ore competitiveness.

111

60 70 80 90 100 110 120 130 140 150 160 170 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 (1970=100)

Iron ore benchmark price index

In real terms, the iron ore benchmark price for fines is just recovering from the same level of the early seventies.

Growth of Chinese Steel Industry The Era of “Efficiency”

(technological changes & oversupply)

Early years of Seaborne

Iron Ore price Index (1970 = 100)

Real Prices – Ago 07 – deflated by US CPI

Iron Ore price Index (1970 = 100)

Real Prices – Ago 07 – deflated by US CPI

Source: CRUspi

The Benchmark System is supposed to bring stability to the market as long as it reflects the market reality

112

• 10

20 30 40 50 60 70 80 90 set/05 jan/06 mai/06 set/06 jan/07 mai/07 set/07 West Australia-Baoshan Tubarão-Baoshan Tubarão-Rotterdam

50 70 90 110 130 150 170 190 s e t / 5 j a n / 6 m a i / 6 s e t / 6 j a n / 7 m a i / 7 s e t / 7

Domestic Concentrates (Thangshan/Hebei) Indian spot FOV w mt Tianjin (Fe@63.5%) SSF CFR Beilun

Weekly Seaborne Freight Rate (US$/Ton) Weekly Seaborne Freight Rate (US$/Ton) Weekly IO Prices in China (US$/Ton) Weekly IO Prices in China (US$/Ton)

Iron ore spot prices have increased by ~95% since the beginning of 2007.

Source: Mysteel, Clarksons & CVRD

Iron ore tightness to continue …

In October, the Freight reached US$ 88/ ton In October, the spot reached US$ 190/ ton

113

Steel & iron ore market trends CVRD strengths and initiatives Cost-reduction efforts

114

CVRD`s resources are at least 5x larger than its proved reserves, which are capable of attending the present demand for 32 years.

7 mines

Northern System

2.0 Bi 12 mines 3.9 Bi

Southeastern System

9 mines 1.7 Bi

Southern System

Reserves (t)1

84 Mi

Production 20062

82 Mi 97 Mi

8.6 Bi 271 Mi

TOTAL CVRD2

Samarco

1 mine 1.0 Bi 8 Mi

Reserves base

1) Proven & probable reserves, as of December 2006. Samarco considers total reserves . Northern System' reserves includes N5S & Serra Leste; 2) Does not include Southern System third parties purchasing. Includes 50% CVRD shares in Samarco

CVRD has the largest reserves base in the industry

115

Korea 4% China 27% ROW 13% Europe 25% Brazil 21% Japan 10%

CVRD Iron Ore and Pellets Sales – 2006 CVRD Iron Ore and Pellets Sales – 2006 Total 276Mt

CVRD: The only iron ore global player

With complete product portfolio, combined with customer-oriented marketing approach, CVRD has been able to supply its customers around the globe.

Sources: CVRD and IISI

* CVRD + 50% Samarco + Pelletizing JV´s (Nibrasco, Itabrasco, Kobrasco, Hispanobras) + Urucum.

116

Product Line: ore and coal, pillars of the steel industry. Combining the strenghts of Brazil and China.

JV - Baovale

• Start-up: 2002
• Iron Ore Prod.: 6Mt/y
• Start-up: 2006
• Coke Prod.: 2Mt/y

Exploring sinergies

New areas of cooperation for CVRD and CSM

JV – Yankuang

• Start-up: 2006
• Coke Prod.: 2 Mt/y

JV - Longyu

• Start-up: 2005
• Raw Coal Prod.:

6 Mt/y JV – CSV

• Start up: 2011
• Steel Capacity: 5 Mt

JV - Zhuhai YPM

• Start-up: 2008 (F)
• Pellet Prod.: 1.2 Mt/y

117

Initiatives

CVRD is analyzing and implementing several initiatives to reduce landed costs and increase its competitiveness. Use CVRD’s large scale and expertise to provide support to its customers where applicable. Promote the construction of dedicated VLOCs to reduce demand pressure for fronthaul trips. Virtual mine. CVRD blend.

118

Chinamax vessels

Larger vessels should provide important economy of scale, contributing to reduce Brazil-China freight cost. * * * Plus another 8 vessels under negotiation.

119

Pellets expansion pipeline

New pellet plants in China and Malaysia under evaluation with local partners. Capacity Start-up increase (Mtpy) JV Zhuhai 1.2 Jan/2008

Under construction

Samarco (1) 7.6 Mar/2008

Under construction

Itabiritos 7.0 Jun/2008

Under construction

Tubarão VIII 2H/2010

Submitted to Board approval

Oman 9.0 1H/2010

Submitted to Board approval

7.5 CVRD plans several projects for pellets in order to meet additional demand from DR and BF sectors.

(1) Samarco a 50/50 JV. Its project is not included in CVRD Capex program

120

CSA (ThyssenKrupp) – Under construction

• Capacity:

5.0 Mtpy

• Estimated start-up:

2009

CSV (Baosteel)

• Capacity:

5.0 Mtpy

• Estimated start-up:

2011

Ceará Steel (Dongkuk/Danieli)

• Capacity:

1.5 Mtpy

• Estimated start-up:

2010

Fostering iron ore consumption in Brazil by attracting steelmaking projects and taking advantage of the trend towards geographical relocation of global steel capacity.

Steel – Joint ventures

Additional 18 Mtpy of iron ore consumption in the domestic market under Long Term Contracts

121

2001 2007E 2012E

*Considering projects subject to Board Approval. *Considering projects subject to Board Approval. 450Mtpy production rhythm expected to be achieved in Dec/2012. 450Mtpy production rhythm expected to be achieved in Dec/2012.

Future iron ore production

CVRD is implementing aggressive expansion projects to meet the rising market demand. We expect to achieve production capacity of 450 Mtpy* in 2012, from 300 million in 2007.

CAGR CAGR +15% +15% CAGR CAGR +7% +7% 422* 422* 134 134 300 300

CVRD Iron Ore Production (Mt) CVRD Iron Ore Production (Mt)

450 Mt by Dec.2012

122

Steel & iron ore market trends CVRD strengths and initiatives Cost-reduction efforts

123

The aggressive CVRD volume growth since 2001, associated with a global mining boom, has led to an increase in unit costs.

Since 2006, CVRD established a Cost Reduction Program to bring unit cost back to 2004 level

Cost Growth Main Drivers

• High marginal cost
• Production reaching capacity
• Suppliers growth constraint
• Exchange rate effect

233 152 144

2001 2002 2005 2006

Cost US$/ton constant currency (100 base)

Production Cost vs. Annual Production

2003 2004

170 192

Production Mton

2007

263 300 113 175 100 139 145 179 172 95 215 119 119 206 173

Cost US$/ton (100 base)

124

CVRD Cost Reduction Program

CVRD Cost Reduction Program Embraces Several Initiatives, such as:

Automation Integration Shared Services Shipping Portfolio Management Low Cost Plants Contracts Revision Productivity High investments on automation platform to improve asset utilization, quality, efficiency and safety Acquisition of new companies, bringing new cost reduction

• pportunities through

economies of scale. Shared Services implementation to support CVRD’s global growing and acquisitions trough gains of scale and efficiency on processes. Very Large Ore Carriers will increase competitiveness and reduce volatility of freight

• rates. Strategy includes
• ffshore blending and

distribution capability. CVRD products portfolio

• ptimization as a tool

for production maximization, processes stabilization and cost reduction. Additional 150 Million tons will benefit from improved efficiency and technology of new plants. Ostensive revision driven by performance based contracts, intelligence building and development

• f new suppliers.

Productivity improvement by debottlenecking of existing assets, improvement of production process control and better use of geological resources.

125

The nickel business

Murilo Ferreira

Executive Director of Nickel Business, Marketing and Sales of Copper and Aluminum

126

• Principal mines

& operations

• Development

properties Other metal refineries

• Sales
• ffices
• MANITOBA

SUDBURY VOISEYS BAY PTI GORO

Introducing…CVRD-Inco

”The leading nickel Company”

• ONÇA PUMA

127

Market focus remains

128

• Japan: Inco TNC

(nickel products for stainless steel)

• Taiwan: Taiwan Nickel (nickel

products for stainless steel)

• South Korea: Korea Nickel (nickel

products for stainless steel)

• China:

– Jinco (nickel salts) – Inco Advanced Technology Materials Dalian (nickel foam) – Inco Advanced Technology Materials Shenyang (nickel foam)

Asian Joint Ventures

“…its about relationships…and the future.”

Market focus remains

129

2007 has been an exciting and challenging time for the nickel market

2007 Review New record nickel prices achieved Strong stainless steel de-stocking impacting nickel demand in Q3/4; increase in LME nickel stocks Increasing Chinese stainless production continued to drive nickel demand Robust growth in high nickel alloys, alloy steel, + foundry driven by energy and aerospace ‘Traditional’ nickel supply struggled with disruptions Large increase in nickel pig iron production in China

5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000

2/jan 31/jan 1/mar 30/mar 2/mai 4/jun 3/jul 1/ago 31/ago 1/out 30/out

10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000 55.000

LME Stocks

metric tons

LME Cash

US$/metric ton

LME cash nickel price and stocks

Jan 2 to November 15 2007

130

2/jan 31/jan 1/mar 30/mar 2/mai 4/jun 3/jul 1/ago 31/ago

2,0 2,1 2,2 2,3 2,4 2,5 2,6 2,7 2,8 2,9 3,0

Stocks Price (t) (US$)

January 2 to September 30, 2007

LME STOCKS (t) LME PRICE (US$/t)

Estimated stainless production rate¹ 60,000 50,000 40,000 30,000 20,000 10,000

Stainless steel de-stocking continued throughout Q3, leading to increasing inventories on the LME

Monthly Stainless production (M t)*

Source: LME, CVRD Inco ¹ Adjusted to represent 30.4 day months

Stainless de-stocking, product mix changes to lower working capital and exposure to nickel prices results in falling nickel demand, rising LME stocks; nickel price falls results in falling demand from stainless consumers as surcharge system guarantees future lower stainless prices > lower stainless orders stainless consumers initiate buying due to low inventories and/or prices

131

Chinese stainless production continues to drive nickel demand growth

1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 '00 '01 '02 '03 '04 '05 '06 '07f

Chinese Stainless Steel Production – kt/yr

2 4 6 8 10 12 14 16 2004 2005 2006 2007 2008 2009

Chinese stainless capacity expected to reach 15 million metric tons by 2009 Source: CVRD Inco November 2007

kt

Since 2000, Chinese annual stainless production will have increased more than 10 times As a result of SS growth, Chinese nickel demand has grown by 29% CAGR (2000-2007f) China nickel demand through August up 43% y-o-y Q4 typically a high nickel demand period in China In 2008, Chinese nickel demand is forecast to continue to grow strongly with economic growth and as stainless capacity ramps-up

MT

132

Over the past four years, difficult adjustments have been made to allow for nickel demand to balance with available supply

Historically, nickel demand has grown at ~1.1x Industrial Production growth In recent years, limited nickel supply has forced the world to prioritize its use

• f nickel (facilitated through rising prices)

Nickel demand adjustments: – Reduce inventories of nickel and nickel-containing products – Thrift nickel usage – Maximize obsolete nickel scrap generation and usage – Shift to 200 + 400 series stainless – Shift to other materials Demand growth will revert to its underlying rate unless further adjustments made Some of this demand will come back when supply and prices allow, some adjustments will be permanent

133

CVRD Inco is working actively to bring new supply on-line to meet strong market demand

Over the past four years, the nickel market has managed balance through many difficult adjustments Our expectations of coming months – strong demand: – Stainless steel de-stocking to end; improving signs in many stainless markets - prices, orders, and production levels improving – Non-stainless demand to remain strong driven by energy and aerospace – Supply chains of many nickel-consuming products very tight – Industrialization of China and other developing countries to drive nickel demand – New nickel supply growth will remain limited in 2008 To meet this strong and growing market demand, CVRD Inco is leading the way to bring new nickel supply on-line

134

1.1 1.3 1.5 4.6 6.0 11.3 Anglo American Xstrata Minara / Glencore BHP Billiton Norilsk Nickel CVRD Inco

Reserves1 millions metric tons of contained nickel

1 P&P reserves 2 part of CVRD’s P&P reserves, representing 3.5 Mt, are not audited; includes Onça Puma and Vermelho projects

Sources: AME Mineral Economics and CVRD Inco

2

We have the resources…

135

Totten Goro Bahodopi Bahodopi Bahodopi Goro Expansion Goro Goro Expansion Expansion Sorowako HPAL Sorowako Sorowako HPAL HPAL Pomalaa Pomalaa Pomalaa Pomalaa Pomalaa Pomalaa Copper Cliff Deeps Copper Cliff Copper Cliff Deeps Deeps

Committed Greenfield Development Potential Development

Onça Puma Voisey’s Bay Refinery Vermelho Vermelho Vermelho PTI Optim. Piaui Piaui Piaui Creighton Deeps Creighton Creighton Deeps Deeps 1D Deeps 1D Deeps 1D Deeps Pipe Pipe Pipe VBN U/G VBN U/G VBN U/G Garson Deeps Garson Garson Deeps Deeps

Project pipeline

…to bring projects forward that will continue to drive growth… …to consolidate CVRD Inco’s position as “The Nickel Company”

136

Ontario operations

Operating in the Sudbury Basin for over 100 years Integrated mining and processing operation that produces Nickel, Copper, Cobalt and Precious Metals Processing facilities in Copper Cliff include

– Clarabelle Mill – Copper Cliff Smelter and Matte Processing – Copper Cliff Nickel Refinery

Cobalt refining and precious metals upgrading in Port Colborne Ontario Clydach nickel refinery in Wales, the UK Precious metals refining in Acton, England

Totten Mine Feasibility Stage North Mine Garson Mine Coleman/ McCreedy East Mine Stobie Mine Copper Refinery Nickel Refinery South Mine Clarabelle Mill Copper Cliff Smelter Creighton Mine

Inco Mines Inco Processing Plants

Victor – Undeveloped Blezard – Undeveloped Kelly Lake Mine Pre -Feasibility Stage Totten Mine Feasibility Stage North Mine Garson Mine Coleman/ McCreedy East Mine Stobie Mine Copper Refinery Nickel Refinery South Mine Clarabelle Mill Copper Cliff Smelter Creighton Mine

Inco Mines Inco Processing Plants

Victor – Undeveloped Blezard – Undeveloped Kelly Lake Mine Pre -Feasibility Stage North Mine Garson Mine Coleman/ McCreedy East Mine Stobie Mine Copper Refinery Nickel Refinery South Mine Clarabelle Mill Copper Cliff Smelter Creighton Mine

Inco Mines Inco Processing Plants

Victor – Undeveloped Blezard – Undeveloped North Mine Garson Mine Coleman/ McCreedy East Mine Stobie Mine Copper Refinery Nickel Refinery South Mine Clarabelle Mill Copper Cliff Smelter Creighton Mine

Inco Mines Inco Processing Plants Inco Mines Inco Processing Plants

Victor – Undeveloped Blezard – Undeveloped Kelly Lake Mine Pre -Feasibility Stage

Cu:Ni ratio in the blended ore ~ 1.2:1 with differing ratios in each mine Current annual mining rate ~ 10.5 metric tons, 90ktpa Ni own source, 20ktpa Ni from VBN, 15ktpa from others, 115 ktpa Cu, 400 k oz PGMs

137

• February 1956 – Discovery of

Thompson Ore Body

• March 1961 – Ramped up to full

production (Western world’s first fully integrated Nickel Operation)

• Currently have 2 operating

underground mines: Thompson & Birchtree

• Integrated Processing facility

– Mill – Smelter – Electronickel Refinery – Cobalt Hydrate to market

• Target production rate of 60ktpa
• Current focus on new

exploration prospects…1D/Pipe

• Clean Ni ores in both mines

with limited Cu or PGM’s

• Current annual mining rate ~

2.5 metric tons, 36ktpa Ni from own source, 20ktpa Ni from VBN

Manitoba operations

138

• 100% ownership in 1996
• Agreement in principle reached in

2002 – Development agreement defines two phases – mine/mill in Voisey’s Bay and a demonstration and commercial plant in Newfoundland – IBA’s with Innu and Inuit

• Construction began in 2003 on the

Ovoid and Concentrator – Completed in 2005 with first concentrate shipment in Nov 2005

• Demo Plant commissioned in 2005
• Refinery targeted for 2011
• Current Ovoid production ~

60ktpa Ni & 35ktpa Cu

• Milling capacity of 6000 tpd
• 3 Concentrates

– High Grade Ni – Thompson, Sudbury, 3rd party customer – Middlings Grade Ni/Cu - Sudbury – Marketable Cu – 3rd party customer

Voisey’s Bay operations

139

Makassar

Sorowako Bahodopi Pomalaa Malili

Sulawesi

Petea PT Inco

• 50ktpa potential projects

at Bahodopi and Pomalaa

• 25ktpa HPAL potential

plant at Sorowako

• In June 2005, began

sending about one million metric tons of saprolitic nickel ore per year from Pomalaa East to PT Antam for smelting

• Mined 2.7 million metric

tons of ore from Petea last year

PTI - Indonesia

Currently operating at 75ktpa expanding to 90ktapa in 2009. Development Projects

140

Karebbe dam project will reduce power costs Improving roads to extend tire life and lower fuel consumption Secured tire needs well into 2007 We are focused on driving costs to improve performance.

PTI - Indonesia

141

120 million metric tons of estimated proven and probable mineral reserves Excellent grades: – Averaging 1.48% nickel and 0.11% cobalt in proven and probable mineral reserves 20-year mine plan Initial annual capacity: – 60,000 metric tons of nickel – 4,300-to-5,000 metric tons of cobalt Integrated, top-class team Real potential for expansion Will supply the growing market for decades to come

Goro is a great resource and has long term value potential.

Goro – New Caledonia

142

Acquired by CVRD in early

2006.

Management transferred

to CVRD Inco.

Estimated production of

58,000 metric tons-per-annum

• f nickel.

Construction started in July,

2006.

–Main contracts awarded,

including all furnaces, kilns and dryers.

–850 workers on site. –Site access road completed.

Onça Puma - Brazil

143

Production

• Sept. YTD

Nickel (‘000 metric tons) 2005 2006 2007 Ontario operations 96.5 93.8 63.4 Manitoba operations 48.6 34.9 21.5 PT Inco 74.0 70.0 55.2 Voisey's Bay

• 35.5

38.4 Other 0.7 0.7 0.4 Total finished nickel ¹ 211.1 234.9 178.9 Tolled nickel (‘000 metric tons) 1.0 17.0 12.2 Copper (‘000 metric tons) 130.0 149.0 124.2 PGMs (‘000 troy ounces) 418.9 371.5 273.7

144

• Sept. YTD

2005 2006 2007 Ni LME (US$/metric ton) 14,733 24,287 39,757 Ni Average Realized Price (US$/metric ton) 14,842 24,657 40,500 Cu LME (US$/metric ton) 3,684 6,731 7,089 Cu Average Realized Price (US$/metric ton) 3,839 6,724 5,520 EBITDA¹ (US$ million) 1,481 3,665 4,678

1 September YTD 2007 results include a non-cash charge of US$ 1,062 million related to the fair market value of inventory.

Average realized selling prices and EBITDA

145

CVRD Inco Capital expenditures by area US$ millions

• Sept. YTD

2005 2006 2007 Ontario operations 253 312 292 Manitoba operations 56 61 48 PT Inco 105 110 73 Goro 298 847 779 Voisey’s Bay 334 129 11 Onça Puma

• 59

269 Vermelho

• 62

38 Other 18 42 58 Total capital expenditures 1,064 1,622 1,568

Capital expenditures

146

Integration - Update

We are making good progress on our integration work…

• Organization established and “Top 100” staff introduced into CVRD succession planning

framework

• Strategic planning work and associated tactical work well advanced – focus on project

development synergies and transfer of project/operating disciplines across organizations to enhance growth and performance

• Introduce CVRD project methodologies and disciplines to the Global Development

Portfolio

• Aligning technical, commercial and social processes to help create “One Company”
• Establishing a standard framework for new business developments that take into

account key principles of sustainability…community relations engagement

• Global exploration team established…CVRD-Inco focused on regional exploration and

development of productive potential

• Global procurement established…focused on strategic purchasing of major commodities

“TOGETHER WE ARE BETTER”

147

Before Installing bag-house system After all of bag-house system installed (Sept 07)

PT Inco emissions reduction initiative

Bag-houses installed and operating in all 4 Furnaces Sept 2007 : Air emissions were in compliance with government limits for the first time in 30 years. Total Capital Plan US$ 62.0 million, Forecast actual US$ 61.0 million Stack Emissions Before After Dust (mg/nm3) 15,000 <100 CO (ppm) 4,000 <5

148

Goro nickel project improvements …

• Effluent polishing plant to guarantee manganese contents bellow 1,0 mg/l.
• Air emissions control system up-grade to comply with international standards.
• MHP alternative circuit to mitigate rump-up risks.
• Reforestation program to

reclaim areas out of project footprint.

• Social Communication Plan

revised to enhance dialogue with communities.

• Long Term Plan for

relationship with stakeholders.

social and environmental sustainable operation

149

Safe operations Responsibility to the environment A good neighbour… focused on long term and mutually beneficial relationships

“TOGETHER WE ARE BETTER”

150

• Strongest resource base
• Competitive and long term
• perations
• Tremendous market presence

– Where we sell – What we sell – Long term focus on relationships with our customers

• Growth! Growth! Growth!... profile

and future prospects

• Delivering results and focused on

delivery of sustainable value and returns

“TOGETHER WE ARE BETTER”

151

www.cvrd.com.br

rio@cvrd.com.br

CVRD – A global leader