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November, 2010. Vale Worldwide. 3Q10. Who we are. Vale is a pioneering mining company that transforms mineral resources into essential ingredients for people’s daily lives The world’s second-largest diversified mining company by market capitalization

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November, 2010

Vale Worldwide


Who we are
Who we are

  • Vale is a pioneering mining company that transforms mineral resources into essential ingredients for people’s daily lives

  • The world’s second-largest diversified mining company by market capitalization

  • The world’s largest producer of iron ore and pellets and the world’s second largest producer of nickel. We also produce copper, manganese, ferroalloys, thermal and coking coal, potash, bauxite, alumina, aluminum, cobalt, platinum group metals.

  • Vale has offices and operations in more than 30 countries in the five continents

  • Social and environmental responsibility is a strategic commitment. In 2010, social and environmental investments are estimated at US$ 999 million

Our history
Our history

  • Created by the Brazilian federal government on 1 June 1942, with its operations restricted to Minas Gerais State

  • In its first year, it produced 40,000 tons of iron ore, equivalent to what Vale currently ships per hour

  • Privatized on 6 May 1997

  • Net profit in 1997: US$350 million

  • Market value in 1997: US$10.5 billion

  • Employees in 1997: 11,000 (direct)

  • In August 1997, Vale achieved an export record of 7.793 million tons


  • Our main nickel operations are conducted in Canada, Indonesia and New Caledonia

  • We also own and operate nickel refineries in the United Kingdom, Japan, Taiwan, South Korea and China

  • The Inco acquisition in 2006 was the largest ever made by a Brazilian company abroad

  • As a result, Vale became one of the world’s largest nickel producers

Our business areas
Our business areas

  • Mining:

  • Ferrous: iron ore and pellets, manganese and ferroalloys

  • Non-ferrous: nickel, copper, potash, kaolin

  • Logistics:

  • Railways, port terminals, coastal navigation and logistical solutions

  • Energy:

  • Eight hydroelectric power plants, of which seven are already operating

  • Fertilizers:

  • Potash, phosphate, nitrogen and others.

  • Coal

  • Thermal and metallurgical coal

Vale is present in the five continents
Vale is present in the five continents

Headquartered in Brazil, Vale employs over 115,000 people worldwide

Vale delivered 32 projects between 2002 and 2010



Vale delivered 32 projects between 2002 and 2010

Concluded projects

Carajás 85 Mtpa

Capim Branco I

Alunorte 4&5


Samarco III


Corredor Norte

Paragominas II


Alunorte 6&7



Capão Xavier




Carajás 20 Mtpa




São Luís










Fábrica Nova

Capim Branco II

Paragominas I

Carajás 100 Mtpa


Mo I Rana

Alunorte 3

Carajás 70 Mtpa



Iron ore production
Iron ore production

million tons

+ 9.2%


Under US GAAP, Vale consolidates the total production volumes of companies in which it has more than 50% of the voting capital and effective control

Iron ore and pellet sales
Iron ore and pellet sales

Million metric tons

+ 13%

Embracing structural transformation a new marketing policy for iron ore boosted our sales to china
Embracing structural transformation: a new marketing policy for iron ore boosted our sales to China


Iron ore sales to China

million metric tons

Revenue evolution
Revenue evolution for iron ore boosted our sales to China

Operating revenue

in US$ million

+ 46%


In 3Q10, Vale’s operating revenue totaled US$ 14.496 billion


Operating revenue breakdown in 3q10
Operating revenue breakdown in 3Q10 for iron ore boosted our sales to China

Iron ore and pellets represent a major part of the company’s operating revenue

Net profit
Net profit for iron ore boosted our sales to China

+ 63%

US$ billion



In 3Q10, net earnings totaled US$ 6.038 billion


** Including extraordinary non-cash charges derived from goodwill impairment

Simandou for iron ore boosted our sales to China

  • Vale acquired Simandou, in West Africa, one of the best underdeveloped iron ore deposits in the world, in terms of size and quality

  • Great new option for the expansion of our iron ore production, at low cost and with high quality products

  • The availability of Carajas and Simandou allows Vale to have the best and the largest growth potential in the global iron ore industry


Blocos 1 & 2



Nova ferrovia





Investment plan for iron ore boosted our sales to China

Increasing investment

More than US$ 55 billion for iron ore boosted our sales to Chinain the last 5 years 1

Increasing investment

US$ billion



1 Includes acquisitions

2 Excludes acquisitions

Organic growth: pipeline of projects for the next years for iron ore boosted our sales to China







Teluk Rubiah



Simandou I

Tres Valles




Simandou II

Serra Leste


Onça Puma


Konkola North

Serra Sul (S11D)

Tubarão VIII




Rio Colorado







Conceição Itabiritos

Carajás 30 Mtpy

Conceição Itabiritos II


Vargem Grande Itabiritos

Iron ore & pellets


Bayovar II



Cauê Itabiritos

CLN 150 Mtpy


Moatize II




Salobo II



Main projects
Main projects for iron ore boosted our sales to China

Ver texto

  • Carajás, Additional 30 Mtpy, Pará state, northern Brazil

  • The project will add 30 Mtpy to current capacity. Comprises investments in the installation of a new plant (primary crushing, processing and classification units) and logistics. Installation license obtained. Start-up planned for 2012.

  • Carajás Serra Sul S11D

  • Located on the Southern range of Carajás, this project will have a capacity of 90 Mtpy. Start-up scheduled for 2H14. Project still subject to approval by the Board of Directors.

  • Oman

  • Project for the construction of a pelletizing plant in the Sohar Industrial District for the production of 9 Mtpy of direct reduction pellets and a distribution center with capacity to handle 40 Mtpy. Start-up planned for 2H10

Main projects1
Main projects for iron ore boosted our sales to China

Moatize, Mozambique

  • Project with estimated annual production capacity of 11 million tons of coal products. Completion scheduled for 1H11

    Moatize II

    Expansion to 22 million tons a year. Start-up scheduled for 2H13. Subject to approval by Board of Directors

    Salobo, Pará state, northern Brazil

  • Project with a production capacity of 100,000 metric tons of copper in concentrate. Project implementation under way and civil engineering work has started. Conclusion of work scheduled for 2H11

    Salobo expansion

  • The project will expand the Salobo mine annual production capacity from 100,000 to 200,000 metric tons of copper in concentrate. Conclusion estimated for 2H13

    Konkola North

    Project with estimated production capacity of 45,000 tpy of copper in concentrate. Part of a 50/50 joint venture with ARM in Africa. Start-up expected for 2013

Vale is investing to promote the brazilian steel industry
Vale is investing to promote the Brazilian steel industry for iron ore boosted our sales to China

ThyssenKrupp CSA (joint venture between Vale and Thyssen Krupp); in operation

Capacity: 5.0 million tpy of steel slabs

CSP (partnership between Vale, Dongkuk and Posco), start-up 2013

  • Capacity: initially 3 - 6 million tpy of steel slabs

    ALPA (Aços Laminados do Pará), start-up 2013

  • Capacity : 2.5million tpy of steel products

    CSU (Cia Siderúrgica de Ubu), start-up 2014

  • Capacity: 5.0 million tpy of steel slabs

Fertilizers for iron ore boosted our sales to China

  • Vale operates the only potash mine in Brazil: Taquari-Vassouras, in the state of Sergipe, with a production capacity of 850,000 tpy

  • In January 2010, Vale acquired Bunge Brazilian fertilizer assets and FosfertilI

  • n addition, Vale has a project pipeline which includes Carnalita, near Taquari-Vassouras; Rio Colorado and Neuquén, in Argentina; and Regina, in Canada.

  • The Rio Colorado project includes the development of a mine with an initial nominal capacity of 2.4 Mtpy of potash. Start-up expected to take place in 2H13. Subject to the Board of Directors approval.

  • With a nominal production capacity of 3.9 Mty of phosphate rock, the Bayóvar phosphate mine in Peru started operations in July.

Fertilizers for iron ore boosted our sales to China

  • Rapid per capita income growth of emerging economies ultimately boosting the consumption of crop nutrients.

  • Rising output of biofuels as a source of non-climate changing energy.

  • Emerging Asia and Brazil are the main sources of continued global demand growth for fertilizers.

  • Brazil is an agricultural powerhouse with high growth potential.

    • Large area for the expansion of the agricultural frontier.

    • Significant availability of water supply.

Portfolio of projects and operations will enable Vale to become a major global fertilizer supplier

Social become a major global fertilizer supplier

Social responsibility
Social responsibility become a major global fertilizer supplier

  • Vale demonstrates its commitment to social responsibility all over the world in various ways:

    • Job creation and economic growth: commitment to hire and train local workforce

    • Educational and cultural programs

    • Social investment activities

  • Fundação Vale is Vale’s social institution

  • Fundação Vale works in communities where the company operates in order to contribute to integrated economic, environmental and social development, strengthening social capital and respecting local cultural identity

  • In 3Q10, Vale invested US$ 89.8 million in social projects

Fundação Vale works in three areas: Infrastructure, Public Management and Human and Economic development (Estações Conhecimento)

Main public management programs
Main public management programs become a major global fertilizer supplier


Corporate Presentation – 02/11/2010

Esta es conhecimento feature the following programs
‘Estações Conhecimento’ feature the following programs:


Corporate Presentation – 02/11/2010

Employment programs:

Environment programs:

Environment programs:

  • First mining company in the world to have a 100% balanced ratio between impacted areas and recovering areas

  • Top-rated mining company in terms of carbon emissions per revenue generated, among the 500 biggest companies listed on the New York Stock Exchange

  • In 3Q10, Vale invested US$ 132.9 million in environmental protection and conservation.

  • Vale protects approximately 10,201 sq km of natural areas, including owned sites (4%),

  • leased areas (3%) and official conservation units protected in partnership with local

  • governments (93%). The areas protected by Vale include regions in the biomes Amazon

  • Rainforest (82%), Boreal Forests (<1%), Atlantic Forest (5%) and Wallacea (12%), as

  • well as areas in New Caledonia, and properties located in the transition region

  • between the Atlantic Forest and Cerrado (1%)

Vale natural reserve
Vale Natural Reserve programs:

Covering around 220 km2, the Vale Natural Reserve, Espírito Santo State, protects 2,389 species of wildlife and 2,625 species of plant life. Since the reserve was created in the 1970s, 96 new species of plant have been discovered

Caraj s mining complex
Carajás mining complex programs:

In Carajás, Pará State, where Vale operates the biggest open pit mine in the world, the company helps to protect around 8,000 km2 of native forest in five conservation units (Carajás, Tapirapé-Aquiri, Itacaiúnas, Tapirapé and Igarapé Gelado).