November, 2010
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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

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November 2010

November, 2010

Vale Worldwide

3Q10


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


Nickel

Nickel

  • 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

2008

2009

Vale delivered 32 projects between 2002 and 2010

Concluded projects

Carajás 85 Mtpa

Capim Branco I

Alunorte 4&5

Brucutu

Samarco III

Zhuhai

Corredor Norte

Paragominas II

Fazendão

Alunorte 6&7

Dalian

UHC

Capão Xavier

Pier III PDM

Candonga

Sossego

Carajás 20 Mtpa

TKCSA

Bayóvar

Funil

São Luís

2002

2004

2003

2005

2007

2010

2006

Aimorés

Taquari-Vassouras

Fábrica Nova

Capim Branco II

Paragominas I

Carajás 100 Mtpa

Itabiritos

Mo I Rana

Alunorte 3

Carajás 70 Mtpa

Trombetas

.


Iron ore production

Iron ore production

million tons

+ 9.2%

USGAAP

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


Recognition of financial solidity

Recognition of financial solidity


November 2010

Highlights of 3Q10 financial results in US GAAP


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

record

Iron ore sales to China

million metric tons


Revenue evolution

Revenue evolution

Operating revenue

in US$ million

+ 46%

*

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

* PRO FORMA


Operating revenue breakdown in 3q10

Operating revenue breakdown in 3Q10

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


Net profit

Net profit

+ 63%

US$ billion

**

*

In 3Q10, net earnings totaled US$ 6.038 billion

* PRO FORMA

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


Simandou

Simandou

  • 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

Guiné

Blocos 1 & 2

Zogota

Simandou

Nova ferrovia

Trans-Guinea

Libéria

Buchanan

Trans-Liberia


November 2010

Investment plan


Increasing investment

More than US$ 55 billion in the last 5 years 1

Increasing investment

US$ billion

2

2

1 Includes acquisitions

2 Excludes acquisitions


November 2010

Organic growth: pipeline of projects for the next years

Greenfield

CSU

CSP

Biofuels

Long-Harbour

Salitre

Teluk Rubiah

Karebbe

Cristalino

Simandou I

Tres Valles

Estreito

ALPA

Nacala

Simandou II

Serra Leste

Apolo

Onça Puma

Salobo

Konkola North

Serra Sul (S11D)

Tubarão VIII

Oman

Moatize

Ellensfield

Rio Colorado

2010

2011

2012

2013

2014

2015

Conceição Itabiritos

Carajás 30 Mtpy

Conceição Itabiritos II

Totten

Vargem Grande Itabiritos

Iron ore & pellets

CLN S11D

Bayovar II

Nickel

Coal

Cauê Itabiritos

CLN 150 Mtpy

Copper

Moatize II

Fertilizers

Logistics

Brownfield

Salobo II

Energy

Steel


Main projects

Main projects

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

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

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

Fertilizers

  • 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.


Fertilizers1

Fertilizers

  • 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.


November 2010

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


November 2010

Social


Social responsibility

Social responsibility

  • 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

27

Corporate Presentation – 02/11/2010


Esta es conhecimento feature the following programs

‘Estações Conhecimento’ feature the following programs:

28

Corporate Presentation – 02/11/2010


Employment

Employment


November 2010

Environment


Environment

Environment

  • 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

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

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).


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