Vale’s Keynote Address

transcript

Mozambique Coal

A Privilege and a Responsibility Mauro Neves

Global Coal Director

The 4th Mozambique Coal & Energy conference

15-16 July Maputo

“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 operate, 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.”

Disclaimer

Our Goal is

Zero Harm

Our Goal is Zero Harm Life matters most

Vale in the World

Headquartered in Brazil, Vale is a global diversified mining company, with

offices and world-class assets on all continents.

Our Coal Business

China JVs:

Longyu: coal and

related products;

Yankuang:

metallurgical coke

Moatize Coal Project in Mozambique - Phase 1 capacity 11 million tons per year

Coal Operations and advanced

coal projects in Australia - Integra, Carborough Downs, and Isaac

Plains JVs with a nominal capacity to

produce up to 8Mta;

- Belvedere, Eagle Downs, etc.

- Plus 10,000 sq km of coal exploration

assets in Queensland

Our current global footprint

Moatize

2014 2015 2016 2017

Australia

Operations

and Projects

63% 64%

Current plan aims to achieve over 30 Mtpa of production capacity in the next

5 years, with a diversified platform of growth with projects and operations in 2

continents.

We expect Moatize to become our largest coal operation by 2014

Production – Marketed tons - Mtpa

Production Capacity

Vale in Mozambique,

the privilege

Coal-related projects:

Moatize I

Moatize II

Nacala Corridor

Sena Line

Also, a Power Plant is projected to

supply our local operations

Sena Line

Nacala

Moatize

Nacala Corridor

MAPUTO

Cahora Bassa Dam

HARARE

PRETORIA

Moatize Coal Project

Industrial Area

Rehabilitation

of Beira line to

full 6 Mtpa

capacity

Ramping Up of Moatize since its 2004 Inception

Loading

of 1st

capesize

vessel

Actions

maximize

the Beira

Start-up of railway

at Nacala / Moatize

expansion

production

Commissioning

of # 2 CHPP

Start-up of

Nacala railway

Q1 ‘15 H2 ‘15 Q4 ‘14

Jan ‘13 Oct ‘12 Feb ‘13

MOATIZE I - RAMP-UP AFTER MINING START-UP IN 2008

MOATIZE II - IS IN CONSTRUCTION

Start coal

production

Aug ‘11

Start coal

exports

Sep ‘11

First Train Loaded

August 2011

First Cargo

September 2011

First Capesize

January 2013

Moatize Products

VITRINITE

Key attributes are:

High hot strength (CSR=69)

High cold strength (M40=84)

High vitrinite (81%) – provides

ability to carry more high inerts

coals in the blend

Genuine high quality hard coking

coal alternative to Australia

Rank/ Volatile Matter and CSR sits

close to optimum coke oven coal

blend targets, providing flexibility

in the number and type of coals

used in the blend

Excellent caking properties (G=92)

providing ability to be used as the

foundation of the coal blend

Delivering to our customers, strong coking properties with high carrying capacity for

low grade coals.

Hampton

Vancouver

Constanza

Gangavaram Goa

Beilun

Dalrymple

Market Regions

Supply Regions

Rotterdam

Kimitsu

Fos-sur-Mer

Well positioned to supply cost competitive premium hard coking coal to global

markets

Metallurgical Coal: market and supply regions

• Over 3.0Mt of shipments to date

• Tested worldwide with over global 30 customers with great success.

• Trialed at ratio’s between 10% and 40% of the coke oven coal blend

Target Market

Moatize Expansion

Project and

New Investiments in

Africa

Investment planned for the coming years

Total Investments: 8,2 bi

Moatize Expansion Project

Additional 11 Mtpa of nominal production capacity, totaling of 22 Mtpa,

including duplication of the coal handling and preparation plant (CHPP) and

expansion of the infrastructure.

Production is estimated to be predominantly HCC .

Mine Operations Capex: US$ 2.0 billion.

Start up: 2H 2015

CHPP Plateau Retaining Wall

Nacala Project

Capacity: estimated at 18

Mtpa of coal with potential to

expand further

Capex: US$ 4.4 billion

• US$3.4bn railway

• US$1.0bn port terminal

Start up: 2H 2015

Physical Progress: 30% by

Jul 13

Nacala corridor: 912 km long railway and port terminal

Railway to link Moatize mine to

Nacala, crossing Malawi, comprising

the construction of 230 km of new

railway sections and rehabilitation of

682 km of the existing railway.

Railway Extension

237 km

675 km

Mozambique

Malawi

Railway characteristics

Greenfield

Brownfield

682 km

230 km

237 km

Nacala Railway

Increase the logistics capacity to export

coal from the expanded Moatize mine to

a new port in Nacala.

230 km

682 km

5 CLIN

Greenfield Mz

62.5km

Greenfield Mz

29.3 km

Greenfield Mw

138.5 km

Brownfield Mw

98.6 km

Brownfield Mz

504.2 km

Nacala Rail Corridor

Brownfield Mz

79.1 km

GF Moz 91,8 Km

BF Moz 583 Km

GF Mlw 138,5 Km

BF Mlw 98,6 Km

Nacala Port

Natural sea bay with deep water channel (berth with > 20m draft)

Installed capacity for 18 Mpta with potential for further expansions

Environment

Environmental

High performance environmental

programs such as:

• Air quality control

• Weather condition control

• Control of noise and vibrations

• Quality control of water and

effluents

• Fauna and flora tracking

• Waste control

• Environmental Management

system implemented accorded to

ISO 14001

• Environmental training and

education program implemented.

Opportunities

Strategy Recruitment & Selection

Moatize Mine

53% employees from the Mine are from

Mozambican central region (Tete and

Sofala provinces)

Most employees originally from Tete,

35%, are from Moatize district

Also, 520 of Vale and contractor

employees are from Cateme and 25 de

Setembro, ressetled areas

People Development – Professional Training

Training of Hydraulics, Diesel Engines and Electric

Grades average

Hydraulics : 94,7%

Electric: 96,5%

Diesel Engines: 97,5%

Local Suppliers

211 249

Development of local suppliers

contracts 2009-2012

Today, 839 companies

provide service to Vale, about

200 companies are from Tete

Our selection is based on suppliers that are

technically and commercially competitive

Social development

The resettlement process of Moatize’s project was the biggest ever realized by

Vale, moving more than 5,000 people.

Resettlement Program

About the program:

Total number of people: 5,104

Rural and Urban Resettlement (Cateme

and 25 de Setembro)

Average of habitants by family: 4.88

hab/AF

Total number of families: 1,356

Transferences finalized in September

2011, currently in post-resettlement and

social program phase.

Social Investments - Infrastructure improvements

Lecture about Economic gains of the mining chain Visit of Minarte school

Visit of Somane Machado school

Visit of Cateme Primary School

Thank you!

Mauro Neves

Vale Moçambique

Maputo, July 2013