VALE WORLDWIDE

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VALE WORLDWIDE

• 2Q09

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Who we are

• Vale is a pioneering mining company that
  transforms mineral resources into essential
  ingredients for peoples daily lives
• The worlds second-largest diversified mining
  company by market capitalization
• The worlds largest producer and exporter of iron
  ore and pellets and a key producer of nickel,
  copper concentrates, bauxite, alumina, aluminum,
  potash, kaolin, manganese, ferroalloys and coal
• Vale has offices and operations in more than 30
  countries in the five continents
• First Brazilian company to obtain investment
  grade rating
• First Brazilian company listed on Euronext
  (Paris)
• Social and environmental responsibility is a
  strategic commitment. In 2008, social and
  environmental investments totaled US909 million

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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 US350 million
• Market value in 1997 US10.5 billion
• Employees in 1997 11,000 (direct)
• In August 1997, Vale achieved an export record of
  7.793 million tons

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Vale Inco

• We conduct our nickel operations primarily
  through our wholly-owned subsidiary Vale Inco,
  with mining operations in Canada and Indonesia
• We own and operate nickel refineries in the
  United Kingdom, Japan, Taiwan, South Korea and
  China
• The Inco acquisition was the largest ever made by
  a Brazilian company abroad
• As a result, Vale became one of the worlds
  largest nickel producers

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Vale is present in the five continents
Headquartered in Brazil, Vale employs more than
60,000 people worldwide
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Our business areas

• Mining
• Ferrous iron ore and pellets, manganese and
  ferroalloys
• Non-ferrous kaolin, potassium, copper and nickel
• Logistics
• Railways, port terminals, coastal navigation and
  logistical solutions
• Aluminum
• Bauxite, alumina and aluminum
• Energy
• Eight hydroelectric power plants, of which seven
  are already operating
• Coal

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Vale delivered 29 projects between 2002 and 2Q09
Concluded projects
2004
2008
2002
2003
2005
2006
2007
2009
Itabiritos
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Developing new projects
Greenfield
Tubarão VIII
Oman
CSA
Apolo
Tres Valles
Karebbe
Estreito
Onça Puma
Salobo I
Barcarena
Serra Sul
Bayovar
Goro
Moatize
CAP
Litorânea Sul
Carborough Downs
Paragominas III
Totten
Carajás 130 Mtpa
Corredor Sul
Salobo (expansão)
Carajás 10 Mtpa
Brownfield
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Iron ore production
Million tons
BR GAAP
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Recognition of financial solidity
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Highlights of 2Q09 financial results in US GAAP
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Iron ore and pellet sales
Million metric tons
3.3
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Financial excellence in a challenging scenario
Operating revenue in US million

In the second quarter, Vales operating revenue
totaled US5.084 billion
Pro forma
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Operating revenue breakdown in 2Q09
Iron ore and nickel represent a major part of the
companys operating revenue
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Net profit
US billion


In the second quarter, net earnings totaled US
790 million
Pro forma Including extraordinary non-cash
charges derived from goodwill impairment
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Investment plan
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Increasing investment
20.6
US billion
30
including acquisitions
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Coal

• Australia
• Nominal production capacity of up to 10 million
  tons per year (tpy) of coal
• Exploration assets in Queensland
• Mozambique
• Average annual production estimated at 11 million
  tons of coal products. Completion currently
  scheduled for 2H10
• Colombia
• Acquisition of export assets from Cementos Argos
• JVs Longyu, China coal and related products
  Yankuang, China metallurgical coke

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Nickel

• Goro project, New Caledonia, South Pacific
• One of the best nickel deposits in the world
• Estimated production of 60,000 tpy of nickel and
  4,600 tpy of cobalt
• Strategic position to meet Asian demand growth
• First autoclave scheduled to be turned on in
  3Q09. Ramp-up originally planned to take place
  over 3 years to minimize operational risks
• Onça Puma, Pará State, northern Brazil
• Nominal production capacity of 58,000 tpy of
  nickel in ferronickel
• First line expected to be commissioned in June
  2010. Start-up depends on market conditions

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Vale is attracting investments in the Brazilian
steel industry

• CSA (joint venture between Vale and Thyssen
  Krupp) start-up 1H10
• Capacity 5.0 million tpy of steel slabs
• CSP (partnership between Vale and Dongkuk),
  start-up 2013
• Capacity initially 3 - 6 million tpy of steel
  slabs
• ALPA (Aços Laminados do Pará), start-up 2013
• Capacity 2.5 million tpy of steel products
• CSU (Cia Siderúrgica de Ubu), start-up 2014
• Capacity 5.0 million tpy of steel slabs

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Social
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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 Vales 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 2Q09, Vale invested more than US 44 million
  in social projects

Fundação Vale is leading a series of projects for
the communities in which Vale operates
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Employment
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Vales projects benefit around 3 million people
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Environment
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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 2Q09, Vale invested US 133.8 million in
  environmental protection and conservation
• Vale has a total of 1,700 km2 of operational area
  located within or adjacent to sensitive areas
  (protected areas and areas of high biodiversity
  value).
• We protect or help to protect these areas through
  partnerships covering 9,900 km2 of forests in
  Brazil and overseas. In Brazil, there are 27
  areas allocated for biodiversity conservation. Of
  these areas, 21 are on company properties and the
  other six are under federal jurisdiction.

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Environment

• Vale conducts research and invests in
  environmental technology in the Vale Natural
  Reserve, Linhares, in Espírito Santo State, a 220
  km2 area of Atlantic Forest.
• 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).
• Within these conservation units, the companys
  operational areas have a direct impact on only
  4.15 of the total protected area, and 0.007 of
  the areas with high biodiversity levels.

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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 1950s,
96 new species of plant have been discovered
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Carajás mining complex
Protected areas, part of the 8,000 km2 Carajás
mining complex
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