VALE WORLDWIDE

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VALE WORLDWIDE
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Profile

• The worlds second largest diversified mining
  company in market capitalization
• The worlds largest producer and exporter of iron
  ore and pellets
• Vale has offices and operations in all five
  continents
• It is Brazils largest private exporter
• First Brazilian company to obtain the investment
  grade rating
• First Brazilian company listed on Euronext
  (Paris).
• Social and environmental responsibility is a
  strategic commitment.

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History

• Created by the Brazilian federal government on
  June 1st, 1942, with its operations restricted to
  Minas Gerais state
• In its first year, it produced 40,000 tons of
  iron ore, amount equivalent to what is currently
  shipped per hour
• Privatized on May 6th, 1997
• Net profit in 1997 US 350 million
• Market value in 1997 US 10.5 billion
• Employees 11,000 (direct)
• In August 1997, Vale reaches its first export
  record 7.793 million tons

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Vale Inco

• On August 11th, 2006, Vale makes a US 18 billion
  offer for Canadas Inco, which holds the biggest
  nickel reserves in the world
• The biggest acquisition made by a Brazilian
  company abroad
• Vale becomes one of the worlds largest nickel
  producers, with a production of 234,900 tons in
  2006
• Market cap in December/2007 US 151.711 billion
• Number of employees, including Inco, jumps to
  152,724 in 2007

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Vale is present on the five continents
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Business areas

• Mining
• Ferrous iron ore and pellets, manganese and
  ferro alloys
• 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 1Q09
Concluded projects
2004
2008
2002
2003
2005
2006
2007
2009
Itabiritos
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Robust project pipeline
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
Including Vales portion of Samarcos
production
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Recognition of the financial solidity
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Highlights of 2008financial results in US Gaap
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Records in 2008

• Production record
• Nickel
• Bauxite
• Alumina
• Copper
• Thermal coal
• Cobalt
• Platinum group metals
• Precious metals

• Sales record
• Iron ore
• Nickel
• Copper
• Alumina
• Cobalt
• Precious metals
• Platinum group metals
• Thermal coal

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Iron ore and pellet sales
Million of metric tons
In USGAAP
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Gross revenue breakdown
Iron ore and nickel represent a major part of the
companys gross revenue
In USGAAP
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Net profit evolution
In US billion


Net earnings in 2008 US 13.218 billion
PRO FORMA Including non-cash extraordinary
charges derived from the impairment of the
goodwill.
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Investment Plan
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Financial excellence in achallenging scenario
Gross revenue in US million

In 2008, Vales gross revenue totaled US 38.509
billion, 16.3 more than in 2007
PRO FORMA
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Largest investment of a mining company in the
world
USD billions
Excludes purchases
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Nickel

• Goro project
• One of the best nickel deposits in the world
• Capex of US 3.2 billion. Estimated production of
  60,000 tpy of nickel and 4,600 tpy of cobalt.
• Strategic positioning to meet Asian demand growth
• Onça Puma
• US 2.297 billion project estimated to produce
  58,000 tpy of nickel in ferronickel.

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Coal, another key platform for growth

• Australia
• Production capacity of more than 10 Mtpy of coal
• Exploration assets in Queensland, Australia
• Mozambique
• Vale has obtained all the licenses to implement
  the Moatize project
• Average annual production estimated at 11 million
  tonnes of coal products
• JVs Longyu, China antracite Yankuang,
  China - metallurgical coke

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Vale is attracting investments to foster the
Brazilian steel industry growth

• CSA (joint venture Vale and Thyssen Krupp),
  start-up 2009
• Capacity 5.0 Mtpy of steel slabs
• CSP (Partnership Vale and Dongkuk)
• Capacity Up to 6 Mtpy of steel slabs
• Aços Laminados do Pará
• Capacity 2.5 Mtpy of steel products

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Social
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Employment
Vale had a net balance of 5,447 jobs in 2008
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Social responsibility

• Fundação Vale is Vales social institution.
• Fundação Vale works in communities where the
  Company operates in order to contribute for the
  integrated economic, environmental and social
  development of such communities, thus
  strengthening their social capital and respecting
  the local cultural identity.

Fundação Vale is heading a series of projects for
the communities in which Vale operates
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Vales projects benefit about 3 million people
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Environmental
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Environment

• The subject Biodiversity is very important to
  Vale, which, in 2000, created the IAV
  Environmental Institute Vale, to develop
  activities related to the preservation,
  conservation and sustainable treatment of
  ecosystems in the States of Espírito Santo,
  Maranhão, Minas Gerais, Pará and Rio de Janeiro
• In 2008, Vale invested US 678 million in
  protection and conservation of the environment
• Vale has 1.7 thousand Km2 of operational area
  located within or adjacent to Sensitive Areas
  (Protected Areas and Areas of High Biodiversity
  Value). However, we protect or help to protect
  through partnerships 9.9 thousand Km2 of forests
  in Brazil and overseas. There are 27 areas
  intended for biodiversity conservation in Brazil.
  Of these lands, 21 are on company properties and
  the other six areas are under federal
  jurisdiction.

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Environment

• For that, Vale performs researches and invests
  in environmental technology in the Natural
  Reserve of Vale, in Linhares, in the State of
  Espírito Santo an area of Atlantic Forest of
  220 Km2
• In Carajás (PA), where it maintains the biggest
  open pit mine in the world, Vale helps to protect
  about 8 thousand Km2 of native forest in five
  conservation units (Florestas Nacionais de
  Carajás, Tapirapé-Aquiri, Itacaiúnas, Reserva
  biológica Tapirapé and Igarapé Gelado
  Environmental Protection area)
• The interference of the companys operational
  areas in these conservation units is equivalent
  to only 4.15 of the total protected area and
  0.007 of the areas with high biodiversity levels

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Natural Reserve of Vale
With an area of about 220 Km2, the Vale Natural
Reserve, in Espírito Santo state, protects 2,389
species of wildlife and 2,625 of plant life.
Since the reserve was created in the 50s, 96 new
species of plants were discovered
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Carajás Mining Complex
Protected areas, part of the Carajás Mining
Complex 8 thousand Km2
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A global leader

• Growing and creating value