Murilo Ferreira. Chief Executive Officer

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2 Murilo Ferreira Chief Executive Officer

3 Austerity and simplicity are critical principles to guide our decision making progress Key strategic priorities Capital effiency: extracting maximum value from existing and new assets. Implementing multiple initiatives to generate a lowcost structure on a permanent basis. Preserving our strong balance sheet and A credit rating. 3

4 Our asset portfolio is being managed to maximize shareholder value Stronger internal competition for project funding: only world-class assets are eligible. Divestment of non-core assets. Availability for partnership in selected businesses and assets. 4

5 Eliminating uncertainties: several milestones achieved in the last 18 months 5 Tax disputes solved without major pressures on our cash flow. Brazilian state taxes (TFRM/ICMS). Swiss income taxes. Brazil s income tax on CFC. Most important projects with environmental permits. Carajás S11D. CLN S11D. CLN 150. Conceição Itabiritos.

6 Vania Somavilla Executive director, HR, Health & Safety, Sustainability and Energy

7 Sustainability at Vale focus, integration and engagement In 2013, the Sustainability Agenda played a central role in the company s strategic planning process. Vale defined eight priority areas. For each of them, the company developed strategic projects. EMPLOYEES COMMUNITIES ENVIRONMENT GREAT PLACE TO WORK EMISSIONS REDUCTION HEALTH AND SAFETY WATER LOCAL DEVELOPMENT LAND USE AND BIODIVERSITY STAKEHOLDERS ENGAGEMENT RESIDUES 7

8 A culture of genuine care delivering operational excellence Total recordable injuries frequency rate¹ 3.33 per million hours worked ¹ Medical treatment, restricted work, fatalities and lost time. Includes employees and contractors. Actions: Active leadership involvement. Implementation of the health and safety management system. Golden rules. Enhanced training for high risk activities. Safety training for leaders. Focus on high potential incidents. Risk reduction through technical improvements. Malaria prevention program. 8

9 Northern Range Caves issues Caves legal regulation milestones Federal Constitution Natural caves are propriety of the Union. 99,556/1990 Federal Decree The natural caves and there are of influence are deemed national heritage and must be preserved. 6,640/2008 Federal Decree Defines criteria, restrictions and compensation for irreversible impacts on caves. 02/2009 Environmental Agency Instruction Establishes cave classification criteria based on importance of attributes. 30/2012 Environmental Agency Instruction Defines compensation procedures (in case of irreversible impacts) for regular and high relevance caves. It took 24 years for the rules to become clear 9

10 S11D: a successful example 2013 July: Caves relevance study and compensation approval. Installation permit. 137 caves preserved. 30-year lifetime reserves. S11D Mine Caves 10

11 Luciano Siani Chief Financial Officer

12 Capital and R&D expenditures are trending downward, as a consequence of the focus on capital efficiency Capital and R&D expenditures US$ billion rd consecutive year of reduction Projects Sustaining R&D E 2014B 2015P 2016P E = Estimated B = Budgeted P = Planned Approved projects only

13 Growth through a focused portfolio of world-class initiatives Capex 2014 Growth initiatives US$ million Carajás expansion¹ Iron ore 3,283 Itabiritos² Iron ore 1,067 Distribution network³ Iron ore 436 Moatize II / Nacala Coal 2,573 Salobo II Copper 332 Main growth initiatives 7,691 Total projects capex , ¹ Includes S11D, CLN S11D, Serra Leste, Additional 40 Mtpy and CLN150. ² Includes Conceição Itabiritos II, Vargem Grande Itabiritos, Cauê Itabiritos and Conceição Itabiritos. ³ Includes Teluk Rubiah and shipping.

14 Sustaining capex mainly dedicated to the iron ore business US$ million Ferrous minerals Base metals Fertilizers Coal Operations 1,427¹ Waste dumps and tailings dams Health and safety CSR ² 81 9 Administrative & others Total 2,897 1, ERP implementation (IT) ¹ Mainly equipment. ² Includes Clean AER project.

15 R&D strategy is focused on a smaller portfolio of higher return projects Detection and development of deposits with potential for large scale production and low cost. Exploration to define existing areas potential and supporting projects and operations. 1, US$ million 1, Technological innovation Feasibility studies² Mineral exploration ¹ 2014B 15 ¹ Last twelve-month period ended at Sep 30, ² Conceptual, pre-feasibility and feasibility studies.

16 Vale is on a journey to become even more cost competitive 2013 Low-hanging fruit 2014 Efficiency and productivity Culture of austerity and simplicity 2015 on Structural changes COGS Workforce productivity. Closure of high-cost -5% operations. R&D Reduction of projects portfolio. Closure of exploration officies. -47% New approach to procurement. Contract review. Fixed costs of new projects. Further focus on exploration portfolio. Opening of new iron ore pits. Dilution of fixed costs. S11D / Moatize. Vale extended enterprise. Surface plants optimization. Further reduction of projects portfolio. SG&A Simplification of org structures. Simplification of org -39% structures. -10% One Vale / ERP efficiencies. 16 Pre-operating & stoppage Rio Colorado. Mainly impact from ramp-ups. -50% Stoppage expenses are gone. -x% Major achievements (9M13 vs. 9M12) & targets

17 Growth trilemma for 2014: divestitures and partnerships may allow for potential dividends and/or lower leverage US$ billion Potentials Additional dividends/ lower leverage Analysts' average EBITDA 2014 Working capital VLI sale (up to 26%) Additional divestitures Partnerships (coal, fertilizers) Capex¹ 2014 LTM 2013 interest payments 2013 effective rate 2013 minimum dividend REFIS estimated 17 ¹ Projects and sustaining investments. Actuals 2013

18 Galib Chaim Executive Officer. Capital Projects

19 Discipline in project management from the development to completion phases Pre feasibility (FEL2) and feasibility (FEL 3) studies approved only after a complete and rigorous maturity assessment. Increasing the design quality and constructability along the development phase. Effective procurement and management plan for all suppliers and contractors. A robust and efficient construction and completion management system. A renewed Health and Safety guidance. 19

20 Main projects delivered in 2013 Additional 40 Mtpy. CLN 150 railway and port facilities. Conceição Itabiritos. Teluk Rubiah DC unloading facilities. Long Harbour. Totten. 20

21 Additional 40 Mtpy Status: ramp-up Capacity: 40 Mtpy Start-up: 3Q13 Capex: US$ billion 21

22 CLN 150 Railway and port facilities Status: operation Railway capacity: 128 Mtpy Port capacity: 151 Mtpy Capex: US$ billion More than 6 Mt shipped in 25 vessels (5 Valemax) through the new berth. 22

23 Conceição Itabiritos Status: ramp-up Capacity: 12 Mtpy Start-up: 4Q13 Capex: US$ billion 23

24 Teluk Rubiah distribution center Unloading System: Status: comissioning Capacity: 30 Mtpy (Valemax ready) Start-up: 4Q13 Project Completion: Status: construction Throughput: 30 Mtpy Start-up: 2H14 Capex: US$ billion 24

25 25 Teluk Rubiah distribution center

26 Main projects under construction S11D: mine, plant and logistics (iron ore). Moatize II and Nacala: mine, plant and logistics (coal). Salobo II: plant (copper and gold). 26

27 S11D - mine and plant Earthworks & modules assembly Capacity: 90 Mtpy Mining operation: truckless system Dry process: 100% recovery Work force (peak): 10,000 Progress: 47% Start-up: 2H16 Ramp up: 2 years Capex: US$ billion Executed capex: US$ 2.5 billion 27 Note: Information until October 2013, except when indicated

28 S11D - railway and port facilities expansion Railway: Progress: 8% Start-up: from 1H14 to 2H18 Maritime terminal: Progress: 19% Start-up: 1H16 Railway & maritime terminal: Work force (peak): 25,000 Capex: US$ billion Executed capex: US$ 953 million 28 Note: Information until October 2013, except when indicated

29 Moatize II - mine and plant expansion Capacity: 11 Mtpy Start-up: 2H15 Capex: US$ billion Executed capex: US$ 775 million Progress: 48% 29 Note: Information until October 2013, except when indicated

30 Nacala corridor railway and port Railway progress: 33% Start-up: 2H14 Port progress: 36% Start-up: 1H15 Capacity: 18 Mtpy Capex: US$ billion Executed capex: US$ billion Railway construction in Malawi 30 Note: Information until October 2013, except when indicated

31 Salobo II duplicating Salobo throughput Progress: 89% Additional capacity: 100,000 tpy Start-up: 1H14 Capex: US$ billion Executed capex: US$ 986 million 31 Note: Information until October 2013, except when indicated

32 José Carlos Martins Executive Officer, Ferrous Minerals and Strategy

33 Iron ore seaborne demand and global crude steel production will grow 34% and 23% respectively until 2020, mainly driven by Asia and Emerging Economies Rest of the World (Mt) World (Mt) Asia (Mt) Growth : +21% Growth : +23% Growth : +24% 58% Growth 45% % : 35% +25% Growth : +34% Growth : +35% The shift to Asia will continue but at lower pace. Seaborne iron ore market penetration is much higher in Asia and emerging economies than developed nations. Developed/traditional economies have more availability of scrap or captive mines (NAFTA, CIS, Europe). 33 Source: Vale estimates

34 Scrap availability will not be an issue in the next 10 years and this threat has been overrated, just like verticalization was in the beginning of this decade 34 Iron ore production controlled by steel industry 28% 23% Several factors caused verticalization to reduce instead of increase over last decade: Supply growth by mining companies. Scarcity of tier 1 deposits (size and quality). Increasing CAPEX. Infrastructure / logistic bottlenecks. Alternatives (off-take agreements, JV s). Sources: UNCTAD, WSA, Vale estimates 90% 85% 80% 75% 70% 65% Global pig iron + DRI production as a percentage of crude steel consumption? 60% Chinese scrap generation and usage growth should be relatively slow and does not constitute an imminent threat to iron ore demand: Majority of obsolete scrap is from construction - low quality and difficult to collect. China lacks large scale and well-structured network for scrap collection. China s industrial electricity is relatively scarce and expensive.

35 The threat of oversupply is also exaggerated. One third of the new capacity will only replace depletion Traditional players Have greater cash availability and lower dependence on external funding. Synergies with existing operations. Best reserves, consequently better cost / ton. Time-to-market. Probable recovery of market share. 1.1 Iron ore seaborne supply capacity 000 Mt Projects Current Operation New entrants 1/3 Dependence on external financing in times of volatile and high risk. "Window" to enter the market closing. Greater exposure to countries with high geopolitical risk and / or poor infrastructure. Even projects already under construction, but still without full funding, are at risk. replacement Source: Vale estimates

36 Steel intensity of GDP indicates that the main market for iron ore has a long way to go before peaking Crude steel consumption per capita (Kg) 1,400 1,200 1, China (1978 to 2011) Steel intensity of GDP South Korea (1970 to 2011) Brazil (1947 to 2011) India (1950 to 2011) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 GDP per capita (US$, 2005, Real) Japan (1980 to 2011) USA (1947 to 2011) Germany (1970 to 2011) 36 Source: WSA, IMF, Vale analysis

37 Iron ore price volatility has been reduced over time since the beginning of the new pricing system Platts 62% Fe Index IODEX 62% ave acc ave IODEX 62% average 2008 to 2013: US$ 130/t 37 0 Jun-08 Mar-09 Dec-09 Sep-10 Jun-11 Apr-12 Jan-13 Oct-13 Supply is catching up bringing cap prices down. High cost producers keeping floor prices up! Long term iron ore prices NOT below US$ 100/ton. Source: Platts

38 Vale s iron ore strategy Confidence in Asia & China Cost Curve& Quality Time-to-Market Tailor-to-Market Safety & Health Sustainability Vale s strategy addresses the challenges of delivering shareholders value through: Keeping market leadership Keeping FOB cost parity Increasing quality advantage Reducing logistic cost Improving customers services 38

39 Our projects will deliver lower cost and higher quality through innovative technologies. We will keep our position in the first quartile of the cost curve (US$/t CFR China) Vale s current and future position in the cost curve Iron ore industry s cost curve Seaborne + China domestic ~ 30% higher cost producers 39 Source: Vale estimates (Mt)

40 The shift to Asia challenge Our logistic strategy through very large ore carriers, transfer stations and distribution center was designed to better compete in Asia combining low cost, high quality and flexibility to offer better customer service. Economies of scale and lower carbon emissions Valemax DC Malaysia & FTS Shorter time to market, optimized lot size and blends DC Malaysia FTS (Philippines) Valemax 40

41 Valemax strategy is developing smoothly. Vale already exported about 44 Mt of iron ore through these vessels. We currently have 30 ships in operation and the remaining five will start during 2014 Discharging ports Tubarão 15.8 Mt 36% Loading ports PDM 28.5 Mt 64% Sohar 14.3 Mt 32% Clients 8.9 Mt 20% FTS 1& Mt 48% 41 Up to date, Valemaxes achieved 121 shipments, being unloaded in nine different ports around the world on top of our floating stations

42 42 Vale is investing US$ 37 billion in its iron ore strategy, recovering market share, reducing cost, improving quality and extending mine life. US$ 18 billion already invested and US$ 19 billion to be invested up to 2018 MAIN FOCUS VOLUME QUALITY EXTENDED ENTERPRISE Approved Projects Start up Product Capex (US$ billion) Carajás Additional 40 Mtpy + Serra Leste (new processing plant) and CLN 150 Mtpy Carajás S11D & CLN S11D Mtpy (mine + processing plant, railway and port) 2H13-2H14 2H16-2H18 Increase Volume (Mtpy) SF SF Conceição Itabiritos 2H13 PF 100% Vargem Grande Itabiritos 2H14 PF % Conceição Itabiritos II 2H14 PF/SF 48% Cauê Itabiritos 2H15 PF/ SF % Oman and Tubarão VIII Pelletizing 2H11- P 2.6 Plants 1H14 100% Teluk Rubiah (DC, Malaysia) 2H % VLOC fleet* (19 own + 16 chartered) & Floating Transfer Stations / Tubarão P1 up grade Completion & Reduce costs Improve quality 215 Mt of additional capacity: 65 Mt of depletion replacement and 150 Mt net growth * VLOC fleet Capex not included in the US$ 37 billion total. Equivalent Shipowners capex considered for chartered tonnage equivalent 89% 17% 100%

43 Vale s iron ore production capacity million tons Average quality: 64.02% Fe 65.00% 4.45% SiO % 1.26% Al 2 O % 0.048% P 0.049% 23% Seaborne market share 29% ¹ S11D expected to reach 90 Mt in 2018.

44 Vale s total iron ore supply will increase smoothly in the coming years Vale s total iron ore supply forecast million tons f 2015f 2016f 2017f 2018f Own production Third party purchases 44

45 Vale s strategy blueprint Reducing costs & increasing quality Keep market leadership (volumes) Delivering value to shareholders Safety, sustainability and environment Flexibility & customer services 45

46 Peter Poppinga Executive Officer, Base Metals

47 Base metals strategy Value drivers Key initiatives 1. Delivering positive cash flow results Gold streaming transaction (US$ 1.9 billion). Reduction in operating costs, SG&A and R&D (US$ 800 million Q3 ytd) Finalize ramp ups of new operations. Idling of non-profitable mines in short and mid term & optimizing mine plan sequencing. 2. Value over volume in feed generation Focus on only high value feed resulting in closure of one furnace in Sudbury (maximize asset utilization) and consequently reducing about US$1billion of sustaining capex (AER). Planning to top up the shortfall in North Atlantic refinery s output by feeding Ni units from PTVI and Thompson. Analyzing synergies in the Sudbury basin and elsewhere. 47

48 Vale s base metals assets are positioned in the 1 st and 2 nd cost curve quartiles Cost curve (C1 cash costs) - USD per ton 25,000 20,000 VNC* Onca Puma* Sudbury PTVI 15,000 Long Harbour* 10,000 5, ,000 Thompson Other Refining cost to final product Vale Cumulative nickel production 10,000 Other Vale 8,000 6,000 4,000 Salobo* Sossego 2, ,000 Source: WoodMackenzie, Vale * Fully ramped-up Cumulative copper production

49 Salobo Ramp up of world class asset continues Phase 1 successfully ramping up. Phase 2 will double production and is expected to start up mid Capex Salobo I and II: US$ 4.2 billion. 50+ year life of mine. A first quartile cash cost producer. Progressing to generation of US$ 1 billion in annual cash flow. Further growth opportunities possible and being studied. Cu production ('000 t)

50 Long Harbour processing plant: mechanical construction completed on October 30, 2013 Long Harbour is a state-of-the-art hydrometallurgical facility that will produce: 50,000 tpy of nickel 4,500 tpy of copper 2,500 tpy of cobalt 50 Benefits of the Long Harbour facility: Flowsheet optimization with significant capital avoidance at other Vale operations through: Sudbury: - Rightsizing smelting facilities (to one furnace operation). - Reduction of US$1 billion AER capex and reduction of smelting opex. Thompson: Significantly reducing sustaining capex by shutting down old refinery and avoiding AER capex in the near future. Zero SO 2 emissions and improved H&S conditions due to increased automation Seaborne facility, with global access to open market feed and improved logistics Vale Newfoundland & Labrador will be a 1 st quartile C1 cost vertically integrated operation with higher metal recovery (including Cu and Co by products)

51 Sudbury Totten mine start up and ramp up of CORe project will drive further opex reductions Totten Underground development completed. Handover from Project to operations scheduled for December 31, High Precious Metals & Cu Grades. 8,000 t Ni and 10,000 t Cu once ramped up. CORe (Mill redesign) Flowsheet designed to improve Ni recoveries by 4%. Lower opex & simpler design. Project ramp up continues with increased Ni recovery benefits to be further realized in

52 New Caledonia Solid performance in 2013 represents the foundation for future positive results No technological flaws The integrated process works. Q3 with periods of successful simultaneous operation of 3 autoclaves. Focus on increasing plant operating availability. In November, a sub-marine effluent pipeline ruptured without any environmental impact. Work to reconnect and stabilize the pipe has been initiated and we anticipate restarting production at the end of the year production target ~ 40,000 t Ni. On track for positive financial results with future expected free cash flow generation of over US$ 500 million. 52

53 Onça Puma A successful restart Furnace rebuild completed according to plan with first nickel achieved on November production targeted at 15,000t Ni. 53

54 Base metals EBITDA trend EBITDA US$ billion E 2014T Medium-term 54 T = Target.

55 Roger Downey Executive Officer, Fertilizers and Coal

56 % 1 0 % 9 % 8 % 7 % 6 % 5 % 4 % Our fertilizer business is driven by two secular themes: food security and fertilizer-driven agricultural expansion in Brazil Brazil has all the required scarce natural resources (land, climate and water) and will boost productivity with more intensive fertiliser use. Fresh water availability (% world) 15% Brazil has 15% of the world's fresh water 8% 6% 5% 5% 5% 4% 4% 3% 2% Food production (2012=100) 7.9% 8.3% 8.4% 8.6% 8.9% 9.2% 9.5% 9.8% 10.1% '12 '15 '20 '25 '30 '35 '40 '45 '50 World (exc. Brazil) Brazil % Brazil Brazil in 2013: 3 rd world food producer 1 st world food exporter 56 Arable land and expansion potential USA India Russia EU China Brazil Agricultural land Brazil has 50% of potential arable land in the world Potential for expansion Sources: FAO, IFA, Agroconsult, USP Brazil grain production, harvested area and fertilizer deliveries (Base 100 = 1992) Grain production Fertilizer deliveries Harvested area '92 '96 '00 '04 '08 '12 Brazil applies 20% less nutrients per hectare than US, and is 8 th in fertilizer intensity

57 Our strategy is grounded on two pillars of competitive advantage: Vale s expertise in mining and reach into Brazil Phosphates Largest fertilizer producer in Brazil, with 5.5 Mtpy capacity. 5 bulk mining operations in Brazil and 1 in Peru, with total phosphate rock capacity of 9.2 Mtpy. Integrated plants: 6.2 Mtpy of MAP, DCP, SSP and TSP. 5 warehouses and distribution centers guarantee competitiveness in major Brazilian markets. Unfolding the map: sourcing competitive supply from Bayóvar enhances synergies between our operations. Potash 21 years of experience in potash production and marketing. Experience in solution mining experienced team and two pilot plants. Strong customer ties from our wide suite of products and geographically diversified network and reach into Brazil. Leverage from integrated logistics will contribute to competitive delivered costs into our markets. Operations: Logistics: Railways controlled by Vale Catalão Uberaba Guará Patos de Minas Tapira Araxá TPD Aratu Mine Plant Port 57 Railways with Vale participation Cubatão TIPLAM

58 Our strategic plan will be deployed in three main stages and is based on a portfolio that sustains long-term value creation Doing the homework Guarantee long-term sustainability of the business Continuous cost reduction programmes. Reducing and focusing sustaining capital. Streamlining and optimizing operations. Divestment of non-core assets. Preparing for the future Ensure self-sufficiency to deploy growth Value engineering of projects to reduce capital intensity. Market by-products. Optimize R&D. Maximize exposure to the cycle Growth Self-funded sustainable growth in potash and phosphates with enhanced competitiveness. Search for new business opportunities and markets. 58

59 Partnerships with strategic industry players can unlock value from our promising project portfolio Key projects Project-level JVs to fast-track and bring in capabilities and markets aiming at the best strategic fit. Potash: discussions well advanced. Phosphates: Bayovar expansion studies advancing with current partners. Fertilizer vehicle Creation of a fertilizer business capable of attracting world class partners, building on Vale s strategic positioning. Partnerships on our potash and phosphates projects will guarantee future growth, reducing capital commitment and risks to the business 59

60 Coal prices must improve to reduce pressure on margins and incentivize greenfield capacity to reverse likely supply deficit Moatize will bring lowest quartile cost and premium hard coking coal to demanding markets Seaborne met coal total cash cost curve (US$/t) Q1 Q2 Q3 Q Source: Wood Mackenzie Argus / Platts Seaborne supply growth of ~3%pa from 2013 to 2023, with downside potential if market drives further mine closures. Long term fundamentals driven by Asian (mainly China and India) urbanization process. Australian HCC Mid Vol HCC 64 CSR SSCC Oversupplied market in short/mid term puts pressure on coal prices and margins globally. Lower prices in short/mid term causing supply deficit in the long term and requiring higher incentive prices.

61 Coal business turnaround: delivering results Firing on all cylinders: improved performance at all sites has increased and stabilised Australian production and new limits tested at Moatize Australia: Sep-Oct saw new production and sales records. Unit costs down ~35% y-o-y, notwithstanding longwall moves at Carborough. Cash positive operations since September, despite very depressed markets. Australian ROM 100% basis (Mt) E Mozambique: Moatize mine cost of US$64/t FOR¹. Improved performance of the Sena-Beira logistics corridor, with record 340,000 t in October and ~ 30% y-o-y despite Feb floods. Marketing: Australian sales up ~34% y-o-y. Support from JV partners resulting in a favorable sales mix sales forecast 30% growth vs Australian unit cost FOB (US$/t) Vale global coal sales mix (%) % 42% Japan Others E ¹ Free on rail.

62 Moatize will establish a new reference in the coal business our growth plan is also on track, with our foundation Moatize expansion ramping up during 2015 Moatize is a world-class asset with potential to be one of the largest and most competitive met coal mines in the world: Open cut assets (30m seams). Large production scale. Long life and expandable operation. Integrated operation (mine rail port). Premium product Chipanga recognized as premium HCC Seaborne met coal FOB cash cost to HCC US$/t on 2013 US$ real term basis Q1 Q2 Q3 Q4 Moatize Eagle Downs Source: Wood Mackenzie, Moatize - Vale cost projection Moatize expected production (Mt) Source: Vale. Eagle Downs is a pillar to grow a quality business in Australia Estimated capacity of 4 to 5 Mtpy and large resource base for future expansions. 1st quartile cost. Construction underway.

63 Balancing and mitigating risks will be key to the successful delivery of our coal business growth The Nacala Logistics Corridor will provide open access to other cargoes and businesses, whilst potential users and investors will be invited to participate in the JV. Nacala Logistics Corridor Capex burden lightened: Potential users and investors to be invited. Funding: Non-recourse, project finance. Re-structure Coal Business for growth Minority sell down of Vale Global Coal vehicle, comprising operating assets and projects. Larger, stronger, de-risked Partnerships with customers/investors in Nacala and coal assets will provide funding, reduce capital commitment and risks, and bring customer support to our Coal business 63

64 Creating long-term value

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