Vale Nickel business. Roberto Moretzsohn Executive Vice President, Marketing Vale Inco. Rio de Janeiro. September 2009

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2 Vale Nickel business Roberto Moretzsohn Executive Vice President, Marketing Vale Inco Rio de Janeiro September

3 Vale has a strong platform to grow the nickel business A balance of sulphide and laterite properties Current Sudbury Voisey s Bay Thompson Indonesia Growth Onca Puma Goro 2

4 Vale nickel business is located Tonimet Electro Thompson Sudbury Voisey Voisey s Bay Clydach KNC Dalian Matsusaka TNRC Carbonyl PTI Onca Puma Goro Refinery Mines Development Properties 3 Utility

5 We continue to develop and build our leading position in the nickel market Nickel reserves (100% Basis)1 million metric tons of contained nickel Vale 8.9 Norilsk Nickel 5.8 Jinchuan 4.5 BHPB 4.1 Xstrata 2.6 Eramet ¹P&Preserves Sources: BrookHunt 2008 edition Nickel Industry Cost Study and Vale annual report 2008 Note: Xstrata includes 100% Koniambo

6 Continued focus on employee health and safety Canadian mines have won the John T. Ryan award for Safest Metal Mine in Canada for a record 5 years in a row. - Birchtree Mine (Thompson) Garson Mine (Sudbury) North Mine (Sudbury) 2006, 2007 & In January 2009, Copper Cliff North Mine celebrated 3 years disabling injury (DI) free a milestone virtually unprecedented in the industry. Indonesian Operations lead Vale Nickel business in safety performance. 5

7 We continue to grow our production capability to leverage our resource base kt of Nickel Increases with the addition of Voisey's Bay, additional mine development and processing improvements in Canada, as well as increased thermal power in Indonesia production curtailed in Q4 due to market conditions With the commissioning of Goro and Onca Puma, production will increase by ~ 45% when fully ramped up. 6 Source: Vale

8 Managed the near term impacts of the market downturn with focus on sustainable improvements Production Flexing the production capacity in PTI utilizing the fuel fired power sources. Optimizing product mix to meet changing market demands. Review of mine design and processing configurations to allow for more efficient operations. Operating Costs Workforce efficiency improvements. Reorganization corporate functions and operations. Cost reduction targets in all operations and corporate office. Capital and Sustaining Investments 7 Prioritization of key projects to deliver long term growth while maintaining the sustainability of the asset base.

9 Onca Puma Nickel laterite operation in the state of Para to produce ferronickel. Annual capacity: 58 kt of nickel in ferronickel. Estimated investment: US $ billion. Construction progressing again. Operational readiness assessment underway. Operations training taking place. First line is expected to be commissioned in 2H10. 8

10 Goro Project High Pressure Acid Leach (HPAL). Process for laterite ores in the Southern Province of New Caledonia. Annual capacity: 60 kt nickel oxide and 4,600 t cobalt intermediate. Estimated investment: US $4.083 billion. Project construction complete. Commissioning underway. Recovered from the impact of the acid plant incident. Operations fully staffed. First production late

11 Voisey s Bay processing plant Hydrometallurgical plant to process sulphide concentrates. Annual capacity: - 50 kt electronickel. - 5,000 t copper. - 2,500 t cobalt. Scheduled completion by Feb Project released from further Environmental Assessment, Hydromet technology selected in November Feasibility level of engineering completed. Early works started in April Detailed engineering, procurement and construction activities in progress.

12 Nickel prices have recovered from their 2009 lows LME Stocks (tonnes) 140, ,000 LME cash nickel price and stocks January 2005 to Sept LME Cash Price (US$/ tonne) 50, ,000 40,000 80,000 60,000 40,000 20,000 30,000 20,000 10, Source: LME

13 Market update Robust Chinese nickel demand drove the market in H Stainless production continues improvements. - China setting production records in Q2/Q3 potential Q4 moderation. - Recovery outside China gathering pace in Q3 representing 70%+ of world SS market in Declining scrap availability and higher austenitic ratio to drive primary nickel demand growth. - Potential remains for stainless re-stocking outside China. Non-stainless remains mixed improvements in a number of sectors. Nickel supply declining in first half of

14 In the first half of 2009, China and Taiwan drove stainless production improvements have broadened to all markets into Q3 Index Q = Quarterly stainless production trends Q Q (f) 175 China/Taiwan 125 Rest of World Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2e * Source: Vale estimates

15 We have a strong presence in the growing Asian market World nickel demand by geography versus Vale sales 33% 9% 5% 53% 27% 1% 12% 60% 2008 World nickel use Vale 2008 sales Rest of World North America Europe Asia 14

16 15 Selling nickel to the stainless steel industry can be challenging given the inherent volatility Quarterly stainless steel production 1970 to 2009Q2 (f) Y-O-Y Change 35% 25% 15% 5% -5% -15% -25% -35% 1Q70 4Q70 3Q71 2Q72 1Q73 4Q73 3Q74 2Q75 1Q76 4Q76 3Q77 2Q78 1Q79 4Q79 3Q80 2Q81 1Q82 4Q82 3Q83 2Q84 1Q85 4Q85 3Q86 2Q87 1Q88 4Q88 3Q89 2Q90 1Q91 4Q91 3Q92 2Q93 1Q94 4Q94 3Q95 2Q96 1Q97 4Q97 3Q98 2Q99 1Q00 4Q00 3Q01 2Q02 1Q03 4Q03 3Q04 2Q05 1Q06 4Q06 3Q07 2Q08 1Q09E Q-O-Q Change 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% 1Q70 4Q70 3Q71 2Q72 1Q73 4Q73 3Q74 2Q75 1Q76 4Q76 3Q77 2Q78 1Q79 4Q79 3Q80 2Q81 1Q82 4Q82 3Q83 2Q84 1Q85 4Q85 3Q86 2Q87 1Q88 4Q88 3Q89 2Q90 1Q91 4Q91 3Q92 2Q93 1Q94 4Q94 3Q95 2Q96 1Q97 4Q97 3Q98 2Q99 1Q00 4Q00 3Q01 2Q02 1Q03 4Q03 3Q04 2Q05 1Q06 4Q06 3Q07 2Q08 1Q09E Source: Macquarie Bank, Vale

17 We have a strong position in Non-Stainless sectors providing flexibility to shift nickel in and out of the Stainless sector to manage demand variability World Nickel demand by application versus Vale sales 42% 58% 67% 33% 57% 43% 2008 World nickel use Vale 2008 sales Vale 2009 H1 sales 16 Stainless Non-Stainless

18 In summary, Vale is positioned to remain a global nickel leader for many years to come Nickel demand poised to rebound with global economic recovery. Vale has the best in-ground nickel assets with cost structure improvements underway to maximize value. Flexibility in our nickel production, both in terms of product mix and volume, to meet the market needs. Excellent growth potential to continue to provide nickel as one of the essential ingredients of people s everyday lives far into the future. 17

19 Iron ore market outlook Pedro Gutemberg Director of Iron Ore Marketing and R&D Rio de Janeiro September

20 Disclaimer This presentation may include declarations about Vale's expectations regarding future events or results. All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties. Vale cannot guarantee that such declarations will prove to be correct. These risks and uncertainties include factors related to the following: (a) the countries where Vale operates, mainly Brazil and Canada; (b) the global economy; (c) capital markets; (d) the mining and metals businesses and their dependence upon global industrial production, which is cyclical by nature; and (e) the high degree of global competition in the markets in which Vale operates. To obtain further information on factors that may give rise to results different from those forecast by Vale, please consult the reports filed with the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and with the U.S. Securities and Exchange Commission (SEC), including Vale s most recent Annual Report on Form 20F and its reports on Form 6K. 2

21 Agenda Company overview Steel market outlook Iron ore market outlook Final comments 3

22 Colocar aqui o divisor da Company Overview seção, definido em 50pts. 4

23 Vale has the largest reserve base in the iron ore industry Northern System Reserves (t) Production (Mt) 6 mines 7.2 Bi 96.5 Southeastern System 13 mines 3.7 Bi Southern System 10 mines 3.5 Bi 80.5 TOTAL VALE 14.3 Bi ¹ Proven and probable reserves, as of Dec, 2008.

24 Vale: products for the steel industry Vale can deliver all the major inputs of the steel industry, with outstanding quality and reliability. DR Pellets Lump BF DR R Iron Ore Products Sinter Feed SM Sinter Pig iron DRI BF Pellets BOF Manganese & Mn Alloys Nickel Coal Coke Coke plant Crude steel Crude steel 6

25 Colocar aqui o divisor da Steel market outlook seção, definido em 50pts. 7

26 Crude steel production has significantly recovered in recent months Crude steel production by region Reasons for steel production improvement: EU 27 Americas China Asia Ex-China Better than expected economic indicators Government incentives: - In the US the program cash for clunkers have boosted the auto sector; - European countries adopted some programs to stimulate auto sector; - Chinese stimulus package for infrastructure and construction sectors; - Brazil: IPI (Tax on industrialized products) reduction and improvement of credit conditions Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 End of de-stocking process in several markets 8 Source: WSA

27 Chinese steel production Steel production is running at record levels, driven by domestic consumption in the absence of large export volumes in Chinese crude steel production (Mt) Var YoY (YoY) 25% YTD: Mt Mt 20% 15% 50 10% % 0% 30-5% 9 Source: WSA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

28 Stimulated by government incentives, endusers are showing signs of recovery Steel consumption Auto Sales Construction China Japan Europe USA Korea Japan Europe USA Korea China ¹ (%YoY) Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sources: NBS, JAMA, ACEA, FED Sources: CEIC, METI, EUROSTAT, FED 10 ¹ Construction in China as a percentage of last period (YoY) Index Sep / 07 = 100 Index Sep / 07 = 100 Aug-09 Aug-09

29 Chinese fixed asset investment is rising strongly because of massive credit expansion Monetary/fiscal stimulus resulted in strong growth in construction FAI in China. Further expansion is now occurring in the property construction sector, which should provide further steam for steel consumption in coming years. % change yoy 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Chinese fixed asset investment (% YoY) Chinese fixed asset investment - % change yoy Total urban Real estate Infrastructure Jan-2007 Jul-2007 Jan-2008 Jul-2008 Jan-2009 Source: NBS, Macquarie 11

30 Chinese steel consumption The recovery has been strong, driven by massive government infrastructure spending, in a sustainable recovery process. Chinese Apparent finished steel consumption (Mt) Var YoY YTD: Mt Mt (YoY) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Source: WSA, Mysteel

31 Steel prices have recovered from bottom levels in recent months Steel price 450 Billet Hot rolled coils Europe USA US$ /ton 350 US$ /ton Jan-09 Mar-09 May-09 Jul-09 Sep-09 Jan-09 Mar-09 May-09 Jul-09 Sep Billet European Source: Vale, SBB and Bloomberg

32 Colocar aqui o divisor da Iron ore market outlook seção, definido em 50pts. 14

33 European seaborne imports expected to rebound in 2H09 Steel & iron ore de-stocking development in 2009 Positioned in the upstream of the supply chain, iron ore performs as a late cycle. In order to promote stock adjustments to new steel production levels, the swings of iron ore imports are much stronger than the variation of both steel consumption and pig iron production. As a result, the severe importing contraction of 1H09 should be followed by relatively strong reaction in the 2H09, when some stock formation is expected. Quarterly evolution IO inventory trend Index - base 2Q08 = Seaborne Imports Pig Iron Production Real steel consumption forecast 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q Iron Ore Inventories (weeks) forecast Expected beginning of stock build up 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 15 Source: Eurofer, Eurostat and Vale estimates

34 Chinese iron ore imports have been very strong in 2009 In the first eight months of 2009 Chinese iron ore imports reached 405Mt, increasing 32% YoY, partially compensating the weaker demand in other regions. Chinese iron ore imports (Mt) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 Source: Mysteel

35 Share of imported ore is increasing in China The share of imported ore in China has reached more than 70% of total consumption year to date in Share of iron ore consumption in China (Mt) imported ore domestic concentrates 1 share of imported ore 75% 60% 45% * 30% 17 1) Domestic concentrates adjusted to 65% Fe equivalent ore 2) Jan-Aug annualized figures Source: Mysteel

36 In spite of the increase in absolute terms, iron ore stocks in China remain relatively tight According to August pig iron production, stock levels at the ports can only meet steel mill's demand for around 40 days. Chinese iron ore stocks 18 Source: Mysteel

37 A tight market situation is expected for 2H09 On the supply side: large downward capacity adjustments were implemented by seaborne suppliers in 1H09; Lead times and monsoon period in India compromise quick pick up in production volumes for the short term; Additionally, higher domestic demand in regions such as Brazil, CIS and USA may negatively affect seaborne ore availability. On the demand side: recovery of steel consumption is currently observed in several regions; 392 Additional volumes to meet restocking requirements in world ex-china; Maintenance of solid demand in China. 19

38 Iron ore prices Premium for higher VIU of Vale s iron ore has been recognized by the market, especially in periods when high productivity is required, such as today. Spot iron ore prices in China SFCJ Spot CFR China Platts 62% Index 150 US$/dmt Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Source: Vale 20

39 Colocar aqui o divisor da Final comments seção, definido em 50pts. 21

40 Our long term market overview and strategy remains unchanged We continue to believe in the strong long term fundamentals for global iron ore demand; We continue strongly committed to long term relationship with our clients; We continue developing our projects; We are implementing several logistic initiatives to reduce landed costs and increase our competitiveness in Asia: - Investments in shipbuilding creating a shuttle service to Asia. - Further initiatives under analysis 22

41 Conclusion Global economy is performing better than previously expected and steel production is accelerating in several regions, also helped by government stimulus packages. Chinese steel consumption is on a sustainable growth path, and production should follow the trend accordingly. Seaborne iron ore supply suffered large downward capacity adjustments in early On the other hand, recovery in global demand for iron ore is broadening due to gradual acceleration of steel consumption combined with restocking requirements in several regions. As a result, seaborne market is more balanced among the different demanding regions, leading to a tight situation in 2H09. After the adjustments during worst part of the downturn, Vale is currently reaccelerating production to meet increasing seaborne demand in 2H09. Vale s strategy of long term commitment to its clients remains unchanged. 23

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44 Vale s iron ore systems DEJM /DIOF / DIPF Ferrous Minerals Planning and Development Department Rio de Janeiro September

45 Outline Current iron ore production structure 3

46 Vale s iron ore systems at a glance Production (Mt)¹ Iron Ore Pellets ¹ USGAAP

47 Reserves base Our proven reserves are capable of meeting the present demand for more than 40 years. Northern System Reserves (t) 1 6 mines 7.2 Bi VALE has the largest reserves base in the iron ore industry Southeastern System 13 mines 3.7 Bi Southern System 10 mines 3.5 Bi TOTAL VALE 14.3 Bi 5 ¹ Proven and probable reserves, as of December 2008.

48 Vale s iron ore logistics 1 port and 3 maritime terminals for seagoing vessels: Tubarão, Ponta da Madeira, Guaíba and Itaguai. 2 world-class railroads EFC and EFVM Guaíba Itaguaí 6

49 Current iron ore production structure Iron ore production systems Northern System Production (Mt)¹ Iron Ore ¹ USGAAP

50 Northern System The Northern System is composed by 3 major iron ore deposits, called Serra Norte, Serra Sul and Serra Leste; Presently, mining operations are carried out only at Serra Norte. Serra Leste Serra Norte Key: Iron Ore Formation Serra Sul 8

51 9 Carajás mining complex

52 Northern System - historical production Iron Ore: production doubled from 48 (2000) to 97 Mtpy (2008). 1 Billion tons in Oct/07 million metric tons

53 Carajás railroad General Information:. Length: 892 km (single track). 56 crossing yards. 62 bridges and overpasses. Train-type (2008): 4 locomotives and 330 cars. Net cargo: 33,000 t (SF). Cars (total): 10,670. Locomotives (total): 216. Cycle time: 90 h CONTROL ROOM 11

54 Northern System - Ponta da Madeira maritime terminal PIER I PIER II Vessels up to 420,000 dwt Draft: 23 m Ships up to 155,000 dwt Maximum draft: 18m Loading rate: 8,000 t/h Ships up to 420,000 dwt Maximum draft: 23m Loading rate: 16,000 t/h Vessels up to 155,000 dwt Draft: 18 m PIER III 12 1 Vessel up to 250,000 dwt 2 Vessels up to 180,000 dwt Draft: 21 m Shipping Mt

55 Northern System - São Luis pelletizing plant PRODUCTION CAPACITY: 7.0 Mtpy Production (Mt) ¹ ¹ USGAAP

56 Current iron ore production structure Iron ore production systems Southeastern System: Production (Mt)¹ Iron Ore Pelletizing Plants MG Southern System: Production (Mt)¹ Iron Ore Pelletizing Plants ¹ USGAAP

57 PATRIMÔNIO HISTORICO CAPELA PIEDADE DA Iron ore quadrangle overview Southern & Southeastern Systems CAUÊ MINAS DO MEIO CONCEIÇÃO ITABIRA CÓRREGO DO MEIO ANDRADE To Tubarao BRUCUTU Port BELO HORIZONTE GONGO SOCO DOIS IRMÃOS ÁGUA LIMPA JANGADA MAR AZUL APOLO BAÚ KEY Italic Font Normal Font Iron Ore Formation City or Town Iron Ore Mine, Production Site or Vale s Mining Rights EFVM FCA BRUMADINHO FEIJÃO CAPÃO XAVIER FÁBRICA TAMANDUÁ CAP. DO MATO ABÓBORAS VARGEM GRANDE PICO CONGONHAS ITABIRITO FAZENDÃO ALEGRIA TIMBOPEBA FÁBRICA NOVA OURO PRETO Minas Gerais Belo Horizonte RJ Guaíba & Itaguaí Ports ES N Tubarao Port ATLANTIC OCEAN MRS To Guaíba and Itaguaí maritime terminals 15

58 Southeastern System - historical production Iron Ore: production increased from 71 (2000) to 116 Mtpy (2008). million metric tons

59 Itabira complex Minas do Meio ROM 17

60 18 Minas Centrais complex

61 19 Mariana complex

62 20 Urucum mine

63 Southeastern System

64 Southeastern System Tubarão port Shipping Mt PIER 2 Vessels up to 365,000 dwt Draft = 20 m PIER 1 North Berth Vessels up to 200,000 dwt Draft = 17 m South Berth Vessels up to 170,000 dwt Draft = 15.5 m 22

65 Southeastern System - Pelletizing at Tubarão complex I & II 100% Vale Production (Mt)¹ Pellets ² JV with Ilva JV with ArcelorMittal NIBRASCO Companhia Nipo-Brasileira de Pelotização JV with JSM 23 JV with Posco ¹ USGAAP ² Figures includes actual production, including production from four pellet plants we leased in 2008.

66 Southern System - historical production Iron Ore: production increased from 27 (2000) to 81 Mtpy (2008)

67 25 Itabirito complex

68 Vargem Grande complex ROM 26

69 27 Paraopeba complex

70 Vale`s pipeline of iron ore projects iron ore and pellets Projects Capacity Expected Total capex Mtpy start-up US$ million Iron ore Carajás - additional 10 Mtpy +10 1H Carajás 130 Mtpy +30 1H12 2,478 Carajás Serra Sul (mine S11D)¹ +90 1H13 11,297 Apolo¹ +24 1H13 2,509 Pellets Oman H10 1,356 Tubarão VIII H11² The project is still subject to approval by the Board of Directors. 2 Start-up is subject to market conditions. 28

71 Ferrous minerals product portfolio - iron ore and pellets Non-agglomerated iron ore products: - Sinter Feed; - Pellet Feed; - Lump Ore. Agglomerated iron ore products: - Pellets for blast furnaces; - Pellets for direct reduction. Product Specifications: - Chemical assays (such as Fe, SiO 2, Al 2 O 3, P, Mn and LOI); - Moisture (% H 2 O); - Size distribution (such as mm; -6.3 mm; mm; mm); - Specific parameters (such as tumbler indexes ISO 3271). 29

72 Iron ore and pellets portfolio Examples of products 30 Sinter Feed - SFCJ - Sinter Feed Carajás - SSFT - Standard Sinter Feed Tubarão - SSFG - Standard Sinter Feed Guaíba Pellet Feed - PFCJ - Pellet Feed Carajás - PFIT - Pellet Feed Iron Tubarão - PFFT - Pellet Feed Fines Tubarão - PFFG - Pellet Feed Guaíba Lump Ore - LOBG - Lump Ore Blast Furnace Guaíba - LOBT - Lump Ore Blast Furnace Tubarão Pellets - AF08 - Blast Furnace Standard Pellet - AF70 - Carajás Blast Furnace Pellet - AF40 - Blast Furnace Pellet Vargem Grande

73 Iron ore - current portfolio Examples of products Distribution by port Ore type (number) Ponta da Madeira Tubarão Guaíba + Itaguaí Number of products SFCJ 1 Sinter feed (6) SSFT SFXT SSFG 2 1 SFOT SFOG 2 Pellet feed (4) PFCJ PFIT PFFT PFFG 1 3 Lump ore (1) LOBG 1 Total

74 Iron ore - current portfolio Examples of products Expected quality ( ) 32

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