Presentation - Vale.com

Agenda• The long-term view• Recent developments in the iron ore market• Becoming the best global natural resourcescompany4

The long-termview5

We expect emerging economies to remain as thedriver of global economic growthGlobal GDP growth¹%1010887.36425.03.44.06423.05.76.02.0001.4-2World-2Emerging marketsDeveloped markets-42006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016-42006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20166¹ GDP measured on a purchasing power parity (PPP) basis.Source: Vale

EM growth and the implied structuraltransformations have a strong impact on thedemand for minerals and metals• Industrialization.• Urbanization.• Infrastructure building.• Rising consumption of consumer durables.• Diet changes towards a larger intake of proteinsaffecting the consumption of fertilizers.7

China’s urbanization rate in 2010 is equal toBrazil’s position in the mid 50’s and Korea in theearly 70’sUrbanization rate%1006090807060504030BrazilKoreaChinaIndia50403020201010ChinaWorld001950195519601965197019751980198519901995200020052010201520201950195519601965197019751980198519901995200020052010201520208Source: UN Department of Economic and Social Affairs, “World Urbanization Prospects: the 2009 revision”.

Housing construction in China still has ahigh-growth potential, given the largeestimated deficitHousing deficit in million units1008060402001998 2005 2009 2015E9Source: Vale, NBS and Gavekal

In spite of the substantial expansion, large flowsof infrastructure spending in China will continue2005 2009 2020FExpressways (km) 41,000 65,000 100,000Railways (km) 75,437 86,000 120,000Airports (number) 140 166 244Power generation (GW) N.A. 800 1,50010F = TargetSources: NBS, NDRC, CAAC and Ministry of Transport of China

Despite being the world’s largest car manufacturer,the penetration rate in China is low, indicating asignificant growth potential20Chinese car productionPassenger cars per 1,000 people200818EU4 8 716US4 5114Japan3 2 51210864KoreaRussiaMexicoBrazil2 4 82 0 516 71582World13 202000 2002 2004 2006 2008 2010China3 611Source: Haver Analytics/CEICSource: World Bank

China and India, the two largest fast growingeconomies, still have a long way in the processof convergence to high income standardsPer capita GDP/US per capita GDP%10090807060JapanTaiwanKorea50403020China1001960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010IndiaSources: Penn World Tables and Vale12

Recentdevelopmentsin the iron oremarket13

Iron ore prices dropped significantly over thelast couple of months• The combination of the seasonal output increasein Brazil and Australia, pessimist macroeconomicexpectations and the effects of credit tightening inChina were the main factors responsible for thatprice movement.• However, as expected, iron ore prices arebouncing back.14

Given the gradual exiting from tight monetary and creditpolicy in China, iron ore prices recovered partially . Despitethe likely recession in Europe, we expect the iron oremarket to remain tight200Platts IODEX 62% FeUS$/dry metric ton190180170160140.25November 24, 2011150140130120110100Aug-11 Sep-11 Oct-11 Nov-1115Source: Platts.

Chinese iron ore imports held firmly75Chinese monthly iron ore importsmillion tons65554535Raw dataSeasonally adjusted25Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-1116Source: Bloomberg.

Vale iron ore marketing: 2011 x 2008• 2008: price rigidity, 100% FOB shipments.• 2011:– CFR sales based on a low-cost freight portfolio.– Price flexibility: iron ore pricing migrating to amore diversified menu of pricing options, all ofthem referred to spot market prices.– Smaller exposure to Europe.17

Current pricing scenario• More than half of our contracts moved to the currentquarter average, some 20% are still on the quarterlylagged system and the remainder is undernegotiation.• Japan and Korea: the one-month lagged quarterlyprice remains unchanged.• China: current quarter average applied to volumesperformed in the same quarter. Migrating to moreshort-term based options: monthly average and spotprices.• Europe: still undefined18

European steel production did not return to thepre-crisis levelsCrude steel output¹130Global20Europe12512018million metric tons11511010510095million metric tons16141290851080Oct-07Apr-08Oct-08Apr-09Oct-09Apr-10Oct-10Apr-11Oct-118Oct-07Apr-08Oct-08Apr-09Oct-09Apr-10Oct-10Apr-11Oct-113 month moving average19¹ Monthly data, seasonally adjusted.Sources: Vale and World Steel.

Lower exposure to EuropeVale iron ore salesin %2008 3Q11Europe 25.0 19.8Asia 47.8 62.0China 30.8 45.320

Becoming thebest globalnaturalresourcescompany21

Strategy to be the best global natural resourcescompany in long-term value creation, withexcellence and passion for people and the planetStrategic pillars• Strengthen competitiveness in iron ore and nickel, businesseswe are global leaders, leveraging high-quality, low-cost assets.• Continue diversification by demand driver, mineral andgeography, investing in coking coal, copper and fertilizers.• Grow through project development, acquisitions andpartnerships.• People are a real source of competitive advantage.• Sustainability enhances our competitiveness in the long-term.22

Capital management oriented to value creationDiscipline in capital allocationMaximizingassetperformanceBrownfieldprojectsReturn ofcapitalShareholderValuePortfoliomanagementMineralexplorationGreenfieldprojectsAcquisitions23

Vale has been delivering several projects overthe last yearsOmanMo I RanaTrombetasPier IIIPDMCapãoXavierFábricaNovaTaquari-VassourasCapimBranco IBrucutuCarajás100 MtpyFazendãoZhuhaiUHCCarboroughDownsNorthernCorridorAdditional20 MtpyOnçaPumaKarebbeMoatize2003 2004 2005 2006 2007 2008 2009 2010 2011Alunorte 3Carajás70 MtpySossegoCandongaAimorésAlunorte4&5Carajás85 MtpyCapimBranco IIDalianAlunorte6&7ParagominasIIVargemGrandeSoutheasternCorridorCSABayóvarEstreitoParagominasISamarcoIIITrês Valles24

However, despite our efforts, production remainedrelatively stable since 2007Iron ore production¹million metric tons296 2932973092642292006 2007 2008 2009 2010 2011²25¹ US GAAP.² 2011 production relative to the last twelve months ended at September 30, 2011.

Investments for 2012Capital expendituresSustainingcapital28.5%R&D11.0%By categoryProjects60.5%Logistics¹Steel 2.4%2.9%Energy3.6%Fertilizers9.6%By business areaother4.3%Iron ore46.7%Bulk materials55.6%Growth71.5%Basemetals21.6%Coal8.9%¹ Logistics for general cargo.26

Investing to sustain high production levels withoperational efficiency, and search for excellence in health,safety and environmental protection: US$ 6.1 billionMain items for sustaining capital increaseUS$ million% ofasset base 1• Expanding tailing dams and residual2007-2010 average4.7%stockpiles.Normalized budget4,1284.4%Infrastructure448• Improving health & safety standards.Health and safety563• Clean AER program.Maintenance management371Clean AER416• ERP system.ERP180• Improving maintenance management.2012 Budget6,1066.5%27¹ Property, plant and equipment + intangible assets + investments in affiliated companies, joint ventures and others investments

R&D investment: the backbone of future growthoptionsR&DMineral explorationNewprocesses,technologicalinnovation andadaptation25%TotalUS$ 2.4 billionMineralexploration39%Fertilizers5%Coal8%Others17%TotalUS$ 918 millionIron ore31%Conceptual,pre-feasibilityand feasibilitystudies36%Copper17% Nickel22%28

A global mineral exploration programCanadaKazakhstanMongoliaUSAChina• Iron ore• NickelColombiaGuineaLiberiaDRCOmanIndiaIndonesiaPhilippinesPapua NewGuinea• Copper• Coal• Potash• PhosphatesPeruChileArgentinaBrazilAngolaZambiaSouth AfricaMozambiqueAustralia• Manganese Advanced projects29

Project investment of US$ 12.9 billion for 2012.Main projects under construction¹GreenfieldReferenceUS$ 1 billionKonkola North²Teluk RubiahBiodieselSimandou I - ZogotaSaloboSerra LesteLong HarbourRio ColoradoBelo Monte²CSP²Serra SulS11D2012 2013 20142015 2016Tubarão VIIICarajásAdditional 40 MtpySalobo IINacala corridorCLN 150 MtpyIron ore & pelletsNickelCoalConceição ItabiritosMoatize IICopperBrownfieldTottenSamarco IV²Conceição Itabiritos IIVargem Grande ItabiritosPotashEnergySteel30¹ Estimated start-up dates can be revised due to changes caused by several factors, including delays in environmental permits.² Proportional to Vale’s shares in the projects.

A brief overview: how our portfolio compares tomining industry projects – capexIron ore – mine & plantUS$ / tpyCapexNickel’000 US$ / tpy98150827561834554Vale projectsIndustry rangeVale projectsIndustry rangeCoalUS$ / tpyCopper’000 US$ / tpy3561817217111495831Vale projectsSource: Vale and companies reportsIndustry rangeVale projectsIndustry range

A brief overview: how our portfolio compares tomining industry projects – lead timesIron ore – mine & plantLead timesmonthsNickelValeprojects22 45Valeprojects50 66Industry30 48range Industry30range48CoalCopperValeprojects32 35Valeprojects47 63Industryrange2437Industryrange245032Source: Vale and companies reports

Main bulk materials projectsCapacityExpected capexIron ore mining Mtpy US$ millionCarajás Additional 40 Mtpy 40 2,968Conceição Itabiritos 12 1,174Serra Leste 6 478Vargem Grande Itabiritos 10 1,555Conceição Itabiritos II 1 19 1,188Carajás Serra Sul S11D 90 8,039Coal miningMoatize II 11 2,10033¹ No net additional capacity

Carajás Additional 40 Mtpy – implementation of adry processing plantProject description¹Status¹• Location: Northern range of Carajás, Pará,Brazil .• Scope: Iron ore project. Dry processingplant.• Nominal capacity: 40 Mtpy.• Physical progress: 43%.• Executed capex: US$ 1.3 billion.• Recent progress:i. Installation license (LI) was issued.• Estimated start-up: 2H13.ii.Execution of earthworks services.• Capex: US$ 3.0 billion.• 2012 capex budget: US$ 622 million.iii. Civil engineering works on progress.• Labor force: 4,379 employees.Main milestones¹• Earthworks services.• Complete civil engineering works on theplant construction.• Electromechanical assembly.• Construction of the energy substations.Primary crushing34¹ as of September 2011

Carajás Serra Sul S11D – a new iron ore mineand dry processing plantProject description¹Status¹• Location: Southern range of Carajás, Pará,Brazil .• Environmental friendly project: trucklessmining and dry processing to minimizecarbon emission and water consumptionwhile increasing safety.• Nominal capacity: 90 Mtpy.• Estimated start-up: 2H16.• Capex: US$ 8.1 billion.• Physical progress: 22%.• Executed capex: US$ 804 million.• Recent progress:i. Execution of earthworks services.ii. Construction of access road.• Labor force: 1,859 employees.• 2012 capex budget: US$ 794 million.Main milestones¹• Preliminary environmental license (LP)expected for 1H12 .• Installation license (LI) expected for 1H13.Site overview35¹ as of September 2011

CLN S11D – increase logistics capacity toaccommodate Carajás expansionProject description¹• Location: Pará and Maranhão, Brazil.• Scope: Expansion of Carajás railway andPonta da Madeira maritime terminal.• Nominal capacity: In line with Carajásexpansion.• Estimated start-up: 1H17.• Expected capex: US$11.4 billion 2 .• 2012 capex budget: US$ 321 million.• Executed capex: US$ 216 million.• Recent progress:i. Feasibility study in progress.ii. Civil works at Ponta da Madeira maritimeterminal.Status¹• Labor force: 906 employees.Main milestones¹• Preliminary environmental license (LP) forthe rail spur expected for 1H12 .• Installation license (LI) for the main rail lineexpected for 2H12.• Project approval by the Board of Directorsexpected for 2H12 .36• Installation license (LI) for the rail spurexpected for 1H13.¹ as of September 2011.2 project is still subject to approval by the Board of DirectorsAccess road

Doubling Moatize capacity: Moatize IIProject description¹• Location: Tete, Mozambique.• Scope: Coal project. New pit and duplicatethe Moatize CHPP.• Nominal capacity: 11 Mtpy, increasingcapacity to 22 Mtpy.• Estimated start-up: 2H14.• Capex: US$ 2.1 billion.• 2012 capex budget: US$ 499 million.• Physical progress: 2%.• Executed capex: US$ 15 million.• Recent progress:i. Conclusion of the feasibility study andVale’s Board of Directors approval.ii.iii.Status¹Topographic maps prepared.Geological research studies on progress.Main milestones¹• Preparation of the new open pit.• Expansion of the related infrastructure andmaintenance installations.Site view37¹ as of September 2011

Nacala corridor – world-class logistics infrastructure tosupport MoatizeProject description¹• Location: Nacala, Mozambique.• Scope: railway and port, connectingMoatize site to the Nacala-à-Velhamaritime terminal.• Nominal capacity: 18 Mtpy.• Estimated start-up: 2H14.• Capex: US$ 4.4 billion.• 2012 capex budget: US$ 691 million .Status¹• Physical progress: < 1%.• Executed capex: US$ 8 million.• Recent progress:i. Conclusion of the feasibility study andVale’s Board of Directors approval.ii.Environmental licenses issued for therailway and maritime terminal.iii. Development of the detailed aspects of theengineering project on progress.• Labor force: 347 employees.Main milestones¹• Recovery of 682 km of the existing railwayin Malawi and Mozambique.• Construction of 230 km, composed by:• 201 km stretch connecting Moatizeto Nkaya, Malawi .• 29 km linking the railway to Nacalaà-Velha.38• Construction of the maritime terminal.¹ as of September 2011Nacala Corridor map

Main base metals projectsCapacityExpected capexCopper mining tpy US$ millionSalobo I 100,000 2,337Salobo II 100,000 1,427Nickel refiningLong Harbour 50,000 3,60039

Maintaining the global leadership in nickelLong HarbourProject description• Hydrometallurgical facility to produce 50,000 tpy offinished nickel and associated copper and cobalt inLong Harbour, Newfoundland and Labrador .• Estimated start-up: 2H13.• Expected capex 1 : US$ 3.6 billion.• 2012 capex budget: US$ 1.2 billion .A multi-phased US$200 million R&D program was conducted to extend the application of hydromet technologyto process Voisey’s Bay nickel concentrate.Lab Mini pilot plant Demonstration plant Full scale plant1 as of September 201140

Salobo – a copper mine, plant and relatedinfrastructureProject description¹• Location: Marabá, Pará, Brazil.• Scope: Development of mine, plant, andrelated infrastructure.Status¹• Physical progress: 96%.• Executed capex: US$ 1.9 billion.• Recent progress:• Nominal capacity: 100,000 tpy of copper inconcentrate.• Estimated start-up: 1H12.• Capex: US$ 2.3 billion.• 2012 capex budget: US$ 296 million.i. Conclusion of the mechanical assembly ofthe primary crushing.ii.Conclusion of the mechanical assembly ofthe water collection, supply and storagesystem.• Labor force: 5,176 employees.Main milestones¹• Plant operation license (LO) expected forthe 1H12.• Complete civil engineering works andelectromechanical assembly.• Mine and plant commissioning.1 as of September 201141Processing plant

Salobo II – expansion of Salobo IProject description¹• Location: Marabá, Pará, Brazil.• Scope: copper project. Raising the height ofthe tailing dam and increasing minemovement.• Nominal capacity: increase capacity to200,000 tpy of copper in concentrate.• Estimated start-up: 2H13.• Capex: US$ 1.4 billion.• 2012 capex budget: US$ 581 million.• Physical progress: 46%.• Executed capex: US$ 268 million.• Recent progress:i. Civil works at the flotation circuit onprogress.ii.Status¹The construction of the ball mill wasinitiated.• Labor force: 135 employees.Main milestones¹• Plant operation license (LO) expected for1H13.• Complete civil engineering works andelectromechanical assembly.• Mine and plant commissioning.1 as of September 201142Flotation columns

An update of VNCProject description• Location: Goro Bay, New Caledonia, SouthPacific.• Scope: Integrated nickel project,hydrometallurgical treatment of lateriteslimonites.• Expected nominal capacity: 60,000 tpy ofcontained nickel and 4,500 tpy of cobalt.• Executed capex: US$ 4.5 billion.• Capex for 2012: US$ 29 million.• % physical completion: 100%.Upstream• Autoclave performance exceeding expectations:operation stable, 95% Ni/Co extraction efficiency.• Sustained production of NHC (nickel hydroxidecake) since January 2011.DownstreamStatus• First seven SX columns rebuilt and installed.Remaining 14 columns expected to be ready in2012.• Integrated refinery operation underway.• Labor force: 1,250 employees.Main milestones• Expected output for 2011: 10,000 metric tons ofNi in NHC.• Expected output for 2012: 22,000 metric tons ofNi in NHC and NiO (nickel oxide).43

Rio Colorado – our first greenfield potash projectProject description¹• Location: Mendoza, Argentina.• Scope: investments in a solution miningsystem.• Nominal capacity: 4.3 Mtpy.• Estimated start-up: 2H14.• Capex: US$ 5.9 billion.• 2012 capex budget: US$ 1.081 billion.Status¹• Physical progress: 22%.• Executed capex: US$ 509 million.• Recent progress:i. Civil engineering works on progress.ii. Excavations.iii. Agreement with five Argentinean provinces.• Labor force: 2,617 employees.Main milestones¹• Complete civil engineering works.• Finalize housing construction foremployees.Drilling44¹ as of September 2011

Corporate social responsibility is a key strategicpriority: US$ 1.65 billion budgeted for 2012• Developing and implementing solutions in acontinuous quest for sustainability● Investment in environmental protection andconservation: US$ 1.4 billion• Creating opportunities for economic and socialmobility in local communities● Investment in social actions: US$ 293 million45

Investing in renewable energies• Wind power• Wind power park with total capacity of 67.5 MW.• Rio Grande do Norte, Brazil.• Expected capex: US$ 345 million.• Biodiesel• Project to plant 80,000 ha of palm trees toproduce 360,000 tpy of biodiesel.• Pará, Brazil.• Expected capex: US$ 633 million.• Reduction of emissions of greenhouse gases andpromotes development of local communities.46

Protecting the environment• Wind fencesControlling dust emission• The wind fences are barriers built around thestockyards to reduce the winds speeds, reducingparticulate emissions.• The wind fences minimize the emission of up to 120km/ hour.• Natural forestsProtecting natural forests• Vale protects more than 10,000 km 2 of natural forestsin North and South America, Asia and Australasia.• Vale’s programs also aim to restore degraded areasin Brazil - 66% native forest and 34% commercialplantations - totaling 989 km².• Area already restored of about 388 ha.47

Improving the quality of life and creating asustaining legacy in CanadaClean atmospheric emission reduction (AER)• Vale clean AER project will significantly reduceair pollution across Canada.• Expected capex: US$ 2.0 billion.• 2012 capex budget: US$ 416 million.• A crucial component for building positivelegacy in the Sudbury community, alongsideother initiatives, which include:- Slag re-greening project.- Reforestation program.48- Preservation plan for Willisville mountain.

Towards sustainable mining and logistics• Dry iron ore processing: reducing carbonemission and saving water• Truckless mining: cutting carbon emission,increasing safety and preserving the forest• Green vessels: Valemax ships reduce carbonemission by 34%49

Vale is addressing the major challenges toimplement its portfolio of world-class projects• Environmental licensing.• Project execution.• Human capital constraints.• Supply management.50

Vale took proactive steps to address theenvironmental licensing challenges• Stronger integration between environmental and projectdevelopment teams.• Best practices guide.• Teams of highly-skilled specialists.• Creation of an Executive Committee to expedite internaldecisions.• Stronger interaction with environmental regulators.• In-company training program.51

Vale implemented a disciplined methodology toproject developmentWe are using the tested and traditional FEL - Front-End Loading Methodologywith clear approval gates.ConceptualstudiesPre-feasibilitystudiesFeasibilitystudiesConstructionStart upOperationBusinessevaluationOptionsselectionsConstructionplanningApproval gates:Board approvalInternal approval• Ensure Board approval just after the conclusion of feasibility studies - FEL 3.• Compliance with scope, time, cost and quality for the approved projects.• Promote quality, transparency and predictability.• Comply with the environmental legislation, meet health and safety requirements andmitigate impacts on the communities.52

Projects’ capex and start-up trends are determinedwithin an integrated risk assessment framework,improving accuracy and approval standardsRisk identificationRisk analysisRisk managementMonitoringRisk analysis anticipates potential issues and allows for mitigation plans.53

New methodology for project execution wasapplied to 17 main projects under construction‣ Carajás Additional 40 Mtpy‣ Serra Sul S11D‣ Serra Leste‣ Vargem Grande Itabiritos‣ Conceição Itabiritos‣ Conceição Itabiritos II‣ Simandou I – Zogota‣ Salobo‣ Salobo II‣ Long Harbour‣ Totten‣ Rio Colorado‣ Moatize II‣ Nacala corridor‣ Teluk Rubiah‣ Tubarão VIII‣ CLN 150 Mtpy54

Vale is investing in human resources to supportgrowth projects• Development of a specific career for projectimplementation professionals.• Development of training programs for:– Technicians.– Engineers.• Further integration of strategic plan in order to anticipatedemand for skilled labor.55

Main challenges in supply management are theflipside of a strong commodity cycleMain impacts of supply constraintsLead time - monthsContractorsLack of manpower, critical to civilconstruction, engineering andelectromechanical assembly.Regular lead time Current lead timeHydraulic ExcavatorsOff highway trucks=100ton0 0 0 1 1 16 9618Off highway trucks>100ton624PricepressuresMain categories affected: conveyorbelts, tires, stacker reclaimers, steelstructures, construction andengineering services.Wheel dozersCrawler dozers2Large motorgradersDrillsContinuous miners66109121218181214Shuttle cars1216Lead timesLonger lead times due to increasingdemand for equipment worldwideLocomotivesConveyor belt12218356Source: Vale

Main initiatives in Vale’s procurement strategyProcurementintelligence• Anticipate the process decision by constantly market monitoring.• Review supply and demand gap analysis and establish mitigation planand contingency actions.Long-termrelationshipwith suppliers• Reinforce long-term agreements strategy for equipment.• Reinforce alliances for construction.Contingencyactions• Anticipate purchases for strategic materials & equipment.• Diversify suppliers base focusing on low cost countries.Health, safety& sustainability• Workshops with critical suppliers to coordinate Health & Safetyinitiatives.• Implement sustainability agenda with suppliers and employeesfocusing on measuring emissions of greenhouse gases.57

Growth options to be approved by the Board ofDirectorsCLN - S11DCopper CliffTUFSalitreApoloMEPIndonesiaMearimVitoriaITM SCristalinoCauêadapted plantAlemãoBayóvar IIALPAGelado10Mtpy118 Carnalita IEllensfieldTIGIron oreSteelNickelPotashCoking coalEnergyCopperPhosphates rockLogistics58

A wealth of growth options in early stages ofdevelopmentLaMoradaExploration¹PauloAfonsoPreliminary studies/ FEL IFEL IIPoloJaguarCorteSeteFurnasSerraArqueadaPorteirinhaMucanhaVuziBelvedereZeegtBroadleaCircularBowenBasinTimbopebaItabiritosCauêItabiritosConceiçãoItabiritosIIICarnalitaIICauêItabiritosIIIS11D IICarnalitaIIISerraLeste 10MtpyITM L 10MtpyCorumba7.5 MtpyBayóvarIIIEvateMulambePostOvoidMarianaItabiritosSimandouII blocks1 & 2KronauAntofallaNeuquénCSUZuunDalanRed HillEastIron oreNickelCoking coalSteelPotashEnergyCopperPhosphates rock591Includes later stages of exploration

Projects are expected to meet repletion and toallow output growth150Aggregate production growth¹Equivalent iron ore production unit basis10050Greenfield projectsBrownfield projects80Current operations02010 2011E 2012E 2013E 2014E 2015E 2016E60¹ Index encompassing the output of all Vale's products, base 2010=100.

61Vale: a global leader