The multiplier effect of infrastructure Speaker: Marcio Senne de Moraes - External Affairs Global Director, Vale Mining On Top: Africa - London Summit 24-26 June 2014 | London

1. The multiplier effect of infrastructure
June 2014
Mining on Top – 24th
of June 2014

2. • A global mining company
headquartered in Brazil
• The global leader in iron ore and
pellet production and the second
largest nickel producer
• We also produce copper, coal,
fertilizers, manganese, ferroalloys,
cobalt and platinum group metals
• We invest in logistics and energy
We are Vale

3. Mission
To transform natural resources into
prosperity and sustainable development
Vision
To be the number one global natural
resources company in creating long term
value, through excellence and passion for
people and the planet
Values
Life matters most
Value our people
Prize our planet
Do what is right
Improve together
Make it happen
SouthernPortsComplex(CPBS)inRiodeJaneiro
MárcioDantasValença/AgênciaVale

4. Created by an executive order
on June 1, 1942, the company’s
operations were initially
concentrated in Minas Gerais.
In its first year, it produced
40,000 metric tons of iron ore,
the same amount it now ships
out every hour.
1942
40,000 tons

5. Privatized on:
1997
May 6
Market value:
Net earnings:
Workers:
US$10.5
billion
US$350 million
11,000 (direct employees)
2013
Market value: Net earnings:
Workers:
US$584 million
Over 130,000 (employees and
service providers)
US$79.206
billion

6. Vale around the world
Vale is headquartered in Brazil, with activities on 5 continents, employing over
130,000 people including indirect employees and contractors.

7. Our business
Logistics – our logistics infrastructure
integrates mines, railroads and ports. This is
important as it enables us to ensure rapid,
low-cost and sustainable transportation of our
products.​​
Steelmaking – Promoting the development
of steelmaking in Brazil – the country that is
home to our biggest operations – is part of
our strategy.
Mining – we seek continuous improvement
and overcoming standards of excellence and
research in the extraction and mineral
production
Energy - Find out how we are investing in
initiatives to reduce energy consumption and
developing renewable sources, such as
biodiesel.

8. Key logistics projects around the world
Carajás – CLNS11D: The largest integrated logistics investment
ever undertaken for iron ore in Brazil.
Nacala Corridor: coal, general cargo, passengers - one of the
largest logistics investment ever undertaken in Southern Africa.

9. 9
Vale in Africa

10. 1010
Vale in Africa
Implementation of Zogota
mine in Simandou South
Guinea
Zambia
Lubambe Mine (Vale-ARM-ZCCM JV)
in production since 2012. Lusaka
office is the base for the exploration
team and project generation
Malawi
Development of
the Nacala
logistics corridor
Moatize coal mine and its
expansion project,
logistics operation and
mineral exploration
Mozambique

11. 1111
Overview
A major investor in the continent:
More than US$ 6 billion of investments planned for the continent in the
upcoming years, fostering development and economic diversification.
• Expansion of the Moatize coal mine – US$ 2 billion.
• Nacala Railway corridor – US$ 3.4 billion.
• Nacala Port – US$ 1 billion.
Total: US$ 6.4 Billion

12. 1212
2004: Vale won the international bidding
to develop the studies in the Moatize
coalfield
2007: Signature of the mining
concession contract
2008: Start of constructions in the
Moatize industrial complex
2011: Start of operations, transportation
and shipment of coal
Investments in Mozambique
Long term investments (around 40 years)
Mineral exploration and
feasibility studies
3 year projects
implementation
35 years of operations
Moatize I
Rehabilitation of Sena-Beira Line
Cais 8 Coal Terminal
Operation Moatize I
Operation Sena-Beira
TCC 8
Moatize II
Nacala Corridor Project
Operation Moatize I &II
Port and Rail Operations
(shareholder)
20132004 2007 2008 2011 2014 20462013

13. • Moatize I - in operation since 2011
• Mine’s expansion (Moatize II) is
projected to commence in 2014
• Total Capex: US$ 2.068 billion
• Long-term projected capacity of 22
million tonnes per year
• Supported by the Beira and Nacala
rail/port transport Corridors, over
600km and 900km in length,
respectively
Moatize Coal Mine and integrated infrastructure

14. 1414
2004: Vale won the international bidding
to develop the studies in the Moatize
coalfield
2007: Signature of the mining
concession contract
2008: Start of constructions in the
Moatize industrial complex
2011: Start of operations, transportation
and shipment of coal
Strategic transport corridors
foreseen for eventual development /
realization
Source: PIDA (Programme for Infrastructure
Development in Africa)
Transport corridors – benefits beyond mining
Beira and Nacala corridors

15. 1515
2004: Vale won the international bidding
to develop the studies in the Moatize
coalfield
2007: Signature of the mining
concession contract
2008: Start of constructions in the
Moatize industrial complex
2011: Start of operations, transportation
and shipment of coal
Nacala Corridor Project
a pioneer investment and catalyst for regional economic growth

16. 1616
2004: Vale won the international bidding
to develop the studies in the Moatize
coalfield
2007: Signature of the mining
concession contract
2008: Start of constructions in the
Moatize industrial complex
2011: Start of operations, transportation
and shipment of coal
Vale in Malawi
A new railway stretch of 137 km, between
Chikwawa and Nkaya Junction, in the
southeastern province of the country, which
will be built by Vale Logistics Limited
The recovery of 99 km, between Nkaya
Junction and Nayuchi, by CEAR.
Timeline
2005 – Feasibility Studies
2011 – Concession agreement with the Malawi Governement
2012 – Commencement of the fieldworks - Malawi
2014 – Start up of the Nacala Railway Corridor - Malawi
View of the construction of one of the
bridges
View of works on the railway

17. Social development

18. 1818
2004: Vale won the international bidding
to develop the studies in the Moatize
coalfield
2007: Signature of the mining
concession contract
2008: Start of constructions in the
Moatize industrial complex
2011: Start of operations, transportation
and shipment of coal
Social Investments
Direct contribution in Mozambique
• Local suppliers: About 1.100 companies in Mozambique, US$ 2.5
billion in local procurement.
• Jobs: 13,826 jobs created, 2,155 direct and 11,671 indirect jobs. 85%
of the local workforce.
• Training: over 800 Mozambicans trained since 2008; 186 were trained
in Brazil in exchange programs
• Social investments: over $ 38 million invested since 2010. In Tete,
social investments are expected to exceed $ 30 million in the coming
years.

19. 1919
Social Development
Our social programs are conducted from two perspectives
Voluntary actions, conducted by Vale
Foundation, in the areas of:
Education, health, infrastructure, agriculture,
sports, culture and heritage. Shares in cooperation
with public, private and community organizations,
with the mission to promote the well-being and
socio-economic development.
Measures to eliminate or mitigate the
impacts of our activities:
Vale seeks to be a reference in social action
to make a positive contribution to the
communities, of which it is part, respecting
their cultural diversity and community
legacy.

20. 2020
Employment Generation
More than 13.000 employs generated
(direct and contractors).
89% 11%
Of the employees are
from Mozambique

21. 2121
Employment generation by region

22. Strengthening local
enterprises - The Linkages
Program in Mozambique and
Malawi

23. Strengthening the local supply chain

24. Suppliers
In 2013 we spent US$ 1.4 billion in
Mozambique, 75% of which with
local businesses.

25. Vale priorizes local providers in order
to stimulate the dinamization of the
regions where it operates.
Main characteristics to become a
provider
•Quality
•Entrepreneurship (remote regions)
•Health & safety
•Ethical conduct
Acting in the Value Chain

26. Many Mozambican companies has expanding its activities to the provinces where
Vale operates.
Recruiting and out
search services
Recruiting and out
search services
Cleaning servicesCleaning services
Gardening servicesGardening services
Sealing servicesSealing services
Air conditioning
maintenance
Air conditioning
maintenance
Tete
Nampula
Sofala
Maputo
Expansion of local suppliers

27. 2727
Vale in Mozambique – strengthening local enterprises
Over US$1.6 billion spent by Vale in contracts with over 800 Mozambican
companies.

28. 2828
Vale in Malawi – strengthening local enterprises
Over US$3.5 million spent by Vale in contracts with over 70 Malawian companies,
in 2012 alone.

29. A wide array of local enterprises benefited

30. Thank you!
Marcio Senne de Moraes
External Affairs Global Director