Building a Stronger Organization

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Building a Stronger Organization

Murilo Ferreira, Vale CEO

Bank of America / Merrill Lynch – Global Metals, Mining & Steels CEO Conference

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“This presentation may include statements that present Vale's

expectations about future events or results. All statements,

when based upon expectations about the future and not on

historical facts, involve various risks and uncertainties. Vale

cannot guarantee that such statements will prove correct.

These risks and uncertainties include factors related to the

following: (a) the countries where we operate, especially

Brazil and Canada; (b) the global economy; (c) the capital

markets; (d) the mining and metals prices and their

dependence on global industrial production, which is cyclical

by nature; and (e) global competition in the markets in which

Vale operates. To obtain further information on factors that

may lead to results different from those forecast by Vale,

please consult the reports Vale files with the U.S. Securities

and Exchange Commission (SEC), the Brazilian Comissão de

Valores Mobiliários (CVM), the French Autorité des Marchés

Financiers (AMF) and The Stock Exchange of Hong Kong

Limited, and in particular the factors discussed under

“Forward-Looking Statements” and “Risk Factors” in Vale’s

annual report on Form 20-F.”

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We have been working in several dimensions to further improve

Vale´s highly competitive position in the mining industry

Delivering

projects

Increasing

Volumes

Reducing

Costs and

expenses

Increasing

productivity

Strengthening

our license

to operate

Setting the basis

for strong Free

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7.117

4,521³

3.547

2012 2013 2014

-50%

We have reduced expenses

1,2

_{significantly but we are not}

there yet…

¹ Net of depreciation and amortization.

² Includes SG&A, R&D, Pre-operating and stoppage and Other expenses.

³ Excludes the positive one off impact of US$ 244 million of the goldstream transaction in 1Q13

4_{Excludes the positive one off impact of US$ 230 million of the goldstream transaction in 1Q15.}

-21% 808 638 1Q14 1Q15 4 US$ million

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We have also made significant progress on cost reductions

but we are still not satisfied

Cash Cost FOB¹ port Brazil Freight Costs

19,9 18,3 22.7 19.8 1Q14 1Q15 23,9 17,2 1Q14 1Q15²

Iron ore unit costs and expenses, US$/t

-13%

¹ Ex-ROM and third party acquisitions. ² Excludes US$ 2,3/t of the bunker oil hedge.

Royalties -28% Expenses 7,5 4,0 1Q14 1Q15 -47%

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We remain committed to delivering additional

productivity gains

• Improvement in availability of the transportation fleet

in the Northern System

• Resizing of infrastructure, drilling and transportation

fleets

• Optimization of mine plans

• Ramp up of the Itabirites projects

• Improvement in the yield of the concentration plants

• Extension of the natural screening process to older

plants in Carajás

• Full automatic operation of reclaimers

• Automated operation of trains

• Implementation of innovative technology:

− Distributed traction technology

− Energy control systems at the ports

− Reverse routes at the ports

Mine

Beneficiation

Logistics corridors

Example of initiatives

Status

Completed In implementation

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High quality products will replace lower grade material and improve margins

And we are about to operate some of the most competitive

assets in the world

Itabirites Projects N4WS in Carajás

N4WS

Waste Dump Plant 2 Plant 2 Primary Crusher N5W N5S N4E N4W • N4WS licensed in 2014 • Pre-stripping completed

• Already mining the first layer of product (“canga”)

• Vargem Grande Itabiritos started up in 4Q14 • Conceição Itabiritos II and Cauê Itabiritos will

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Our differentiated and further improved product quality will

drive price realization up

Alumina Content % 1,4 1,3 2014 2018 Fe Content % Silica Content % -0.1 pp 63,7 64,6 2014 2018 +0.9 pp -1.3 pp 4,6 3,3 2014 2018 9,5% 8,3% 10,1% 11,6% 12,6% 1Q14 2Q14 3Q14 4Q14 1Q15

Delta premium IOCJ 65% vs. Platts 62%

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And our iron ore break-even will reduce even further as early as

2015

43 _2-3

0-1

0-1 0-1 _{37- 41}

1Q15 FOB Cash Costs Expenses Quality Freight Average 2015

US$ / dmt, average costs and expenses landed in China¹

1_{Adjusted for quality (Fe content differential and other elements such as silica, alumina and phosphorus)}

² Excludes the impact of the bunker hedge accounting (US$ 2.3 /t at 1Q15) ³ Assumes 3.05 BRL/USD

4_{Assumes VIU ranging from US$ 1.0/t to US$ 1.1/t}

5_{Assumes spot freight rates Brazil-China ranging from US$ 10.5 /t to US$14.0/t}

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• 8 projects delivered in 2014

• S11D advancing as planned: mine and logistics physical progress of 64% and 36%, respectively • Conceição Itabirites II: 97% of physical progress

• Cauê Itabirites: 82% of physical progress

• Mozambique: mine and logistics physical progress of 86% and 85%, respectively

• Investment cycle completed in Base Metals

14 12 9 7 5 4 2013 2014 2015 2016 2017 2018

Vale capex¹ profile @ 3 BRL/USD

US$ billion

In the coming years our capex will reduce sharply as we

complete our investment cycle

Forecast Status of Vale’s project portfolio

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4 4 5 8 17 22 26 26 2012 2013 2014 2015 2016 2017 2018 2019

And upon completion of projects our production volumes

will grow across all business segments

Copper Kt Coal Mt Nickel Kt Iron Ore¹ Mt 319 ₃₁₀ 332 340 376 411 453 459 2012 2013 2014 2015 2016 2017 2018 2019 237 260 275 303 316 2012 2013 2014 2015 2016 292 370 380 449 450 2012 2013 2014 2015 2016

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Helping us reach our ebitda targets¹ in base metals for 2015

and 2016

3.1-4.6 0-1.0 0.1-0.3 0.5-0.8 2.5 2015-2016 Canada & PTVI

Operations VNC Salobo 2014 US$ billion Reach 37 Ktpa at VNC

1_{Considering 3,00 BRL/USD, 1,28 CAD/USD, copper prices ranging from US$ 5,800 to 6,800 /t and nickel prices ranging from}

US$ 14,500 to 21,000 /t

Complete the ramp up of Salobo (200 Ktpa)

Increase volumes and reduce cost and expenses in Canada and Indonesia

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3,3

2,0

1,2

0,5

7,0

Costs reduction Expenses reduction Quality²/Pricing improvement

CFR freight reduction Total

And helping us reach even higher margins in iron ore

Increase in EBITDA unit margins (US$/t), 2018 vs. 2015

1 _{Excluding ore from third parties, ROM and pellets}

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Aluminium Logistics Oil & Gas Gold Copper Fertilizers Kaolin Coal Shipping Manganese Energy

Meanwhile, we continue to divest non-core assets and form

strategic partnerships

¹ Including the impact of capex avoided by VALE

2011 US$ 1.1 billion 10 Very Large Ore Carriers El Hatillo Araucária Ferroalloy plants in Europe

Oil & Gas Concessions I CADAM Gold streaming I Gold streaming II VLI Log-in Fosbrasil Tres Valles Oil & Gas Concessions II Mozambique deal with Mitsui¹ Belo Monte participation Aluminium assets Norsk Hydro 2012 US$ 1.5 billion 2013 US$ 6.0 billion 2015 US$ 5.0 billion Reference US$ 1 billion

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From these divestments and partnerships we expect to raise

US$ 6-7 billion in cash proceeds in 2015

Timing Cash Impact in 2015 Status Initiatives • Mozambique Coal

• Project Finance in advanced stage of discussion

• Government authorizations and direct agreements with lenders under discussion

• VLOCs • Progress on the previously

announced negotiation with COSCO and other undisclosed partners and on the development of a financial structure for the sale of vessels • Non-voting

shares

• Transaction structure and contracts being prepared

• Goldstream • Completed with US$ 900 million

received in March 2015 4Q 2Q/3Q 2Q/3Q Done Transaction details

• Investment agreement with Mitsui for partnering in the Mozambique coal project • Sale of Valemaxes with the

signature of long-term, low cost freight agreements • Issuance of redeemable

non-voting shares on specific assets

• Sale of an additional 25% of the payable gold stream from the Salobo mine

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Results from our initiatives are already setting the basis for strong

free cash flow generation as of 2018

• Capex will be around US$ 4 billion

• Volumes will increase by about 40% in iron ore, 20% in copper

and 15% in nickel

• Costs will decrease with higher productivity, further dilution of

fixed costs and expenses, and organizational restructuring

• Iron ore quality will support an increase in price realization

• Freight costs will decrease

• Free cash flow and dividends will reach unprecedented levels

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