VIII Analyst & Investor Tour 2008 · Current Mines 145.8 168.1 174.2 189.1 212.0 235.0 265.5 296.0 318.9 317.4 315.0 305.7 291.5 ... Main strategies and new actions in implementation

1

VIII Analyst & InvestorTour 2008

June 19, 2008

2

Iron ore operations & projects

Carajás

June 19, 2008

José Carlos SoaresDirector of the Northern System

3

Southern System (2008):

Iron ore production: 95 Mt/y

Pelletizing plants: 6.7 Mt/y

Southeastern System (2008):

Iron ore production: 126,3 Mt/y

Pelletizing plants: 29.1 Mt/y

Iron ore production systems 2008

UrucumUrucum

Northern System (2008):


São Luís pelletizing plant: 7 Mt/y

324 million metric tons of iron ore 43 million metric tons of pellets

4

Northern System (2008):


São Luís Pelletizing plant: 7 Mt/y

Northern System

UrucumUrucum

5

Southern Range

Northern Range

Eastern Range

Iron Ore Formation

Key:

Northern System - Carajás overview

6

Run of mine %

Carajás iron ore mines

Fe P SiO2 Al2O3 Mn LOI2007 66.00 0.040 1.30 1.25 0.60 1.90

7

Production capacity (Mt/y)NN

CAGR 2002/2008 = 9.7%

Northern SystemHistory & IO production evolution

103,0

08F

0,9

13,5

23,5

29,831,8 32,8 32,6 32,8

35,239,3 40,8

43,845,8

44,047,7

52,4 53,9

58,9

69,472,5

81,8

91,7

43,2

0

10

20

30

40

50

60

70

80

90

100

110

67 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Mt

Pier 03 Start upCarajás

Discovery

Carajás Start up15 Mtpy

Pier 01 Start up

Pier 02 Start up

PelletizingPlant Start up

25 35 45 52 56 70 85 100

8

General information:

Length: 892 km; single track

Crossing yards: 56

Bridges and overpasses: 62

Train type (2007): 3 locomotives

and 210 railcars

Net cargo: 21,600 (sinter)

Railcars total: 8,298

Locomotives fleet: 160

Cycle duration: 78 hours

Northern System EFC - Carajás Railway

9

PIER III

Northern System Ponta da Madeira Maritime Terminal

PIER I PIER II

Ships up to 250,000 dwtMaximum draft: 21mLoading rate: 3 X 8,000 t/h

10

Current capacity : 7.0Mtpy

São Luís pelletizing plant

Northern System

11

10,094

443

2,478

653

2,427

760

0

20

40

60

80

100

120

2008 2009 2010 2011 2012 2013

Northern System

Southern System

Southeastern System

Serra Sul

Additional30Mtpy

Bau

CE ItabiritosAuxiliary Equipment

400400VGR 1/1 VGR 1/2S. Leste

Mtons

US$ 500 M

Iron ore project pipeline

12

Production capacity increase to 422Mtpy in 2012 from 146Mtpy in 2000

Master plan: 2000-2012Integrated systems production evolution

0

50

100

150

200

250

300

350

400

450

500

Mt

New Projects 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0 24.2 56.2 73.8 130.8

Current Mines 145.8 168.1 174.2 189.1 212.0 235.0 265.5 296.0 318.9 317.4 315.0 305.7 291.5

2000 2001 2002 2003 2004 2005 2006 2007 2008' 2009' 2010' 2011' 2012'

422.3 379.5 371.2

341.5 323.9

296.0 265.5

235.0 212.0

189.1 174.2 168.1 145.8

SerraSul

* Forecast

13

324 Mt of iron ore;43Mt of pellets

23 mines in operation;

railway network of 2,000 km plus;

4 shipping terminals;

9 pelletizing plants.

20082008

422 Mt of Iron ore;65Mt of pellets

26 mines in operation;

railway network of 2,000 km plus;

5 shipping terminals;

12 pelletizing plants;

20122012

also operating abroad.

Summary of Vale’s iron ore

14

Vale: world leader in the iron ore market:

#1 in iron ore and pellets;

33% share in seaborne market;

highest quality standards;

huge mineral reserves.

Vale is planning huge investments in iron ore production never seen before in the mining industry, in order to meet the growing demand for raw materials from the steel industry

Environmental protection is a major concern.

Final comments

15

• Air and water quality monitoring;

• Support for protection of environmental conservation units;

• Climatology;

• Waste management;

• Environmental education;

• Support to indigenous communities.

Environmental policy

Investments in environmental protection:

2006: US$ 145 Million

2007: US$ 190 Million

Provision of US$ 171 Million for future mining depletion and

construction of tailing dams.

16

Additional 30 Mtpy

89%

11%

SF PF

Description:

Construction of a crushing facility and a wet screening facility at Northern Range which would be able to supplement the Northern System production capacity in 30 Mtpy.

Resources:

– Resources: N4WN: 562,7Mt– Drilling Campaign: expected to

finish in Dec/07.

Production Capacity: 30 Mtpyafter 2009

Start up: 2009

Location

Production composition:

17

Southern Range project

Description:

– This project aims to attend the Northern System demand after 2012 with an additional production of 90 Mtpy.

Resources:

Production capacity (Mt):

– 2012: 40.0 Mtpy. (ramp-up)

– After 2012: 90 Mtpy

Start up: 2012

Production composition:

SF

PF

68%

32%

18

Carajas iron ore deposits


19

Starting production capacity: 40Mt/yOperation start-up: 2012Distance from Northern Range: 80 km


21

The Onça Puma nickel projectCarajás

June 19, 2008

João CoralDirector of Mineração Onça Puma

22

SUSTAINABLE DEVELOPMENT

PROJECT IMPLEMENTATION

PRE OPERATIONAL ACTIVITIES

PICTURES

GENERAL INFORMATION

23

Location

24

2002 2003 20052004 2006 2007 2008Phases

Feasibility study

Basic engineering

Scoping study

2009

Basic eng review

Implementation

Vale acquisition

Approval by Boad of Directors

Start Up Line 1

Start up Line 2

Comissioning

FebMay

Onça Puma history

25

Project sumary

Mine life: 36 years

Grade for first 20 years: 2.4% - 1.6% Ni / 1.73 Ni (average)

Process route: RKEF – Rotary Kiln Electric Furnace

Production: Design capacity: 220.000t FeNi @ 25% – 57.000tpy

Estimated CAPEX: US$ 2.297 billion

Proven & probable reserves : 82.7Mt @ 1.73% Ni (saprolitic ore)

26

2009 estimated production: 17.5 kt Nickel content

2012 nominal capacity: 57.0 kt Nickel content

Product transportation: Road to Parauapebas – 350 km

Railroad to São Luis – 890 Km

Headcount: 1200 team + 400 from contractors

Cash cost: US$ 3.35 / lb Ni

Operational sumary

27




PICTURES

GENERAL INFORMATION

28

1200 employees and 400 contractors

Great Investments in recruitment and labor qualification

– Construction of Training Center at Ourilândia do Norte (PA).

Attraction and Retention Program considered

Operational manpower

2 years: 50% local manpower

Next years: 70% local manpower

Teachers: 100

Students: 500 until 2008

Initial: 120 trainees and 40 operators

Partnership with class entities for education development

29

Social relationship

Onça PumaProject

Farmers Associations

Municipalities

Aboriginals(Xikrins e Kaiapós)

Churches

Government Institutions

(INCRA/SEMA/SRFother)

MST and Sem Teto

30

Social investments

More than R$ 100 million were committed with social institutions to be applied on social investments for the community until 2009.

EDUCATION• Students House• Upgrade and Construction of Schools• Construction of Training Center

HEALTH & SANITATION• Water & Sewage Treatment in the town• Construction of a new waste disposal

ECONOMIC AND URBAN DEVELOPMENT• Construction of roads and bridges• Upgrade the local airport• Training of local Suppliers

SAFETY & SOCIAL ASSISTANCE• Agreements with the police authorities and local traffic department• Understanding campaigns on traffic laws

31

Project environment

CONCEPTS 1 PROGRAMS

• 100% rain water used for operation, to avoid reduce level of Catete River that suppliers Xicrin Indian Reserve.

dam or water reservoir

CONCEPTS 2

32

Project environment

•Benchmark developments to dust emissions control system provided to attend Brazilian and International standards:

• Brazilian regulatory limit for dust emission: 100 mg / Nm3

• Industry average: 25 up to 75 mg / Nm3

• Onça Puma project factor used: 50 mg / Nm3

CONCEPTS 1 PROGRAMSCONCEPTS 2

33

Project environment

Land rehabilitation

Solid waste control

Water resources

Atmospheric emissions& quality of air

Archeology

Environmental education

Fauna and plant control

CONCEPTS 1 PROGRAMSCONCEPTS 2

34




PICTURES

GENERAL INFORMATION

35

Physical progress implementation

66,64%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

ago/0

6se

t/06

out/0

6no

v/06

dez/0

6jan

/07fev

/07mar/

07ab

r/07

mai/07

jun/07

jul/07

ago/0

7se

t/07

out/0

7no

v/07

dez/0

7jan

/08fev

/08mar/

08ab

r/08

mai/08

jun/08

jul/08

ago/0

8se

t/08

out/0

8no

v/08

dez/0

8jan

/09fev

/09mar/

09ab

r/09

mai/09

Mês

% M

ensa

l

0%

13%

25%

38%

50%

63%

75%

88%

100%

% A

cum

ulad

o

%BL. %BL (2007) %BL (2008) %repr. % real %BL acum. %BL acum (2007) %BL acum (2008) %Repr.acum. %Real acum.

36

Global suppliers involved

•PROJECT COMPANY: HATCH AND PROGEM

•STACKING AND RECLAIMING: FAM / DEDINI

•DRYERS, KILNS AND ESPs: FLSMITH

•ELECTRIC FURNACE: DEMAG

•REFINERY: INTECO

•SHOTTING: UDDEHOLM

•TRANSFORMERS: AREVA

•ELETRIC AND AUTOMATION: ABB

•TRANSMISSION LINE ALUSA

•MINE FLEET: CAT AND SCANIA

37

Health and safety

The Onça Puma Project has been obtaining the excellent results in health and safety among the operational / implementation units of VALE.

The Onça Puma Project reached important challenges as 4.5 million of hours worked without accidents with waste of time.

Main strategies and new actions in implementation for Health andSafety:

Elaboration of Health and Safety diagnosis;

To revalue implementation of contracted administration system improvements;

To revalue accidents / incidents services;

38




PICTURES

GENERAL INFORMATION

39

Process flowsheet

REDUCTANT COALPULVERIZED COALORE PROCESSING

METAL PROCESSINGFINES

ELECTRIC FURNACE

REFINING SHOTTING

DRYER

DELIVERY

STACKER

SLAG POTMETAL

STORAGE

ROM

-600mm

PRIMARYCRUSHER

RECLAIMER

BAGHOUSE

ESP

LADDLEFURNACE

TRUCK

KILN & DRYERFINES

ESP

SECONDARYCRUSHER

COAL PREPARATION

CRUSHER

MILL

BAGHOUSE

ROTARY KILN

EXTRUDER

-200mm

-50mm

-50mm

+50mm

-50mm

-12,5mm

+6,35mm-6,35mm

BAGHOUSE

DRY ORESTOCKPILE

40

Pre operational activities

Pre-operational group – GPO was implemented to:

– To structure operational units;

– To develop technical and administrative activities;

– To warrant the units start-up, with the minimum

possible level of problems;

– Levering the ramp-up and nickel production curves.

41

Main GPO’s proposal

Structure operational units during the project phase

Dimension, mobilize and train all the unit’s employees

Participate of the project and assembling processes in an operational and maintenance perspective

Coordinate commissioning owner’s team process

Implement a quality program in the operational units

Implement the products and consumables logistics facilities

Standardize equipment and processes among projects

Develop integration and synergy among MOP and Vale Inco

42

Main GPO’s implementations / benefits

43

Operational areas involved

Geology & long term planningMine operationMetallurgy operationProduction planning & quality controlMobile equipment maintenance Plant maintenanceMaintenance engineeringCommissioningProducts and consumables logisticsCommercial

APROACHES USEDGPO Support to

44

Personnel comparative productivity

Cast ore per number of employees comparative:

Ore throughput / Total workforce (*1000)

1,58 1,54

1,33

0,70 0,66

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

Onça Puma Cerro Matoso Loma de Níquel PT INCO CODEMIN

Data: Brookhunt – jan/2008

BETTER

45

VALE infrastructure for businesses directionality;

Process technologies development;

Benchmark support for the specific activities executions, as for

instance: financial operations, supplies, IT, commercial, institutional

relationships, etc;

High technical capacity / management team for the projects

implementation, committed with the company’s development;

Good relationship and interaction with the communities of the project

influence areas;

Development formation programs for local labors;

VALE’s strategy market positioning in the world;

Project strengths

46




PICTURES

GENERAL INFORMATION

47

Pictures - historical progress

Jun/2006

Panoramic vision

Aug/2006 Jun/2007 May/2008

Saprolitic nickel ore

48

Initial works


Jun/2006 Aug/2006 Jun/2007 May/2008

49

Engineering works execution and virolas transport


Jun/2006 Aug/2006 Jun/2007 May/2008

50

Works in advanced stage


Jun/2006 Aug/2006 Jun/2007 May/2008

52

Copper operations and projects

Carajás

June 19, 2008

Marcio GodoyDirector of Copper Department

53

Copper business

Our copper business comprises operations in Brazil and Canada and totals 300 kt of copper per year.

We have an organic growth strategy with projects in Brazil and other countries and a good base of advanced stage projects in Carajás.

Currently we`re producing copper at Sossego, Sudbury and at Voisey´s Bay.

We also have Salobo Project under construction and three projects in advanced stage of development.

54

Copper operations management

The Copper Department is aligned with the company’s mission to transform mineral resources into prosperity and sustainable development:

Hiring of local workforceAbout 87% of the workforce hired for Sossego and UHC came from local residents.

Water recycling and tailing reduction programsSossego`s use of net water fell from 18.37% of total water consumption in 2004 to 4.48% in 2007.

Works on reforestation and recovering of degraded areas More than 60.000 trees planted.

55

1Q07 1Q08Concentrate Production (dmt) 100.3 101.8

Sossego

Sossego is in the fourth year of operation and is constantly focusing on cost reduction and productivity.

Satellite ore bodies that will expand Sossego`s lifetime (118 Sulphide Project and Visconde Target):.

- 118 Sulphide Project has probable and proved reserves of 12Mt @ 2.4% Cu that will be treated at Sossego`s concentrate plant.

- Visconde, which is located about 15 km from Sossego mine may host more than 100 Mt of copper ore.

56

Salobo

Mining and plant equipments already ordered, Salobo`s Phase I (100 ktpy) is scheduled to deliver the first concentrate on 2H10.

The access bridge has been constructed. Vale also concluded the vegetal suppression at the buffer stockpile, temporary stockpileand at the maintenance shop. Earthworks are already contracted, as well as civil construction of buildings, power line and sub-station.

7% of the project is completed, with a total expenditure to date of US$ 100 M.

57

Carajás Hydrometallurgical Plant - UHC

UHC will develop an alternative technology to pyrometallurgy.

Hydrometallurgy has some advantages, such as the possibility to treat low grade concentrates and obtain higher recovery grades in the concentrate plant.

Vale`s main objective is to prove the technology on industrial scale and then decide on the feasibility to build a bigger plant (160 kty).

The 10 kty plant will operate for 18 months.

58

Papomono - Chile

Main equipments already ordered.On implementation, Papomono is a Sx-Ew operation, an opening door to Vale in Chile and the beginning of geographical diversification of the copper business.

Permitting on going.All the cash flow generated by Papomono`s operation will be reinvested in Chile`s exploration works.

59

Other copper projects

Cristalino ProjectStatus: Pre-Feasibility.

Trade off analysis determined the optimum size of 16 Mtpy of

ROM (120 kty of copper in concentrate).

Permitting on going. Clean concentrate.

118 Oxide ProjectWaiting for Implementation license.

61

The Paragominas bauxite mine

Carajás

June 19, 2008

Geraldo BrittesDirector of Operations, Paragominas Bauxite Mine

62

First bauxite project wholly owned by Vale, located in the municipality of Paragominas, in the state of Pará;

Started its operations in April 2007, to supply Alunorte’s expansion II, with investment of US$ 352 million for 5.4 Mtpy of capacity - US$ 65.2 per ton - one of the lowest capex per ton of the industry for a greenfield project;

First bauxite mine in the world to use slurry pipeline;

The first expansion to 9.9 Mtpy completed along with Alunorte’s expansion III. The investment cost for the mine is US$ 196 million, equivalent to US$ 43.5/ton;

Proven and probable reserves of 299.9 Mt enough to support production for more than 30 years at current capacity (9.9 Mtpy);

Paragominas bauxite mineOverview

63

Recovered water

TailingsDam

Concentrate Thickener (Product)

Tailings thickener

Recrusher

SAG mill

Classification

Ball mill

Silo

Pumping Station to Pipeline

Reclaimer

Crusher

Paragominas bauxite mineSimplified process flow

64

Paragominas bauxite mineMining

Strip mining method;

Gibsite bauxite type;

Suitable for low pressure and temperature alumina refineries;

Quality: 50% available alumina and 4% reactive silica.

65

Paragominas bauxite mineBeneficiation

Beneficiation includes SAG and Ball milling;

Mass recovery of 70%;

Slurry production with 50% of solids;

Electric energy supplied by Tucurui hydropower;

230 KV transmission line built by Vale.

66

Paragominas bauxite mineSlurry pipeline

Capacity designed to 14.85 Mtpy of final product;

Pump station with six units with combined capacity of 9.9 Mtpy;

Pipeline 244 Km long and 24” diameter;

From mine to refinery it takes 40 hours trip.

67

Paragominas bauxite mineTailing disposal

Use of tailing thickner to recovery water for beneficiation;

Four diques to receive tailings in layers for dry stacking;

High solids content after drying;

High solids capacity to reduce environmental impact;

Total water recovered after drying process.

68

Paragominas bauxite mineDewatering

Receiving tanks and filter plant Instead of port facilities;

Hyperbaric disc filters to dewater the slurry;

Solids content increased from 50 to 88% after filtering;

Excess of water treated and used in Alunorte process.

69

Paragominas bauxite mineFuture developments

A second expansion to 14.85 Mtpy, when approved, will supply theNew Alumina Refinery without the need for a second pipeline;

Budget for the second expansion is estimated at US$ 416 million;

Strong exploration effort being carried in the region should increase proven and probable reserves overtime;

A second pipeline can be built to support other 14.85 Mtpy at Vera Cruz Sector;

The concept of the project is very competitive considering the high freight cost for bulk carrier in the future;

Paragominas has the potential to become the largest bauxite complex in the world.

1

Analyst & Investor Tour 2008

Eduardo Bartolomeo

Executive Director of Logistics

2

Logistics overview and strategic drivers

Logistics performance and investmentsIron oreGeneral cargo

Operational excellence drivers

3

OPERATIONAL FIGURES

10,179 kilometers railroad network

1,008 locomotives and 41,761 wagons

6 Ports and Maritime Terminals

3 vessels in operation

6 vessels under construction

THESE ASSETS PROVIDE FOR…

251 million tons of iron ore shipped

through Vale Port Complexes in 2007

28.3 million tons of general cargo shipped through port terminals in 2007

EFC

EFVM

FCA

Port Terminals

Multimodal Terminal

FNS (EFC operation)

FERROBANTrackage right

Vale provides integrated logistics services including railroads and ports terminals

4

We want the reputation of being the safest and most efficient logistic provider

Increase competitiveness in mining operations, mainly iron ore and coal

In general cargo, focus on high margin and volume products, mainly steel industry and

agribusiness

Vale logistics strategy

Investments in safety

Focus on accidents reduction

Preventive actions

Operational efficiency

Investments in infrastructure, automation, technology and training

Vale environmental policy is an action based on ethics and social commitment

Corporate Social Responsibility Productivity Safety

Strategic drivers

5




6

Vale has increased its iron ore shipments at 9.7% per year...

Iron ore shipmentsmillion metric tons

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

39.2 Mt

60.8 Mt

CAGR: 9.7%

7

…investing US$ 5.4 billion to expand its railroad and port capacity to meet demand growth…

1,896

1,092

649

981

484

274

2003 2004 2005 2006 2007 2008

Logistics investments 2003 to 2008 – US$ 5.4 Bi

US$ million

(*)

(*) Budget

8

Vitória a Minas Railroad – EFVM

…in the Southern System…

Vitória a Minas Railroad investments

Tubarão Port investments

Implemented:

Increase of 110 locomotives and 5,100 wagons in the last 5 years

Duplication of Railroad between Brucutu and Costa Lacerda

Expansion of railroad yard at Costa Lacerda

In progress:

Expansion of railroad yards at Drummond and Ipatinga

Expansion of railroad yard in Tubarão Complex

28 locomotives and 900 wagons (2008/09)

Implemented:

5th car dumper (start-up: May, 2008)

In progress:

Overall and services of all existing car dumpers

Performance improvement of conveyor belts and replacement of 2 ship loaders

9

5th car dumper (start-up: May, 2008)

In construction – 2007, October

Start-up - 2008, May

10

Carajás Railroad - EFC

North South Railroad - FNS

…as well as in the Northern System

Carajás Railroad investments

Ponta da Madeira Maritime Terminal investments

Implemented:

Increase of 87 locomotives and 5,540 wagons in the last 5 years

Expansion of 51 railroad crossing yards for 330 wagons

In progress (30 millions tons additional):

Expansion of Carajás and São Luis railroads terminals

38 locomotives and 3,128 wagons (2008/09)

Implemented:

Addition of Pier III

Construction of 5th ship loaders at Pier III

Addition of 4th loading tracks

In progress (30 millions tons additional):

Addition of 4th car dumper

Stock yard “I”, stacker/reclaimer and conveyors

11

Ship Loaders and stock yards

Stacker and reclaimer 04 -Ponta da Madeira Terminal

Construction of 5th ship loaders Ponta da Madeira Terminal

12

Expansion of Carajás railroad crossing yards – Location 41

Expansion of Ponta da Madeira railroad terminal

Railroad crossing yards for 330 wagons...

13

... making possible the biggest train in the world

Train specifications

4 locomotives

330 wagons

3.5 Km of length

34,000 tons of iron ore per train

Improvements

In average, 9 trains/day in the railroad (reducing 30% comparing the last model)

Increasing locomotives fuel efficiency

... waiting 5 minutes we can see the end of the train.

Movie

14

Northern System has increased its transportation at 20% per year...

53 5766

7280

87

1024

4

56

7

7

8

45

6

6

6

6

7

6166

76

83

93

101

117

2002 2003 2004 2005 2006 2007 2008 (*)

Iron Ore + Manganese – Foreign Market

Iron Ore – Domestic MarketGeneral cargo

(*) Budget

CAGR: 20%

Northern System Transportationmillion metric tons

15

Carajás Railroad

2 pier

4 ship loaders

2 loading tracks

4 car dumpers

4 stock yards

New railroad branch in Carajás region (183 Km)

Carajás main line duplication (612 Km)

72 locomotives and 5.540 wagons

Carajás Railroad - EFC

North South Railroad - FNS

Expansion of Ponta da Madeira Maritime Terminal

In addition, new logistics projects are being developed in the Northern System to attend growing demand in iron ore

16

Expansion of Ponta da Madeira Maritime Terminal

2 new pier and 4 ship loaders

4 new stock yards

2 new loading tracks

4 new car dumpers

17

To better understand the dimensions…

System Capacity – 2.6 times Carajás original start-up

Concrete Consumption – 1 million m3 (13 times Maracanã Stadium, 4 times

Eurotunel and twice Rio Niterói Bridge)

Earth works – 16 millions m3 in railroad (113 times Berge Stahls)

Ship loaders – The four largest traveling ship loaders in the world

Port – The additional capacity represent the third biggest port in Brazil

18

Majors challenges…

On time on quality

Environmental permits

Equipment lead-time

Human resources (about 15,000 people in the construction)

Low OPEX

Automation

Equipment Standardization

Higher axle load

Low community impact

Partnership with Vale Foundation to implement social programs

19




20

General cargo gross revenues increased at 31% per year…

253

411

548

651

745

Gross revenue evolutionUS$ million

1S 03 1S 04 1S 05 1S 06 1S 07

By industry sector(2006 basis)

7.2%6.4%

45.1%

38.3%

3.0%

FuelBuilding materials

Others

Steel

Agriculture

CAGR: 31%

21

FCAFerroban – FCA Right of WaySouthern Coastal Railroad (in construction)Multimodal Terminal

…improving Operational & Financial performance of Centro Atlântica Railroad

Centro Atlântica Railroad - FCA

• Railroad sections renewal

• Improvement of locomotive fleet

• Business re-engineering

• Cost reduction program

• EBITDA turnaround

FCA EBITDA turnaroundUS$ million

31.0

72.1

(34.6)

2005

2006 2007

22

Plan to develop new logistics infrastructure in Espírito Santo state

Anchieta

Viana

Litorânea Sul Railroad

New section that will connect Vitória a Minas

railroad to Ubu Port and the south of Espírito

Santo state

Attraction of steel companies and new

general cargo flows

165 km in length

Potential demand can exceed 20 mty

Litorânea Sul Railroad

Ubu Port

New terminal feasibility study

23

The Norte Sul railroad will provide a new general cargo corridor

Estrada de Ferro Carajás - EFCFerrovia Norte Sul - FNSFerrovia Norte Sul – FNS (em construção)Ferrovia Norte Sul – FNS (planejada)

On October 3rd Vale was awarded the concession to

operate the 720 Km of FNS

Focus on general cargo exports (mainly soybean, rice

and corn)

Vale’s commitment to socio-economic development in

Brazil

361 km to be built

Norte Sul Railroad - FNS

24




25

“Green Railroad” commitment…

Approximately 1 million steel sleepers will be installed at EFC and EFVM railroads

Environmental impact will be reduced by substituting wooden sleepers with steel sleepers that have double the lifecycle of wood

Railway sleepers replacementAbout 400,000 steel sleepers will be replaced per year in both railroads

Vale’s railroads are prepared to use Biodiesel (B20)

Natural gas has been developed

Efficient energy usage

26

…to be the safest logistic provider…

Initiatives to improve safety

Development of Operational Policy focused on Safety

Training centers for train drivers with simulators

Automation and process control

ACCIDENTS PER MILLION TRAINS KILOMETERS

5

20 187

566

139

45

111015

2524

26

43

67

7883

2001 2002 2003 2004 2005 2006 2007

EFC

EFVM

FCA

27

…in order to achieve operational excellence

Initiatives to achieve excellence

Longer trains

Efficient locomotives

Installation of on board computers

Higher axle loads

Improved operational model

Locomotives Fuel Efficiency (Liters / GTM x 1000 )

Carajás Railroad trains/day(Number of trains per day)

AAR* 20065.6

* AAR –Association of American Railroads

6.9

12.0

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

2.15

2.19

2.27

2.32

2.38

2003 2004 2005 2006 2007

28

Only possible because we are continuously investing in our employees

Investments in technical know-how and

critical competencies development, enabling

logistics staff to face new challenges.

Promotion of professional qualification for

more than 4,300 potential employees in the

last three years.

Only in 2008, Valer (Vale Education) provided

more than 70.000 hours of continuos

education to the Logistics workforce.

Launching of innovative post graduation

programs and technical courses customized in

order to meet Vale’s needs such as Railroad

Specialization and Port Technical Course.

2008 training numbers

Development Programs:

- Professional Qualification Program 688 participants

- Professional Specialization Program 143 participants

Continuos Education:

-Technical Tracks and Leadership Development 6,170 participations

70

Vale: a global leader

[email protected]

Documents

VIII Analyst & Investor Tour 2008 · Current Mines 145.8 168.1 174.2 189.1 212.0 235.0 265.5 296.0 318.9 317.4 315.0 305.7 291.5 ... Main strategies and new actions in implementation