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Excellence in resource and operations –
Salobo overviewInvestor Tour
Pará, Brazil, May 13th, 2016
1
Dis
clai
mer“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.”
2
Age
nda
1. General overview
2. Asset competitiveness
3. Production & flowsheet
4. Future developments
3
General overview
4
Salobo – Timeline
2006 – Implementation License for Salobo I
2007 – Construction begins for Salobo I
2010 – Construction begins for Salobo II
2012 – Start-up of Salobo I
2013 – First goldstream transaction with Silver Wheaton
2014 – Start-up of Salobo II
2015 – Second goldstream transaction with Silver Wheaton
Mine
Stock Pile
Plant
5
Salobo – Overview
• Largest copper deposit ever found in Brazil
with more than 49 years of mine life
• Sulphide ore deposit
• World-class ore body
High copper grade: 0,91% in 1Q16
High gold grade: 0,67 g/t in 1Q16
• High quality concentrate with 38.0-38.8%
Cu content and 15-24 g/t Au content
6
Salobo – Project facts
• Capex of US$ 4.1 billion
• Start-up in 2Q12 (Salobo I) and 1Q14 (Salobo II)
• Ore processing capacity of 24Mtpy
• Average EBITDA of US$ 622 M/year¹ (Acho que deveríamos tirar)
• Long-term contracts for 100% of production
Salobo ISalobo II
• Capex of US$ 4.1 billion
• Start-up in 2Q12 (Salobo I) and 1Q14
(Salobo II)
• Ore processing capacity of 24Mtpy
• Nameplate capacity of 200kt per year
• Long-term contracts for 100% of production
7
Asset competitiveness
8
Salobo – Resources and reserves
Reserves: 1,156.8 Mt
@ 0.67% Cu grade
@ 0.35 g/t Au grade
9
Salobo – Geology section view
GR – Salobo Granite; QML – Quartz-Mylonite; HD – Hydrothermalite; DBX – Biotite Schist;
XMT – Magnetite Schist; DGRX (Biotite-Granate Schist); ML – Mylonite; DB – Diabase.
GR
QML
HD
DBX
XMT
DGRX
ML
DB
10
Production profile
Copper Gold
13
65
98
155
194 206 212 220195
2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E
kt ,000 oz, 100% basis
21
117160
251
304 320 319 303
258
2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E
11
Salobo – 2016 Global Copper Industry C1 Cash Cost Curve
USD per ton of copper
Source: Wood Mackenzie, Vale
1.280
Actual (1Q16)
US
$ / t
Cu p
aya
ble
1,280
Cumulative production
1st quartile 2nd quartile 3rd quartile 4th quartile
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
25% 50% 75% 100%
12
Production & flowsheet
13
Tailings dam
FLOTATION AND REGRINDING
Rougher 1
Rougher 2
Scavenger
Of Cleaner
VERTMILLS
Cyclones
Cleaner 1, 2 e 3
THICKENING - FILTERING
Thickener
Press
FilterConcentrate
Pile
Concentrate
Pulp Tank
FINAL PRODUCT
Salobo – Flowsheet
SECONDARY CRUSHING AND
PRIMARY SCREENING
HPGR
Primary Screens
Ball Mills
CYCLONE
BATTERY
Secondary
Crushers
Secondary
Stockpile
Secondary
Screens
HPGR AND SECONDARY
SCREENING
GRINDING / CYCLONING
Crushed ore
stockpile
PRIMARY CRUSHING
Giratory
Crusher
14
14
Salobo Logistics – From mining to port terminal
Beneficiation plant at
the minesite
Transportation by truck
from the minesite to
Parauapebas railroad
terminal
Exportation Railroad terminal
(Parauapebas)
Railroad from
Parauapebas to São Luis
Storage house – Itaqui
port
15
Future developments
16
Salobo III growth option
• Production started in May 2012 at
12Mtpy and expanded to 24Mtpa in
June 2014
• Plan for Salobo III with new
concentration plant with additional
throughput of 12 Mtpy
• Salobo III represents a low-cost
brownfield expansion opportunity
• Project still subject to approval of
Board of Directors
• Leverage current experience with
Salobo’s ore body
• Increase gold production with the
ramp-up of the new concentration
plant
• Leverage current copper contracts
with benchmark smelters
Situation
Opportunities
Scope
Concentration plant with 12 Mtpy
capacity to accelerate copper and
gold production
17