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November, 2010

November, 2010. Vale Worldwide. 3Q10. Who we are. Vale is a pioneering mining company that transforms mineral resources into essential ingredients for people’s daily lives The world’s second-largest diversified mining company by market capitalization

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November, 2010

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  1. November, 2010 Vale Worldwide 3Q10

  2. Who we are • Vale is a pioneering mining company that transforms mineral resources into essential ingredients for people’s daily lives • The world’s second-largest diversified mining company by market capitalization • The world’s largest producer of iron ore and pellets and the world’s second largest producer of nickel. We also produce copper, manganese, ferroalloys, thermal and coking coal, potash, bauxite, alumina, aluminum, cobalt, platinum group metals. • Vale has offices and operations in more than 30 countries in the five continents • Social and environmental responsibility is a strategic commitment. In 2010, social and environmental investments are estimated at US$ 999 million

  3. Our history • Created by the Brazilian federal government on 1 June 1942, with its operations restricted to Minas Gerais State • In its first year, it produced 40,000 tons of iron ore, equivalent to what Vale currently ships per hour • Privatized on 6 May 1997 • Net profit in 1997: US$350 million • Market value in 1997: US$10.5 billion • Employees in 1997: 11,000 (direct) • In August 1997, Vale achieved an export record of 7.793 million tons

  4. Nickel • Our main nickel operations are conducted in Canada, Indonesia and New Caledonia • We also own and operate nickel refineries in the United Kingdom, Japan, Taiwan, South Korea and China • The Inco acquisition in 2006 was the largest ever made by a Brazilian company abroad • As a result, Vale became one of the world’s largest nickel producers

  5. Our business areas • Mining: • Ferrous: iron ore and pellets, manganese and ferroalloys • Non-ferrous: nickel, copper, potash, kaolin • Logistics: • Railways, port terminals, coastal navigation and logistical solutions • Energy: • Eight hydroelectric power plants, of which seven are already operating • Fertilizers: • Potash, phosphate, nitrogen and others. • Coal • Thermal and metallurgical coal

  6. Vale is present in the five continents Headquartered in Brazil, Vale employs over 115,000 people worldwide

  7. 2008 2009 Vale delivered 32 projects between 2002 and 2010 Concluded projects Carajás 85 Mtpa Capim Branco I Alunorte 4&5 Brucutu Samarco III Zhuhai Corredor Norte Paragominas II Fazendão Alunorte 6&7 Dalian UHC Capão Xavier Pier III PDM Candonga Sossego Carajás 20 Mtpa TKCSA Bayóvar Funil São Luís 2002 2004 2003 2005 2007 2010 2006 Aimorés Taquari-Vassouras Fábrica Nova Capim Branco II Paragominas I Carajás 100 Mtpa Itabiritos Mo I Rana Alunorte 3 Carajás 70 Mtpa Trombetas .

  8. Iron ore production million tons + 9.2% USGAAP Under US GAAP, Vale consolidates the total production volumes of companies in which it has more than 50% of the voting capital and effective control

  9. Recognition of financial solidity

  10. Highlights of 3Q10 financial results in US GAAP

  11. Iron ore and pellet sales Million metric tons + 13%

  12. Embracing structural transformation: a new marketing policy for iron ore boosted our sales to China record Iron ore sales to China million metric tons

  13. Revenue evolution Operating revenue in US$ million + 46% * In 3Q10, Vale’s operating revenue totaled US$ 14.496 billion * PRO FORMA

  14. Operating revenue breakdown in 3Q10 Iron ore and pellets represent a major part of the company’s operating revenue

  15. Net profit + 63% US$ billion ** * In 3Q10, net earnings totaled US$ 6.038 billion * PRO FORMA ** Including extraordinary non-cash charges derived from goodwill impairment

  16. Simandou • Vale acquired Simandou, in West Africa, one of the best underdeveloped iron ore deposits in the world, in terms of size and quality • Great new option for the expansion of our iron ore production, at low cost and with high quality products • The availability of Carajas and Simandou allows Vale to have the best and the largest growth potential in the global iron ore industry Guiné Blocos 1 & 2 Zogota Simandou Nova ferrovia Trans-Guinea Libéria Buchanan Trans-Liberia

  17. Investment plan

  18. More than US$ 55 billion in the last 5 years 1 Increasing investment US$ billion 2 2 1 Includes acquisitions 2 Excludes acquisitions

  19. Organic growth: pipeline of projects for the next years Greenfield CSU CSP Biofuels Long-Harbour Salitre Teluk Rubiah Karebbe Cristalino Simandou I Tres Valles Estreito ALPA Nacala Simandou II Serra Leste Apolo Onça Puma Salobo Konkola North Serra Sul (S11D) Tubarão VIII Oman Moatize Ellensfield Rio Colorado 2010 2011 2012 2013 2014 2015 Conceição Itabiritos Carajás 30 Mtpy Conceição Itabiritos II Totten Vargem Grande Itabiritos Iron ore & pellets CLN S11D Bayovar II Nickel Coal Cauê Itabiritos CLN 150 Mtpy Copper Moatize II Fertilizers Logistics Brownfield Salobo II Energy Steel

  20. Main projects Ver texto • Carajás, Additional 30 Mtpy, Pará state, northern Brazil • The project will add 30 Mtpy to current capacity. Comprises investments in the installation of a new plant (primary crushing, processing and classification units) and logistics. Installation license obtained. Start-up planned for 2012. • Carajás Serra Sul S11D • Located on the Southern range of Carajás, this project will have a capacity of 90 Mtpy. Start-up scheduled for 2H14. Project still subject to approval by the Board of Directors. • Oman • Project for the construction of a pelletizing plant in the Sohar Industrial District for the production of 9 Mtpy of direct reduction pellets and a distribution center with capacity to handle 40 Mtpy. Start-up planned for 2H10

  21. Main projects Moatize, Mozambique • Project with estimated annual production capacity of 11 million tons of coal products. Completion scheduled for 1H11 Moatize II Expansion to 22 million tons a year. Start-up scheduled for 2H13. Subject to approval by Board of Directors Salobo, Pará state, northern Brazil • Project with a production capacity of 100,000 metric tons of copper in concentrate. Project implementation under way and civil engineering work has started. Conclusion of work scheduled for 2H11 Salobo expansion • The project will expand the Salobo mine annual production capacity from 100,000 to 200,000 metric tons of copper in concentrate. Conclusion estimated for 2H13 Konkola North Project with estimated production capacity of 45,000 tpy of copper in concentrate. Part of a 50/50 joint venture with ARM in Africa. Start-up expected for 2013

  22. Vale is investing to promote the Brazilian steel industry ThyssenKrupp CSA (joint venture between Vale and Thyssen Krupp); in operation Capacity: 5.0 million tpy of steel slabs CSP (partnership between Vale, Dongkuk and Posco), start-up 2013 • Capacity: initially 3 - 6 million tpy of steel slabs ALPA (Aços Laminados do Pará), start-up 2013 • Capacity : 2.5million tpy of steel products CSU (Cia Siderúrgica de Ubu), start-up 2014 • Capacity: 5.0 million tpy of steel slabs

  23. Fertilizers • Vale operates the only potash mine in Brazil: Taquari-Vassouras, in the state of Sergipe, with a production capacity of 850,000 tpy • In January 2010, Vale acquired Bunge Brazilian fertilizer assets and FosfertilI • n addition, Vale has a project pipeline which includes Carnalita, near Taquari-Vassouras; Rio Colorado and Neuquén, in Argentina; and Regina, in Canada. • The Rio Colorado project includes the development of a mine with an initial nominal capacity of 2.4 Mtpy of potash. Start-up expected to take place in 2H13. Subject to the Board of Directors approval. • With a nominal production capacity of 3.9 Mty of phosphate rock, the Bayóvar phosphate mine in Peru started operations in July.

  24. Fertilizers • Rapid per capita income growth of emerging economies ultimately boosting the consumption of crop nutrients. • Rising output of biofuels as a source of non-climate changing energy. • Emerging Asia and Brazil are the main sources of continued global demand growth for fertilizers. • Brazil is an agricultural powerhouse with high growth potential. • Large area for the expansion of the agricultural frontier. • Significant availability of water supply.

  25. Portfolio of projects and operations will enable Vale to become a major global fertilizer supplier

  26. Social

  27. Social responsibility • Vale demonstrates its commitment to social responsibility all over the world in various ways: • Job creation and economic growth: commitment to hire and train local workforce • Educational and cultural programs • Social investment activities • Fundação Vale is Vale’s social institution • Fundação Vale works in communities where the company operates in order to contribute to integrated economic, environmental and social development, strengthening social capital and respecting local cultural identity • In 3Q10, Vale invested US$ 89.8 million in social projects Fundação Vale works in three areas: Infrastructure, Public Management and Human and Economic development (Estações Conhecimento)

  28. Main public management programs 27 Corporate Presentation – 02/11/2010

  29. ‘Estações Conhecimento’ feature the following programs: 28 Corporate Presentation – 02/11/2010

  30. Employment

  31. Environment

  32. Environment • First mining company in the world to have a 100% balanced ratio between impacted areas and recovering areas • Top-rated mining company in terms of carbon emissions per revenue generated, among the 500 biggest companies listed on the New York Stock Exchange • In 3Q10, Vale invested US$ 132.9 million in environmental protection and conservation. • Vale protects approximately 10,201 sq km of natural areas, including owned sites (4%), • leased areas (3%) and official conservation units protected in partnership with local • governments (93%). The areas protected by Vale include regions in the biomes Amazon • Rainforest (82%), Boreal Forests (<1%), Atlantic Forest (5%) and Wallacea (12%), as • well as areas in New Caledonia, and properties located in the transition region • between the Atlantic Forest and Cerrado (1%)

  33. Vale Natural Reserve Covering around 220 km2, the Vale Natural Reserve, Espírito Santo State, protects 2,389 species of wildlife and 2,625 species of plant life. Since the reserve was created in the 1970s, 96 new species of plant have been discovered

  34. Carajás mining complex In Carajás, Pará State, where Vale operates the biggest open pit mine in the world, the company helps to protect around 8,000 km2 of native forest in five conservation units (Carajás, Tapirapé-Aquiri, Itacaiúnas, Tapirapé and Igarapé Gelado).

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