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2007 End of Year Lunch

2007 End of Year Lunch. In the last years, Vale delivered 20 big projects. Capão Xavier. São Luís. Candonga. Funil. Pier III PDM. Fábrica Nova [New Plant]. Carajás 85 Mtpa. Trombetas. Taquari-Vassouras. Capim Branco II. Mo I Rana. Brucutu. 4Q03. 2Q04. 2Q06. 3Q04. 1Q06. 4Q05.

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2007 End of Year Lunch

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  1. 2007 End of Year Lunch

  2. In the last years, Vale delivered 20 big projects Capão Xavier São Luís Candonga Funil Pier III PDM Fábrica Nova [New Plant] Carajás 85 Mtpa Trombetas Taquari-Vassouras Capim Branco II Mo I Rana Brucutu 4Q03 2Q04 2Q06 3Q04 1Q06 4Q05 3Q02 1Q03 1Q07 1Q02 4Q02 4Q06 2Q05 Alunorte 3 Carajás 100Mtpa Aimorés Carajás 70Mtpa Alunorte 4&5 Paragominas I Sossego Capim Branco I .

  3. Social Responsibility Vale plans to invest US$ 1.4 billion in social programs in the next five years all over the world Social and environmental responsibility, a strategic commitment of Vale

  4. Social projects Vale social projects benefits around 3 million people

  5. Environmental Responsibility Investments in the environment from 2008 to 2012 are estimated at US$ 2.8 billion Social and environmental responsibility, a strategic commitment of Vale

  6. Vale Florestar in the Amazon Recovery of native forests in the state of Pará, Brazil There will be 343.5 million trees in Vale Florestar (165 million eucalyptus and 178 million of native forest) and more 2,5 million in other projects of the company Total Area: 300,000 hectares, equivalent to twice the area of the city of São Paulo Total investment: US$ 300 million until 2015 Start: February 2007, in the cities of Dom Eliseu and Ulianópolis, in the state of Pará Initial area: 30,000 hectares in 2007 and 2008; 16.5 million new trees planted Jobs: 700 already created and 4,000 are expected until 2012 160 million tons of CO2 will be fixed in the next 21 years Protecting the environment Vale plans to plant 346 million trees up to 2015

  7. Vale already helps protect nearly 3 billion trees in the countries where it is present. It is the biggest environmental protection program in Latin America It represents a stock of carbon dioxide of 1 billion tons of CO2, equivalent to 70% of the emissions of Brazil in 2006 1 million saplings will be donated to the Environmental Protection Area of Guandu (RJ) and for the recovery project of Ilha Grande (RJ) 350,000 saplings are scheduled to be planted in the state of Espírito Santo, 200,000 saplings in the state of Minas Gerais, 50,000 in the state of Maranhão and 50,000 in the state of Bahia Saplings nursery in New Caledonia: 1 million saplings per year Vale also keeps environmental protection areas in New Caledonia, Australia and Indonesia Protecting the environment Environmental responsibility is a commitment of Vale

  8. Immortal Brazilian Award Six Brazilians will name new species of plants • Vale is going to pay homage to six Brazilians whose activities in the social and environmental area have been really important for society in the country • Each one of them will have his/her name given to a new botanical specie of the Atlantic Forest, discovered in the Natural Reserve of Linhares (ES) with Vale technology • The award will be launched in 2008 and it will have two categories: National, paying homage to one person, and Regional, with five chosen persons • The candidates to the award will be chosen by a commission of specialists in the social and environmental area, representatives of local communities, NGOs and social groups • Any Brazilian over 16 years old will be able to vote on the Internet

  9. Social and environmental respect Vale suspends ore supply to 2 other producers • In October 2007, Vale decided to suspend iron ore supply to 4 pig iron producers which failed to prove their compliance with the environmental and labor legislation • The 4 companies were: COSIPAR, FERGUMAR, SIMASA and USIMAR. Following a court order, Vale had to resume supplying ore to FERGUMAR • Eight companies have faced lawsuits filed by Brazil’s Ibama environmental protection agency due to environmental liabilities. They have also been notified by the Labor Ministry following allegations they were involved in slave-type labor • In addition, Vale has sent letters to four pig iron producers warning them they should comply with the environmental and labor laws • On Wednesday, Dec 5th, Vale suspended ore supply to 2 other pig iron producers: IBÉRICA (environmental issues) and ITASIDER (labor issues)

  10. Pluriannual Vale investments Year 2008 2009 2010 2011 2012 TOTAL Brazil 8,585 11,248 11,598 8,820 4,902 45,153 Abroad 2,415 3,499 3,466 2,646 1,807 13,833 TOTAL 11,000 14,747 15,064 11,466 6,709 58,986 In the next 5 years, Vale is going to invest US$ 59 bi, of which 77% in Brazil and 23% abroad US$ million

  11. Vale keeps an accelerated job creation pace Vale estimates to create 62,000 jobs worldwide in the next 5 years, of which 70% in Brazil * Permanent contractors + projects

  12. Vale and its partners brought to Brazil US$ 13,3 bi in steel projects Projects Operation Capacity Investment * AF 3 of CST 2007 2.5 million tons of slabs US$ 1.5 billion CSA (Vale/ThyssenKrupp) 2009 5.0 million tons of slabs US$ 4.2 billion CSV - Cia Siderúrgica Vitória (CVRD/Baosteel) 2011 5.0 million tons of slabs US$ 3.6 billion Pecém (CVRD/Dongkuk) 2009 2.5 million tons of slabs US$ 2 billion Expansion of USIMINAS (Ipatinga-MG) 2011 + 2.2 million tons of net steel US$ 2.0 billion ** Total 17.2 million tons US$ 13.3 billion It represents 74% of all growth of the Brazilian steel industry in the next years * Investment refers to 100% of the project ** Part related to the increase of steel production.

  13. Naturalization of assets Asset Segment US$ million Year Country * Samitri/Samarco Iron Ore / Pellets 710 2000 Luxemburg Ferteco Iron Ore / Pellets 566 2001 Germany Sossego Copper 43 2001 USA Salobo Copper 51 2002 South Africa Canico Nickel 800 2005 Canada Valesul Aluminum 28 2006 Australia EBM/MBR Iron Ore 231 2007 Japan TOTAL 2,429 Acquisitions that increased the participation of the Brazilian capital in Brazilian-based assets * Country of origin of the shareholders

  14. Energy Vale, together with its partners, attracts investments to Brazil • Over US$ 720 million invested in power generation in Brazil until 2007 • Vale currently has 7 hydroelectric power plants (1,422 MW) or 6% of the national generation expansion between 2003 and 2007 • For the next years, about US$ 1.3 billion will be invested in the implementation of the Hydroelectric Power Plant of Estreito (States of Maranhão and Tocantins) and the Thermoelectric Power Plant of Barcarena (State of Pará): total of 1,687 MW • We are studying to invest in two other thermoelectric power plants, which will generate 1,200 MW • Other R$ 220 million will be invested in the first Energy Technology Center of Brazil (SP) • In the 9th Oil Licensing Round, promoted by Brazil’s National Petroleum Agency (ANP), we acquired nine oil blocks in partnership with Petrobras and Devron • The investment was of RS$ 31 million (bonus) and US$ 120 million (research) • Agreement with Shell in three blocks in Espirito Santo Basin

  15. Investments in Logistics:US$ 5.15 bi from 2003 to 2008 1,870 1,092 784 649 484 274 2003 2004 2005 2006 2007 2008 Vale accounts for 65% of the total public and private investments in ports and railroads forecast for 2007 in Brazil In million US$

  16. Investments in new wagons: US$ 722 million, from 2003 to 2007 47% 53% Vale Other ones We bought 16,000 wagons* in this period, of which 92% manufactured in Brazil, which led to the rebirth of the national industry of railway equipments Vale accounted for over half of the purchases of wagons produced in Brazil * It includes MRS

  17. Investments in new railroads SOUTH COASTAL: Construction of the new section of the railroad, with165 km of extension, connecting EFVM to Ubu Port and to the South of the State of Espirito Santo Alternative for distribution of steel products and general cargo It will be about US$ 500 million during 30 months NORTH-SOUTH: • Vale was granted the sub-concession of 720 km of the FNS • 361 kmwill be additionally built • The purpose will be the distribution of general cargo for exports, especial of grains • It will be US$ 2 billion during 30 years

  18. Records throughout the year Iron Ore • Monthly production of the Southeast System in July 07: 10,484 million tons • Daily production in the Southeast system, on July 29, 2007: 391,2 thousand tons (the previous production was 370 million tons) • Daily production in the Cauê mine, on August 27, 2007: 91,426 thousand tons (the previous production was 86,761 million tons) • Monthly production of the Southeast System in May 07: 8,134 million tons (the previous production was 7,996 million tons) Pellets • Production of pellets in the Pelletizing Plants I and II, in July 07: 566,865 million tons (the previous production was 559,820 million tons) Logistics • Transportation in the EFC, in Aug/07: 9,254 million tons (the previous production was 8,534 million tons) • Shipment of iron ore in Ponta da Madeira, in August 2007: 7,372 million tons (the previous production was 7,184 mil ton.) • Volume transported in the FCA, in May 2007: 1.105 ntk (the previous production was 1,057 ntk)

  19. 2007 Highlights • In 2007 we ensured the maintenance of the ISO 14001 (Environment) and ISO 9001 certifications (Quality) • Interconnection of the Air Quality and Meteorological Monitoring Network collected in the stations located in the Iron Ore and in the Urban Nucleus • Implementation of the Air Quality Monitoring Network in the internal area of the Tubarão Complex • Albrás has conquered the Quality National Award, the most important recognition of excellence in management of Brazilian organizations

  20. Execution of the projects will lead to a significant production capacity expansion Capacity of 450Mtpa Metric million tons 2003 2007E 2008E 2012E CAGR CAGR 07-12 03-07 Iron Ore 186.0 300.0 325.0 422.0 7.1% 12.7% Pellets¹ 13.0 17.6 20.0 33.0 13.4% 7.9% Charcoal - 2.9 7.6 15.2 39.3% - Nickel 2 - 260.0 280.0 507.0 14.3% - Copper² - 290.0 300.0 592.0 15.3% - Alumina 2.3 4.3 5.3 8.2 13.8% 16.9% ¹ it does not include the production of JVs (Samarco, Nibrasco, Hispanobras, Kobrasco, Itabrasco). The 2007 production is expected to reach 18 Mt. the 3rd plant of pellet Samarco (7.6 Mtpy) start the operation in 1H08. ² 1,000 metric tons

  21. Carvão

  22. Potassium and phosphate • Potassium - KCl • Taquari Vassouras (SE): • Production capacity Petrobras 1992 – 180,000 ton • Current production capacity 2007 – 700,000l ton • Investment in the 1992-2007 period – US$ 200 million, including expansion in 2005 (US$ 70 million) • Carnalita project (SE- status pre-feasibility) • Estimated investment : US$ 600 million • Estimated production : 1.5 million • Startup : 2011/2012 • Neuquén project – Argentina (status pre-feasibility) • Estimated investment: US$ 600/700 million • Estimated production: 1.0 million • Startup : 2012/2013 • Phosphate (Project Bayovar) • Investment 2005- 2007 : US$ 27 million • Investment in construction: US$ 480 million • Startup : 2010 • Production: 3.9 million of phosphate rock

  23. 2007 End of Year Lunch www.vale.com e-mail: imprensarj@vale.com

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