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Explore the growth opportunities in Brazil's forest plantations, with a focus on eucalyptus plantations, high productivity, and the development of new frontiers. Discover Vale Florestar's efforts in restoring degraded areas and creating commercial eucalyptus plantations.
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Forest Plantations – Growth Opportunities in Brazil Distribution of commercial forests across the world Land use in Brazil 206 million ha Fonte: Silviconsult Fonte: ABRAF
Forest Plantations – Growth Opportunities in Brazil • Brazil currently has 4.26 million hectares of eucalyptus plantations, with annual growth of 4.6% since 2000
Brazilian Forestry Market – Diversified Internal Consumption • Eucalyptus timber consumption in Brazil: around 114 million m³/year
Brazilian Forestry Market – Higher Demand Than Supply • Annual consumption of eucalyptus logs outstrips supply by 2 million m³ Annual deficit
Productivity – Commercial Advantage in Brazil • Eucalyptus Plantations: • High productivity (Mean Annual Increment > 30/40) and short production cycle (7 years)
Expansion Opportunities at New Frontiers Area of Forest Plantations2008 (1000 ha) Total in 2008 = 6.6 million ha • Growth opportunities: • High productivity • Large areas of degraded land • Developing market 87% of planted area Source: Abraf Annual Report (2009)
Vale Florestar today • Vale Florestar was created as a Vale project in 2005 and came into operation in 2007 • Over the past three years, 24.5 million trees have been planted on 41 leased farms • Area: approximately 70,000 hectares • Vale has invested around R$230 million* in the project – more than one-third of the total planned amount • Vale Florestar currently employs 1,500 people (*) As of March 2010
Partnership for Forest Projects Investment Fund R$605.04 million Vale Florestar S/A sapling production leasing licensing sales planting monitoring
The Future: Vale Florestar S/A • Vale Florestar will operate across a total area of approximately 450,000 ha: • 300,000ha to protect and restore native forest • 150,000ha to develop commercial eucalyptus plantations • The project will require total investment of R$605 million* by 2014, generating 4,000 jobs during peak production • By restoring degraded areas, Vale Florestar S/A will promote carbon capture • The project will have its own tree nursery to grow saplings, with capacity to produce 28 million saplings per year. It will be able to supply saplings to other projects in the region • It will help attract forestry-related industries to the region, instigating a multiplier effect (*) Adjusted for inflation
Area Planted by Vale Florestar Total: 20,000 ha Area planted (1000 hectares) Breakdown by farm Breakdown by municipality
Vale FlorestarRestoration of Natural Habitat Planting of native species – Preciosa Farm November 2007 March 2010
Vale FlorestarProcess of Restoring Degraded Areas Surpresa Farm AFTER BEFORE March 2010 November 2007
Vale FlorestarProcess of Restoring Degraded Areas Surpresa Farm November 2007 Watercourse
Vale FlorestarProcess of Restoring Degraded Areas Surpresa Farm March 2010
Vale FlorestarProcess of Restoring Degraded Areas Santa Fé Farm 2010 2008 2007 2008 2010 2007
Vale Florestar – Commercial plantations combinedwith preservation of environmental protection areas Arizona Farm – April 2007
Vale Florestar – Commercial plantations combinedwith preservation of environmental protection areas Arizona Farm – March 2010
Thank you Arizona Farm – March 2010