Global Metals, Mining & Steel Virtual Conference 2021 - Eduardo Bartolomeo May 18th, 2021
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Serra Sul Complex
Photo: Ricardo Teles
December 2020
Global Metals, Mining & Steel
Virtual Conference 2021
Eduardo Bartolomeo
May 18th, 2021
Public content
1
isclaime
“This presentation may include statements that present Vale's expectations about future
Agend
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) and in particular the factors discussed under “Forward-Looking
Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.”
“Cautionary Note to U.S. Investors - The SEC permits mining companies, in their filings
with the SEC, to disclose only those mineral deposits that a company can economically
and legally extract or produce. We present certain information in this presentation,
including ‘measured resources,’ ‘indicated resources,’ ‘inferred resources,’ ‘geologic
resources’, which would not be permitted in an SEC filing. These materials are not proven
or probable reserves, as defined by the SEC, and we cannot assure you that these
materials will be converted into proven or probable reserves, as defined by the SEC. U.S.
Investors should consider closely the disclosure in our Annual Report on Form 20-K, which
may be obtained from us, from our website or at http://http://us.sec.gov/edgar.shtml.”
Sossego mine
Employee Mayara Ventura
Our strategic pillars remain solid…
Safety and operational excellence
New pact with society
Maximize flight to quality in Iron Ore
Base Metals transformation
Discipline in capital allocation
Defined in 2019
December 2020 3
Salobo mine
Employee Alberdan Amorim
… as well as our commitments
People
Safety
Reparation
November 2020 4
Salobo Mine
Employee Alberdan Amorim
We are walking the talk Photo: Ricardo Teles
Re-rating
Reshaping
Reshaping
De-risking ▪ Benchmark in safety
▪ Focus on core business ▪ Best-in-class reliable operator
▪ Brumadinho ▪ Control of cash drains ▪ Talent-driven organization
▪ Dam safety ▪ Growth opportunities ▪ Leader in low-carbon mining
▪ Robust ESG Practices ▪ Reference in creating and
▪ Production resumption sharing value
Sound cash flow generation
Discipline in capital allocation
5
De-risking Works for a new water
pipeline system
Paraopeba River (MG)
We are repairing Brumadinho
Global Settlement
+ R$ 37.7 billion in total economic value
+ R$ 9 billion¹ directly to the affected people
✓ Clear governance
✓ Legal certainty
✓ Known impact
Individuals with indemnification agreements²
Number of individuals, cumulative view
10,200
8,900
6,000
2019 2020 2021
¹Approximate figure, including amounts already disbursed.
²Related to agreements entered into as of May 2021, approximate figures. 6
May 2021
De-risking Forquilhas back-up dam
Ouro Preto (MG)
We are improving our dam safety
Upstream dam decharacterization
2021: Fernandinho dam and Forquilhas back-up dam
✓ 5 structures decharacterized
✓ 25 ongoing decharacterization projects
Reduction of dams at emergency level¹
Number of structures
35 33
29 Emergency
25 level²
24 22 18 1
18
2
7 8 8 4 3
4 3 3 3
2020³ jan-21 apr-21 dec-21E
¹Expectation of reduction, subject to the implementation and effectiveness of safety improvement measures.
Considers dams, dikes and stacked piles. ²Referring to the emergency protocol provided for in each Mining
Dams Emergency Action Plan, considering level 3 as the critical level. 3Considering the maximum number of
structures at emergency level in 2020. May 2021 7
De-risking 26% increase in Vale’s
female workforce
Employee Adriana Vormoca
We are leveling up our
ESG practices
ESG gaps by estimated
conclusion date
20
4
2
Gaps completed by Apr/21: 63
▪ Higher disclosure on the Board assessment
▪ Report on emerging long-term risks
37 Gaps completed after the AGM 2021:
▪ More independent members
▪ Larger board experience in mining
▪ Independent chairman
▪ Lead Independent Director role
Gaps closed Gaps closed Gaps with Total gaps
by dec/2020 by Apr/21 ongoing works
November 2020 8
De-risking +3.7 million intubation
medications
Donation to the Brazilian Ministry of Health
We are delivering
on our New Pact with Society
Humanitarian aid in the pandemic
+ US$ 110 million driven to the fight against Covid-19¹
✓ Construction of field hospitals
✓ Reform of existing hospitals and increase of hospital beds
✓ Intubation medication for 500 hospital beds for 1.5 months²
✓ Ventilation machineries
✓ 50 million syringes
✓ 36,000 m³ of oxygen to Pará
✓ R$ 10 million³ to the Butantan Institute
¹Since2Q20. ²Together with the companies ENGIE, Itaú Unibanco, Klabin, Petrobras, Raízen and TAG.
³Resources planned for 2021, for the expansion of the Multi-Purpose Vaccine Production Center (CPMV). 9
April 2021
De-risking Filtering plant
Vargem Grande Complex
All halted sites were resumed,
fully or in part
Iron ore capacity (Mtpy) >450
Capacity
400 buffer
350
327
300
Production Current Capacity by Capacity by Future
in 2020 capacity end of 2021 end of 2022
Production guidance 2021
315-335 Mt
April 2021 10Reshaping
Reshaping Moatize Coal mine
Moatize (Tete), Mozambique
We are closing our
cash drains
▪ Exit solution supported by Government,
employees and local stakeholders
VNC
▪ ~US$ 150 million EBITDA loss avoided per
year1
▪ Asset revamp completed, with an expected
run-rate of 15 Mtpy in 2H21
Moatize
▪ Investment agreement to acquire Mitsui’s
interest on assets
▪ Operational restart in December 2020
▪ Judicial reorganization requested to preserve
Samarco
production, jobs and compliance with
obligations
1Considering VNC EBITDA in 2020.
June 2013 11Reshaping
Reshaping Salobo III project
Marabá (PA)
We are ensuring
growth optionalities
Projects in Copper Projects in Nickel
Salobo III Start-up: 2022 Cristalino Start-up: 2024-25
Cu ~30-40 ktpy Cu ~80 ktpy
Potential project
Alemão Start-up: 2024-25 Hu’u¹ approval in 2025
Cu ~60
Hu’úktpy Cu 250 ktpy+
Au 200 koz+
Start-up: 2Q21 Onça Puma Start-up: 2023+
VBME
2nd Furnace
Ni ~45 ktpy VBME Ni ~15 ktpy
Bahodopi e
CCM1 Start-up: 2Q21 Start-up: 2025-26
Pomalaa¹
Ni ~10 ktpy Ni ~110 ktpy
¹Participation through joint-ventures.. 12
April 2021Re-rating Geotechnical Monitoring Center
Parauapebas (PA)
We are working to become
safer and more reliable
Multi-layered governance for risk management
+95% of our sites with HIRA¹ implemented
VPS² as a lever for operational reliability
14k+ employees trained
100% of dams (Brazil) with Engineer of Record designated
Vale’s Tailings and Dams Management System under
implementation and aligned with the industry standard
Concrete steps towards GISTM³ implementation
1Hazard Identification and Risk Assessment. ²Vale Management Model.
³Global Industry Standard for Tailings Management. December 2020 13Re-rating 100% electric locomotive
Vitória (ES)
A leader in low-carbon mining
By zeroing scope 2 emissions in Brazil by 2025
Mine Pelletizing and
✓ Electric trolley in Carajás, metallurgy
~20% fleet emission reduction ✓ Biomass-based pelletizing,
✓ 25 underground electric trucks successful tests in 2020,
in operation in Canada, reducing fossil fuel demand
40+ by late 2021
Logistics Power
✓ First 100% electric locomotive ✓ Sol do Cerrado - 766 MW
in Tubarão port: replacing solar plant: US$ 500 mn
diesel with sustainable electric investment
energy, while also reducing
noise emission
October 2020 14Re-rating Ship with rotor sails
Up to 8% emission reduction per ship
A leader in low-carbon mining
By pioneering the reduction of scope 3 emissions, as the
preferred iron ore solutions provider
✓ Engagement throughout our value chain
✓ Relevant flight-to-quality advancements in portfolio
✓ Boston Metal: MIT-based technology for CO2-free
steel production based on electrolysis
✓ Ecoshipping: open innovation hub with 65+ initiatives
identified
✓ Ship with rotor sails and air lubrication ship by 2021
April 2021 15Re-rating
A reference in
creating and sharing value
Our discipline in capital allocation continues
Shareholder
Reparation De-risking Growth opportunities
remuneration
▪ Brumadinho ▪ Safety & Operational ▪ Growth projects
▪ Renova Excellence Dividends ▪ Other growth options
✓ Brumadinho Global ▪ Production resumption ✓ US$ 7.2 billion paid
Settlement: ▪ ESG (2H20-1H21)
✓ Low-Capex growth options
US$ 3.541 billion provision¹ ▪ Other obligations
✓ Capanema +14 Mtpy
✓ Renova Foundation: Share buyback program4
✓ US$1.962 billion provision ✓ Salobo IV +30 ktpy
US$ 1.732 billion provision¹²
for dam decharacterization¹ ✓ Up to 5.3% of the total
outstanding shares5 ✓ Onça Puma 2nd furnace
✓ US$ 2 billion-investment in
energy self-generation³ until ✓ Management confidence
2030 in Vale’s potential to
consistently create and
share value
¹As of March 31, 2021. ²Includes Samarco. ³From renewable sources. 4As announced on April 1st, 2021. 5On February 28th, 2021. 16Re-rating Shulanghu Port
Zhejiang Province, China
We are
closing the gap
Vale TSR²:
Peer 1¹ Share appreciation
Peer 2¹ Dividends paid³
27%
20 17% 13% 13% 12%
11% 22%
8%
10%
0
1-Month 3-Month
178%
89%
109% 100%
51% 49% 160%
82%
97% 96%
44% 47%
6-Month 12-Month
¹Major diversified mining companies. ²As of May 13th, 2021. ³Dividends paid, not reinvested. September 2020 1718
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