VALE S.A. Loading ship at Ponta da Madeira Maritime Port, São Luís, MA, Brazil.
Vale's Performance in 3Q20
Rio de Janeiro, October 29th, 2020
Opening remarks
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We are delivering on the Integral Reparation Plan
US$ 2.6 billion ininreparationindividualactions¹indemnifications²
+8,200 people indemnified²
in environmental reparation | |
US$ 470 million | |
(e.g. Ground Zero) | |
Brumadinho's Master Plan
Built on extensive listening to communities, submitted to the authorities' approval³
We are having conversations with the State of Minas Gerais and other stakeholders to get to a framework agreement for indemnification and compensation4
¹Excluding expenditure with de-characterization, including incurred expenses. ² Approximate figure, referring to people related
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to signed agreements (paid and payable, civil and labor), updated on October 28, 2020. ²Submitted to the municipality of Brumadinho. 4 For collective damages indemnification and compensation for the society and the environment
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In tailings management, quickly moving towards full adherence to ICMM standards
Our ambition worldin individual-class standardsindemnifications²and processes
- Safety and Operational Excellence Office independent from operations
- Strengthening of our 3- line model of defense
- 2 Geotechnical Monitoring Centers
- Engineer of Record
Continuous monitoring
Routine | ||
System | Performance | |
Risk
- Hazard Identification and Risk Analysis (HIRA) is ongoing
Risk management
-
New ICMM standard
- minor gaps. Full implementation expected for 2021 - New TMS
Tailings
Management
System
(TMS)
4 Governance
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We are closing our ESG gaps
52 gaps mapped inwithindividualactionindemnifications²plans | For further information, | |
visit www.vale.com/esg | ||
31 gaps closed | since 2019 | |
In 2020, 5 gaps already solved | ||
✓ More disclosure on management | ||
compensation | ||
✓ Audit committee | ||
✓ Tax Transparency Report | ||
✓ Creation of Nomination Committee | ||
✓ Consolidated disclosure on | ||
Environmental Violations (new) |
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We are performing with record production in the Northern System…
56.9 Mt Northern System
All-time production record
24.4 Mt
S11D
All-time production record
US$ 5.856 billion
Record EBITDA in
Ferrous Minerals since 4Q13
US$ 6.224 billion Record EBITDA since 1Q14
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- while increasing production capacity and strengthening our supply chain
Serra Sul 120 Mtpy Project
Adding 20 Mtpy to S11D mine-plant capacity
- Buffer of productive capacity
- US$ 1.5 billion investment
Project West III
Adding +20 Mtpy to the Shulanghu
Port capacity¹
- Through JV
- US$ 100-150 million investment²
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¹ Currently at 20 Mtpy. ²Considering Vale's 50% stake of the JV and a third-
party loan of up to 65%, but not less than 50% of the total investment.
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We are de-risking Vale
Keeping a fast pace and quality at Brumadinho's reparation Becoming one of the safest and most reliable mining companies Resuming production under safe conditions
Focusing on discipline in capital allocation
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Iron Ore Business
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Operations are progressing on stabilization and resumption roadmap from Analyst & Investor Tour is on track
2020 production (Mt)
3Q20
• Record in Northern System and S11D | |||||
• Solid production in Southern and Southeastern | |||||
89 | Systems | ||||
68 | |||||
60 | 4Q20 | ||||
• Expect to sustain robust production rates | |||||
• Risks related to licensing delays (e.g. Serra Leste) | |||||
1Q20 | 2Q20 | 3Q20 | 4Q20E | ||
and impacts from the start of the rainy season | |||||
Path to 400 Mtpy
- New assets and solutions coming online in the next quarters (e.g. tailings filtration plants, Northern System expansions)
- Increase of operational buffers to sustain production level
- Stabilization of production adds quality to
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Vale's portfolio
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Vale recovered its operational flexibility, reducing major sales variation looking forward
1 BRBF is Vale's main product
3 Operational inventories needed
BRBF
2020
2019
sales ~145Mt
2017
94Mt
Margin over volume strategy and portfolio optimization
2 More exposure to China in 2020
Vale's sales by destination
~45 days for shipping + blending and retrieval period to conclude a BRBF sale in China
14 Mt | of operational inventories |
drew down |
9M20
of operational inventories 17 Mt built up, including those in
transit
Next quarters
- Operational inventories stable to current production level
- More sales flexibility to capture market opportunities
Increase of Vale's average lead time | Operational inventories are production buffers | |
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Vale SA published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 13:14:00 UTC
