Vale S.a. · BMFBOVESPA:VALE3
Vale — Investor Day (2015)
78 slides from Vale's investor day presentation, 2015
Slide 1: XV Analyst & Investor Tour Canada 2015
XV Analvst & Investor Tour Canada 2015
Slide 2: Disclaimer
isclaime “This presentation may include statements that present Vale's expectations about future 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 prov
Slide 3: Agenda
genda 1. Vale Base Metals overview 2. Market overview 3. Operations overview 4. Financial and strategic perspective 5. Base Metals Q&A 6. Closing remarks
Slide 4: Vale Base Metals Overview
3 Vale Base Metals Overview
Slide 5: More than a century of Base Metals leadership
4 More than a century of Base Metals leadership 1853 – Nickel discovered in the Sudbury area 1902 – The International Nickel Company is formed on April 1 1930 – Completion of an ambitious construction program in Sudbury, Ontario that included mines, smelters, refineries and power plants 1968 – PT In
Slide 6: Mines and processing facilities across three main hubs
5 Mines and processing facilities across three main hubs Nickel Copper North Atlantic Clydach Thompson Voisey’s Bay Asia Pacific Acton Long Harbour¹ Port Sudbury Colborne Dalian Matsuzaka KNC VTL South Atlantic PTVI Salobo¹ Sossego Onça Puma Lubambe¹ Vale New Caledonia¹ ¹ Operation in ramp up phase
Slide 7: Geographically diverse asset base
6 Geographically diverse asset base Nickel equivalent¹ production by geography, 2015 Vale Norilsk Nickel First Quantum Canada Russia Africa Brazil Africa Asia Indonesia Australia Other Europe 5% 6% 18% 24% 52% 57% 13% 25% 94% 6% Vale’s production base is evenly spread across stable, mining friendly
Slide 8: An asset base strengthened by strategic investments in new projects and operations
7 An asset base strengthened by strategic investments in new projects and operations 2007- 2013 Capex1 spent vs Base Metals peer spending, US$ billion 22.2 18.8 10.0 7.6 6.5 5.0 Vale Freeport Norilsk Antofagasta First Southern Quantum Copper 1 Includes both growth and sustaining capex. Source: Vale,
Slide 9: Leading to the second largest nickel reserves in the world
8 Leading to the second largest nickel reserves in the world Millions of dry metric tons Nickel mines1 Copper mines2 7.6 7.3 74.8 62.0 56.2 3.8 3.7 41.2 3.2 27.8 2.2 10.8 Norilsk Vale Glencore Eramet Royal First Codelco Southern Freeport BHP Glencore Vale Nickel Quantum Copper Billiton Minerals 1 Co
Slide 10: Base Metals nickel operations well positioned on the industry cost curve
9 Base Metals nickel operations and projects are well positioned on the industry cost curve 2015 Global Nickel Industry C1 Cash Cost Curve, USD per ton of nickel C1 Cash Cost Vale 24,000 22,000 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 20,000 18,000 16,000 Thompson 14,000 VNC1 12,000 Onça
Slide 11: Base Metals copper business is based on highly competitive assets
10 Likewise, Base Metals copper business is based on highly competitive assets 2015 Global Copper Industry C1 Cash Cost Curve, USD per ton of copper 9,000 C1 Cash Cost 8,000 Vale 7,000 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 6,000 5,000 Sossego 4,000 Salobo¹ 3,000 2,000 1,000 0 Cumulativ
Slide 12: Market Overview
11 Market Overview
Slide 13: Core Base Metals operations are in nickel and copper
12 Core Base Metals operations are in nickel and copper Nickel Copper Broad range of product offerings, Supplier of copper concentrate, serving a variety of industries / anodes and cathodes applications Expectation of equilibrium in the Positive medium and long-term mid-term as a result of t
Slide 14: Core Base Metals operations are in nickel and copper
13 Core Base Metals operations are in nickel and copper Nickel Copper Broad range of product offerings, Supplier of copper concentrate, serving a variety of industries / anodes and cathodes applications Expectation of equilibrium in the Positive medium and long-term mid-term as a result of t
Slide 15: More than 60% of nickel sales directed to the non-stainless steel market
14 More than 60% of nickel sales directed to the non-stainless steel market World nickel demand by application Vale’s nickel sales volume by application 2014, % 2014, % Stainless Steel Stainless Steel Non-stainless steel Non-stainless steel 32% 39% 61% 68% Roughly 70% of the world’s nickel productio
Slide 16: A broad geographic distribution of sales provides superior commercial flexibility
15 A broad geographic distribution of sales provides superior commercial flexibility World nickel demand by geography Vale’s nickel sales volume by geography 2014, % 2014, % China China Other Asia Other Asia Europe Europe North America 1% North America 2% Rest of World Rest of World 8% 11% 20% 30% 5
Slide 17: New applications helping drive future demand
16 New applications helping drive future demand End use - world Examples of new applications 2013, % Automotive 7% Aerospace 4% Other Transport 5% Appliances 6% Electronics 6% Energy 6% Chemical, 8% Petrochemical Other Engineering 14% Building & 11% Construction Cutlery/Kitchen 11% Intermediate 18%
Slide 18: China represents about 50% of total world demand
17 China represents about 50% of total world demand and still offers growth potential Contained nickel demand ‘Actual’ end use intensity¹ 2014, Kt Kg Ni/person China EU/US/Japan 1.4 China 965 1.3 1.2 1.1 Other Asia 330 1.0 0.9 Europe 369 0.8 0.7 North America 158 0.6 0.5 Other 42 0.4 0.3 Total 1,864
Slide 19: Indonesian ore ban and China's dependence on nickel imports
18 As the impact from the Indonesian ore ban gains traction, China is becoming increasingly dependent on nickel imports Chinese nickel consumption kt Share of world consumption, % Chinese NPI Production Chinese Refined Nickel Production (ex-NPI) Dependency on imports 52 ¹ 177 281 433 265 261 230 232
Slide 20: Despite the Indonesian ore ban, the nickel industry got prices wrong in 2015
19 But despite the Indonesian ore ban, the nickel industry “got prices wrong” in 2015 2014 headwinds 2015 reality Significant stocks of Indonesian ore in Indonesian ore stocks largely depleted China Increase in Filipino ore supply No further increase in 2015 and/or new countries of origin
Slide 21: Concerns over Chinese stainless steel demand a key catalyst for falling nickel prices
20 Concerns over Chinese stainless steel demand have been a key catalyst for falling nickel prices Cold-Rolled Stainless Steel Sheet Prices, US$/t ex-works 5,000 Germany USA Japan 4,500 China 4,000 3,500 3,000 2,500 2,000 1,500 2010 2011 2012 2013 2014 2015 Source: CRU
Slide 22: Nickel market driven by a no growth in China scenario
21 The market appears to be assuming a near term surplus in the nickel market driven by a “no growth in China” scenario Nickel supply/demand balance1 CRU forecast 50% of growth in China No growth in China 104 74 38 26 16 (4) (47) (43) (53) 2016 2017 2018 ¹ Does not include any potential supply side
Slide 23: Nickel prices declined to the depths of the 2009 financial crisis
22 With demand concerns and higher LME inventories, prices have declined to the depths of the 2009 financial crisis LME Cash Price (USD/t) Inventory (t) Inventory LME Cash Price (t) (USD/t) 500,000 $35,000 450,000 $30,000 400,000 350,000 $25,000 300,000 $20,000 250,000 $15,000 200,000 150,000 $10,00
Slide 24: Shifts in LME inventories represent only a fraction of the market
23 But shifts in LME inventories represent only a fraction of the market Just over 10% of an iceberg is typically above surface
Slide 25: Improvement in the non-deliverable LME products
24 Nickel has seen improvement in the non-deliverable LME products % Scrap market has tightened in Europe with prices improving from low 70% to mid 80% of contained metal • Commodity LME Record imports into China 30 combined with smaller discounts deliverable nickel is the Production falling year-ov
Slide 26: Chinese imports of nickel have increased significantly year-over-year
25 Chinese imports of nickel have increased significantly year-over- year Chinese net nickel imports¹ (imports – exports) Chinese monthly refined and FeNi imports kt Contained Ni (kt) Refined Imports +251% 65 400 FeNi Imports 60 350 55 50 300 45 250 40 35 200 30 25 150 20 100 15 10 50 5 0 0 06 07 08
Slide 27: Existing prices unsustainably low as over half of producers lose money
26 We believe existing prices are unsustainably low since more than half of producers are losing money at current prices 2015 Global Nickel Industry C1 cash cost + Sustaining Investments, USD per ton of nickel 30,000 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 25,000 20,000 As much as 1,3Mt
Slide 28: In conclusion, our views on nickel are positive
27 In conclusion, our views on nickel are positive Nickel prices have fallen to extremely low levels during the typically slower summer months on negative sentiment towards the Chinese economy and associated demand for stainless steel Prices are now at levels where more than half of nickel produ
Slide 29: Core Base Metals operations are in nickel and copper
28 Core Base Metals operations are in nickel and copper Nickel Copper Broad range of product offerings, Supplier of copper concentrate, serving a variety of industries / anodes and cathodes applications Expectation of equilibrium in the Positive medium and long-term mid-term as a result of t
Slide 30: Copper's properties will continue to drive increased usage
29 Copper’s properties will continue to drive increased usage Total copper consumption by market sector Trends 2014 = 27 Mt Efficiency in the automotive industry is likely to boost use of copper in more sensitive areas such Construction as engine control and management systems 30 House wiring wi
Slide 31: Copper prices declined to lowest levels since 2009
30 Copper prices have declined over the course of 2015 to their lowest levels since 2009 LME Cash Price (USD/t) Inventory (t) Inventory LME Cash Price (t) (USD/t) 1,000,000 $12,000 900,000 $10,000 800,000 700,000 $8,000 600,000 500,000 $6,000 400,000 $4,000 300,000 200,000 $2,000 100,000 0 $0 2008 2
Slide 32: Copper prices reflect surpluses of a no growth in China scenario
31 As in the nickel market, current prices seem to reflect surpluses associated with a “no growth in China” scenario Copper supply/demand balance No growth in China 50% of growth in China Wood Mackenzie forecast 1,258 1,114 682 659 584 352 250 120 60 2016 2017 2018 Note: Considering Woodmac’s foreca
Slide 33: Copper prices cutting deeper into the cost curve
32 Copper prices are now starting to cut deeper into the cost curve 2015 Global Copper Industry C1 cash cost + Sustaining Investments, USD per ton of copper China Non-China 10,000 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 8,000 6,000 Current price level 4,000 2,000 0 0 2,000 4,000 6,000 8,
Slide 34: Decline of supply forecasts for the copper industry
33 Decline of supply forecasts for the copper industry indicates concerns with operating capability at current prices Global refined copper supply forecast, Mt 4Q14 3Q15 -3.5% -5.1% 25,087 24,428 24,215 -1.8% 23,173 22,963 22,546 Au n- Ja g 2015 2016 2017 Source: Wood Mackenzie
Slide 35: Copper has support at current prices with positive longer-term future
34 We see copper having support at current prices with a positive longer-term future Copper prices have fallen to low levels on Chinese demand concerns. Prices being supported above levels seen during the Financial Crisis in 2009 Physical availability of cathode has improved from recent years, h
Slide 36: Operations overview
35 Operations overview
Slide 37: Mines and processing facilities across three main hubs
36 Mines and processing facilities across three main hubs Nickel Copper North Atlantic Clydach Thompson Voisey’s Bay Asia Pacific Acton Long Harbour¹ Port Sudbury Colborne Dalian Matsuzaka KNC VTL South Atlantic PTVI Salobo¹ Sossego Onça Puma Lubambe¹ Vale New Caledonia¹ ¹ Operation in ramp up phase
Slide 38: North Atlantic operations overview
37 North Atlantic operations combine a distinct set of operating assets with lower cost, value-added brownfield opportunities Vision Financial and production highlights US$ million and kt, 2019 • One of the lowest cash cost operations in the Base Metals industry • Mining and processing a broad range
Slide 39: Leveraging low-cost brownfield opportunities in Sudbury
38 Leveraging low-cost brownfield opportunities to support production levels in Sudbury • Low cost mines currently operational (Coleman, Creighton, Stobie, Garson, Situation Copper Cliff and Totten) • Key initiatives to further increase productivity, reduce costs and improve environmental sustainabi
Slide 40: The Clean AER project will cut emissions to industry-benchmark levels
39 The Clean AER project will enable us to cut emissions to industry-benchmark levels Emission reductions in Sudbury Highlights Kt of SO2 2,500 • Emissions control through converter circuit and single furnace operation 1 Coniston smelter closed and super stack built 2,000 • 85% reduction in sulphur
Slide 41: Copper Cliff's Single Furnace strategy
40 Copper Cliff’s Single Furnace strategy will improve production yields of copper and nickel Highlights • Avoidance of US$ 1 billion in capex with the decision to operate a single furnace • Ongoing flowsheet reconfiguration to increase nickel production ‒ Increased production of copper concentrate
Slide 42: The opening of Totten in 2014 extends mine life in Sudbury
41 The opening of Totten in 2014 further extends mine life in Sudbury Highlights • First new Vale mine in Sudbury in 35 years • Opened in 1Q14 with Capex fully spent, totalling US$759 million • 12,500 t of nominal Ni and 9,500 t of Cu capacity • High-grade ore body ‒ Ni grade of 1.50% ‒ Cu grade of
Slide 43: Copper Cliff Mine's staged development
42 Copper Cliff Mine’s staged development allows the efficient use of resources leveraging the basin’s natural ore distribution Phased approach allows cash conservation by deferring planned infrastructure
Slide 44: Victor is the best undeveloped project in the Sudbury basin
43 Victor is the best undeveloped project in the Sudbury basin Key characteristics Recent exploration is delineating world class polymetallic mineralization at depth with potential to extend LOM Victor deposit has 19 years of life of mine with a total volume of finished nickel of 255,000 t Vic
Slide 45: Synergy potential within the Sudbury Basin
44 Within the Sudbury Basin, significant synergy potential exists from infrastructure overlaps that have largely gone uncaptured Vale Assets within the Sudbury Basin Project Mine Processing Plant Ella North Coleman / McCreedy East Capre Victor Glencore’s Nickel Rim Garson Blezard Stobie CCM Clarabel
Slide 46: Phasing out Thompson's smelter and refinery
45 Optimizing our production flowsheet with the phasing out of Thompson’s smelter and refinery • Costs and expenses reduced by more than US$ 2,500/t, enhancing relative Situation competitiveness and placing Thompson in the second quartile of the nickel mining operations cost curve • Smelting and ref
Slide 47: Thompson registered lower mining and processing costs
46 Thompson registered lower mining and processing costs both in Canadian and US Dollars Mining and processing costs Total mining and processing costs $Cdn/t US$/t, $Cdn/t Mine & Mill Manitoba Operations US $ Processing 13,953 Manitoba Operations Cdn $ 13,953 11,477 11,324 5,142 11,127 10,832 3,907
Slide 48: Ramping up and capturing operational synergies in Long Harbour
47 Ramping up and capturing operational synergies in Long Harbour • Currently ramping up and operating with a blend of Voisey’s Bay concentrate and PTVI Situation matte • Completion of purification circuits ongoing • Feed Long Harbour directly from Voisey’s Bay by the end of 2015 Opportunities ‒ Cap
Slide 49: Completion of Long Harbour's ramp-up expected by end of 2018
48 Completion of Long Harbour’s ramp-up expected by the end of 2018 kt Finished nickel production Finished nickel production Monthly production Yearly Production 2,250 60,000 Monthly Plan Actual 2,000 50,000 1,750 1,500 40,000 1,250 30,000 1,000 750 20,000 500 10,000 250 0 0 Jan Feb Mar Apr May Jun
Slide 50: Extending mine life in Voisey's Bay
49 Extending mine life in Voisey’s Bay (VB) • Moving forward with the development of the Voisey’s Bay underground mine, a world- Situation class nickel reserve of 496 kt • Mine development aligned with commitments signed with the Newfoundland and Labrador Government • Operate Voisey’s Bay Undergroun
Slide 51: Mines and processing facilities across three main hubs
50 Mines and processing facilities across three main hubs Nickel Copper North Atlantic Clydach Thompson Voisey’s Bay Asia Pacific Acton Long Harbour¹ Port Sudbury Colborne Dalian Matsuzaka KNC VTL South Atlantic PTVI Salobo¹ Sossego Onça Puma Lubambe¹ Vale New Caledonia¹ ¹ Operation in ramp up phase
Slide 52: South Atlantic offers low-cost copper development and ferro-nickel growth
51 South Atlantic offers low-cost copper development alongside production growth opportunities in ferro-nickel Vision Financial and production highlights US$ million and kt, 2019 • Low operational cost with cheap brownfield opportunities in copper (Salobo III, Cristalino, 118, Alemão and Visconde) a
Slide 53: Salobo III growth option and Goldstream transaction
52 Profiting from the Salobo III growth option and the cash inflow stemming from the goldstream transaction • Largest copper deposit ever found in Brazil with more than 50 years of mine Situation life • Production began in May 2012 at 12Mtpa and expanded to 24Mtpa in June 2014 • Reserves of 7.9 Mt1
Slide 54: Salobo defines the Northern Hub of the Carajás copper province
53 Salobo with its future expansions defines the Northern Hub of our copper province in Carajás Salobo Paulo Afonso • Development of Salobo III (36 Mtpa) Furnas • Extension of Sossego’s operations with the sequenced treatment of Alemão surrounding deposits (118 Sulphide, Sossego Parauapebas Undergro
Slide 55: Onça Puma furnace 1 overhaul and furnace 2 revamp
54 Benefiting from the successful overhaul of Onça Puma’s furnace 1 to plan the revamp of furnace 2 at the appropriate time • Operational ramp-up of Furnace 1 successfully completed within a record 6 Situation months • Increased production capacity with optimized production flow ‒ Utilization of two
Slide 56: Ramp-up of Onça Puma's furnace 1 in about six months
55 Ramp-up of Onça Puma’s furnace 1 in about six months after the successful revamp of the furnace 2500 Actual 2011 Significant cost reductions and Actual 2013/2014 achievement of production 2000 targets have paved the way for positive cash flow generation 1500 1000 500 0 Month 1 Month 2 Month 3 Mon
Slide 57: Mines and processing facilities across three main hubs
56 Mines and processing facilities across three main hubs Nickel Copper North Atlantic Clydach Thompson Voisey’s Bay Asia Pacific Acton Long Harbour¹ Port Sudbury Colborne Dalian Matsuzaka KNC VTL South Atlantic PTVI Salobo¹ Sossego Onça Puma Lubambe¹ Vale New Caledonia¹ ¹ Operation in ramp up phase
Slide 58: Asia Pacific operations overview
57 Asia Pacific operations encompass high-quality ore deposits along with downstream facilities to add value to our mined output Vision Financial and production highlights US$ million and kt, 2019 • Highly productive asset base, mining and processing in some of the richest laterite mineral deposits
Slide 59: Increasing production capacity at PTVI
58 Increasing production capacity at PTVI, one of the core assets of our Base Metals portfolio • Successful extension of the Contract of Work Situation ‒ Extension of license to operate until 2045 ‒ Preservation of strategic mineral deposits ‒ Contractual support for future brownfield and greenfield
Slide 60: A significant resource in PTVI
59 A significant resource in PTVI PTVI Reserves/Resource Potential for growth Million tonnes of nickel contained Bahodopi/Pomalaa • 4.8M tons of resource in the Sorowako area Sorowako area allowing for brownfield expansion and 9.4 continued extension of mining life (over 50 years of life at current
Slide 61: At VNC operational performance will define its future
60 At VNC operational performance will define its future • Ramp-up taking longer than expected Situation • Operation generating negative cash flows • Capacity utilization currently at 60% and expected to reach 75% by year end Vision • Achieve operational targets in 2016 Opportunities ‒ Achieve 45 kt
Slide 62: Financial and Strategic Perspective
61 Financial and Strategic Perspective
Slide 63: Increased production of nickel and copper towards 2019
62 Increased production of nickel and copper towards 2019 Nickel Copper kt kt Sudbury Sudbury 600 Thompson Thompson Voisey's Bay Voisey's Bay Sorowako Salobo Onça Puma Lubambe 500 VNC Sossego 400 300 200 100 0 2012 2013 2014 2015E2016E2017E2018E2019E 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Slide 64: Low Capex and long life of mine in copper
63 Low Capex and long life of mine in copper Capex estimates Life of mine US$/Kt of copper equivalent Years Industry average 32 14.9 21 8.6 14 7.5 12 5.9 1.9 Sossego Cristalino Visconde Salobo III Sossego Cristalino Visconde Salobo III Underground Underground
Slide 65: Low Capex and long life of mine in nickel
64 Low Capex and long life of mine in nickel Capex estimates Life of mine US$/Kt of nickel equivalent Years Industry average 52.9 53 49.8 46.0 27.9 23 19 14 13.1 Fafa + Puma Victor Copper Manitoba Fafa + Puma Victor Copper Manitoba Cliff Cliff ¹ ¹ CCM capex estimates encompass the three development
Slide 66: Meanwhile we keep delivering opex reductions
65 Meanwhile we keep delivering opex reductions Opex – nickel operations Opex – copper operations US$/t US$/t 1H14 1H14 1H15 1H15 10,865 9,408 7,709 7,351 4,636 3,129 2,694 2,528 1,923 1,798 North Atlantic ¹ South Atlantic Asia Pacific Salobo Sossego (Onça Puma) (PTVI) Note: After by-product credits
Slide 67: And reducing our expenses
66 And reducing our expenses1,2 US$ millions -60% 1,840 1,414 861 741 2012 2013 2014 2015E ¹ Net of depreciation and amortization. ² Includes SG&A, R&D, Pre-operating and stoppage and Other expenses. Source: Company reports of 2012, 2013, 2014 and 2Q15, 2015 forecast.
Slide 68: Sound EBITDA generation going forward even with moderate price increases
67 Sound EBITDA generation going forward even with moderate increases in nickel and copper prices EBITDA 2018, US$ Bi Copper Price (US$/t) 5,000 5,500 6,000 6,500 7,000 7,500 • Modest increases in commodity prices 10,000 1.4 1.6 1.7 1.9 2.1 2.3 produce an amplified impact on our EBITDA 12,000 2.0 2.
Slide 69: Base Metals Q&A
68 Base Metals Q&A
Slide 70: Closing Remarks
69 Closing Remarks
Slide 71: Overcoming challenges in 2015 and the work ahead in 2016
70 We have been successful in overcoming our challenges in 2015 and still cognizant of the work ahead in 2016 2017 to 2018 and beyond 2016 …and we expect a 2015 positive FCF by 2017 without further …and we are prepared divestments of assets as to meet head on the we generate between 2016 challenges
Slide 72: Reduced expenses by more than US$ 5 billion in three years
71 In the last three years we have reduced our expenses1,2 by more than US$ 5 billion One-off impact US$ million -71% -22% 7,117 1,204 5 295 3 4,521 809 4 3,547 638 633 2,061 2012 2013 2014 2015E 3Q14 4Q14 1Q15 2Q15 ¹ Net of depreciation and amortization. ² Includes SG&A, R&D, Pre-operating and stop
Slide 73: Base Metals has consistently reduced costs in nickel and copper
72 Base Metals has consistently reduced costs in both nickel and copper Nickel operations after by-products Copper South Atlantic after by-products US$/t US$/t -37% -64% 12,101 8,634 8,312 7,626 5,512 4,084 2,826 1,970 2012 2013 2014 2015E 2012 2013 2014 2015E
Slide 74: Fertilizers is improving and will generate around US$ 600 million EBITDA
73 Despite decreases in price, Fertilizers is improving and will generate around US$ 600 million EBITDA in 2015 MAP Phos Rock, Morocco Adjusted EBITDA2 Prices1, US$/t Prices1, US$/t US$ million -4% -21% 1,211% 502 485 480 159 130 125 600 2013 2014 2015E 2013 2014 2015E Nitrates KCl 278 Prices1, US$/
Slide 75: Operational improvements in Mozambique pave path for coal turnaround
74 Operational improvements in Mozambique are paving the path for a turnaround in our coal business Yield CHPP Railway energetic efficiency COGS Mozambique Indexed values, Liters / (gross tons * km) US$/t 2013 = 100 18% -9% -17% 118 4,951 4,979 4,512 100 109 167 150 138 2013 2014 2015E 2013 2014 201
Slide 76: Carajás may be the most profitable iron ore operation in the world
75 Carajás may already be the most profitable iron ore operation in the world Vale’s estimates Vale Carajás Rio Tinto Pilbara Blend Jul-Aug 2015, US$/dmt Jul-Aug 2015 prices², costs and expenses³, US$/dmt IOCJ 53.3 62.0 Pilbara blend² Realized Price² C1 Cash C1 Cash Cost¹ 10,7 Cost³ 14.4 Royalties 1
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Slide 78: The Philippines will struggle to offset Indonesia as a source of nickel ore exports
77 The Philippines will struggle to offset Indonesia as a source of nickel ore exports Nickel contained in Indonesian and Filipino laterite resource Source: Vale analysis