Vale S.a. · BMFBOVESPA:VALE3
Vale — Corporate Update (November 2015)
62 slides from Vale's corporate update, November 2015
Slide 1: Update on the S11D project
Update on the S11D project Analyst Tour Pará, November 2015
Slide 2: Disclaimer
isclaime “This presentation may include forward-looking statements, including statements that present Vale's plans, strategies and expectations about future events or results. These forward-looking statements, involve various risks and uncertainties. Vale cannot guarantee that such statements will p
Slide 3: Agenda
genda 1. Project Overview 2. Project Status 3. Preparation for Operations
Slide 4: Project Overview
Project Overview
Slide 5: The opening of the South Range is a landmark in Vale's history
5 The opening of the South Range is a landmark in Vale’s history • South Range has an extension North Range of 120 km and an area of 48,000 ha • S11D has an extension of 9.5 km and an area of 1,400 ha • S11D will have a mine life of 30 years at 90 Mtpy • S11D has a strip ratio of 0.38 Carajás Nation
Slide 6: The South Range contributes significantly to Vale's Northern System reserves
6 The South Range contributes significantly to Vale’s Northern System reserves Billion Metric Tons Fe Content, % 66.7 66.7 65.4 306 2.535 7.081 4.240 South Range (S11) North Range East Range Total Source: 20F, 2014
Slide 7: The S11D project encompasses a new Mine, Railway and Port
7 The S11D project encompasses the development of a new Mine and Railway and Port structures Mine and Plant Railway Port Mine capacity of 90 Mtpy Construction of 101 km Construction of a new with a truckless mining railway spur, linking the onshore infrastructure, system S11D ore body to the m
Slide 8: The S11D project is expected to be delivered on time and below the original budget
8 The S11D project is expected to be delivered on time and below the original budget US$ billion Logistics Mine and Plant Mine, Plant and Logistics 19.7 90% of future expenditure in S11D is BRL 14.4 9.4 denominated 11.6 7.9 2.6 8.1 6.5 1.6 0.6 0.2 Original Total Cumulative 2016 2017 2018 2019 Budget
Slide 9: Project Status
9 Project Status
Slide 10: The S11D project is progressing according to plan
10 The S11D project is progressing according to plan As of September 2015 Mine and Plant Railway Port Physical Progress of Physical Progress: Physical Progress: 75% - Railway spur 72% - Onshore 66% - Railway duplication 34% - Offshore 64% with 6 segments and 7 semi-segments out of 48 segments
Slide 11: The S11D project is progressing according to plan
11 The S11D project is progressing according to plan As of September 2015 Mine and Plant Railway Port Physical Progress of Physical Progress : Physical Progress: 75% - Railway spur 72% - Onshore 66% - Railway duplication 34% - Offshore 64% with 6 segments and 7 semi-segments out of 48 segments
Slide 12: Mine and Plant Highlights
12 Mine and Plant Highlights • Plant equipment with 36 screens, 18 cone crushers, 7 stackers and 7 reclaimers, 2 train load-out terminals. Additional Capacity of 90 • Three buffer stockyards with 1 Mt of capacity and four product stockyards with 3.4 Mt of Mt with truckless capacity mining system and
Slide 13: The S11D mine will apply a truckless mining system
13 The S11D mine will apply a truckless mining system Portable Modular Conveyor Mobile Sizing Rig
Slide 14: Dry screening process avoids the need for tailing dams
14 The project will apply a dry screening process and avoid the need for tailing dams Screening Process Process Highlights • High grade ore avoiding washing and concentration processes • Highly homogeneous ore body enabling the dry processing of the ore • 18,000 MWh of electricity saved every year (
Slide 15: Significant progress at the S11D Mine and Plant
15 Significant progress has been achieved at the S11D Mine and Plant Mine and Plant Status • Physical progress of 75% in September • Civil works on the main substation on the mine concluded • 74% of overall civil works concluded • 100% of the 109 modules positioned at site • 91% of earthworks conclu
Slide 16: Overview of the Mine and Plant area
16 Overview of the Mine and Plant area Mine
Slide 17: Mine overview
17 Mine overview S2 S3 S4 S1 Aug-11-2015
Slide 18: Mine – East Sector
18 Mine – East Sector S4 West Wing TS01 East Wing S3 Oct-25-2015
Slide 19: Mining System
19 Mining System 3 S4 S3 Oct-28-2015
Slide 20: Mine Conveyor Systems
20 Mine Conveyor Systems Mine Substation TS01 West Wing East Wing Mine Buffer Stockpile Mine Construction Site TS02 Aug-11-2015
Slide 21: Transfer Station 1
21 Transfer Station 1 Mine Buffer Stockpile Mine Substation East Wing West Wing TS01 Oct-25-2015 Oct-25-2015 04-jun-2015
Slide 22: Main Mine Substation (230kV)
22 Main Mine Substation (230kV) Oct-25-2015
Slide 23: Mine – Buffer Stockpile and Long Distance Belt Conveyor
23 Mine – Buffer Stockpile and Long Distance Belt Conveyor TS01 Mine Buffer Stockpile TS02 Oct-25-2015
Slide 24: Mine Buffer Stockpile
24 Mine Buffer Stockpile Out-25-2015
Slide 25: Overview of Mine and Plant area
25 Overview of Mine and Plant area Long Distance Belt Conveyor
Slide 26: LDBC (Long Distance Belt Conveyor)
26 LDBC (Long Distance Belt Conveyor) TS06 LDBC Access 2B Access 7 TS02 Aug-11-2015
Slide 27: LDBC (Long Distance Belt Conveyor)
27 LDBC (Long Distance Belt Conveyor) LDBC Access 7 Access 2 Aug-11-2015
Slide 28: LDBC (Long Distance Belt Conveyor)
28 LDBC (Long Distance Belt Conveyor) TS07 Oct-25-2015
Slide 29: LDBC (Long Distance Belt Conveyor)
29 LDBC (Long Distance Belt Conveyor) BC09 Oct-25-2015
Slide 30: Overview of Mine and Plant area: Plant
30 Overview of Mine and Plant area Plant
Slide 31: Secondary and Tertiary Crushing Plants
31 Secondary and Tertiary Crushing Plants BC10 TS08 Oct-25-2015 Oct-25-2015
Slide 32: Plant Overview
32 Plant Overview Buffer Product Stockyard Stockyard Secondary Tertiary Crushing Crushing Plant Plant Loading Line Secondary Screening Plant Oct-25-2015
Slide 33: Secondary Crushing Plant
33 Secondary Crushing Plant Oct-25-2015
Slide 34: Secondary Screening Plant
34 Secondary Screening Plant Oct-25-2015
Slide 35: Loading Line
35 Loading Line Railway Loop Train Loading System Oct-25-2015
Slide 36: The S11D project is progressing according to plan
36 The S11D project is progressing according to plan As of September 2016 Mine and Plant Railway Port Physical Progress of 75% Physical Progress: Physical Progress: - Railway spur 72% - Onshore 66% - Railway duplication 34% - Offshore 64% with 6 segments and 7 semi-segments out of 48 segments
Slide 37: Railway Highlights
37 Railway Highlights • Duplication of the railway (EEFC): − 48 railway sections (570 km) Implementation duplicated of the logistics of − 55 railway sections (220 km) the Northern remodeled System to • Construction of a railway spur: transport 230 − 101 km of railway Mtpy by 2H17 − 4 bridges − 4 tun
Slide 38: Railway segments being duplicated and spur being built
38 48 segments of the railway are being duplicated and a greenfield railway spur is being built Railway Spur – Assembly of 1st AMV Status • Construction of the railway spur: ‒ 72% of physical progress ‒ 89% of earthworks completed ‒ Civil works in 3 of 4 tunnels completed ‒ 88% of physical progress
Slide 39: Railway Spur – Tunnel 1 North
39 Railway Spur – Tunnel 1 North 06-jan-2015 05-mar-2015 11-ago-2015 Oct-01-2015 09-out-2014
Slide 40: Railway Spur – Bridge over the Parauapebas river
40 Railway Spur – Bridge over the Parauapebas river 06-jan-2015 05-mar-2015 Oct-25-2015 11-ago-2015 09-out-2014
Slide 41: Railway Spur – Bridge over the Verde river
41 Railway Spur – Bridge over the Verde river Oct-27-2015
Slide 42: Railway – Bridge over the Pindaré river
42 Railway – Bridge over the Pindaré river Oct-26-2015
Slide 43: Railway Duplication – Bridge over the Cajuapara river
43 Railway Duplication – Bridge over the Cajuapara river Oct-01-2015 09-out-2014
Slide 44: Railway Duplication – Segment 15-16
44 Railway Duplication – Segment 15-16 Oct-26-2015
Slide 45: Railway Duplication – Segment 15-16
45 Railway Duplication – Segment 15-16 Oct-01-2015
Slide 46: Railway Duplication – Segment 48-49
46 Railway Duplication – Segment 48-49 Oct-21-2015
Slide 47: Overpass – Km 88
47 Overpass – Km 88 Oct-06-2015
Slide 48: The S11D project is progressing according to plan
48 The S11D project is progressing according to plan As of September 2015 Mine and Plant Railway Port Physical Progress of 75% Physical Progress: Physical Progress: Railway spur 72% - Onshore 66% Railway duplication 34% with - Offshore 64% 6 segments and 7 semi- segments of 48 segments del
Slide 49: Additional onshore and offshore infrastructure
49 The project scope entails additional onshore and offshore infrastructure • Onshore: − 4 stockyards (600,000 t each) − 2 car dumpers (8,000 t/h) − 1 stacker (16,000 t/h) − 2 reclaimers (8,000 t/h) Increase in the − 2 stackers/reclaimers (8,000 t/h) Northern System • Ponta da Madeira Rail Terminal
Slide 50: The port expansion is also progressing according to plan
50 The port expansion is also progressing according to plan Port Onshore Status • Port onshore: - 66% of physical progress - Civil works ongoing - Assembly of equipment ongoing • Port offshore: - 64% of physical progress - 89% of the foundations completed Port Offshore - 59% of physical progress at
Slide 51: Railway Duplication – Maintenance inspection terminal
51 Railway Duplication – Maintenance inspection terminal Substation Administrative Exit LIne Building Main Shed Parking Lot and Bus Stops Water Towers Entry Line Sandpit 05-oct-2015
Slide 52: Railway Duplication – Wheelset Change and Wheel Maintenance Centers
52 Railway Duplication – Wheelset Change (CTR) and Wheel Maintenance Centers (CMR) CMR Main Shed CTR Main Shed Substation Dressing Entry Lines Room and Nursery Admin Building Oct-05-2015
Slide 53: Onshore – Civil Engineering Work on Stockyards O and T
53 Onshore – Civil Engineering Work on Stockyards O and T O P Stockyard O – East and P Stockyard T – West Oct-07-2015 Oct-23-2015 Stockyard O – West and P Oct-23-2015 Stockyard T – East Oct-07-2015
Slide 54: Onshore – Assembly of Car Dumpers and Reclaimers
54 Onshore – Assembly of Car Dumpers and Reclaimers Oct-23-2015 Oct-23-2015 Stacker – 05 Reclaimer – 06 Car Dumpers – 07 and 08 Oct-26-2015 General View – Car Dumpers Oct-07-2015
Slide 55: Onshore – Assembly of Belt Conveyors Lines
55 Onshore – Assembly of Belt Conveyors Lines (TR) Oct-07-2015 Oct-23-2015 TR 311K-13 CT-311K-202 and TR-313k- TR-311K-13 and CT-311K-202 82 Oct-26-2015 Oct-23-2015 TR-313K-82 and CT-311K-202 TR 313K-211
Slide 56: Off shore – Pier 4 North Berth Construction
56 Off shore – Pier 4 North Berth Construction Auxiliary platform Dolphin D10 Pavement A Dolphin D12 Dolphin D13 Track SL4 Oct-30-2015
Slide 57: Preparation for Operations
57 Preparation for Operations
Slide 58: Personnel required for start-up already mobilized and being trained
58 Personnel required for start-up already mobilized and being trained • The S11D project is tracking according to plan and expected to meet the following key milestones still in 2016: − Start-up of the Mine and Plant − Start-up of the Railway Spur − Gradual upgrade of the Estrada de Ferro Carajás (
Slide 59: Personnel required for start-up of Mine and Plant mobilized and trained
59 Personnel required for start-up of Mine and Plant already mobilized and being trained Pre-Operational Training • More than 800 people already mobilized out of a total of 2,000 • Training programs in partnership with SENAI and other mining companies
Slide 60: The logistics teams are also being trained
60 The logistics teams are also being trained Pre-Operational Training • 300 trainees already trained out of a total of approximately 500 trainees • Over 200 hours of specific and practical training per person
Slide 61: S11D is already benefiting local communities
61 S11D is already benefiting local communities Canaã dos Carajás Court House Multisport Complex Investments • 132 projects approved • 104 ongoing with more than 330 thousand people benefited in projects such as: The Court house in Canaã dos Construction of schools Carajás in partnership with the
Slide 62: For a world with new values.
W va For a world with new values. 62