vale mineral exploration program - < adimb future events or results rather than historical facts....
TRANSCRIPT
Vale Mineral Exploration Program Fabio Sampaio Masotti Exploration Director Americas
SIMEXMIN May 21st 2012
Disclaimer
“This presentation may contain statements that express management’s expectations
about future events or results rather than historical facts. These forward-looking
statements involve risks and uncertainties that could cause actual results to differ
materially from those projected in forward-looking statements, and Vale cannot give
assurance that such statements will prove correct. These risks and uncertainties
include factors: relating to the Brazilian and Canadian economies and securities
markets, which exhibit volatility and can be adversely affected by developments in
other countries; relating to the iron ore and nickel businesses and their dependence
on the global steel industry, which is cyclical in nature; and relating to the highly
competitive industries in which Vale operates. For additional information on factors
that could cause Vale’s actual results to differ from expectations reflected in forward-
looking statements, please see Vale’s reports filed with the Brazilian Comissão de
Valores Mobiliários and the U.S. Securities and Exchange Commission.”
Health & Safety
Vale’s Overview
Mineral Exploration
Vale Global Mission
Health & Safety
Vale’s Overview
Mineral Exploration
Vale Global Mission
Vale: Our Beliefs
MISSION
To transform natural resources into prosperity and sustainable
development
VISION
To be the number one global natural resources company in creating long
term value, through excellence and passion for people and the planet
VALUES
Life matters most
Value our people
Prize our planet
Do what is right
Improve together
Make it happen
Health & Safety
Vale’s Overview
Mineral Exploration
Vale Global Mission
Total Accident Rate* YTD (Mar.12) – Global
Vale Accidents Rate – Global and Brazil
*Total accident rate includes: Medical Treatment Case, Restricted Workday Case, Lost Workday Case and Fatalities
6,01
3,89
3,33 3,13
2,39
0
1
2
3
4
5
6
7
2009 2010 2011 2012Jan-Mar
2012Whole Year Forecast
Vale Worldwide
Health & Safety
Vale’s Overview
Mineral Exploration
Vale Global Mission
Vale: who we are
Vale is the second biggest mining company in the world and the largest in the
Americas.
We are the leading producer of iron ore and pellets and the second biggest
nickel producer. We are also among the largest producers of manganese and
ferro-alloys.
We produce copper, coal, potash, phosphate fertilizers, cobalt and platinum
group metals. We are also active in the logistics, energy and steel sectors.
We are present in 38 countries, with 420,000 investors on all continents.
"We are global, not only because we are present throughout the
world, but because we think globally."
Where we are
• Present on five continents through its operations, commercial offices and mineral
exploration. Our operations include 52 mines around the world.
• We operate in 38 countries and employ over 138,000 people, including employees and
contractors.
The Company consolidates the diversification in mining, supported
by the logistics and energy
Operational Revenue 2011
US$ 60.4 Billion
Markets
Products
Mining
• Ferrous - Iron ore, pellets, manganese and alloys
• In 2011, China accounted for 44.1% of our iron ore and
iron ore pellets shipments, and Asia as a whole
accounted for 62.4%
• Nonferrous - Nickel, Copper
• Fertilizers
• Coal
Logistics
• Railways, port terminals, coastal shipping and
logistics solutions
Energy for self-supply
• In Brazil alone we currently participate in nine
hydroelectric power plants and four PCHs (small
hydroelectric power plants)
Vale delivered 38 projects between 2002 and 2011
Organic growth: project pipeline for the next years
*JVs
One of VALE’s major concern is people’s education:
VALER Institute
Educational challenges
• Dimension of the enterprise and global presence
• Cultural diversity
• Excellence in management
• Continued development in human capital
Constant development programs for employees and partners
• Basic education and technical qualification and specialization.
• Specific development programs in management and technical
specialization
Partnership with institutions focused on science, technology and innovation
Health & Safety
Vale’s Overview
Mineral Exploration
Vale Global Mission
A challenging scenario
The Mining Industry has significant challenges ahead:
• Mining will progressively move to more remote regions and with a higher risk profile
• Increasing government pressure for profit sharing, public compensation and infra-structure development. Risk of legislation change and resource nationalization
• Sustainable operations to address increasing social requirements
• More stringent environmental regulations and conditions. Potential for additional costs associated to climate change
• Short supply of skilled labour
Vale Global Exploration Organizational Chart
Global Director
Marcio Godoy
Strategig Planning,
Management and
Mineral Rights
Jessica Carvalho
Health, Safety and
Sustainability
Luiz Baginski
Project
Development
Edson Ribeiro
Technical
Services
Natalia Streltsova
Exploration
Australasia
Edson Ribeiro
Exploration
Americas
Fabio Masotti
Exploration Africa , Europe
and Western Asia
Noevaldo Teixeira
Geological Exploration and
Business Development
Mineral Technology and Technical Support
Project Planning
and Development
Vale Global Exploration
Technical Services
Project Development
Exploration Americas Africa and Eurasia Exploration Australasia
Non-ferrous Worldwide Exploration Budgets by Country (2011)
Source: Metals Economic Group 2012
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 E
• Long-term investment, akin to R&D
• Despite the market downturn in 2009, investment has systematically increased in recent
years as a reflex of the consolidation of the geographical expansion and multi-mineral
portfolio
Vale’s Investment in Mineral Exploration
* US$ corrected by USA´s CPI. 2012 = budget.
In 2010 investments
in mineral
exploration returned
to pre-crisis levels
Brazil World
Consistent and
increasing
investment in
Brazil
Global Exploration 2012
North America 14,5%
Andean America
8,0%
Brasil 40,0%
Australasia 25,5%
Africa 12,0%
VALE’s successful mineral exploration has the following
pillars:
• To be where the big deposits are
• Continuous innovation, seeking new concepts and new technologies
• Strategic alliances with suppliers, universities, research institutions
• Flexible models of partnerships with junior companies, seeking
complementary skills
• Continuous effort and investment
• Maintain high credibility with society, government, environmental
agencies and investors
Vale’s Exploration Positioning
Andean America:
Copper
Pacific Belt:
Copper
Canada: Potash
and Nickel
Australia: Coal
Africa: Copper
Brazil: Iron Ore, Nickel,
Copper, Potash
Exploring the globe…
... connected with the world...
Carajas, Brazil
Mongolia
Moxico, Angola
Saskatchewan, Canada
… combined with state of the art mineral processing technology
