About Vale

4/17/2013

Production Report discloses Vale's performance for the first quarter of 2013

Our Production Report, referring to the first quarter of 2013, was disclosed on Wednesday, April 17, after the markets closed. The document provides an overview of our operations for the beginning of this year.

The production in 1Q13 was marked by a strong operational performance of the base metals assets. Output of copper and cobalt reached all-time high figures while nickel had its best first quarter of the last three years. Three base metals projects are ramping up (evolution) production and all of them are doing well, according to plan.

Due to seasonal factors, the first quarter is the weakest of the year as production is affected by the rainy season in the Southern Hemisphere, particularly causing negative impacts on iron ore, manganese and copper (Brazil) and coal (Australia and Mozambique) output performance.


See the performance of our main businesses:

Iron ore

Vale’s iron ore production reached 67.5 Mt in 1Q13, slightly below 1Q12 and 21.0% lower than 4Q12, which resulted from the impact of several factors including seasonality, permitting and other operational issues.

The Southeastern System, which encompasses the Itabira, Mariana and Minas Centrais mining sites, produced 24.8 Mt in 1Q13.

The Southern System produced 17.0 Mt in 1Q13, reflecting the effects of the scheduled maintenance stoppage in Vargem Grande.

The Midwestern System, comprised of Urucum and Corumbá, produced 1.4 Mt in 1Q13.

* Find out more in the report.

Nickel

Total finished nickel production in 1Q13 was 65,000 t, 1.7% higher than 4Q12 and 3.0% above 1Q12, the best first quarter since 1Q09. Improved operational reliability in Canada and the ramp-up (evolution) of VNC more than offset the effect of the production loss from Onça Puma and the maintenance shutdown of a furnace at Sorowako.

* Find out more in the report.

Coal

Coal output in 1Q13, at 1.8 Mt, was the highest for a first quarter, mostly due to the performance of the Australian operations, particularly Carborough Downs (CD). Production of metallurgical coal was also a record for a first quarter and thermal coal output, at 379,000 t, was the best figure since 1Q09.

In 1Q13, coal production was 10.2% below the previous quarter, suffering the effects of the rainy season in Moatize and the longwall move in Integra Coal, in Australia.

* Find out more in the report.

Copper

In 1Q13, copper production was 89,500 t, a record mark, due to the ramp up (evolution) of Salobo I and Lubambe and the operational performance of Sudbury.

Despite the rainy season in Brazil, production of copper in concentrates at the Sossego mine at Carajás totaled 27,700 t, the best first quarter since 1Q09.

Salobo I produced 11,000 t of copper in concentrates and 18,700 troy ounces (oz) of gold as a by-product.

* Find out more in the report.

Fertilizer nutrients

Our sales are primarily destined for the Brazilian market, where the demand for nutrients is more concentrated in the second half of the year, so our production tends to be weaker in the first half of the year.

Production of potash was 120,000 t in 1Q13, decreasing 25.5% quarter-over-quarter. The output reduction was caused by geological conditions at the mine and by a non-scheduled maintenance stoppage.

In 1Q13, total production of phosphate rock, which is used to feed the production of phosphate nutrients, decreased by 3.4% over last quarter, but was 9.1% higher than 1Q12, a record for a first quarter, due to the record production of Bayóvar.

* Find out more in the report.


Download

Download our Production Report 1Q13.

Download Production Report 1Q13

Quarterly Results – 1Q13

This month, on April 24, Vale will also disclose the Financial Report for the first quarter (1Q13). Following the same procedure for the disclosure of the Production Report, the results will be published after the markets close. On the following day, April 25, two webcasts (real-time audio conferences) will be held for investors. The first one, in Portuguese, will be held at 10 a.m. (Brasília time - Brazil). The second one, in English, at midday (Brasília time), which corresponds to 11 a.m. in New York (USA), 4 p.m. in London (England), and 11 p.m. in Hong Kong (China).

Webcast Access:

Conference in Portuguese:
Participantes que ligam do Brasil: (55 11) 4688-6341
Participantes que ligam dos EUA: (1 855) 281-6021
Participantes que ligam de outros países: (1 786) 924-6977
Código de acesso: VALE

Conference in English:
Participants from Brazil: (55 11) 4688-6341
Participants from the USA: (1 866) 262-4553
Participants from other countries: (1 412) 317-6029
Access code: VALE


Production Report discloses Vale's performance for the first quarter of 2013