Vale presents its strategic planning for 2019 in New York

11/21/2018

Vale presents its strategic planning for 2019 in New York

On December 4th, Vale presented the perspectives for the next year in a meeting with investors and journalists in New York. Broadcasted live on the internet, Vale Day was opened by CEO Fabio Schvartsman. According to him, 2018 was a good year for Vale and we can expect the same for the year to come, “Flight to quality came to stay”. The company is investing US$ 2.9 bi in the next 5 years in order to reach 95% of share of premium products. He also said that Vale is committed to delivering the turnaround in base metals and to completing the nickel turnaround before electric vehicles become a reality.

Vale’s strategy for 2019 will be based on five strategic pillars:

Leading the future
in iron ore

Flight to quality is definitive, structural and global. We are increasing the share of high quality iron ore in our performance

Value and optionality
in base metals

The goal is to transform base metals into a significant cash generator

Unlocking value in coal

The conclusion of Moatize ramp-up is based on capacity, mine productivity and yeld

Sustainability

Some goals for 2030 are: recovery of 100,000 hectares of degraded land and reduction of greenhouse gas emissions by 16%

Rewards of the strategy

The company will allocate capital in a disciplined way. Vale has the opportunity to increase its cash generation, reaching potential U$ 24.4 bi EBITDA by 2023

“

The most important issue at the moment is the challenge in base metals. We are all focused and committed to delivering the turnaround in this business so we can lead the world's nickel operation to keep up with the electric car revolution.

Fabio Schvartsman

The executive said that Vale achieved this position not due to luck, but because Vale invested in becoming champion in quality for iron ore and pellet production. He also remembered that Vale has a much more complex operation than its competitors, a result of the large number of mines operated by the company. In this context, the Integrated Operations Center helps Vale manage everything to maintain the best product price. Sustaintability was also na importante topic of the presentation and Schvartsman enphasized that Vale is even investing in recovering areas that not belong to the company, so that it can contribute to the sustainable development of regions near Vale’s operations. At the end of the presentation, Fabio also mentioned that another goal in 2019 is to distribute more and more dividends to shareholders.

Check out the highlights for each business area:

Sustainability and
Institutional Relations

Dir. Luiz Eduardo Osorio

  • Among the goals for 2030 are: recovery of 100,000 hectares of degraded land; reduction of 10% of new water collection; reduction of greenhouse gas emissions by 16%.
  • Vale is becoming a reference in sustainable: truckless and dry processing are examples of sustainable mining. Besides, Vale uses quality products and engages with society to produce a positive social legacy.
  • We are top 3 out of 40+ companies in the extractive industry – World Corporate Human Rights Benchmark 2018.
  • Vale was included in the 2019 ISE Corporate Sustainability Index of B3.
  • Recognized for 7 consecutive years by the UN Glboal Compact Lead. We are the only ranked company form the Metals & Mining sector.

Ferrous Minerals and Coal

Dir. Peter Poppinga

  • Flight to quality: Vale is investing US$ 2.9 bi in the next 5 years in order to reach 95% of share of premium products
  • Technological inicitives and cost management are part of the strategy
  • Expansion of S11D to 100Mt, starting in 2022 with capex of about US$ 770 million
  • Vale is the main supplier of green ore; in average, its premium product portfolio has less 17% particulate emissions, 16% CO2 emissions, 1% de NOx emissions and 8% of SOx emissions

Base metals

Dir. Eduardo Bartolomeo

  • The challenge is to complete nickel turnaround before eletric vehicles become a reality
  • The nickel turnaround is based on 3 key pillars: supply chain integration, opperational excelence and digital transformation
  • Vale has a potential to increase its copper production from 417kt in 2019 to 500kt by 2023, with potential to reach 800kt in long-term

Finance

Dir. Luciano Siani Pires

  • Ferrous Minerals projects and initiatives will further enhance portfolio differentiation
  • Vale has an opportunity to increase its cash generation by US$ 7.7 bi in next years, reaching potential U$ 24.4 bi EBITDA by 2023
  • The top 3 priorities for value creation are maximize flight to quality rewards in iron ore, transform base metals into a significant cash generator and capital discipline

Check out Vale Day photos:

Downloads and replays

Watch the replay of the webcasts and download the presentation.

Presentation Vale Day New York Investor’s conference Press conference
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Vale presents its strategic planning for 2019 in New York