Voisey’s Bay Underground Mine ProjectUpdate for Expo Labrador, Happy Valley-Goose Bay26 June 2013Steve Ball, Project Director

Vale is the world’s second largest mining company and operates in more than 30 countries around the world with over 150,000 employees worldwide.

04/07/20131

Our Global Footprint

Vale’s Newfoundland & Labrador Operations

Argentia

• Two sites separated by 1,200 km• The mine & concentrator has been

established at Voisey’s Bay, Labrador.

• The nickel processing plant is under construction at Long Harbour.

• These sites require development of extensive infrastructure such as port facilities, power supply, water supply & roads.

• The Voisey’s Bay site also includes an airstrip and accommodation complex.

• Ore is mined from our open pit operation and is concentrated at the site

• The mill (concentrator) produces 3 final products:• High grade Nickel concentrate• Middle grade Nickel concentrate

(also called “Middlings”)• Copper concentrate (sent to

external market)• The nickel ore concentrates are

shipped 10 times a year with the M.V.Umiak.

• Long Harbour Processing Plant will receive the High grade and Middling concentrates once it is commissioned.

Voisey’s Bay, Newfoundland & Labrador

Voisey’s Bay Mine Chronology

• Inco (now Vale) secured the Voisey’s Bay deposit from Diamond Fields in 1996

• Site development 2001-2005• First production from the Ovoid (open pit) in 2005. Sustained

production since then.• Next phase:

• Detailed engineering phase (FEL 3) initiated in Q1/2013• Following Vale Board sanction site expansion and construction of the

underground mine will begin in late 2015 and early 2016 respectively. • 3 years for underground ramp development• Targeting first ore production late 2019• Full production in 2021/2022

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Study Criteria: Front End Loading (FEL)

• Market analysis• Scoping study• Sales/production capacity• Competitiveness study• Legal/safety/environ.• Initial estimates• Technology evaluation• Product development

• Project objectives• Requirements

identification• Risk identification• Trade-off analysis• Site selection• Conceptual design• Estimating• Team establishment• Stakeholders buy-in

• Basic design• Equipment specification• Procurement plan• Execution plan• Detailed work scope• Budget and schedule• Authorization to execute

Business Opportunity

AnalysisPre-Feasibility Feasibility

Brainstorm Options

Select And Refine One Option

Prepare To Execute

FEL 1 FEL 2 FEL 3

Our Challenge Is Our Geography

• Fly in – fly out site• Continuity issues due to rotations• Ice breaking• Extra personnel to support site needs• Air services • Extreme weather• Wildlife encounters• Important aboriginal relationships and IBAs• Environmental sensitivity• Employee retention• Supply line surety• Additional inventory of materials/supplies• Site isolation

Ovoid Pit

Eastern DeepsDeposit

Reid BrookDeposit

Plant Site

Airstrip

HeadwaterPond

Camp Pond

Surface Vertical Projection of Orebodies (approximate)

Post Ovoid Deposits: A Closer Look

Reid Brook

Discovery Hill Ovoid

Eastern Deeps

Section looking North

Conceptual Underground Mine Design

Surface±5100 Elevation

Top Eastern Deeps:4540 Elevation

Bottom Eastern Deeps:4210 Elevation

Bottom Reid Brook:4200 Elevation

Top Reid Brook:4880 Elevation

±200m

±900m

±550m

±900m

Distance from Surface

Distance from Surface

Distance between Deposits: ±3km

Portals (3)

Reid Brook

Eastern Deeps

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Reid Brook AccessRamp Portal

Eastern Deeps ConveyorRamp Portal

Eastern Deeps AccessRamp Portal

Post Ovoid Production Targets Study Summary

Eastern Deeps Reid Brook Total Post Ovoid

Ore tonnes 16.6 M tonnes 12.9 M tonnes 29.5 M tonnes

Mining rate 4,500 tpd 2,700 tpd 7,200 tpd

Mining methods 2% cut & fill98% bulk

87% cut & fill/drift & fill13% bulk

39% cut & fill61% bulk

Overall Site Plan

Reid Brook Fans

Eastern Deeps FansPaste PlantConcrete Plant

Temporary Accommodations & Offices

Compressor House

Office/Dry/Warehouse

New Power Plant Extension

New Service Bays

New Accomodations

PortalsED conveyorRB Access

ED Access Portal

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Close Up Of Main Site Complex

Office/Dry/Warehouse

Temporary Accommodations & Offices

New Accommodations

New Service Bays

ED Conveyor Portal

RB Access Portal

Compressor House

Power Plant Extension

ED Access Portal

Process Water Treatment Plant

Sewage Treatment Plant

Ore Storage Shed New Cooler

Fuel System

Post Ovoid Main Project Elements

• Underground mine development and additional ore exploration• Additional diesel fuel storage• Additional diesel power generation (adding approximately 7

generators to existing plant)• Compressed air plant• Underground mine ventilation system• Infrastructure expansion (accommodations, office, warehousing,

maintenance shop)• Paste backfill plant• Expanded tailings, PAG rock, clean waste rock and solid waste

management • Expanded water and sewage treatment facilities • And we can’t forget about the people - labour and training strategies