Voisey’s Bay Mine Expansion Project Supplier Information Sessions

Agenda

• Introductions

• Safety Share

• Purpose Of This Session

• Vale Newfoundland and Labrador

• Voisey’s Bay Mine and Concentrator

• Long Harbour Processing Plant

• Mine Expansion Project

• Doing Business With VNL

• Supply Opportunities

• Questions

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Introductions

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Safety Share

Safety Share

5

• Plan your outdoor trips with safety in mind.

• Every year we sadly hear stories of people who have gone missing

traveling between two destinations – and tragically are often eventually

found when it is too late.

• Let someone know your specific plans before you leave – your planned

itinerary and where you expect to be by when.

• Make sure your cell phone is charged before you leave and call when

you arrive at each part of your journey.

• It will give you – and those who care about you – peace of mind if they

know you have arrived safely and especially if the weather is bad.

• For those of you frequently out of cell range

devices are available on the market which use

satellite GPS technology.

• A device like this SPOT messenger can locate you

and send a message to emergency services so

you can be found quickly

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Purpose Of This Session

We are here today to provide an overview of

the Voisey’s Bay Mine Expansion Project and

to meet with businesses to discuss the future

business opportunities which are required to

support the construction and operation of the

underground mine.

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Vale Newfoundland and Labrador

Vale Newfoundland Labrador

• Currently operating an open pit mine, a concentrator and a processing

plant

• The mine and concentrator site is located at Voisey’s Bay on the North

Coast of Labrador, 35 km south of Nain

• The processing plant is located at Long Harbour

• Operations at Voisey’s Bay began in 2005 and at Long Harbour in

2014

• The underground mine expansion at Voisey’s Bay will begin in 2016

9

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Voisey’s Bay Mine and Concentrator

Voisey’s Bay Mine Site

Plant Site

Headwater Pond

Tailings Basin

Airstrip

Eastern Deeps

Deposit

Reid Brook Deposit Ovoid Pit

Camp Pond

12

Port Layout At Voisey’s Bay

Concentrate

Storage

Building

Umiak I

Container

Laydown Area

Ship Loader

13

Operational Overview

•6,000 tonne-per-day mine and concentrator

•Annual production

• ~ 50,000 tonnes nickel-in-concentrate, containing 2,300 tonnes

cobalt and up to 6,800 tonnes copper

• ~ 32,000 tonnes copper-in-concentrate

• Fly-in/Fly-out operation

• 2 week rotations

• Workforce – 475

• Vale and contractors

• 55% of workforce are aboriginal

14

Fly in – fly out site, continuity issues due to rotations, ice breaking, extra personnel to

support site needs, air services, extreme weather, wildlife encounters, environmental

sensitivity, retention, supply line costs, additional inventory, isolation.

Operational challenges come from geography….

15

Vale’s Commitment To Local Communities

55% Of total workforce is

Aboriginal

80% of operations

contracts are awarded to

Aboriginal businesses

>90% Aboriginal employment

from adjacent communities

Vale was mentioned in the recent Federal budget referring to best practices

by private companies: “The Vale mine and concentrator project in Labrador

has provided training geared to employment for Aboriginal groups.”

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Long Harbour Processing Plant

Our Journey

• Successful completion of research and development led to decision to

proceed with hydromet technology

• Construction of processing plant began in 2009

• First production July 2014

Long Harbour Processing Plant Site

Main process area

Long Harbour Processing Plant Site

Port site

Production to date ~ 5000 tonnes

Expanding capacity to accept all Voisey’s Bay production

Employment

Vale Operations - 450

Support Contractors - 250

Women’s employment: 20% of workforce;

• 82% of these in non-traditional roles

Operations Overview

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MV Umiak at port and unloading concentrate

First nickel production

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Mine Expansion Project

Surface Site Plan for the Underground Mine

Main Ventilation

Fans Complex

Backfill Plant

Concrete / Shotcrete Plant

Eastern Deeps

Portal Openings

Temporary Camp

Reid Brook Portal

Opening

Temporary

Shops

Existing Camp Complex Expansion

Reid Brook Fans

Access Road

Main Ventilation

Fans Complex

Existing

Ovoid Pit

Conceptual Mine Design: Reid Brook

DECLINE FROM

SURFACE

SCRAP

REMOVAL

CONVEYOR

VENTILATION

RAISES

INTERNAL

DECLINE SYSTEM INFERRED RESOURCE

ZONE

MAXIMUM DEPTH

REACHED IN PROJECT

PHASE

Conceptual Mine Design: Eastern Deeps

DECLINES FROM

SURFACE

VENTILATION

RAISES

OREBODY ACCESS

DECLINE SYSTEM

CONVEYOR

INCLINE

ORE / WASTE

HANDLING SYSTEM

MAXIMUM DEPTH

REACHED IN

PROJECT PHASE

Project Elements

• Underground mine development:

• Ramps

• Lateral development

• Supporting infrastructure (garage, refuge stations, material handling

systems, pumping systems, etc.)

• Underground mine ventilation system:

• Fresh and Return Air fans

• Surface infrastructure expansion including:

• Increased power generation

• Additional permanent accommodations

• Expansion to offices, warehousing, and maintenance shops

• Upgrades to water and sewage treatment facilities

• Paste backfill plant

• Construction facilities (temporary camp, maintenance facilities, etc.)

Project Timelines

2016 2017 2018 2019 2020 2021 2022+

Start of Project

Ramp up to full

production

End surface

construction

First on-site activity • Vegetation stripping

• Site clearing for camp,

sewage treatment, water

• Creation of mine

openings

Start of Construction • Underground

development

• Start of permanent

camp expansions

• Temporary shops

End Reid Brook construction

Hand over to Operations

End Eastern Deeps

construction

Hand over to Operations

(End of project period)

Ongoing Construction • Power plant

• Paste fill plant

• Office / warehouse /

permanent shop expansions

• Main ventilation fans

Ongoing Construction • Control room

• Power plant complete

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Doing Business with VNL

Newfoundland & Labrador

• Vale’s operations in the province are governed by the Development

Agreement with the Government of Newfoundland and Labrador.

• The Agreement includes specific Industrial and Employment Benefits

(the IEBA) commitments with respect to:

• Providing business opportunities for companies which operate

within the province

• Providing employment opportunities for provincial residents

• Vale has also made commitments to the Innu Nation and the

Nunatsiavut Government in separate Impacts and Benefits

Agreements (IBAs) which govern our activities in Labrador.

• The IBAs which have been in place since 2002 have become

ingrained in the way we do business at the mine site since that time. In

Labrador, the IBAs take precedence over those in the IEBA.

Guiding Procurement Principles

• For qualified provincial suppliers VNL will provide full and fair

opportunity and first consideration to participate in all phases of

the project

• Our activities in Labrador are subject to IBA commitments

requiring VNL to

• Promote use of Innu and Inuit Businesses

• Encourage and facilitate development of Innu and Inuit

business expertise, skills and capacity

• Adjacency Principle

• Applies only to project activities in Labrador

• First consideration given to other Labrador businesses once

IBA commitments have been met

• Follow Vale’s procurement norms

• Maintain integrity of the project budget and schedule

• Ensure the project is competitive

Procurement Procedure

EXPRESSION OF INTEREST

PRE-QUALIFICATION

PROPOSAL REQUEST ISSUED

EVALUATION OF PROPOSALS

AWARD

• Brief summary of

the work

• Pre-notification

to aboriginal

business centres

• Posting on the

VNL website

• Confidential Vale questionnaire

• Asks questions regarding

aboriginal affiliation, technical and

financial capability

• List of registered and interested

aboriginal businesses provided to

Vale

• Scope of work issued to pre-

qualified businesses

• Bid clarification meetings

• Technical evaluations –

by Project team

• Commercial

evaluations – by Vale

Procurement

• Combined Technical

& Commercial

evaluations

• Award decision by

Vale Procurement

Bid Evaluation Criteria

• Knowledge, appreciation and understanding of scope of work

• Experience, competence and ability to meet technical specification

• Cost

• Continuity of supply

• Ability to manage, perform and complete on schedule

• Safety, security, QA programs

• Level, nature and location of provincial benefits

• Ability to work with VNL

• Commitments to Innu and Inuit content

Note: In the pre-qualification and bid evaluation processes a weighting

factor is also applied to aboriginal businesses

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Supply Opportunities

Construction Phase Opportunities: Services

• Civil works

• Temporary camp facilities

• New building construction

• Marine transport

• Underground development

• Raiseboring

• Engineering

• Project Management

• Air Transportation

• Camp servicing & catering

• Concentrate and bulk haulage

• Security and safety

• Logistics

Construction Phase Opportunities: Supplies

• Structural steel

• Rebar

• Concrete

• Piping, pumps, motors, fans

• Conveyors, idlers, bearings

• Electrical & instrumentation

equipment

• Safety supplies

• Communication equipment

• Light vehicles

• Mobile equipment supplies

• Skid mount modules

• Welding supplies

• Cables

• Tool and equipment rentals

• Domestic supplies for camp

• Ropes, slings, shackles, nuts, bolts,

etc.

• Fuel, oil, filters

• Ventilation fans and doors

• Underground mine consumables

Future Steady State Mine Opportunities

• Load and haul mobile equipment

• Glycol, fluids

• Wear parts – teeth, adapters, pads

• Ropes, slings, shackles, etc

• Fuel, oil, filters, etc

• Tires, rims

• General maintenance supplies

• Drill steel, bits

• Welding supplies

• Haulage truck and tractor supplies

• Mine screen mesh

• Rock bolts and resin

• Hoses and fittings

Expressions Of Interest Posted To Date

• Design Engineering

• Project Management

• Civil Works 2016

• Temporary Construction Camp

• Sewage Treatment Plant upgrade

• Construction Dock upgrades

• Underground Development (Phase 1)

• Timber removal

• Testing (Concrete and Soils)

• Master Logistics Services

• Network upgrade (WAN – Labrador)

• Underground Mobile Equipment (3 packages)

• Pre-Qualification forms must be completed in full

• Technical and financial information about your business which must

be provided

• We will treat the information you provide in strictest confidence. No

one outside of the Vale Procurement organization will see, or have

access, to any financial information.

• The information is required to help us understand if your business

has the capacity to deliver the supply items or services being

requested in the scope of work.

• Pre-qualification does give preference to registered aboriginal

businesses

• Only those pre-qualified will be invited to submit a proposal

• Feedback to those who did not qualify will be provided upon request.

Important Points

Going Forward

• EOIs will be published on our website:

www.vale.com/canada/EN/suppliers/become-supplier/canada/vnl-

procurement/Pages/Voisey's-Bay-Underground-Mine-Project.aspx

• Remember we have just finished basic engineering. Detailed

engineering will begin in the first half of 2016.

• If there are any questions during the pre-qualification period, please

call Vale Procurement directly (do not rely on e-mail for a timely

response).

Agenda

• Risk Management Share

• Introductions

• Recent Project Developments

• The FEL 3 Project

• What You Can Expect In The Next Year

• Requests

• Questions

Thank You

Any Questions?