Form 6-K
Table of Contents

 
 
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of
July 2009
Vale S.A.
Avenida Graça Aranha, No. 26
20030-900 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F þ Form 40-F o
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))
(Check One) Yes o No þ
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))
(Check One) Yes o No þ
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
(Check One) Yes o No þ
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82-____.)
 
 

 

 

TABLE OF CONTENTS

Press Release
Signatures

Table of Contents

Press Release
(VALE LOGO)
Vale — 2Q09 Production Report
PERFORMANCE STILL REFLECTING WEAK GLOBAL DEMAND
Rio de Janeiro, July 29, 2009 — Vale S.A. (Vale) had a better operational performance in the second quarter of 2009, showing significant percentage increases in the production of iron ore (+23.1%), pellets (+47.4%), manganese ore (+387.9%), platinum (+18.6%), palladium (28.6%), kaolin (+40.5%), and thermal coal (+125.5%) relative to the low levels of 1Q09.
Over the last few months, a recovery in global industrial production has been taking place, a process in which Asia is at the forefront. However, it is worthwhile highlighting that the global economy is recovering from a very low level of activity, after a powerful demand shock.
Given the signals issued by some leading indicators of industrial production and the conclusion of the de-stocking process of the steel industry in some regions — such as Europe where it was running at very low levels of capacity utilization — it is likely that the gradual recovery of the global demand for minerals and metals will continue over the next six months which will lead to us to increase operational activities although at a more moderated pace than last year.
FERROUS MINERALS
• Iron ore
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
IRON ORE
     78,050       46,860       57,696       136,962       96,725       23.1 %     -26.1 %     -29.4 %
Southeastern System
     30,837       16,625       22,068       59,175       38,694       32.7 %     -28.4 %     -34.6 %
Itabira
     11,682       5,983       8,205       22,547       14,189       37.1 %     -29.8 %     -37.1 %
Mariana
     8,987       6,204       6,963       17,995       13,167       12.2 %     -22.5 %     -26.8 %
Minas Centrais
     9,880       4,438       6,900       18,633       11,338       55.5 %     -30.2 %     -39.1 %
Urucum
     288       0       0       457       0       n.a.       n.a.       n.a.  
Southern System
     22,120       9,851       15,108       26,261       17,128       53.4 %     -31.7 %     -34.8 %
Minas Itabirito
     6,602       2,474       5,006       12,324       7,481       102.4 %     -24.2 %     -39.3 %
Vargem Grande
     6,905       4,134       5,514       13,938       9,647       33.4 %     -20.2 %     -30.8 %
Paraopebas
     8,613       3,243       4,588       15,576       7,831       41.4 %     -46.7 %     -49.7 %
Carajás
     23,239       20,277       20,480       47,438       40,757       1.0 %     -11.9 %     -14.1 %
Samarco1
     1,855       106       40       3,630       147       -62.3 %     -97.8 %     -96.0 %
Our iron ore production in 2Q09 amounted to 57.7 Mt2,3, increasing by 23.1% relatively to 1Q09 and down 26.1% versus 2Q08. In the first half of 2009, it totaled 96.7 Mt, 29.4% lower than 1H08.
At Carajás, iron ore output was 20.5 Mt, slightly above the level reached in 1Q09. Carajás operating activities in 2Q09 suffered the negative impact of heavy rains, which in addition to the intensity of the precipitation level were not usual for this time of the year. In spite of this event, the high-quality low-cost Carajás iron ore represented 35.5% of our total production in 2Q09, against 29.8% in 2Q08.
 
     
1  
Production attributable to Vale
 
2  
Mt = million metric tons
 
3  
Production in 2Q09 was 57.7 Mt under US GAAP

 

1

Table of Contents

(VALE LOGO)
Given that most of our future capacity expansion will be in Carajás, it will be responsible for an increasing share of our total iron ore output. At Carajás, we have proven and probable reserves of 7.2 billion metric tons — with an average iron content of 67% — accounting for 50.3% of Vale’s total P&P iron ore reserves of 14.3 billion metric tons.
The Southeastern and Southern Systems were responsible for 77.5% of the year-on-year total output reduction of 20.4 Mt.
The Southeastern System, which encompasses the Itabira, Mariana, Minas Centrais and Urucum iron ore mining sites, produced 22.1 Mt, 32.4% higher than 1Q09.
The Southern System, which comprises Minas Itabirito, Vargem Grande and Paraopebas, produced 15.1 Mt in 2Q09, 53.4% higher than 1Q09.
• Pellets
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
                                                                 
PELLETS1
     11,593       2,885       4,251       23,707       7,580       47.4 %     -63.3 %     -68.0 %
Tubarão I and II
     1,674       510       1,338       3,287       1,848       162.1 %     -20.1 %     -43.8 %
Fabrica
     1,030       235       0       2,109       235       n.a.       n.a.       -88.9 %
São Luís
     1,605       3       0       3,294       3       n.a.       n.a.       -99.9 %
Vargem Grande
     0       4       222       0       225       n.a.       n.a.       n.a.  
Nibrasco
     2,261       96       1,141       4,298       1,237       1082.6 %     -49.5 %     -71.2 %
Kobrasco
     1,256       889       0       2,529       889       n.a.       n.a.       -64.9 %
Hispanobras
     578       0       0       1,148       0       n.a.       n.a.       n.a.  
Itabrasco
     889       0       0       1,897       0       n.a.       n.a.       n.a.  
Samarco
     2,301       1,148       1,551       3,881       2,699       35.0 %     -32.6 %     -30.5 %
The demand for pellets tends to be more cyclical and more volatile than the demand for iron ore. In a downturn, it is negatively affected earlier and more strongly than the demand for iron ore. In the upturn, its initial reaction is slower but it tends to grow more strongly. Vale had taken steps to align production with demand to avoid inventory build-up, shutting down several plants, and keeping in operation in 2Q09 only Tubarão I and II, Nibrasco (the two plants) and Vargem Grande, which is still in a ramp up process.
Vargem Grande started the ramp up by the end of 1Q09 and produced 222,000 metric tons in 2Q09. It is located in the Southern System, near Nova Lima, state of Minas Gerais, Brazil, with a nominal annual capacity to produce 7 million metric tons. Samarco is also ramping up its new third plant while operating below nominal capacity at the other facilities.
Our total production reached 4.3 Mt against 2.9 Mt in 1Q09, increasing 47.3% qoq. It was due to the output increases at Tubarão I & II, Nibrasco, Vargem Grande and Samarco, more than offsetting the effect of the shutdown of Kobrasco. In 2Q09, 2.6 Mt of direct reduction pellets were produced, and 1.7 Mt of blast furnace pellets.
Given the recovery in global demand, the Itabrasco plant is resuming operations in July.
 
     
1  
Production attributable to Vale on a pro forma basis. In 2008, we entered into a leasing contract for Nibrasco, Kobrasco and Itabrasco pelletizing operations. As a consequence, their production is being consolidated 100% on a pro forma basis.

 

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(VALE LOGO)
• Manganese ore and ferroalloys
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
MANGANESE ORE
     658       113       550       1,198       662       387.9 %     -16.5 %     -44.7 %
Azul
     546       43       448       1,050       492       939.0 %     -17.8 %     -53.2 %
Urucum
     77       40       56       114       96       38.0 %     -27.9 %     -15.7 %
Other mines
     35       29       45       35       75       56.0 %     31.1 %     115.2 %
FERROALLOY
     128       48       27       260       76       -43.0 %     -78.6 %     -71.0 %
Brazil
     75       34       8       151       41       -77.4 %     -89.9 %     -72.5 %
Dunkerque
     15       0       0       39       0       n.a.       n.a.       n.a.  
Mo I Rana
     32       14       20       60       34       38.2 %     -39.1 %     -43.5 %
Urucum
     5       0       0       11       0       n.a.       n.a.       n.a.  
Manganese ore production reached 550,000 metric tons (t) in 2Q09, increasing 387.9% relatively to the 113,000 t produced in 1Q09. The Azul mine, our largest manganese mine, resumed operations in March, 2009.
Ferroalloy output decreased to 27,400 t from 48,000 t in 1Q09. In 2Q09 we produced 15,300 t of ferrosilicon manganese alloys (FeSiMn), 9,300 t of medium-carbon manganese alloys (FeMnMC) and 2,800 t of high-carbon manganese alloys (FeMnAc).
Our plants in Brazil were shut down during December 2008 and two of the four plants have resumed operations since the beginning of this year. The ferroalloy plant in Mo I Rana, Norway, is showing improved performance after the furnace maintenance, and produced 20,000 t in 2Q09. Our operations in Dunkerque, France, stopped in August 2008 due to problems with the plant’s electric furnace and will be kept idle until September 2009.

 

3

Table of Contents

(VALE LOGO)
NON-FERROUS MINERALS
• Nickel
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
NICKEL 1
     69.0       65.2       59.0       129.8       124.2       -9.4 %     -14.5 %     -4.3 %
Sudbury
     20.4       22.4       14.7       38.0       37.1       -34.5 %     -28.1 %     -2.5 %
Thompson
     7.0       6.3       8.3       13.7       14.6       32.6 %     18.3 %     6.1 %
Voisey’s Bay
     18.2       17.5       15.7       36.4       33.1       -10.2 %     -14.1 %     -9.0 %
Sorowako
     19.4       15.6       18.5       34.6       34.1       18.4 %     -4.4 %     -1.5 %
Others*
     4.0       3.4       1.9       7.0       5.3       -44.6 %     -52.9 %     -24.1 %
     
*  
External feed purchased from third parties and processed into finished nickel in our operations
Total finished nickel production decreased to 59,000 t in 2Q09 from 65,200 t in 1Q09 and 69,000 in 2Q08. Most of the decrease was due to the performance of the Sudbury operations. As previously announced, Sudbury milling, smelting and refining operations were under a scheduled maintenance shutdown in May and all of its operations, including mining, were put on care and maintenance since June 1 in order to allow for de-stocking. Before our production and maintenance unionized employees went on strike on July 12, they were originally scheduled to resume activity by end of July.
Production at Thompson, in the Canadian province of Manitoba, was 8,300 t in 2Q09, up 1,300 t from 2Q08 and 2,000 t above 1Q09 reflecting better asset performance and continuing strong demand for Thompson’s premium grade finished nickel products. In April 2009, the Manitoba refinery set an all-time record for plated product delivered into premium grade category of 94.5%, exceeding the 93.9% set in May 2004.
Finished nickel production from Voisey’s Bay feed was 15,700 t in 2Q09, against 17,500 t in 1Q09 and 18,200 t in 2Q08. The decrease was mainly due to the shutdown of Sudbury smelting and refining operations which limited the processing of Voisey’s Bay nickel concentrates. Voisey’s Bay operations, comprising the Ovoid mine and a processing mill, are shut down during the entire month of July.
Finished nickel production from Sorowako’s matte amounted to 18,500 t in 2Q09, rising 18.4% relative to the 15,600 t produced in 1Q09 in response to a stronger demand for utility nickel in China.
 
     
1  
The figures shown for finished nickel production do not include the quantities produced from nickel concentrates purchased from other companies and processed externally under tolling arrangements. These volumes were 1,700 t in 2Q08, 1,800 t in 1Q09 and 1,800 t in 2Q09.
 
   
Figures for our operations at Sudbury and Thompson include only the production from feed originating from our own mines. It excludes any concentrates purchased from third parties, which are subsequently processed in our operations.

 

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Table of Contents

(VALE LOGO)
• Bauxite
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
                                                                 
BAUXITE
     2,426       2,986       2,854       4,889       5,840       -4.4 %     17.6 %     19.4 %
Trombetas 1
     1,725       1,502       1,418       3,363       2,920       -5.6 %     -17.8 %     -13.2 %
Paragominas
     701       1,483       1,436       1,526       2,920       -3.2 %     104.8 %     91.3 %
In 2Q09 our bauxite production amounted to 2.9 Mt, 4.4% less than 1Q09 but 17.6% above the volume for 2Q08.
The Paragominas bauxite mine, in the Brazilian state of Pará, produced 1.4 Mt in 2Q09, up 104.8% against 2Q08 as Paragominas II started ramping up in May 2008.
Paragominas is linked to the Alunorte alumina refinery by the first bauxite pipeline in the world. The mine is operating at 60% of its nominal capacity, as since the onset of the operations its bauxite production has given smaller granules than planned, causing lower than expected performance. To eliminate this problem at the refinery plant additional filters were ordered. This will allow us to run Paragominas at its nominal capacity of 9.9 Mtpy from 1H10 onwards.
Vale`s attributable production at Trombetas amounted to 1.4 Mt, down 5.6% quarter-over-quarter and 17.8% year-over-year, as the shipment program for the year was revised downwards to reflect the new global demand scenario.
• Alumina
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
ALUMINA
     1,063       1,482       1,436       2,121       2,918       -3.1 %     35.1 %     37.6 %
Alunorte
     1,063       1,482       1,436       2,121       2,918       -3.1 %     35.1 %     37.6 %
The production of alumina at the Barcarena refinery totaled 1.4 Mt in 2Q09, as against 1.1 Mt in 2Q08, an increase of 35.1%, as stages 6 and 7 started ramping up in June and July 2008, respectively, augmenting its nominal capacity to 6.26 million metric tons per year.
• Aluminum
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
ALUMINUM
     136       121       113       268       234       -7.0 %     -16.9 %     -12.5 %
Albras
     113       112       113       225       225       0.6 %     -0.6 %     -0.1 %
Valesul
     22       9       —       42       9       n.a.       n.a.       -78.2 %
Our production of primary aluminum decreased to 113, 000 t in 2Q09 from 121,000 t in 1Q09 and 136,000 t in 2Q08.
In order to produce a permanent downshift in our costs, following its operation at only 40% of nominal capacity, Valesul ceased its aluminum smelting operations. Since April 1, 2009, it became a producer of billets for extrusion employing purchased aluminum ingots and scrap as its main raw materials. Its production of billets was 8,000 t in 2Q09.
 
     
1  
Production attributable to Vale

 

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(VALE LOGO)
Albras output of primary aluminum is running at a quarterly rate of 113,000 t, in line with its annual capacity of 455,000 t.
• Copper
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
COPPER
     76.5       73.3       61.2       150.0       134.5       -16.6 %     -20.0 %     -10.3 %
Sossego
     30.3       29.5       29.0       60.5       58.5       -1.9 %     -4.2 %     -3.2 %
Sudbury
     29.0       25.3       13.8       56.5       39.0       -45.4 %     -52.4 %     -30.9 %
Thompson
     0.5       0.3       0.6       0.8       0.9       130.6 %     15.8 %     3.8 %
Voisey’s Bay
     12.7       12.9       11.4       26.1       24.3       -11.2 %     -10.3 %     -6.8 %
Others 1
     4.0       5.4       6.4       5.9       11.8       17.8 %     60.2 %     99.6 %
Vale’s copper production in 2Q09 was 61,200 t, with a decrease of 16.6% compared to 1Q09 and 20.0% against 2Q08, which is explained by the shutdown of the Sudbury operations.
The Canadian operations — Sudbury, Thompson and Voisey’s Bay — were responsible for 25,800 t of copper in 2Q09, 33.0% lower compared to the previous quarter.
Production of copper in concentrates by the Sossego mine at Carajás was slightly lower, 29,000 t in 2Q09 against 29,500 t in 1Q09 and 30,300 t in 2Q08.
• Nickel by-products
                                                                 
                                            %change     %change     %change  
    2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
COBALT (metric tons)
     671       713       632       1,286       1,344       -11.4 %     -5.8 %     4.5 %
Sudbury
     158       185       172       301       357       -6.7 %     9.1 %     18.6 %
Thompson
     50       32       48       102       80       50.6 %     -3.1 %     -21.6 %
Voisey’s Bay
     400       450       394       780       844       -12.5 %     -1.5 %     8.3 %
Others
     63       46       17       103       63       -62.1 %     -72.5 %     -38.9 %
 
                                                                
PLATINUM (000’oz troy)
     43       39       47       79       86       18.6 %     7.8 %     9.1 %
Sudbury
     43       39       47       79       86       18.6 %     7.8 %     9.1 %
 
                                                                
PALLADIUM (000’oz troy)
     54       53       68       103       121       28.6 %     25.6 %     17.9 %
Sudbury
     54       53       68       103       121       28.6 %     25.6 %     17.9 %
 
                                                                
GOLD (000’ oz troy)
     19       24       19       40       43       -18.1 %     2.9 %     6.6 %
Sudbury
     19       24       19       40       43       -18.1 %     2.9 %     6.6 %
 
                                                                
SILVER (000’ oz troy)
     578       695       504       1,084       1,199       -27.6 %     -12.9 %     10.6 %
Sudbury
     578       695       504       1,084       1,199       -27.6 %     -12.9 %     10.6 %
 
     
1  
Copper in anodes produced from feeds purchased from third parties.

 

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(VALE LOGO)
In 2Q09, cobalt production reached 632 metric tons, a 5.8% year-on-year decrease, due to the decision to reduce mine production from Sudbury and Voisey’s Bay.
Production of platinum and palladium in 2Q09 was 115,000 troy ounces, which was 18,000 troy ounces higher than 2Q08 and 23,000 troy ounces higher than 1Q09. The increase from 1Q09 is explained by increased recoveries through Sudbury and the timing of shipments to our Acton PGM refinery, in the United Kingdom.
• Potash
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
POTASH
     167       186       159       334       345       -14.8 %     -5.1 %     3.4 %
Taquari-Vassouras
     167       186       159       334       345       -14.8 %     -5.1 %     3.4 %
Production at Taquari-Vassouras in 2Q09 was 159,000 t, 14.8% lower than 1Q09 and 5.1% below the figures reported for 2Q08. The lower than expected mined ore grade as well as some unscheduled stoppages had a negative influence on potash production.
Output increased 3.4% in 1H09, reaching 345,000 t against 334,000 t in 1H08.
• Kaolin
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
KAOLIN
     288       138       194       585       332       40.5 %     -32.6 %     -43.2 %
PPSA
     153       57       93       292       150       64.5 %     -39.1 %     -48.8 %
Cadam
     135       81       101       292       182       23.7 %     -25.2 %     -37.7 %
In 2Q09 kaolin production reached 194,000 t, increasing 40.5% in relation to 1Q09, when it was recorded at 138,000 t, due to a better demand from Asia, and decreasing 32.6% against 2Q08, reflecting the announced cutbacks since the beginning of 2009.
PPSA produced 93,000 t in 2Q09, increasing 64.5% over 1Q09, while CADAM production was 101,000 t, up 23.7%.

 

7

Table of Contents

(VALE LOGO)
COAL
• Coal
                                                                 
                                            %change     %change     %change  
000’ metric tons   2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
METALLURGICAL COAL
     768       511       513       1,418       1,024       0.4 %     -33.2 %     -27.8 %
Integra Coal
     409       306       224       859       530       -27.0 %     -45.3 %     -38.2 %
Carborough Downs
     134       99       134       228       233       35.9 %     0.2 %     2.2 %
Broadlea
     93       56       57       144       113       0.7 %     -39.2 %     -21.5 %
Other
     132       50       98       187       148       98.2 %     -25.2 %     -20.9 %
 
                                                                
THERMAL COAL
     314       439       989       538       1,428       125.5 %     215.2 %     165.5 %
El Hatillo
     —       —       460       —       460       n.a.       n.a.       n.a.  
Integra Coal
     104       258       194       257       452       -24.8 %     85.7 %     75.5 %
Broadlea
     168       109       153       223       261       40.8 %     -9.2 %     17.3 %
Other
     768       511       513       1,418       1,024       0.4 %     -33.2 %     -27.8 %
Vale’s coal production in 2Q09 reached a record of 1.5 Mt, comprising 513,000 t of metallurgical coal and 989,000 t of thermal coal. Output of metallurgical coal remained almost constant while thermal coal production from the Australian operations increased 20.5% qoq. Moreover, the added output of the recently acquired thermal coal mine of El Hatillo of 460,000 t contributed to the all-time high production number.
On April 1, 2009, Vale concluded the acquisition of thermal coal assets in Colombia. Thus, the production volumes originating from the El Hatillo mine will be added to Vale’s production report from 2Q09 onwards. El Hatillo is an open pit coal mine located in the major Colombian coal producing region of the Cesar Department.
Production of metallurgical coal at Integra Coal, located in the state of New South Wales, Australia, was down 45.3% in 2Q09 compared with the same quarter of 2008 due to geological faults in the underground mine. Integra’s open pit mine increased thermal production by 85.7% when compared to the previous year, adapting its product mix according to market requirements.
Combined total production at Carborough Downs and Broadlea, both located in the state of Queensland, Australia, reached 344,000 t in 2Q09, 30.3% above 1Q09, as a result of operational improvements. Broadlea shares the Coal Handling Preparation Plant (CHPP) with Carborough Downs, an underground mine which is currently implementing a longwall operation to make feasible an increase in its capacity to 4.4 Mt per year. The joint production of Broadlea and Carborough Downs is transported through the Goonyella rail corridor, connecting the mines of Central Queensland’s Bowen Basin to the Dalrymple Bay Coal Terminal.

 

8

Table of Contents

(VALE LOGO)
Vale Production Report — US GAAP*
1,000 metric tons (unless stated otherwise)
                                                                 
                                            % Change     % Change     % Change  
    2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
IRON ORE
     76,196       46,754       57,656       148,908       104,410       23.3 %     -24.3 %     -29.9 %
Southeastern System
     30,837       16,625       22,068       59,633       38,694       32.7 %     -28.4 %     -35.1 %
Itabira
     11,682       5,983       8,205       22,547       14,189       37.1 %     -29.8 %     -37.1 %
Mariana
     8,987       6,204       6,963       17,995       13,167       12.2 %     -22.5 %     -26.8 %
Minas Centrais
     9,880       4,438       6,900       18,633       11,338       55.5 %     -30.2 %     -39.1 %
Urucum
     288       0       0       457       0       n.a.       n.a.       n.a.  
Southern System
     22,120       9,851       15,108       41,837       24,959       53.4 %     -31.7 %     -40.3 %
Minas Itabirito
     6,602       2,474       5,006       12,324       7,481       102.4 %     -24.2 %     -39.3 %
Vargem Grande
     6,905       4,134       5,514       13,938       9,647       33.4 %     -20.2 %     -30.8 %
Paraopebas
     8,613       3,243       4,588       15,576       7,831       41.4 %     -46.7 %     -49.7 %
Carajás
     23,239       20,277       20,480       47,438       40,757       1.0 %     -11.9 %     -14.1 %
 
                                                                
PELLETS
     8,714       1,736       2,700       17,414       4,437       55.5 %     -69.0 %     -74.5 %
Tubarão I and II
     1,674       510       1,338       3,287       1,848       162.1 %     -20.1 %     -43.8 %
Fabrica
     1,030       235       0       2,109       235       n.a.       n.a.       -88.9 %
São Luís
     1,605       3       0       3,294       3       n.a.       n.a.       -99.9 %
Vargem Grande
     0       4       222       0       225       n.a.       n.a.       n.a.  
Nibrasco
     2,261       96       1,141       4,298       1,237       1,082.6 %     -49.5 %     -71.2 %
Kobrasco
     1,256       889       0       2,529       889       n.a.       n.a.       -64.9 %
Itabrasco
     889       0       0       1,897       0       n.a.       n.a.       n.a.  
 
                                                                
MANGANESE ORE
     658       113       550       1,198       662       387.9 %     -16.5 %     -44.7 %
Azul
     546       43       448       1,050       492       939.0 %     -17.8 %     -53.2 %
Urucum
     77       40       56       114       96       38.0 %     -27.9 %     -15.7 %
Other mines
     35       29       45       35       75       56.0 %     31.1 %     115.2 %
 
                                                                
FERROALLOYS
     128       48       27       260       76       -43.0 %     -78.6 %     -71.0 %
Brazil
     75       34       8       151       41       -77.4 %     -89.9 %     -72.5 %
Dunkerque
     15       0       0       39       0       n.a.       n.a.       n.a.  
Mo I Rana
     32       14       20       60       34       38.2 %     -39.1 %     -43.5 %
Urucum
     5       0       0       11       0       n.a.       n.a.       n.a.  
 
                                                                
NICKEL
     69       65       59       130       124       -9.4 %     -14.5 %     -4.3 %
Sudbury
     20       22       15       38       37       -34.5 %     -28.1 %     -2.5 %
Thompson
     7       6       8       14       15       32.6 %     18.3 %     6.1 %
Voisey’s Bay
     18       17       16       36       33       -10.2 %     -14.1 %     -9.0 %
Sorowako
     19       16       18       35       34       18.4 %     -4.4 %     -1.5 %
Others
     4       3       2       7       5       -44.6 %     -52.9 %     -24.1 %
 
                                                                
COPPER
     76       73       61       150       135       -16.6 %     -20.0 %     -10.3 %
Sossego
     30       30       29       60       59       -1.9 %     -4.2 %     -3.2 %
Sudbury
     29       25       14       57       39       -45.4 %     -52.4 %     -30.9 %
Thompson
     1       0       1       1       1       130.6 %     15.8 %     3.8 %
Voisey’s Bay
     13       13       11       26       24       -11.2 %     -10.3 %     -6.8 %
Others
     4       5       6       6       12       17.8 %     60.2 %     99.6 %
 
                                                                
BAUXITE
     701       1,483       1,436       1,526       2,920       -3.2 %     104.8 %     91.3 %
Paragominas
     701       1,483       1,436       1,526       2,920       -3.2 %     104.8 %     91.3 %
 
                                                                
ALUMINA
     1,063       1,482       1,436       2,121       2,918       -3.1 %     35.1 %     37.6 %
Alunorte
     1,063       1,482       1,436       2,121       2,918       -3.1 %     35.1 %     37.6 %
 
                                                                
ALUMINUM
     136       121       113       268       234       -7.0 %     -16.9 %     -12.5 %
Albras
     113       112       113       225       225       0.6 %     -0.6 %     -0.1 %
Valesul
     22       9       —       42       9       n.a.       n.a.       -78.2 %
 
                                                                
METALLURGICAL COAL
     768       511       513       1,418       1,024       0.4 %     -33.2 %     -27.8 %
Integra Coal
     409       306       224       859       530       -27.0 %     -45.3 %     -38.2 %
Carborough Downs
     134       99       134       228       233       35.9 %     0.2 %     2.2 %
Broadlea
     93       56       57       144       113       0.7 %     -39.2 %     -21.5 %
Others
     132       50       98       187       148       98.2 %     -25.2 %     -20.9 %
 
                                                                
THERMAL COAL
     314       439       989       538       1,428       125.5 %     215.2 %     165.5 %
El Hatilho
     —       —       460       —       460       n.a.       n.a.       n.a.  
Integra Coal
     104       258       194       257       452       -24.8 %     85.7 %     75.5 %
Broadlea
     168       109       153       223       261       40.8 %     -9.2 %     17.3 %
Others
     41       72       182       58       255       152.0 %     342.9 %     342.3 %
 
                                                                
COBALT (tons)
     671       713       632       1,286       1,344       -11.4 %     -5.8 %     4.5 %
Sudbury
     158       185       172       301       357       -6.7 %     9.1 %     18.6 %
Thompson
     50       32       48       102       80       50.6 %     -3.1 %     -21.6 %
Voisey’s Bay
     400       450       394       780       844       -12.5 %     -1.5 %     8.3 %
Others
     63       46       17       103       63       -62.1 %     -72.5 %     -38.9 %
 
                                                                
PLATINUM (000’ oz troy)
     43       39       47       79       86       18.6 %     7.8 %     9.1 %
Sudbury
     43       39       47       79       86       18.6 %     7.8 %     9.1 %
 
                                                                
PALLADIUM (000’ oz troy)
     54       53       68       103       121       28.6 %     25.6 %     17.9 %
Sudbury
     54       53       68       103       121       28.6 %     25.6 %     17.9 %
 
                                                                
GOLD (000’ oz troy)
     19       24       19       40       43       -18.1 %     2.9 %     6.6 %
Sudbury
     19       24       19       40       43       -18.1 %     2.9 %     6.6 %
 
                                                                
SILVER (000’ oz troy)
     578       695       504       1,084       1,199       -27.6 %     -12.9 %     10.6 %
Sudbury
     578       695       504       1,084       1,199       -27.6 %     -12.9 %     10.6 %
 
                                                                
POTASH
     167       186       159       334       345       -14.8 %     -5.1 %     3.4 %
Taquari-Vassouras
     167       186       159       334       345       -14.8 %     -5.1 %     3.4 %
 
                                                                
KAOLIN
     288       138       194       585       332       40.5 %     -32.6 %     -43.2 %
PPSA
     153       57       93       292       150       64.5 %     -39.1 %     -48.8 %
Cadam
     135       81       101       292       182       23.7 %     -25.2 %     -37.7 %
     
*  
Under US GAAP, Vale consolidates the total production volumes of companies in which it has more than 50% of the voting capital and effective control
 
**  
The nickel concentrate is purchased from third-parties and processed by Vale Inco

 

9

Table of Contents

(VALE LOGO)
Vale Production Report — Consolidated BR GAAP*
1,000 metric tons (unless stated otherwise)
                                                                 
                                            % Change     % Change     % Change  
    2Q08     1Q09     2Q09     1H08     1H09     2Q09/1Q09     2Q09/2Q08     1H09/1H08  
 
                                                                
IRON ORE
     78,050       46,860       57,696       136,962       96,725       23.1 %     -26.1 %     -29.4 %
Southeastern System
     30,837       16,625       22,068       59,175       38,694       32.7 %     -28.4 %     -34.6 %
Itabira
     11,682       5,983       8,205       22,547       14,189       37.1 %     -29.8 %     -37.1 %
Mariana
     8,987       6,204       6,963       17,995       13,167       12.2 %     -22.5 %     -26.8 %
Minas Centrais
     9,880       4,438       6,900       18,633       11,338       55.5 %     -30.2 %     -39.1 %
Urucum
     288       0       0       457       0       n.a.       n.a.       n.a.  
Southern System
     22,120       9,851       15,108       26,261       17,128       53.4 %     -31.7 %     -34.8 %
Minas Itabirito
     6,602       2,474       5,006       12,324       7,481       102.4 %     -24.2 %     -39.3 %
Vargem Grande
     6,905       4,134       5,514       13,938       9,647       33.4 %     -20.2 %     -30.8 %
Paraopebas
     8,613       3,243       4,588       15,576       7,831       41.4 %     -46.7 %     -49.7 %
Carajás
     23,239       20,277       20,480       47,438       40,757       1.0 %     -11.9 %     -14.1 %
Samarco
     1,855       106       40       3,630       147       -62.3 %     -97.8 %     -96.0 %
 
                                                                
PELLETS
     11,593       2,885       4,251       23,707       7,580       47.4 %     -63.3 %     -68.0 %
Tubarão I and II
     1,674       510       1,338       3,287       1,848       162.1 %     -20.1 %     -43.8 %
Fabrica
     1,030       235       0       2,109       235       n.a.       n.a.       -88.9 %
São Luís
     1,605       3       0       3,294       3       n.a.       n.a.       -99.9 %
Vargem Grande
     0       4       222       0       225       n.a.       n.a.       n.a.  
Nibrasco
     2,261       96       1,141       4,298       1,237       1,082.6 %     -49.5 %     -71.2 %
Kobrasco
     1,256       889       0       2,529       889       n.a.       n.a.       -64.9 %
Hispanobras
     578       0       0       1,148       0       n.a.       n.a.       n.a.  
Itabrasco
     889       0       0       1,897       0       n.a.       n.a.       n.a.  
Samarco
     2,301       1,148       1,551       3,881       2,699       35.0 %     -32.6 %     -30.5 %
 
                                                                
MANGANESE ORE
     658       113       550       1,198       662       387.9 %     -16.5 %     -44.7 %
Azul
     546       43       448       1,050       492       939.0 %     -17.8 %     -53.2 %
Urucum
     77       40       56       114       96       38.0 %     -27.9 %     -15.7 %
Other mines
     35       29       45       35       75       56.0 %     31.1 %     115.2 %
 
                                                                
FERROALLOYS
     128       48       27       260       76       -43.0 %     -78.6 %     -71.0 %
Brazil
     75       34       8       151       41       -77.4 %     -89.9 %     -72.5 %
Dunkerque
     15       0       0       39       0       n.a.       n.a.       n.a.  
Mo I Rana
     32       14       20       60       34       38.2 %     -39.1 %     -43.5 %
Urucum
     5       0       0       11       0       n.a.       n.a.       n.a.  
 
                                                                
NICKEL
     69       65       59       168       161       -9.4 %     -14.5 %     -3.9 %
Sudbury
     20       22       15       38       37       -34.5 %     -28.1 %     -2.5 %
Thompson
     7       6       8       14       15       32.6 %     18.3 %     6.1 %
Voisey’s Bay
     18       17       16       36       33       -10.2 %     -14.1 %     -9.0 %
Sorowako
     19       16       18       35       34       18.4 %     -4.4 %     -1.5 %
Others
     4       3       2       7       5       -44.6 %     -52.9 %     -24.1 %
 
                                                                
COPPER
     76       73       61       150       135       -16.6 %     -20.0 %     -10.3 %
Sossego
     30       30       29       60       59       -1.9 %     -4.2 %     -3.2 %
Sudbury
     29       25       14       57       39       -45.4 %     -52.4 %     -30.9 %
Thompson
     1       0       1       1       1       130.6 %     15.8 %     3.8 %
Voisey’s Bay
     13       13       11       26       24       -11.2 %     -10.3 %     -6.8 %
Others
     4       5       6       6       12       17.8 %     60.2 %     99.6 %
 
                                                                
BAUXITE
     2,426       2,986       2,854       4,889       5,840       -4.4 %     17.6 %     19.4 %
Trombetas
     1,725       1,502       1,418       3,363       2,920       -5.6 %     -17.8 %     -13.2 %
Paragominas
     701       1,483       1,436       1,526       2,920       -3.2 %     104.8 %     91.3 %
 
                                                                
ALUMINA
     1,063       1,482       1,436       2,121       2,918       -3.1 %     35.1 %     37.6 %
Alunorte
     1,063       1,482       1,436       2,121       2,918       -3.1 %     35.1 %     37.6 %
 
                                                                
ALUMINUM
     136       121       113       268       234       -7.0 %     -16.9 %     -12.5 %
Albras
     113       112       113       225       225       0.6 %     -0.6 %     -0.1 %
Valesul
     22       9       —       42       9       n.a.       n.a.       -78.2 %
 
                                                                
METALLURGICAL COAL
     768       511       513       1,418       1,024       0.4 %     -33.2 %     -27.8 %
Integra Coal
     409       306       224       859       530       -27.0 %     -45.3 %     -38.2 %
Broadlea
     93       56       57       144       113       0.7 %     -39.2 %     -21.5 %
Carborough Downs
     134       99       134       228       233       35.9 %     0.2 %     2.2 %
Other
     132       50       98       187       148       98.2 %     -25.2 %     -20.9 %
 
                                                                
THERMAL COAL
     314       439       989       538       1,428       125.5 %     215.2 %     165.5 %
El Hatilho
     —       —       460       —       460       n.a.       n.a.       n.a.  
Integra Coal
     104       258       194       257       452       -24.8 %     85.7 %     75.5 %
Broadlea
     168       109       153       223       261       40.8 %     -9.2 %     17.3 %
Others
     41       72       182       58       255       152.0 %     342.9 %     342.3 %
 
                                                                
COBALT (tons)
     671       713       632       1,286       1,344       -11.4 %     -5.8 %     4.5 %
Sudbury
     158       185       172       301       357       -6.7 %     9.1 %     18.6 %
Thompson
     50       32       48       102       80       50.6 %     -3.1 %     -21.6 %
Voisey’s Bay
     400       450       394       780       844       -12.5 %     -1.5 %     8.3 %
Others
     63       46       17       103       63       -62.1 %     -72.5 %     -38.9 %
 
                                                                
PLATINUM (000’ oz troy)
     43       39       47       79       86       18.6 %     7.8 %     9.1 %
Sudbury
     43       39       47       79       86       18.6 %     7.8 %     9.1 %
 
                                                                
PALLADIUM (000’ oz troy)
     54       53       68       103       121       28.6 %     25.6 %     17.9 %
Sudbury
     54       53       68       103       121       28.6 %     25.6 %     17.9 %
 
                                                                
GOLD (000’ oz troy)
     19       24       19       40       43       -18.1 %     2.9 %     6.6 %
Sudbury
     19       24       19       40       43       -18.1 %     2.9 %     6.6 %
 
                                                                
SILVER (000’ oz troy)
     578       695       504       1,084       1,199       -27.6 %     -12.9 %     10.6 %
Sudbury
     578       695       504       1,084       1,199       -27.6 %     -12.9 %     10.6 %
 
                                                                
POTASH
     167       186       159       334       345       -14.8 %     -5.1 %     3.4 %
Taquari-Vassouras
     167       186       159       334       345       -14.8 %     -5.1 %     3.4 %
 
                                                                
KAOLIN
     288       138       194       585       332       40.5 %     -32.6 %     -43.2 %
PPSA
     153       57       93       292       150       64.5 %     -39.1 %     -48.8 %
Cadam
     135       81       101       292       182       23.7 %     -25.2 %     -37.7 %
     
*1)  
Under Consolidated BR GAAP, Vale consolidates the total production of all the companies in which it has more than 50% of the voting capital and effective control.
 
2)  
For the companies in which Vale has shared control (Samarco, Hispanobras and MRN), consolidation is proportional to Vale’s stake in the company.
 
3)  
The production volumes of companies in which Vale has minority interests are not consolidated.

 

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(VALE LOGO)
For further information, please contact:
+55-21-3814-4540
Roberto Castello Branco: roberto.castello.branco@vale.com
Alessandra Gadelha: alessandra.gadelha@vale.com
Patrícia Calazans: patrícia.calazans@vale.com
Roberta Coutinho: roberta.coutinho@vale.com
Theo Penedo: theo.penedo@vale.com
Tacio Neto: tacio.neto@vale.com
This press release may include declarations that present Vale’s expectations in relation to future events or results. All declarations, when based upon future expectations and not on historical facts involve various risks and uncertainties. Vale cannot guarantee that such declarations will come to be correct. These risks and uncertainties include factors related to the following: (a) countries where we operate, mainly Brazil and Canada; (b) global economy; (c) capital markets; (d) iron ore and nickel businesses and their dependence upon the global steel industry, which is cyclical by nature; (e) factors of high degree of global competition in the markets which Vale operates. To obtain further information on factors that may give origin to results different from those forecasted by Vale, please consult the reports filed with the Brazilian Securities and Exchange Commission (CVM), the Autorité des Marchés Financiers (AMF), and with the U.S. Securities and Exchange Commission (SEC), including the most recent Annual Report — Vale Form 20F and 6K forms.

 

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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
Date: July 29, 2009  Vale S.A.
(Registrant)
 		  
  By:   /s/ Roberto Castello Branco    
    Roberto Castello Branco   
    Director of Investor Relations