Vale : 04/20/2017 Vale's Production in 1Q17

Vale production in 1Q17

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Production highlights

Rio de Janeiro, April 20, 2017 - Vale S.A. (Vale) reached a record for a first quarter of 86.2 Mt of iron ore production1 in the first quarter of 2017 (1Q17), 11.2% higher than in 1Q16 mainly due to the ramp-up of the S11D and Itabiritos projects in the Southeastern System.

The Northern System, which comprises Carajás, Serra Leste and S11D, achieved a record for a first quarter of 36.0 Mt in 1Q17, 11.1% higher than in 1Q16 as a result of the S11D ramp-up, which is advancing according to plan.

Blended volumes in Asia totaled 12.4 Mt in 1Q17, 10.3 Mt and 6.5 Mt higher than in 1Q15 and 1Q16, respectively, as a result of the ongoing strategy to bring more flexibility to the integrated supply chain by increasing offshore blending capacity, enabling rapid responses to changes in market conditions. The ongoing offshore blending activities require the build-up of offshore inventories and, as a result, temporarily leads to lower sales volumes when compared to shipment volumes from Brazil.

Nickel production reached 71.4 kt in 1Q17, 14.0% and 2.9% lower than in 4Q16 and 1Q16, respectively, mainly due planned maintenance shutdowns at our operations in Indonesia and Japan, and operational challenges at our Thompson operations.

Production of finished nickel products from VNC reached the record of 10,200 t in 1Q17, 14.7% higher than 4Q16 and 6.0% higher than 1Q16.

Copper production was 109,000 t in 1Q17, 11.0% and 2.6% lower than in 4Q16 and 1Q16, respectively, mainly due to the lower production from Sudbury. Production of copper in concentrate at Salobo in 1Q17 totaled a record 42,600 t for a first quarter, 3.6% higher than in 1Q16.

Coal production in Mozambique reached a quarterly record of 2.4 Mt in 1Q17, 170.4% and 53.7% higher than in 1Q16 and 4Q16, respectively, mainly as a result of the continued and strong ramp-up of the second Coal Handling and Preparation Plant (CHPP2). CHPP2 production grew by 86% in 1Q17 compared to 4Q16.

1 Including iron ore acquired from third parties.

¹ Including third party purchases.

² Including Lubambe's attributable production.