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VALE'S PRODUCTION

AND SALES IN 3Q20

1

www.vale.com

vale.ri@vale.com

Tel.: (5521) 3485-3900

Investor Relations Department

Ivan Fadel

André Werner

Mariana Rocha

Samir Bassil

B3: VALE3

NYSE: VALE

LATIBEX: XVALO

This press release may include statements about Vale's current expectations about future events or results (forward-looking statements). Many of those forward-looking statements can be identified by the use of forward -looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" "will" and "potential, " among others. All forward- looking statements involve various risks and uncertainties. Vale cannot guarantee that these statements will prove correct. These risks and uncertainties include, among others, factors related to: (a) the countries where Vale op erates, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Va le operates. Vale cautions you that actual results may differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. Vale undertakes no obligation to publicly update or revise any forward -looking statement, whether as a result of new information or future events or for any other reason. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports that Vale files with the U.S. Secur ities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and, in particular, the factors discussed under "Forward-Looking Statements" and "Risk Factors" in Vale's annual report on Form 20 -F.

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Production and sales in 3Q20

Iron Ore:

Northern System:

Base Metals:

COVID-19:

world-class

solid output

all-time

maintenance has

safety standards

of 88.7Mt, + 21Mt

production record

enabled a strong

in place and low

q/q, up 31.2%

of 58.9Mt

4Q20 start

absenteeism

Rio de Janeiro, October 19th, 2020 - Vale S.A. ("Vale") is evolving with its stabilization plan and delivered a strong iron ore production in 3Q20. Nickel and Copper businesses managed to recover productivity for a solid start in 4Q20, after normalizing routine maintenance in the quarter. Results were enabled by the workforce commitment to the company's safety standards and strict operational discipline, following the continuous implementation of the Vale Production System (VPS).

Vale's iron ore fines production1 totalled 88.7 Mt, an increase of 21.1 Mt compared to the

previous quarter. The production record of 58.9 Mt in a quarter was reached in the Northern System, with August as the best month with 19.7 Mt. S11D had a record production in September, with 8.3Mt, and in the quarter, with 24.4 Mt.

The Southern and Southeastern Systems overall performance improved across operating units, notably in the Itabira Complex and Timbopeba site (running for a full quarter given the resumption in June) and with the resumption of operations at Fazendão mine in July.

Iron ore production was maintained at around 1 Mtpd2 after mid-July, showing consistency

and stability throughout almost the entire quarter. Operations have achieved increased rates and stability with safety, based on the progressive implementation of the VPS and measures like the Safe Work Permission (PTS), which are essential to transform Vale's culture into one driven to safety and operational excellence. All operations were also favoured by regular weather conditions for the period.

Vale's pellet production totalled 8.6 Mt in 3Q20, up 21.1%, mainly due to higher availability of pellet feed, especially from the Itabira Complex, and improved operational performance at the pelletizing plants.

Sales volumes of iron ore fines and pellets, with a premium of US$ 4.6/t3, reached 74.2 Mt in

3Q20, an increase of 20.4%. The logistics lead time between production and CFR sales started to normalize in September, as Vale was transiting inventories across its supply chain, with total sales

  1. Including third party purchases, run -of-mine and feed for pelletizing plants. Vale's product portfolio Fe content reached
    63.5%, alumina 1.4% and silica 3.9%.
  2. Mtpd stands for million tons per day.
  3. Iron ore premium of US$ 3.7/t and weighted average contribution of pellets of US$ 0.9/t.

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of 28.6 Mt, and the performance is expected to improve even further in 4Q20, subject to Vale's approach based on margin maximization, prioritizing blended products in the company's portfolio.

Production of finished nickel was of 47.1 kt in 3Q20, while sales volumes reached 58.2 kt, an increase of 37.3%, as a result of better prices in the quarter and more stable market conditions. Production in 3Q20 was influenced mainly by (i) maintenance work rescheduled from 1Q20 and 2Q20 to 3Q20 in North Atlantic operations, which will pave the way for higher production rates going into the fourth quarter, (ii) a longer route to market associated with PTVI's product portfolio management and (iii) a temporarily spike in VNC source production in 2Q20 as all of the remaining nickel oxide feed inventory was processed in that quarter.

Copper production reached 87.6 kt in 3Q20, higher than the previous quarter, mainly due to

the successful resumption of Voisey's Bay operations after the care and maintenance period in 2Q20, and stronger performance at South Atlantic operations. A stronger performance is expected in 4Q20 at South Atlantic operations with the reduction of COVID-19-relatedimpacts on operations and maintenance routines.

Coal production restarted in July, after decelerating since April and temporarily stopping in June, given strong slowdown in demand. Production in 3Q20 reached 1.4 Mt and, as the flow of goods, services and people start to normalize in the region, Vale mobilizes teams to resume the 3-month maintenance plan revamp in November 2020, after which a ramp up to 15 Mtpy run-rate production is expected.

Production summary

% change

000' metric tons

3Q20

2Q20

3Q19

9M20

9M19

3Q20/2Q20

3Q20/3Q19

9M20/9M19

Iron ore¹

88,676

67,598

86,704

215,877

223,628

31.2%

2.3%

-3.5%

Pellets

8,562

7,070

11,133

22,559

32,378

21.1%

-23.1%

-29.5%

Manganese Ore

109

149

443

621

1,126

-26.8%

-75.4%

-44.9%

Coal

1,402

1,283

2,351

4,648

6,935

9.3%

-40.4%

-33.0%

Nickel

47.1

59.4

51.4

159.7

151.2

-20.7%

-8.4%

5.6%

Nickel Ex-VNC

38.6

49.0

45.0

132.8

132.6

-21.2%

-14.2%

0.2%

Copper

87.6

84.5

98.7

266.6

290.8

3.7%

-11.2%

-8.3%

Cobalt (metric tons)

1,223

1,318

1,009

3,730

3,236

-7.2%

21.2%

15.3%

Gold (000' oz troy)

116

114

122

349

349

1.8%

-4.9%

0.0%

  • Including third party purchases, run -of-mine and feed for pelletizing plants.

Sales summary

% change

000' metric tons

3Q20

2Q20

3Q19

9M20

9M19

3Q20/2Q20

3Q20/3Q19

9M20/9M19

Iron ore¹

65,769

54,615

74,039

172,040

191,400

20.4%

-11.2%

-10.1%

Pellets

8,464

6,950

11,077

22,725

32,233

21.8%

-23.6%

-29.5%

Manganese Ore

428

270

150

917

493

59.5%

185.3%

86.0%

Coal

1,381

1,385

2,254

4,332

6,741

-0.3%

-38.7%

-35.7%

Nickel

58.2

42.4

50.9

144.8

158.6

37.3%

14.3%

-8.7%

Copper

80.6

83.5

92.0

253.3

277.4

-3.5%

-12.4%

-8.7%

¹ Including third party purchases and run-of-mine.

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Iron ore

% change

000' metric tons

3Q20

2Q20

3Q19

9M20

9M19

3Q20/2Q20

3Q20/3Q19

9M20/9M19

Northern System

56,850

42,463

55,401

139,213

137,992

33.9%

2.6%

0.9%

Serra Norte and

32,459

24,319

35,047

78,258

83,914

33.5%

-7.4%

-6.7%

Serra Leste

S11D

24,391

18,144

20,354

60,955

54,078

34.4%

19.8%

12.7%

Southeastern

16,307

12,721

20,695

40,817

56,129

28.2%

-21.2%

-27.3%

System

Itabira (Cauê,

Conceição and

6,465

5,324

9,836

17,796

27,902

21.4%

-34.3%

-36.2%

others)

Minas Centrais

(Brucutu and

4,394

4,190

8,849

12,233

19,283

4.9%

-50.3%

-36.6%

others)

Mariana (Alegria,

Timbopeba and

5,448

3,207

2,010

10,788

8,944

69.9%

171.0%

20.6%

others)

Southern System 14,930

11,768

9,806

34,054

27,753

26.9%

52.3%

22.7%

Paraopeba

(Mutuca, Fábrica

7,064

5,873

7,109

16,585

19,640

20.3%

-0.6%

-15.6%

and others)

Vargem Grande

(Vargem Grande,

7,866

5,895

2,697

17,469

8,113

33.4%

191.7%

115.3%

Pico and others)

Midwestern

589

645

802

1,793

1,754

-8.7%

-26.6%

2.2%

System

Corumbá

589

645

802

1,793

1,754

-8.7%

-26.6%

2.2%

IRON ORE

88,676

67,598

86,704

215,877

223,628

31.2%

2.3%

-3.5%

PRODUCTION1

IRON ORE

65,769

54,615

74,039

172,040

191,400

20.4%

-11.2%

-10.1%

SALES2

IRON ORE AND

74,233

61,565

85,116

194,765

223,633

20.6%

-12.8%

-12.9%

PELLETS SALES

  • Including third party purchases, run -of-mine and feed for pelletizing plants. ² Including third party purchases and run -of-mine.

Production Variation (3Q20 x 2Q20)

Mt

Northern System

The Northern System, which is comprised of Serra Norte, Serra Leste and S11D mines, produced 56.9 Mt in 3Q20, a record level for a quarter, mainly due to (i) a strong and record

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performance of S11D, (ii) a 15-day maintenance in June and July in Serra Norte, which, despite the production losses in the beginning of the quarter, permitted the increase of site's productivity, and (iii) better weather in the region, with lower rainfall levels4, guaranteeing more stability in production.

The license and permit necessary to resume operations of Serra Leste are expected to be granted shortly and, after that, maintenances will be carried out to safely resume operations until the end of 2020. Serra Leste operations have been halted since January 2019 and its resumption will add up to 6 Mtpy of production capacity.

Southeastern System

The Southeastern System, which encompasses the Itabira, Minas Centrais and Mariana mining hubs, achieved a solid production of 16.3 Mt in 3Q20, despite the restrictions related to tailings disposal, limiting sites' capacity. The increased production level in the quarter was mainly due to (i) the absence of COVID-19-related impacts, which caused a temporary stoppage of 12-day of Itabira Complex in June and 1 Mt of production loss, (ii) Timbopeba site operations, which restarted in June with 4 Mtpy capacity running in a full quarter, (iii) the resumption of Fazendão mine operations in July, after the granting of license to expand the mining area on the site, and (iv) usual weather-related seasonality.

Southern System

The Southern System, which encompasses the Paraopeba and Vargem Grande mining hubs, produced 14.9 Mt in 3Q20. The increase of production compared with 2Q20 was achieved mainly due to (i) higher production in Vargem Grande complex, after the partial resumption of wet processing production in 2Q20 with tailings filtration, using the Maravilhas I dam and Cianita waste dump as a preliminary solution for tailings disposal, and (ii) seasonally higher third-party purchases.

Operational stabilization and resumption plan

As presented in the 2020 Analyst and Investor Tour presentation, Vale has a set of solutions and new assets for unlocking and resuming capacities in its sites, which are under implementation in collaboration with the National Mining Agency (ANM), the Public Prosecutor's Office of the Minas Gerais State (MPMG) and the external audit firms.

4 3Q20 = 33mm vs. 2Q20 = 533mm

6

Actions in progress

Accomplishments

Timeline for resumption

in 3Q20

  • Obtaining license and implementing maintenance works in Serra Leste.
  • Licensing and opening new mining fronts.
  • Progressing on the construction of Gelado, Northern System 240 Mtpy and Serra Sul 120 projects.

Northern

System

Completion of Torto dam5

and tailings' filtration plant

construction to increase

Brucutu

wet processing capacity.

  • Northern System and S11D achieved a record production for a quarter.
  • Opening of new mining fronts in Morro 1 in progress increasing site's productivity.
  • Approval of Serra Sul 120 project
  • Torto dam construction works achieved 93% of physical progress
  • Tailings' filtration plant construction works achieved 31% of physical progress.
  • 4Q20: Resumption of Serra Leste operation, adding 6 Mtpy in capacity.
  • 2020/23: Applying for new licenses and opening of new mining fronts such as Morro 1 and N3.
  • 2020/21: Installation of new crushers to process jaspilite ore bodies in S11D.
  • 2021/23: Usina 1 shift to 100% dry processing temporarily impacting production.
  • 1H22: Start-up of Gelado project, increasing the System's capacity by 10 Mtpy.
  • 2H22: Start-up of Northern System 240 Mtpy project, increasing the System's capacity by 10 Mtpy.
  • 2023: Expansion of Serra Leste to 10 Mtpy capacity.
  • 1H24: Start-up of Serra Sul 120 project.
  • 2Q21: Start-up of Torto dam, increasing site's capacity to 28
    Mtpy from current 11 Mtpy.
  • 2022: Start-up of tailings' filtering plant and dry stacking activities and use of Torto and Norte/Laranjeiras6 dams as contingency.

Completion of studies

(geotechnical

investigations) of Itabiruçu

dam.

Itabira

Restart raising construction

works of Itabiruçu dam,

Complex

after removal of emergency

level.

Completion of tailings'

filtration plants construction

to increase wet processing

capacity.

  • Progressed on studies required by external auditors to remove the emergency level of Itabiruçu dam.
  • Tailings' filtration plant construction works achieved 19% and 17% of physical progress in Cauê and Conceição, respectively.
  • 1Q21: Removal of emergency level of Itabiruçu dam and start of raising construction.
  • 2022: Start-up of tailings' filtering plants and dry stacking activities7, increasing site's capacity to 40 Mtpy from current 26 Mtpy.

Application for a permanent

authorization to dispose

tailings at Timbopeba pit.

Project being concluded to

Timbopeba

adapt the plant's capacity

for tailings disposal at

Timbopeba pit.

  • First full quarter of operation since the site was halted in Mar/19, achieving a run-rate of 5.1 Mtpy.
  • Progressed on studies required by National Mining Agency for the final use of the Timbopeba pit and on plant's adaptation to increase capacity.
  • 1Q21: Increase production capacity to 12 Mtpy from current 4 Mtpy fully disposing tailings at Timpopeba pit.
  • 2023: Start-up of Capanema project8, adding 7 Mtpy of net capacity in the first years.
  1. A positive declaration of stability condition (DCE) and an operating license for Torto dam operations are necessary, relying on the external auditor and authorities' assessment.
  2. Norte/Laranjeiras dam is under Emergency Level 1 and today does not have a positive stability declaration, which is required to resume operations. The dam's stability assessment and definition of necessary act ions is expected in 4Q20 and the use of the dam as contingency in 2025.
  3. Using Itabiruçu dam as contingency.
  4. Project with capacity of up to 18 Mtpy expected to be approved in 4Q20.

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Actions in progress

Completion of Maravilhas

III dam9 and tailings'

filtration plant construction

to increase wet processing

capacity.

De-characterization of

Vargem Grande dam.

Vargem

Studies to debottleneck

logistics capacity, limited

Grande

by the impossibility to

Complex

operate the long-distance

conveyor belt in the

segment close to the

Vargem Grande dam and

the use of autonomous

train in Forquilhas and

Grupo dams self-rescue

zones (ZAS).

Conclusion of required

vibration tests (to certify the

absence of impacts on the

site's structures),

Fábrica

depending on external

assessment/approval.

Construction of pipeline for

tailings disposal at

Forquilha V dam.

Accomplishments in 3Q20

  • Maravilhas III dam construction works achieved 53% of physical progress.
  • Tailings' filtration plant construction works achieved 79% of physical progress.
  • Forquilha I dam emergency level decreased to 2 from 3 in October.
  • TAS13 railway terminal operations resumed in July, after vibration tests, enabling inventory movement.
  • Approval received in October to start vibration tests in mines and crushing facilities.

Timeline for resumption

  • 2Q21: Start-up of Maravilhas III dam and tailings' filtering plant increasing site's production capacity to 30 Mtpy from current 27 Mtpy10 and resumption of VGR pellet plant, depending on market conditions.
  • 2022: Unlock site's conveyor belt capacity11 after progressing on VGR dam de-characterization and licensing of new mining areas, which today limit capacity at 30 Mtpy.
  • 2020/27: Increase railway capacity, which today limits capacity at 36 Mtpy, advancing in studies to elevate automated train productivity and decreasing emergency levels of Forquilhas and Grupo dams12.
  • 1Q21: Conclusion of vibration tests.
  • 2Q21: Site's resumption with 6
    Mtpy of production capacity, after concluding pipeline construction for tailings disposal at Forquilha V dam
  • 3Q21: Resumption of Fábrica pellet plant, depending on market conditions.
  1. A positive declaration of stability condition (DCE) for Maravilhas III dam operations are necessary, relying on the external auditor's assessment.
  2. The start-up increases mine-plant capacity to 53 Mtpy.
  3. Resumption of conveyor belt relies on external approvals by National Mining Agency (ANM) and external auditors.
  4. Decrease of emergency levels also depends on external evaluation by ANM and external auditors.
  5. TAS stands for Terminal de Água Santa.

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Vale SA published this content on 19 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 October 2020 21:59:04 UTC