Vale S.A. : Vale S.A. : VALE'S PRODUCTION REPORT IN 2Q13

           Vale S.A. : Vale S.A. : VALE'S PRODUCTION REPORT IN 2Q13

A SOLID PERFORMANCE IN BASE METALS AND COAL

Rio de Janeiro, August 7, 2013 -  Vale S.A. (Vale) continued to show a  strong 
operational performance  for base  metals in  2Q13. The  production of  copper 
reached an all-time  high, at 91,300  metric tons, while  nickel had its  best 
second quarter since 2Q08, with 65,000 metric tons.

At the same time, coal output achieved a record figure, at 2.4 Mt^[1], rising
35.6% against 1Q13.

While the successful ramp-up of Salobo is proving instrumental in the rising
copper output, 181,000 t in 1H13 vs 143,000 t in 1H12, the production of coal,
4.1 Mt in 1H13 against 3.4 Mt in 1H12, was positively influenced by the
performance of Carborough Downs and the ramp-up of Moatize.

Iron ore output in 2Q13 was 8.4% higher than 1Q13, at 73.2 Mt, but 9.1% lower
than in 2Q12. We missed the production target for 1H13 by 2.7 Mt, but we still
maintain the 306 Mt guidance for the year.

An important milestone  to our  future growth was  reached in  July, with  the 
granting of the installation  license (LI) for the  S11D project. S11D is  the 
highest grade  and  lowest  cash-cost  world-class project  in  the  iron  ore 
industry, with a nominal capacity  of 90 Mtpy of iron  ore. It is seated in  a 
deposit with proven and probable reserves of 4.240 billion metric tons with an
average ferrous  content  of 66.7%  and  low impurities  while  its  estimated 
operational cash cost (mine, plant, railway  and port after royalties) is  US$ 
15.00 per metric ton (at a BRL  2.00 per USD exchange rate). S11D is  expected 
to start  up in  2H16 and  to deliver  full capacity  production in  the  2018 
calendar year.

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[1] Mt= million metric tons.

Kt = thousand metric tons

t = metric tons

VALE'S PRODUCTION REPORT IN 2Q13

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Source: Vale S.A. via Thomson Reuters ONE
HUG#1721876