1. Energy Efficiency at Vale

2. ITEMS GoalGoal Energy Management: Energy Efficiency Plant Assessments Energy Saving Needs in Brazilian Industry ConclusionConclusion

3. GOAL Present the form of action from Vale regarding energy efficiency, share experiences in plant assessment, as well as provide an insight into potential energy savings in industry

4. ENERGY MANAGEMENT AT VALE ENERGY MANAGEMENT Value Criation Optimization of Supply Costs Supply Secutiry Social- Environmental Responsibility Energy Efficiency * There is no hierarchy among the pillars

5. WHAT IS CONSIDERED ENERGY EFFICIENCY? Energy Efficiency Reduction of unitary prices Contractual Arrangements Energy quality Optimization of industrial assets Consumption Reduction Productivity increase Change in energy transport alternative  Energy – any sort, and not only electricity  Energy Efficiency - Optimization of energy expenses  Energy Efficiency Projects - Projects or activities that lead to reductions in energy spending, which are crucial for the economic viability of investments

6. ENERGY MANAGEMENT – ENERGY EFFICIENCY PERFORMANCEPERFORMANCE Expenses EnergyEnd-use Unitary price Energy service (heat, driving force) Energy evaluation and selection (demand, availability, unitary price) Supply choice (self production, market) Contracts Tariffs Taxes Transport Corrections and improvements Process changes Energy recovery Technology development

7. Operations Energy End- Use Unitary Price Projects Plant Assessments Contractual Renegotiations and Revisions Improvements, Replacements and Corrections Project Validation (FEL) New Energy Contracts Project Revisions and Adjustments ENERGY MANAGEMENT – ENERGY EFFICIENCY

8. StandardsStandards TGEETGEE Energy Management OperationsOperations Current Projects Capital Projects Energy Policy / Technical Standards for projects and equipments Local and Global Energy Committees / Evaluation of results and sharing of best practices Monitoring of specific consumption and costs of operations Plant Assessments, measurement and verification of results Exploration, engineering and project implementation Analysis of energy efficiency through the steps of FEL ENERGY MANAGEMENT – ENERGY EFFICIENCY

9. PLANT ASSESSMENTS Performs contracting company service provider and makes management of contracted

10. PLANT ASSESSMENTS PIMS Energy Management System – Brucutu Plant Superior Performance Normal Performance Average Performance Bad Performance

11. Motors System Ventilation and Exhaust Lighting Compressed Air Thermal Systems / Cogeneration Instrumentation and Control Conveyor Belts Pumps SYSTEMSSYSTEMS PLANT ASSESSMENTS

12. SCOPESCOPE Analysis and measurements of electrical and mechanical systems Analysis of systems the utilities area Analysis of processes that interact on the plants Energy Management Incorporation of technology Creation of control parameters Performance evaluation PLANT ASSESSMENTS

13. SYSTEMS AND EQUIPMENTS ANALYZED PLANT ASSESSMENTS  Couplings  Solar heating  Pumps  Boilers  Chillers  Cogeneration  Compressors  Variable speed drive  Capacitors  Conveyors  Effluent treatment plant  Exhaust  Filters  Energy management  Lighting  Thermal insulation  Hot water lines  Power transmission lines  Steam lines  Measurement of electric and magnetic fields  Mills  Motors  Industrial water system  Compressed air system  Ventilation system  Chilled water system  Transformers  Pneumatic conveyors  Heat exchangers  Turbines SYSTEMS AND EQUIPMENTS ANALYZED PLANT ASSESSMENTS

14. ENERGY SAVING NEEDS IN INDUSTRY TYPICAL CASE Total Electric Energy % Savings per system Plant Assessment Pumping Compressed air Motors Lighting Variable speed drive

15.  VENTILATION AND EXHAUST Elimination of head losses Reduction of power exhaust fans Use of variable speed drive in motors Use of thermal energy from exhaust gases  COMPRESSED AIR Elimination of leakage and drainage of condensate Reduced pressure losses Classification and division of compressed air lines Sizing of compressors in accordance with the appropriate application Suitable arrangement of the house of compressors Optimization of the air intake system in order to reduce the temperature Automation of the operation of the compressor (load / idle) ENERGY SAVING NEEDS IN INDUSTRY TYPICAL ACTIONS

16.  MOTORS SYSTEMS Sizing of motors Use of energy efficient motors Use of variable speed drive Automation control systems to reduce no-load operation  PUMPING (Water, pulp ou vacuum) Elimination of leaks Use of variable speed drive for variable flow demands Reduction of the Head by dividing reservoirs Proper selection of the pump to the point of maximum efficiency Elimination or reduction of pumping due to the route optimization Reduction of friction in the pump shaft seals Control of temperature and water flow sealing vacuum pumps ENERGY SAVING NEEDS IN INDUSTRY TYPICAL ACTIONS

17.  LIGHTING, AIR CONDITIONING AND HEATING WATER Proper specification and distribution of equipment in environments Integration of natural resources to the solution of thermal comfort and light Promotion of adequate and regular maintenance of equipment Automation and suitable actuation of system Using solar energy to heat the water used for washing parts, restaurants and clothing room  ELECTRIC POWER SYSTEM Evaluation of the load transformers Evaluation of power factor and installation of capacitors and filters Monitoring of power quality ENERGY SAVING NEEDS IN INDUSTRY TYPICAL ACTIONS

18.  TRANSPORT Implementation of measurement system Relocation of supply points Automatic calibration of tires Training of operations focused on efficient driving Reduction of MDT (Middle Distance Transport) Maintenance plans focused on energy efficiency Auxiliary systems to operate the equipment (on-board computers connected to the dispatch system) Maintenance of roads running Replacement trucks for pumping pulp or conveyor belts, where applicable ENERGY SAVING NEEDS IN INDUSTRY TYPICAL ACTIONS

19.  THERMAL SYSTEMS Preheating of the combustion gases Improved insulation and reducing losses of hot gases Evaluation of the steam distribution system Analysis of the refrigeration system (cooling towers and others) Use of additives to improve fuel combustion in motors Evaluation of cogeneration systems  NEW TECHNOLOGIES Trolley Trucks Studying application of electrical energy for supply of locomotives to replace diesel Truckless system for mines ENERGY SAVING NEEDS IN INDUSTRY TYPICAL ACTIONS

20. CONCLUSION SWOT ANALYSIS – ENERGY EFFICIENCY STRENGTHSSTRENGTHS  Electricity from low carbon sources  Wide range of energy (electricity, gas, fuels, biomass and others)  Energy matrix is ​​ converted to energy from renewable sources

21. CONCLUSION SWOT ANALYSIS – ENERGY EFFICIENCY WEAKNESSESWEAKNESSES  Imposition of non-energy costs on the tariff  Lack of technical courses for industrial energy efficiency (technical and superior levels)  Lack of tax and credit incentives for thermal systems  Low investment in instrumentation and control  Lack of knowledge on energy laws

22. CONCLUSION SWOT ANALYSIS – ENERGY EFFICIENCY OPORTUNITTIESOPORTUNITTIES  PNE (National Energy Efficiency Plan)  ISO 50001 (Energy Management Standard)  Expansion of investment in instrumentation  Certification in Measurement ​​ & Verification processes  Strong performance in thermal systems  Effective fiscal and credit incentives  Increase the importance of PROCEL and CONPET programs

23. CONCLUSION SWOT ANALYSIS – ENERGY EFFICIENCY THREATSTHREATS  Importing solutions not suitable to the Brazilian reality  Dissociation of efficiency incentives for different energy sources

24. CONCLUSION EVOLUTIONARY VISION – ENERGY EFFICIENCY Management Maturity Impact of actions Continuous monitoring (power + indicators) Contractual tariff adjustment Adjustment of consumption profile (awareness) Review of the production process (automation) Technology upgrades (retrofit) Cogeneration and Renewable

25. Fábio A. Chaves DINE (Energy Department) General Management of Trading and Market Solutions +55 (13) 3362-9757 fabio.chaves@vale.com