Vale S.A. — Regulatory Filings 2011

Nov 28, 2011

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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

November 2011

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-_____.)

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Press Release
Signatures

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link1 "Press Release"

Press Release

Vale announces investment budget for 2012

Rio de Janeiro, November 28, 2011 — Vale S.A. (Vale) announces that its Board of Directors has approved the investment budget 1 for 2012, involving capital expenditures of US$12.9 billion for project execution, US$2.4 billion for research and development (R&D) and US$6.1 billion dedicated for sustaining existing operations.

Based on a long-term view of global minerals and metals markets, the capex budget is aligned with our vision of becoming the best global natural resources company in long-term value creation, with excellence and passion for people and the planet.

Investment allocation for 2012

By category
Organic growth	71.5 %
Projects	60.5 %
R&D	11.0 %
Sustaining of existing operations	28.5 %
Total	100.0 %

By business area
Bulk materials	55.6 %
Ferrous minerals	46.7 %
Coal	8.9 %
Base metals	21.6 %
Fertilizers	9.6 %
Logistics for general cargo	2.4 %
Power generation	3.6 %
Steel	2.9 %
Others	4.3 %
Total	100.0 %

By geography
Brazil	63.7 %
South
America (ex- Brazil)	6.0 %
Canada	11.7 %
Africa	9.1 %
Asia	5.7 %
Australasia	3.3 %
Others	0.5 %
Total	100.0 %

1 The capex budget includes financial disbursements in consolidated format according to generally accepted US accounting principles (US GAAP). The main subsidiaries consolidated according to US GAAP are: Compañia Minera Misky Mayo S.A.C., Ferrovia Centro-Atlântica (FCA), Ferrovia Norte Sul S.A, PT Vale Indonesia Tbk (formerly International Nickel Indonesia Tbk), Vale Australia Pty Ltd., Vale Canada Limited (formerly Vale Inco Limited), Vale Colômbia Ltd., Mineração Corumbaense Reunida S.A., Vale Fertilizantes S.A., Vale International, Vale Manganês S.A., Vale Manganèse France, Vale Manganese Norway S.A. and Vale Nouvelle Caledonie SAS.

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Project execution

Vale has currently twenty main projects approved by the Board of Directors and under construction to implement organic growth. The main projects are detailed in this report and comprise 75% of the US$12.949 billion budgeted for project development in 2012.

R&D

Vale’s R&D investments are the backbone of future growth options. The budget for 2012 is comprised of US$918 million to finance the global mineral exploration program, US$848 million for conceptual, pre-feasibility and feasibility studies, and US$591 million to be invested in new processes, technological innovation and adaptation.

The mineral exploration program involves initiatives in the Americas, Africa, Asia and Australasia. Expenditures will be dedicated to further develop our reserves of iron ore (US$282 million) and nickel (US$202 million), and to explore opportunities in copper (US$156 million), coal (US$75 million), and potash and phosphate rock (US$50 million).

Sustaining capital

The sustaining capex budgeted for 2012, at US$6.106 billion, will be dedicated to not only maintain our production levels but also to invest in initiatives dedicated to improve operational efficiency, excellence in health and safety, and environmental protection.

We are expanding tailing dams and residual stockpiles to maintain the production rates, alongside with initiatives to improve maintenance management, and consequently reaching higher utilization rates in order to have lower maintenance costs and higher operational efficiency. Vale is also investing to improve managerial efficiency by integrating information throughout the company.

We are developing the clean AER (atmospheric emission reduction) project, which will significantly reduce air pollution in Canada, improving the positive legacy for the community in the Sudbury region. The multi-year project includes slag re-greening, reforestation and preservation.

In line with our focus on the search of excellence in health and safety, Vale is investing to improve standards in our operations.

The normalized sustaining capex budget, net of the initiatives to increase efficiency and sustainability described before, represents 4.4% of our asset base in September 2011, and is in line with the 4.7% for the period between 2007 and 2010. After adding the initiatives described before, the approved sustaining investments amount to 6.5% of our asset base.

Focus on sustainability

Sustainability contributes to a better world and the same time enhances competitiveness in the long-term. Sustainable development is achieved when our businesses provide value to shareholders while creating a positive social, economic and environmental legacy in the geographies where we operate.

Investments in corporate social responsibility in 2012 will reach US$1.648 billion, of which US$1.354 billion will be invested in environmental protection and conservation, and US$293 million in social projects.

Vale has been committed to develop a cleaner energy matrix by investing on renewable energy sources such as wind power and biofuels. The Biodiesel project involves the plantation of 80,000 hectares of palm trees to produce 360,000 tpy of biodiesel, contributing to minimize emissions of greenhouse gases and also promotes the development of local communities in the Brazilian state of Pará. Vale’s wind power park, in the state of Rio Grande do Norte, Brazil, will have a total estimated capacity of 65.7 MW.

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Main approved projects under construction

The pipeline of main projects approved by the Board of Directors, under construction, is detailed in this section. Estimated start-up dates can be revised due to changes caused by several factors, including delays in environmental permits.

	Estimated	Expected capex — US$ million
Project	start-up	2012	Total	Status 1
IRON ORE MINING AND LOGISTICS
Carajás Additional 40 Mtpy Construction of an iron ore dry
processing plant, located in Carajás,
Pará, Brazil. Estimated nominal capacity of 40 Mtpy.	2H13	622	2,968	Installation license (LI) was issued. We are executing earthworks
services and civil engineering works. 43% of physical progress. Total executed capex of US$1.3 billion.
CLN 150 Mtpy Increase Northern system railway and
port capacity, including the
construction of a fourth pier at the
Ponta da Madeira maritime terminal.
Located in Maranhão, Brazil. Increase estimated EFC’s logistics
nominal capacity to approximately 150
Mtpy.	1H14	890	3,477	Earthworks and offshore civil engineering works at Ponta da Madeira
maritime terminal started. Critical equipments for the car dumpers
were received Railway Installation licenses (LI) issuance expected for 2H12. 55% of physical progress. Total executed capex of US$1.8 billion.
Carajás Serra Sul S11D Development of a mine and processing
plant, located in the Southern range
of Carajás, Pará, Brazil. Estimated nominal capacity of 90 Mtpy.	2H16	794	8,039	Investing capital for earthworks services and building the access
road, before the issuance of environmental permits. Preliminary environmental license (LP) issuance expected for 1H12.
Installation license (LI) issuance expected for 1H13. 22% of physical progress. Total realized capex of US$804 million.
Serra Leste Construction of new processing plant,
located in Carajás, Pará, Brazil Estimated nominal capacity of 6 Mtpy.	1H13	239	478	Construction of the access road on progress. Earthworks and civil
engineering works for the plant started. Excavation on progress Issuance of installation licenses (LI) expected for following
months. 21% of physical progress. Total executed capex of US$79 million.
Conceição Itabiritos Construction of concentration plant,
located in the Southeastern system,
Minas Gerais, Brazil. Estimated nominal capacity of 12 Mtpy.	2H13	184	1,174	Project evolving on time and on budget. The issuance of pending
installation licenses (LI) is expected for 1H12. 79% of physical progress. Total executed capex of US$428 million.
Vargem Grande Itabiritos Construction of new iron ore treatment
plant, located in the Southern system,
Minas Gerais, Brazil. Estimated nominal capacity of 10 Mtpy.	1H14	429	1,645	Issuance of installation license (LI) expected for 1H13. 38% of physical progress. Total executed capex of US$262 million.
Conceição Itabiritos II Adaptation of the plant to process
low-grade itabirites, located in the
Southeastern system, Minas Gerais,
Brazil. Estimated nominal capacity of 19 Mtpy
(without additional net capacity).	2H14	297	1,189	Project at initial stages, with excavations for the installation of
primary crushers going on. Installation licenses (LI) issued. 14% of physical progress. Total executed capex of US$65 million.

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		Expected capex
	Estimated	US$ million
Project	start-up	2012	Total		Status 1
Simandou
I - Zogota Development of the Zogota mine and
processing plant in Simandou South,
Guinea. Estimated nominal capacity of 15 Mtpy.	1H12	380	1,260		Project in early stage of development. First production expected
for 2012.
Teluk Rubiah Construction of a maritime terminal
with enough depth for the 400,000 dwt
vessels and a stockyard. Located in
Teluk Rubiah, Malaysia. Stockyard capable of handling up to 30
Mtpy of iron ore products.	1H14	367	1,371		Preliminary environmental license, construction and installation
license issued. Issuance of operation license expected for 1H14. On
schedule. Contracts with civil engineering service providers
signed. 9% of physical progress. Total executed capex is US$120 million.
PELLET PLANTS
Tubarão VIII Eighth pellet plant at our existing
complex at the Tubarão Port, Espírito
Santo, Brazil. Estimated nominal capacity of 7.5 Mtpy.	2H12	239	968		Currently assembling of the stacker reclaimer of the pellets
stockyard. Issuance of operation license (LO) expected for 2H12. 74% of physical progress. Total executed capex of US$547 million.
Samarco IV Construction of Samarco’s fourth
pellet plant, and expansion of mine,
pipeline and maritime terminal
infrastructure. Vale has a 50% stake
in Samarco. Estimated nominal capacity of 8.3
Mtpy, increasing Samarco’s capacity to
30.5 Mtpy.	1H14	—	1,693	2	Project at initial stages. 11% of physical progress of the pellet plant. The 2012 budget will
be internally sourced by Samarco.
COAL MINING AND LOGISTICS
Moatize II New pit and duplication of the Moatize
CHPP, as well as all related
infrastructure, located in Tete,
Mozambique. Nominal capacity of 11 Mtpy (70%
coking coal and 30% thermal).	2H14	499	2,068		Geological research studies on progress 2% of physical progress. Total executed capex
of US$15 million.
Nacala corridor Railway and port infrastructure
connecting Moatize site to the
Nacala-à-Velha maritime terminal,
located in Nacala, Mozambique. Estimated nominal capacity of 18 Mtpy.	2H14	691	4,444		Environmental licenses issued for the railway
and maritime terminal. Development of the detailed aspects of the
engineering project on progress. Project in early stage of development. Total
executed capex of US$8 million.
COPPER MINING
Salobo Development of mine, plant, and
related infrastructure, located in
Marabá, Pará, Brazil. Estimated nominal capacity of 100,000
tpy of copper in concentrate.	1H12	296	2,337		Concluding mechanical assembly of the primary
crushing and of the water collection, supply
and storage system. Plant operation license (LO) expected for 1H12. 96% of physical progress. Total executed capex
of US$1.9 billion.

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	Estimated	Expected capex — US$ million
Project	start-up	2012	Total	Status 1
Salobo II Salobo expansion, raising of the
tailing dam height and increase in
mine capacity, located in Marabá,
Pará, Brazil Additional estimated nominal capacity
of 100,000 tpy of copper in
concentrate.	2H13	581	1,427	Civil works at the flotation circuit on
progress. The construction of the ball mill was
initiated. Plant operation license (LO) issuance expected
for 1H13. 46% of physical progress. Total executed capex
of US$268 million.
NICKEL MINING AND REFINING
Long Harbour Hydrometallurgical facility. Located
in Long Harbour, Newfoundland and
Labrador, Canada. Estimated nominal capacity of refining
50,000 tpy of finished nickel, and
associated copper and cobalt.	2H13	1,208	3,600	Plant under construction. Electromechanical
assembly on progress. 54% of physical progress. Total executed capex
of US$1.3 billion.
Totten Nickel mine (re-opening) in Sudbury,
Ontario, Canada. Estimated nominal
capacity of 8,200 tpy	2H13	157	759	Total executed capex of US$358 million.
POTASH MINING AND LOGISTICS
Rio Colorado Investments in a solution mining
system, located in Mendoza, Argentina,
renovation of railway tracks (440 km),
construction of a railway spur (350
km) and a maritime terminal in Bahia
Blanca, Argentina. Estimated nominal capacity of 4.3 Mtpy
of potash (KCl).	2H14	1,081	5,915	Agreement finalized with the five Argentinean
provinces involved in the project. Excavations
started. Civil engineering works on progress. 22% of physical progress. Total executed capex
of US$509 million.
ENERGY
Biodiesel Project to produce biodiesel from palm
oil. Plantation of 80,000 ha of palm
trees. Located in Pará, Brazil. Estimated nominal capacity of 360,000
tpy of biodiesel.	2015	227	633	Planting palm trees. Biodiesel plant’s FEL III
expected for July 2013. Preliminary environmental license (LP) and
construction and installation license (LI)
issuance expected 2H13. Total executed capex of US$286 million.
STEELMAKING
CSP 2 Development of a steel slab plant in
partnership with Dongkuk and Posco,
located in Ceará, Brazil. Vale holds
50% of the joint venture. Estimated nominal capacity of 3.0 Mtpy.	1H15	563	2,346	Early stage of development. The partnership is
developing the FEL III feasibility study.

1	as of September 2011
2	Expected capex is relative to Vale’s stake in the projects.

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Expected output for 2012

ESTIMATED PRODUCTION FOR 2012 — ‘000 metric tons

By mineral
Iron ore	312,000
Pellets	50,000
Coal	16,600
Nickel	300
Copper	340
Potash	650
Phosphate rock	8,000

Challenges in project execution

The execution of capital projects is one of the main challenges for the mining industry. Vale faces some hurdles for the implementation of its portfolio of world-class projects: environmental licensing, human capital constraints, cost pressures and longer lead times.

Environmental licensing has been a major source of risk to project development. Aiming to deal with this challenge we are taking several steps to improve the efficiency in the licensing processes, among which a stronger integration between environmental and project development teams, the development of a Best Practices Guide for Environmental Licensing and the Environment, the assembly of teams of highly- skilled specialists, a closer interaction with environmental regulators and the creation of an Executive Committee to expedite internal decisions.

People are a real source of competitive advantage, and human capital is a critical input to projects and future operations. Vale works to further integrate strategic plan to anticipate demand for skilled labor, as well as investing in initiatives to capacitate technicians, engineers and project implementation professionals.

Vale works to minimize the flipside impacts of the current commodity cycle, which can impact project execution through the lack of contractors with manpower available, price pressures of equipment and services, and longer lead times for equipment delivery. The main mitigation actions include procurement intelligence, the strengthening of long-term relationships with suppliers, the anticipation of purchases and the diversification of the suppliers’ base. So far, these actions dealt successfully with the pressures, and procurement lead times have not impacted the execution of the project pipeline.

In the context of the reorganization of management structure, a division headed by an Executive Director fully focused on project implementation was created. We are adopting a more disciplined approach to project development using the tested FEL (Front-End Loading) methodology, with clear approval gates between the stages of development before the appraisal by the Board of Directors.

Alongside the project development process, we are adopting an integrated risk assessment framework, which anticipates potential issues and allows for mitigations plans. This risk analysis was already applied in the majority of projects under construction and feasibility study.

Methodological rigor promotes higher quality of estimates, transparency and predictability in project development as well as ensures compliance with environmental regulations and health and safety requirements, and minimizes impacts on the communities.

Despite our efforts, risk elimination is not possible. As a consequence, our estimates of projects’ expected capital expenditures and estimated start-up dates might be revised going forward.

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For further information, please contact: +55-21-3814-4540 Roberto Castello Branco: roberto.castello.branco@vale.com Viktor Moszkowicz: viktor.moszkowicz@vale.com Carla Albano Miller: carla.albano@vale.com Andrea Gutman: andrea.gutman@vale.com Christian Perlingiere: christian.perlingiere@vale.com Fernando Frey: fernando.frey@vale.com Marcio Loures Penna: marcio.penna@vale.com Samantha Pons: samantha.pons@vale.com Thomaz Freire: thomaz.freire@vale.com

This press release may include declarations about Vale’s expectations regarding future events or results. All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties. Vale cannot guarantee that such declarations will prove to be correct. These risks and uncertainties include factors related to the following: (a) the countries where Vale operates, mainly Brazil and Canada; (b) the global economy; (c) capital markets; (d) the mining and metals businesses and their dependence upon global industrial production, which is cyclical by nature; and (e) the high degree of global competition in the markets in which Vale operates. To obtain further information on factors that may give rise to results different from those forecast by Vale, please consult the reports filed with the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and with the U.S. Securities and Exchange Commission (SEC), including Vale’s most recent Annual Report on Form 20F and its reports on Form 6K.

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link1 "Signatures"

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.

/s/ Roberto Castello Branco
Roberto Castello Branco
Director of Investor Relations

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