Vale SA reached 71.1 Mt of iron ore production, the best performance for a Q1 since Q1 2008, with gains in the Northern, Southeastern and Southern Systems compared to Q1 2013, helped by better weather conditions in Q1 2014 and the ramp ups of the Plant 2 (Additional 40 million tonne per year) and the Conceiçao Itabiritos projects. In particular, Carajás production increased by 8.1%. Output decreased compared to Q4 2013 due to scheduled maintenance stoppages that normally occur in the H1 of the year.

In the beginning of the year, we obtained authorization from the Brazilian Institute for the Environment and Renewable Natural Resources for mining in the N4E mine areas. This authorization will support the accomplishment of the 2014 production plan of 120 Mt in Carajás, 312 Mt production in the year (321 Mt with purchases of third party ore).

Pellets production was 9.9 Mt in Q1 2014, 8.6% higher than in Q1 2013 basically due to better weather conditions. Production of nickel reached 67,500 t in Q1 2014, also a new record for Q1. Negative impacts from a longer and colder winter in our Canadian operations were offset by increased production from Onça Puma and Vale New Caledonia.

VNC resumed its operations on January 1st 2014, following repairs to the effluent placement and dispersion line. Total nickel production in the form of nickel oxide and nickel hydroxide cake was 5,600 tonnes (3,300 of NHC and 2,300 of NiO) in 1Q14, matching its best quarter to date including 2,688 tonnes produced in March which was a record month for the operation.

Salobo I continued its ramp up, producing 21,100 tonnes of copper in concentrates in Q1 2014, reaching 84.4% of its nominal capacity. Coal production in Q1 2014 reached 1.8 Mt, the best Q1 ever due to Moatizes’s ramp up but 21.0% lower than in Q4 2013 mostly due to the weak performance of Carborough Downs.

Moatize produced 1.009 Mt in Q1 2014, a new record for Q1 of which 0.595 Mt of metallurgical coal and 0.414 Mt of thermal coal. Metallurgical and thermal coal output increased by 48.4% and 49.2%, respectively, when compared to 4Q13.

In Q1 2014 fertilizer output fell when compared to Q4 2013, reflecting maintenance stoppages, which are concentrated in the H1 of the year. The ramp up of Bayóvar was interrupted to modify the source of energy for two dryers with the objective of reducing operating costs.

• [Editor:Juan]