This is the problem with minning stocks right now.

04/12/2008

Vale announces adjustment in its nickel operations

Vale informs that in light of the conditions prevailing in the global

nickel market it is taking steps to adjust its production plan in Canada in

addition to the measures already announced with respect to its Indonesian

operations.

Vale has decided to shutdown for an undetermined period of time the Copper

Cliff South mine (CC South), located in the mining site of Sudbury,

province of Ontario, Canada. Operations will be suspended from January

onwards. The CC South output contributes to the production of 8,000 metric

tons per year of finished nickel.

The Voisey’s Bay operations, located in the province of Newfoundland and

Labrador, Canada, and comprising the Ovoid mine and a processing mill, will

be shutdown during the entire month of July 2009. Voisey’s Bay produces

nickel and copper concentrates. In the first nine months of 2008 its

operations contributed to the production of 58,000 metric tons of finished

nickel and 39,000 metric tons of copper in concentrate.

In addition to the production cutbacks, Vale has decided to postpone the

start up of the development of the Copper Cliff Deep (CC Deep) project for

a period of 12 months. As announced in our capex budget for 2009, the

development of CC Deep has a total investment cost of US$ 814 million, of

which US$ 138 million was budgeted to be spent in 2009. CC Deep involves

the replacement of the current shafts in the Copper Cliff North and Copper

Cliff South mines by one single shaft.

Vale also informs that in an effort to reduce costs its wholly-owned

subsidiary, Vale Inco, is launching a voluntary retirement program for

eligible staff employees across the globe. Vale Inco will pursue other

initiatives to reduce costs.

In face of the uncertainties embedded in the current global economic

scenario Vale retains the optionality to manage production according to its

assessment of market conditions.