Voiseys bay mine expansion supplier information sessions oct nov 2015

1. Voisey’s Bay Mine Expansion Project
Supplier Information Sessions

2. Agenda
• Introductions
• Safety Share
• Purpose Of This Session
• Vale Newfoundland and Labrador
• Voisey’s Bay Mine and Concentrator
• Long Harbour Processing Plant
• Mine Expansion Project
• Doing Business With VNL
• Supply Opportunities
• Questions

3. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Introductions

4. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Safety Share

5. Safety Share
5
• Plan your outdoor trips with safety in mind.
• Every year we sadly hear stories of people who have gone missing
traveling between two destinations – and tragically are often eventually
found when it is too late.
• Let someone know your specific plans before you leave – your planned
itinerary and where you expect to be by when.
• Make sure your cell phone is charged before you leave and call when
you arrive at each part of your journey.
• It will give you – and those who care about you – peace of mind if they
know you have arrived safely and especially if the weather is bad.
• For those of you frequently out of cell range
devices are available on the market which use
satellite GPS technology.
• A device like this SPOT messenger can locate you
and send a message to emergency services so
you can be found quickly

6. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Purpose Of This Session

7. We are here today to provide an overview of
the Voisey’s Bay Mine Expansion Project and
to meet with businesses to discuss the future
business opportunities which are required to
support the construction and operation of the
underground mine.

8. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Vale Newfoundland and Labrador

9. Vale Newfoundland Labrador
• Currently operating an open pit mine, a concentrator and a processing
plant
• The mine and concentrator site is located at Voisey’s Bay on the North
Coast of Labrador, 35 km south of Nain
• The processing plant is located at Long Harbour
• Operations at Voisey’s Bay began in 2005 and at Long Harbour in
2014
• The underground mine expansion at Voisey’s Bay will begin in 2016
9

10. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Voisey’s Bay Mine and Concentrator

11. Voisey’s Bay Mine Site
Plant Site
Headwater Pond
Tailings Basin
Airstrip
Eastern Deeps
Deposit
Reid Brook Deposit Ovoid Pit
Camp Pond

12. 12
Port Layout At Voisey’s Bay
Concentrate
Storage
Building
Umiak I
Container
Laydown Area
Ship Loader

13. 13
Operational Overview
•6,000 tonne-per-day mine and concentrator
•Annual production
• ~ 50,000 tonnes nickel-in-concentrate, containing 2,300 tonnes
cobalt and up to 6,800 tonnes copper
• ~ 32,000 tonnes copper-in-concentrate
• Fly-in/Fly-out operation
• 2 week rotations
• Workforce – 475
• Vale and contractors
• 55% of workforce are aboriginal

14. 14
Fly in – fly out site, continuity issues due to rotations, ice breaking, extra personnel to
support site needs, air services, extreme weather, wildlife encounters, environmental
sensitivity, retention, supply line costs, additional inventory, isolation.
Operational challenges come from geography….

15. 15
Vale’s Commitment To Local Communities
55%
Of total workforce is
Aboriginal
80% of operations
contracts are awarded to
Aboriginal businesses
>90%
Aboriginal employment
from adjacent communities
Vale was mentioned in the recent Federal budget referring to best practices
by private companies: “The Vale mine and concentrator project in Labrador
has provided training geared to employment for Aboriginal groups.”

16. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Long Harbour Processing Plant

17. Our Journey
• Successful completion of research and development led to decision to
proceed with hydromet technology
• Construction of processing plant began in 2009
• First production July 2014

18. Long Harbour Processing Plant Site
Main process area

19. Long Harbour Processing Plant Site
Port site

20. Production to date ~ 5000 tonnes
Expanding capacity to accept all
Voisey’s Bay production
Employment
Vale Operations - 450
Support Contractors - 250
Women’s employment: 20% of
workforce;
• 82% of these in non-traditional
roles
Operations Overview
20
MV Umiak at port and unloading concentrate
First nickel production

21. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Mine Expansion Project

22. Surface Site Plan for the Underground Mine
Main Ventilation
Fans Complex
Backfill Plant
Concrete / Shotcrete Plant
Eastern Deeps
Portal Openings
Temporary Camp
Reid Brook Portal
Opening
Temporary
Shops
Existing Camp Complex Expansion
Reid Brook Fans
Access Road
Main Ventilation
Fans Complex
Existing
Ovoid Pit

23. Conceptual Mine Design: Reid Brook
DECLINE FROM
SURFACE
SCRAP
REMOVAL
CONVEYOR
VENTILATION
RAISES
INTERNAL
DECLINE SYSTEM
INFERRED RESOURCE
ZONE
MAXIMUM DEPTH
REACHED IN PROJECT
PHASE

24. Conceptual Mine Design: Eastern Deeps
DECLINES FROM
SURFACE
VENTILATION
RAISES
OREBODY ACCESS
DECLINE SYSTEM
CONVEYOR
INCLINE
ORE / WASTE
HANDLING SYSTEM
MAXIMUM DEPTH
REACHED IN
PROJECT PHASE

25. Project Elements
• Underground mine development:
• Ramps
• Lateral development
• Supporting infrastructure (garage, refuge stations, material handling
systems, pumping systems, etc.)
• Underground mine ventilation system:
• Fresh and Return Air fans
• Surface infrastructure expansion including:
• Increased power generation
• Additional permanent accommodations
• Expansion to offices, warehousing, and maintenance shops
• Upgrades to water and sewage treatment facilities
• Paste backfill plant
• Construction facilities (temporary camp, maintenance facilities, etc.)

26. Project Timelines
2016 2017 2018 2019 2020 2021 2022+
Start of Project
Ramp up to full
production
End surface
construction
First on-site activity
• Vegetation stripping
• Site clearing for camp,
sewage treatment, water
• Creation of mine
openings
Start of Construction
• Underground
development
• Start of permanent
camp expansions
• Temporary shops
End Reid Brook construction
Hand over to Operations
End Eastern Deeps
construction
Hand over to Operations
(End of project period)
Ongoing Construction
• Power plant
• Paste fill plant
• Office / warehouse /
permanent shop expansions
• Main ventilation fans
Ongoing Construction
• Control room
• Power plant complete

27. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Doing Business with VNL

28. Newfoundland & Labrador
• Vale’s operations in the province are governed by the Development
Agreement with the Government of Newfoundland and Labrador.
• The Agreement includes specific Industrial and Employment Benefits
(the IEBA) commitments with respect to:
• Providing business opportunities for companies which operate
within the province
• Providing employment opportunities for provincial residents
• Vale has also made commitments to the Innu Nation and the
Nunatsiavut Government in separate Impacts and Benefits
Agreements (IBAs) which govern our activities in Labrador.
• The IBAs which have been in place since 2002 have become
ingrained in the way we do business at the mine site since that time. In
Labrador, the IBAs take precedence over those in the IEBA.

29. Guiding Procurement Principles
• For qualified provincial suppliers VNL will provide full and fair
opportunity and first consideration to participate in all phases of
the project
• Our activities in Labrador are subject to IBA commitments
requiring VNL to
• Promote use of Innu and Inuit Businesses
• Encourage and facilitate development of Innu and Inuit
business expertise, skills and capacity
• Adjacency Principle
• Applies only to project activities in Labrador
• First consideration given to other Labrador businesses once
IBA commitments have been met
• Follow Vale’s procurement norms
• Maintain integrity of the project budget and schedule
• Ensure the project is competitive

30. Procurement Procedure
EXPRESSION
OF INTEREST
PRE-
QUALIFICATION
PROPOSAL
REQUEST
ISSUED
EVALUATION
OF PROPOSALS
AWARD
• Brief summary of
the work
• Pre-notification
to aboriginal
business centres
• Posting on the
VNL website
• Confidential Vale questionnaire
• Asks questions regarding
aboriginal affiliation, technical and
financial capability
• List of registered and interested
aboriginal businesses provided to
Vale
• Scope of work issued to pre-
qualified businesses
• Bid clarification meetings
• Technical evaluations –
by Project team
• Commercial
evaluations – by Vale
Procurement
• Combined Technical
& Commercial
evaluations
• Award decision by
Vale Procurement

31. Bid Evaluation Criteria
• Knowledge, appreciation and understanding of scope of work
• Experience, competence and ability to meet technical specification
• Cost
• Continuity of supply
• Ability to manage, perform and complete on schedule
• Safety, security, QA programs
• Level, nature and location of provincial benefits
• Ability to work with VNL
• Commitments to Innu and Inuit content
Note: In the pre-qualification and bid evaluation processes a weighting
factor is also applied to aboriginal businesses

32. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Supply Opportunities

33. Construction Phase Opportunities: Services
• Civil works
• Temporary camp facilities
• New building construction
• Marine transport
• Underground development
• Raiseboring
• Engineering
• Project Management
• Air Transportation
• Camp servicing & catering
• Concentrate and bulk haulage
• Security and safety
• Logistics

34. Construction Phase Opportunities: Supplies
• Structural steel
• Rebar
• Concrete
• Piping, pumps, motors, fans
• Conveyors, idlers, bearings
• Electrical & instrumentation
equipment
• Safety supplies
• Communication equipment
• Light vehicles
• Mobile equipment supplies
• Skid mount modules
• Welding supplies
• Cables
• Tool and equipment rentals
• Domestic supplies for camp
• Ropes, slings, shackles, nuts, bolts,
etc.
• Fuel, oil, filters
• Ventilation fans and doors
• Underground mine consumables

35. Future Steady State Mine Opportunities
• Load and haul mobile equipment
• Glycol, fluids
• Wear parts – teeth, adapters, pads
• Ropes, slings, shackles, etc
• Fuel, oil, filters, etc
• Tires, rims
• General maintenance supplies
• Drill steel, bits
• Welding supplies
• Haulage truck and tractor supplies
• Mine screen mesh
• Rock bolts and resin
• Hoses and fittings

36. Expressions Of Interest Posted To Date
• Design Engineering
• Project Management
• Civil Works 2016
• Temporary Construction Camp
• Sewage Treatment Plant upgrade
• Construction Dock upgrades
• Underground Development (Phase 1)
• Timber removal
• Testing (Concrete and Soils)
• Master Logistics Services
• Network upgrade (WAN – Labrador)
• Underground Mobile Equipment (3 packages)

37. • Pre-Qualification forms must be completed in full
• Technical and financial information about your business which must
be provided
• We will treat the information you provide in strictest confidence. No
one outside of the Vale Procurement organization will see, or have
access, to any financial information.
• The information is required to help us understand if your business
has the capacity to deliver the supply items or services being
requested in the scope of work.
• Pre-qualification does give preference to registered aboriginal
businesses
• Only those pre-qualified will be invited to submit a proposal
• Feedback to those who did not qualify will be provided upon request.
Important Points

38. Going Forward
• EOIs will be published on our website:
www.vale.com/canada/EN/suppliers/become-supplier/canada/vnl-
procurement/Pages/Voisey's-Bay-Underground-Mine-Project.aspx
• Remember we have just finished basic engineering. Detailed
engineering will begin in the first half of 2016.
• If there are any questions during the pre-qualification period, please
call Vale Procurement directly (do not rely on e-mail for a timely
response).

39. Agenda
• Risk Management Share
• Introductions
• Recent Project Developments
• The FEL 3 Project
• What You Can Expect In The Next Year
• Requests
• Questions
Thank You
Any Questions?