Public Information

PT Vale Indonesia Tbk

A presentation for CSA Institute Visit Emiten

July 20th, 2023

 Cautionary Note & Disclaimer
Cautionary Note on Forward-looking Statements
This presentation may contain statements regarding the business of PT Vale Indonesia Tbk (the “Company”) that are of a forward-looking
nature and are therefore based on management's assumptions about future developments.
Such forward-looking statements are intended to be identified by words such as 'believe', 'estimate', 'intend', 'may', 'will', 'expect', and
'project' and similar expressions as they relate to the Company. Forward-looking statements involve certain risks and uncertainties
because they relate to future events. Actual results may vary materially from those targeted, expected or projected due to several
factors.
Potential risks and uncertainties includes such factors as general economic conditions, foreign exchange fluctuations, interest rate
changes, commodity price fluctuations and regulatory developments. The reader and/or listener is cautioned to not unduly rely on these
forward-looking statements. We do not undertake any duty to publish any update or revision of any forward-looking statements.

Disclaimer
This report has been prepared by PT Vale Indonesia Tbk (the “Company”) independently and is circulated for the purpose of general
information only. It is not intended for the specific person who may receive this report. The information in this report has been obtained
from sources which we deem reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All
opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice.
We disclaim any responsibility or liability which may be brought against or suffered by any person as a result of acting in reliance upon the
whole or any part of the contents of this report and neither the Company and/or its respective employees and/or agents accepts liability
for any errors, omissions, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise
arise.
 Learning together

Values Key Behaviours Levers Ambitions

• Life matters most. • Obsession with safety and risk • Safety A great company recognized by
management. society for being:
Our • Act with integrity.
• • VPS • Benchmark in safety.
Purpose • Value the people who
Open and Transparent dialogue.
• Best in class reliable operator.
We exist to improve build our company. • Empowerment with • People
accountability.
life and transform • Make it happen. • Talent driven organization.
the future. • Sense of Ownership. • Innovation
Together. • Respect our planet and
• Leader in sustainable mining.
communities.
• Active listening and
• Sustainability • A reference in creating and
engagement with society. sharing value.

Why do we exist? What do we believe in? How do we act? What do we look for?
 PT Vale Our History

1968
Initial COW signed 1996
COW renewal signed.

1988 1990 2011 2019

Inco sells GO PUBLIC Change of HoA on the
20% Inco sells 20% of its Company 2nd divestment
shares to shares on the
name with Inalum
Indonesian stock
SMM exchange 2022
80-20 long term 2020
1973 off-take 2021 Pomalaa
agreements Closing of Ground
Construction 1978 Divestment Green breaking to
PROPER
started in Commercial Transaction start HPAL
2014 Award for Project
Sorowako production the 2nd
Renegotiation & time
COW amendment
 PT Vale Shareholders, Management and People

Board of Directors
VCL MIND ID SMM Public VJL

0.54%

20.64% Febriany Eddy Adriansyah Chaniago

President Director Vice President Director
43.79%

15.03%

Bernardus Irmanto Vinicius Ferreira

20%
Director Director

Ultimate controlling shareholder is Vale S.A.

Abu Ashar Matt Cherevaty
(NYSE:VALE) which owns 44.34% Director Director
Our shareholders are:
• Vale Canada Limited – 43.79% Our Employees
• MIND ID – 20.00%
• Sumitomo Metal Mining Co., Ltd. – 15.03%
• Public – 20.64%
• Vale Japan Limited – 0.54%

2,889 Employees* > 99.8% Indonesian > 5,000 Contractors

* Permanent and non-permanent employees as of May 31, 2023

PT Vale Concessions and Reserves

Concession Area
Province Block Hectare
South Sulawesi Sorowako - Towuti 70,566

Central Sulawesi Bahodopi 22,699

Southeast Pomalaa 20,286

Sulawesi Suasua 4,466

Total 118,017

Saprolite Ore As of Dec 31, 2022

Reserves
(in million Ore DKP Ore %
metric tons) (Wmt) (Dmt) Grade

Proven 185.59 65.80 1.70

Probable 148.48 45.74 1.70

Total Reserves 334.07 111.55 1.70
PT Vale From Ore to Nickel in Matte

Nickel matte that consists of:

≈ 78% Nickel in matte
≈ 1%-2% Cobalt
≈ 20%-21% Sulfur

Export with Long-Term Sales Contract

Agreement

Since Jan-2020 we have modernized our Sales Contract

Agreement to our Customers.

Previously, nickel and cobalt content are priced at 78% of

previous month average LME nickel cash price.

Currently, nickel content priced at 78% of previous

month average LME nickel cash price, while cobalt
content priced at 35% of previous month average Fast
Market cobalt price.
1Q23 environment Indicators were all on the track, improvements are progressing
DAS Rehabilitation, outside CoW

Greenhouse Gases SO2 intensity Forest

(t CO2e/t Ni prod.) (kg S / kg Ni) (Ha) 2023
2023 Goal: 1,985k max (cumulative) 2023 Goal: 0.80 max 2023 Goal: 39.00

2023 2023 2023 Q1 Progress

Act Q1 444.05k Act Q1 0.75 Act Q1 42.81 2,421Ha 112 Ha
Maintain of land area. Planting of land area.

12 3
regencies in South regencies in West
Sulawesi Java

>1 million >50 thousand

of trees. of trees.

PTVI received awards from

Ministry of Environment &
Forestry (KLHK) for its DAS
rehabilitation on March 16, 2023

8
President Jokowi’s testimony about our environmental practices during his
recent visit to Sorowako is very encouraging

Taman Kehati Sawerigading Wallacea

Its a conservation area for various type of local and endemic plants,
integrated with a Mining Park, butterfly conservation area, Timor deer
breeding facility, as well as a nursery facility with a capacity of 750
thousand seeds per year.

Currently the park has a collection of 74 different types of local and

endemic trees. In the future, it will be developed into a Botanical Garden,
which will support the economy of East Luwu Regency post- mining.
9

Sumber: Sekretariat Kabinet Republik Indonesia, 30 Maret 2023

We are progressing to achieve 33% GHG emission reduction
(scope 1 and 2)
Wet Ore Storage (WOS)
Electric Boiler2nd Stage Waste Heat Recovery Improvement
(Procurement in progress and (Targeted to accomplish (Commissioning and trial already
Commissioning target in 2024) FEL1 study in 2023) done)

LNG Burner, Supply & Electric Vehicle & Truck Implementation

Larona Penstock Reinforcement Infrastructure
(Commissioning and trial electric vehicle and truck
(FEL3 study had been finished in (Targeted to accomplish in Sorowako already done)
Q4 2022 and commissioning target FEL1&FEL2 study in 2023)
in 2024 )
Biomass as Reductant Modular Screening Station Implementation
Solar PV at Mangkasa and
Balantang Port (~2,500 tons already trial for (MSS #12 and MSS#13 Commissioning and trial
50% ratio in Reduction already done)
Target FEL 2 study finish in Q2
Kiln#1&2).
2023

UTILITIES PROCESSING MINING

NET ZERO
2050
 PT Vale Production History

Our target is to deliver safe and sustainable production of around 70,000 t in

2023
90,000

80,000
~70,000
70,000

60,000 60,090
Ni production (t)

50,000
The furnaces,
40,000 including Furnace
30,000
4 performed
better in 1Q23,
20,000
providing
10,000 additional ~400 t
0
of production
Our margin is wider as the nickel price was in our favor and the
cost was decreasing

Average realized price Cash cost of revenue / unit sales

24500

22000 21,672

19500

17000

14500

12000
11,030
9500

7000

4500
1Q14

2Q16

2Q20

3Q22
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13

2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16

3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19

4Q19
1Q20

3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22

4Q22
1Q23
3Q19
We booked strong Net Profit of US$98.1 million in Q1-2023, i.e. 207% higher compared to the previous
quarter
We ended 1Q23 with strong cash position. Growth projects spending is
expected to start increasing toward end of the year as we progress with
the projects
$808M
In $million
707 91
697
659 73
73
591 73
73

717
624 634
586
518

31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23

Cash & Cash equivalent Restricted cash

 PTVI Development Projects with Total Investment >US$9 Billion (Together with
Partners)
Morowali Pomalaa Sorowako HPAL

• RKEF JV: Developing RKEF1 project with Tisco & • HPAL JV: PTVI and Huayou have signed an DCA2 to • JV with Zhejiang Huayou Cobalt Company
Xinhai with 73ktpa capacity. PTVI’s ownership in develop an HPAL3 processing facility with capacity up (“Huayou”) to develop a HPAL plant to produce
processing facility of 49% to 120ktpa Nickel MHP
• Mine: PTVI to own 100% of the mine expected to • Mine: PTVI will own 100% of the mine, expected to • Source will be feed from limonite ore from
produce an equivalent to 42ktpa of nickel in supply all ore for the process plant for the first ~20 Sorowako Mine operations
ferronickel years
• Committed to LNG for electricity • MoC4 with Huayou and Ford for a 3-party
relationship to process PTVI’s nickel ore

73ktpa $2.6bn 2026 120ktpa $4.5bn 2026 60ktpa $2.0bn 2027

Nickel in Feni RKEF & Mine CAPEX Start-up date Nickel in MHP HPAL & Mine CAPEX Start-up date Nickel in MHP Expected CAPEX Start-up date

100% 49% Tisco & Xinhai 100% 30% Huayou / Ford 100% 30% Huayou
Mine ownership Plant ownership Partner Mine ownership Plant ownership Partner Mine ownership Plant ownership Partner

Note: Projects are subject to approval. Stages of development, estimated production and expected start-up date are indicative figures and subject to change as the project study progress. 1 Rotary Kiln-Electric Furnace. 2 Definitive
Cooperation Agreement. 3 High Pressure Acid Leach. 4 Memorandum of Cooperation.
Morowali | Progress Development of Mining & Smelter Project
Full blown Construction
Key Dates Groundbreaking,
10 Feb 23 Target Equity
Injection Jul 23
FID in Jul 22 Jan 26 Feb 26 Jun 26

Early works, EPC Selection, Prem. Design Gas Power Mechanical

Available Available Completion

Mine

Before After

Quarry Development Construction Office

Land Acquisition Progress Quarry 2 Production Area

Smelter

Pic 6. Earth Escalation at RKEF

Dynamic Compaction at LNG and Power Plant Living Area and Office for JVPT Site Clearance at Slag Yard and LNG Storage Area Batching Plant
Pomalaa | Progress Development of Mining & Smelter Project

COMMERCIAL MINE DEVELOPMENT

• On February 27th, PTVI and KNI executed Shares Subscription Agreement • Pilot pit has opened ; bulk sampling ongoing
and JVA with Huaqi (Singapore) Pte. Ltd, Huayou’s indirectly fully owned
subsidiary (‘Huaqi”).
• On March 9th, Huaqi capital injection and on shares subscription has HPAL ENGINEERING AND CONSTRUCTION
been completed, Huaqi is now 80% shareholder of KNI. • Geotechnical drilling for port, road and HPAL plant area completed
• On March 30th, Ford, Huayou and PTVI has signed Shares Subscription • Land clearing and initial earth work has commenced
Agreement which allow Ford to subscribe new shares to get 17%
ownership in KNI.
PERMIT
• Permit for mine and HPAL expansion to 120 ktpa is ongoing

The signing of Three-Party definitive agreement with Huayou and Ford HPAL Plant layout
Contact us
Investor Relations
PT Vale Indonesia Tbk

Phone: +62 21 524 9000

Web: www.vale.com/indonesia
Email: [email protected]