Vale S.A.

Good morning, ladies and gentlemen. Welcome to Vale's conference call to discuss the second quarter of 2021 results. At this time, all participants are now listened on the mode. Later, we'll conduct a question and answer session and the instructions will be given at the time. If you should require assistance during the call, please press the star followed by zero. As a reminder, this conference is being recorded and the recording will be available on the company's website at value.com at InvestorsLink. This conference call is accompanied by a slide presentation, also available at InvestorsLink at the company's website and is transmitted via internet as well. The broadcasting via internet, both the audio and the slides changed, has a few seconds delay in relation to the audio transmitted via phone. Before proceeding, let me mention the forward-looking statements are being made under the safe harbor of the Security Litigation Reform Act of 1996. Actual performance could differ materially from that anticipated in any forward-looking comments as a result of macroeconomic conditions, market risks, and other factors. With us today are Mr. Eduardo de Sales Bartolomeu, Chief Executive Officer, Mr. Luciano Ciani Pires, Executive Vice President, Finance and Investor Relations, Mr. Marcelo Spinelli, Executive Vice President, IOR, Mr. Mark Trevor, Executive Vice President, Base Metals, Mr. Carlos Medeiros, Executive Vice President, Safety and Operational Excellence, and Mr. Alexandre D'Ambrosio, Executive Vice President, Legal and Tax. First, Mr. Eduardo Bartolomeu will proceed to the presentation on VALE's second quarter 2021 performance. And after that, he'll be available for questions and answers. It's now my pleasure to turn the call over to Mr. Eduardo Bartolomeu. Sir, you may now begin.

Okay, thank you. Good morning, everyone. First of all, I hope you're all doing well. As we have done since the beginning of the pandemic, we kept our guards up in the second quarter of 2021 with all the safety and prevention procedures for COVID-19. Safety, people, and reparation. These words have been our priority since 2019 and continue to inspire our actions. We have made progress in repairing Brumadinho. We are working with the authorities to implement the R$ 37.7 billion Integral Reparation Agreement signed in February this year. While the authorities are structuring the work fronts, Vale continues its actions for social, environmental and socio-economic reparation. In the second quarter of 2021, among other initiatives, we launched the Social Strengthening Program in 10 municipalities and along the Parapaiba River. and we are completing a new pipeline to supply the metropolitan region of Belo Horizonte. This delivery is a major step forward in ensuring water safety for nearly 6 million people. The reparation of individual damages also continues to advance. Since 2019, more than 10,700 people have entered in civil or labor compensation agreements with Vale, totaling nearly 2.7 billion reais. As you can see, we are repairing Brumadinho in a quick, fair, and agile way. We have advanced in the safety of our dams as well. In the first semester, we removed the emergence level of four structures and reduced the emergence level of another two. In the upstream dam decaracterization program, We completed the works of the Fernandinho Dam at the Vargem Grande Complex. So, since 2019, six upstream structures have been eliminated. We also completed the works of the containment structures downstream of Forquilhas and Grupo Dams. We are also advancing with the works for B3-B4 and Sul Superior dams. Earlier this month, we started activities to remove the tailings with unmanned equipment. In addition, our dam management model also continues to improve. We have appointed an independent tailing review board, the ITRB, to each of our iron ore corridors. This practice is in line with the Global Industry Standards for Tailings Management, the GISTM. By the way, we are in line to adhere to GISTM in due time. So, we continue to make progress in the cultural transformation towards a safer valley. We have also made progress on our ESG commitments. This quarter, We detail our strategy to achieve our 33% reduction targets for Scope 1 and 2 emissions, with an estimated investment between $4 to $6 billion. As I said at the last Valley Day, Valley is uniquely positioned to lead the transition to a low-carbon mining.

We have a high-quality portfolio to support steel decarbonization,