OREANDA-NEWS. June 29, 2012. Joined by the Premier, government cabinet ministers, community leaders, local residents and employees, Vale today officially broke ground onits 2-billion Canadian Dollars “Clean AER Project”, one of the largest single environmental investments in Ontario’s history. The Clean AER Project, which stands for ‘Atmospheric Emissions Reduction’, will seesulphur dioxide at Vale’s smelter in Sudbury reduced by 70% from current levels, as welldust and metals emissions a further 35 to 40%. The project is scheduled to be completedby the end of 2015“

This is an historic day for Vale and demonstrates the importance that Greater Sudburyplays in our global operations,” said John Pollesel, Chief Operating Officer of Vale CanadaLimited and Director of Vale’s North Atlantic Base Metals operations. “Starting today, weare building a lasting legacy for our employees, the community and future generations whowill live and work in Greater Sudbury, and that is truly a reason to celebrate.”

In addition to the environmental benefits, the Clean AER Project will result in significanteconomic benefits to the community. Vale estimates the project will require about 8-millionperson-hours of additional labour, with 1,300 additional workers needed on-site during thepeak construction period. The project is scheduled to be completed by the end of 2015.

“Vale’s Clean AER ground breaking represents yet another chapter in the success storythat is the re-greening of Sudbury, and speaks to the company’s commitment to theenvironment,” said Ontario Northern Development and Mines Minister Rick Bartolucci.

“Just as our government has moved the yardsticks toward more sustainable miningpractices, it is heartening to see Vale is proactively working to improve its own practices.”Construction on the project will involve a complete retrofit of Vale’s smelter converter aisle,the construction of a new secondary baghouse and wet gas cleaning plant, a second AcidPlant, and new material handling facilities to better prevent dust from entering thecommunity, all while the smelter will continue to operate.

The reduction in sulphur dioxide emissions will put Vale below government regulatedemissions limits by 2015, to 45 kilotonnes versus the regulatory limit of 66 kilotonnes peryear. This reduction is in addition to the 90% reduction in sulphur dioxide emissions Valehas incorporated since 1970 and will serve to compliment the ongoing success story thatis the re-greening of the Sudbury region.

Environment Minister Jim Bradley, who also served as Minister of the Environment in the 1980’s, was on hand for the festivities.

“It is good to see Vale is living up to its environmental responsibilities, and is taking actionto clean up the air in Sudbury,” said Minister Bradley.

“For more than 100 years, Vale and its predecessors have played a leadership role in ourcommunity and in global mining,” said Greater Sudbury Mayor Marianne Matichuk, whoalso participated in the event. “It’s reassuring to see the company continuing this hardwork. This project will further cement Greater Sudbury’s position as a leader inenvironmental rehabilitation and green technology.

”For Project Director Dave Stefanuto, this groundbreaking represents the beginning of anexciting but very demanding period for Vale and the Clean AER Project team.

“This project is massive and will utilize the latest technological innovations available to usto retrofit our smelter complex,” said Stefanuto. “Due to the complexities involved, we haveput a lot of time, energy, and resources into ensuring the project is executed efficiently and safely, and I’m very pleased that we’re now at a point where construction can begin.

”An assessment of Economic and Community Benefits for the project is currently beingcommissioned through KPMG in Sudbury, to better quantify what USD 2 billion in spending willmean to the community. This report is expected to be completed this fall.

In 2010, Vale announced a planned five-year investment program of USD 10 billion across Canada to enhance and expand its Canadian operations. Approximately USD 3.4 billion of this expenditure is being spent on modernizing Vale’s Sudbury Operations, including the Clean AER Project.