Vale informs on the decision of the State Secretary for Environment and Sustainable Development - SEMAD MG

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2/6/2019

Vale informs on the decision of the State Secretary for Environment and Sustainable Development - SEMAD MG

Vale informs that the State Secretary for Environment and Sustainable Development (Secretaria de Estado de Meio Ambiente e Desenvolvimento Sustentável, "SEMAD") canceled the Provisional Operational Authorization (Autorização Provisória para Operar, "APO") of the Laranjeiras dam as a consequence of the public civil action (Ação Civil Pública, "ACP") nº 5013909-51.2019.8.13.0024, filed by the Public Prosecution Office of the State of Minas Gerais. Vale also informs that SEMAD also determined the immediate suspension of the Jangada mine due to the understanding the Operational License of this mine is unified with the Operational License of the Córrego de Feijão mine, despite the fact that these mines have distinct authorization acts. The Jangada mine has not been operating since the halting of the Córrego de Feijão mine.

As per the Press Release reported on February 4th, 2019 ("PR"), Vale informed the stoppage of disposal of tailings in several dams, among which the Laranjeiras dam used by the Brucutu mine operation.

Vale had requested the Operational License (Licença Operacional, "LO") for the Laranjeiras dam on August 11th, 2015 and SEMAD granted the Provisional Operational Authorization on April 1st, 2016, while it evaluated the issuance of the LO. The Laranjeiras Dam was built using the conventional method and has reports of stability in force. Therefore, Vale reinforces its understanding that there is no technical and/or legal basis, nor risk assessment to justify the cancelling of the Provisional Operational Authorization.

The resumption of the Brucutu operation is conditioned to the reversal of the preliminary ruling of the above-mentioned ACP and the granting of the Operational License to the Laranjeiras dam. The cancellation of the APO has an estimated impact of approximately 30 million tons of iron ore per year, as previously informed in the above-mentioned PR.

Vale informs that it will adopt the appropriate administrative and legal measures in relation to this decision.


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Vale informs on the decision of the State Secretary for Environment and Sustainable Development - SEMAD MG