Vale announces signing of Preliminary Agreement for indemnifications

2/21/2019

Vale announces signing of Preliminary Agreement for indemnifications

Rio de Janeiro, February 21st, 2019 – Vale S.A. (“Vale”) informs that it has signed yesterday (February, 20th), in a conciliation hearing held at the 6th Lower Public Treasury Court of Belo Horizonte (6ª Vara de Fazenda Pública), the Preliminary Agreement with the Attorney General's Office of the State of Minas Gerais (Advocacia Geral do Estado de Minas Gerais), the Public Prosecution Office of the State of Minas Gerais (Ministério Público do Estado de Minas Gerais), the Public Defender's Office of the State of Minas Gerais (Defensoria Pública do Estado de Minas Gerais), the Federal Government Attorney's Office (Advocacia Geral da União), the Federal Public Prosecution Office (Ministério Público Federal) and the Public Defender's Office (Defensoria Pública da União), as well as with representatives of the communities impacted by the breach of the Dam I of the Córrego de Feijão mine in Brumadinho.

The agreement addresses, in accelerated fashion, the initiation of certain indemnification payments in response to the dam breach, which will include, among other measures, the payment of certain amounts for emergency aid to people registered in the city of Brumadinho up to the date of the breach of the Dam I of the Córrego de Feijão mine. Persons living in the area up to 1 Kilometer from the Paraopeba riverbed, starting from Brumadinho to the city of Pompéu, at the river dam of Retiro Baixo, also will be entitled to receive the benefits. These payments will be made through monthly installments equivalent to 1 minimum wage per adult, 1/2 minimum wage per teenager and 1/4 minimum wage per child, starting from January 25th, 2019, for a period of one year.

In addition, Vale agreed to pay the state administrative fines, which amount to approximately R$ 99 million, resulting from the lawsuit filed by SEMAD (State Agency for Environment and Sustainable Development).

Vale understands that the signing of the agreement enhances the support initiatives and minimizes the uncertainty of those impacted by the dam breach.

This is an unprecedented agreement that reinforces the active cooperation between Vale and Brazilian authorities for the prompt repair of the damages resulting from the dam breach. ​


 

For further information, please contact:
+55-21-3485-3900

André Figueiredo: andre.figueiredo@vale.com
André Werner: andre.werner@vale.com
Fernando Mascarenhas: fernando.mascarenhas@vale.com
Samir Bassil: samir.bassil@vale.com
Bruno Siqueira: bruno.siqueira@vale.com
Clarissa Couri: clarissa.couri@vale.com
Julio Molina: julio.molina@vale.com
Luiza Caetano: luiza.caetano@vale.com
Renata Capanema: renata.capanema@vale.com

This press release may include statements that present Vale’s expectations about future events or results. All statements, when based upon expectations about the future, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), and the French Autorité des Marchés Financiers (AMF), and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

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Vale announces signing of Preliminary Agreement for indemnifications