6/28/2018

Vale informs about short-term facilities to Samarco

Rio de Janeiro, June 28th, 2018 – Vale S.A. (Vale) informs that it intends to make available short-term facilities of up to US$ 53 million to Samarco to support its operations and repair works in the second half of 2018 (2H18), as well as the expenses related to the experts named pursuant to the Agreement with the Public Prosecutors, signed in June, 2018, without undertaking an obligation from Vale to Samarco. Funds will be released on an as-needed basis. Likewise, BHP Billiton Brasil Ltda. intends to make available to Samarco short-term facilities with similar terms and conditions as mentioned above. ​

In addition, given Samarco’s current cash flow projections, shareholders will be called upon to fulfill its obligations, according to their stake in Samarco (50% each), under the Agreement for the restoration of the environment and communities affected by the Samarco dam failure. Therefore, Vale expects to contribute about R$ 557.5 million in 2H18, with this amount offsetting the provision recorded in the second quarter of 2016 (2Q16).


 

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

André Figueiredo: andre.figueiredo@vale.com
André Werner: andre.werner@vale.com
Carla Albano Miller: carla.albano@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
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 informs about short-term facilities to Samarco