Vale informs on sale of minority interest

12/27/2019

Vale informs on sale of minority interest

Rio de Janeiro, December 27th, 2019 – Vale S.A. (“Vale”) informs that it has entered into an agreement to sell the totality of its 25% stake in the Chinese company Henan Longyu Energy Resources Co., Ltd. (“Longyu”) to the Yongmei Group Co., Ltd (“Yongmei”), for CNY 1.065 billion, which is equivalent to US$ 152 million, approximately. 

Longyu operates two coal mines in the province of Henan, producing about 3.4Mtpy of metallurgical and thermal coal. The company is controlled by Yongmei, which is a subsidiary of Henan Energy and Chemical Industry Group. 

The closing of the deal is expected for the first quarter of 2020, upon completion of conditions precedent to the transfer of the stake. 

The transaction is in line with Vale's strategy of discipline in capital allocation and business portfolio rationalization.
 

Ever since the Covid-19 outbreak began, our highest priority is the health and safety of our employees. Our IR team adopted work-from-home, and as we continue to face these new circumstances, we strongly recommend you prioritize e-mail and online engagement.

For further information, please contact:

Vale.RI@vale.com
Ivan Fadel: ivan.fadel@vale.com
Andre Werner: andre.werner@vale.com
Mariana Rocha: mariana.rocha@vale.com
Samir Bassil: samir.bassil@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 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 on sale of minority interest