6/28/2018

Vale on the closing of the cobalt streaming transactions

Rio de Janeiro, June 28th, 2018 - Vale S.A. (Vale) confirms that it has completed the transactions with Wheaton Precious Metals Corp. (Wheaton) and Cobalt 27 Capital Corp. (Cobalt 27) for the sale of a combined 75% cobalt stream with reference to the cobalt by-product of the Voisey’s Bay mine, to be delivered from January 1st, 2021, which encompasses the ramp-down of production from the existing Voisey’s Bay mine and the life of mine production from the Voisey’s Bay underground mine expansion project (VBME). In accordance with the terms previously disclosed on June 11th, 2018, Vale received today US$ 390 million in cash from Wheaton and US$ 300 million in cash from Cobalt 27 on closing.

The streaming transactions are consistent with Vale’s rigorous discipline of capital allocation, as it unlocks the VBME, by reducing the financial risks associated with the project.

 

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 on the closing of the cobalt streaming transactions