Vale updates on potential resumption of Samarco’s operation

7/27/2017

Vale updates on potential resumption of Samarco’s operation

Rio de Janeiro, July 27, 2017 – Vale S.A (Vale) informs that on, this date, it was communicated by Samarco Mineração S.A. (Samarco) that recent developments and analysis regarding the process of obtaining the necessary licenses for resuming its operations have led Samarco to reassess the previously informed date and revaluate that it is no longer possible to resume operations by the end of 2017. 

According to Samarco, the failure to obtain the consent from the Municipality of Santa Bárbara, in Minas Gerais, for the immediate water utilization affected the preparation and protocol of the environmental impact studies necessary for the restoration of the Corrective Operation License (LOC) of the Mining Complex within the originally planned period. In addition, Samarco must obtain Previous and Installation Licenses (LP / LI) authorizing the construction of the necessary structures for the use of the Alegria Sul pit as the tailings deposit, and this process requires the still pending approval of the proper bodies.

Samarco informed that it continues to make all efforts to accomplish the steps in order to guarantee a safe restart in the shortest time possible, but as the restart depends on, among other factors, the issuance of licenses subject to exogenous variables and highly complex processes, Samarco cannot estimate, at this time, a date for the return of its operations.

 

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
Andrea Gutman: andrea.gutman@vale.com
Bruno Siqueira: bruno.siqueira@vale.com
Claudia Rodrigues: claudia.rodrigues@vale.com
Denise Caruncho: denise.caruncho@vale.com
Mariano Szachtman: mariano.szachtman@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 updates on potential resumption of Samarco’s operation