Rio de Janeiro, December 2nd, 2019 – A Vale S.A. (“Vale”) informs that, as of today, it has taken the decision to suspend temporarily the disposal of tailings at the Laranjeiras dam, originated at the Brucutu mine, while assessing the dam’s geotechnical characteristics.
During the shutdown, the dam will have the Level 1 emergency protocol adopted, which does not require the evacuation of the downstream population, according to the National Mining Agency (“ANM”). The Laranjeiras dam had its Statement of Condition of Stability (“DCE”) issued on September 30th, 2019, which remains valid. During the period of stoppage of tailings disposal, estimated at 1 and 2 months, the Brucutu plant will operate with around 40% of its capacity through wet processing with tailings filtration and dry stacking, being the impact of the temporary halting estimated at 1.5 million of tons of iron ore per month, approximately.
The temporary stoppage does not lead to changes in Vale’s iron ore and pellet sales guidance, which remains, in 2019 and in 4Q19, between 307-312 million tons and between 83-88 million tons, respectively. Nonetheless, for the 1Q20, production and sales are expected to range between 68-73 million tons, due to weather-related seasonality, the gradual and safe return of operations and in line with the margin over volume strategy.
Additionally, Vale informs that will file again, in due course, the item 11 of its Reference Form, in the period required by the Instruction CVM number 480 of December 7, 2009, as amended.
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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.