Vale : 12/20/2016 Vale about agreement with BHP and Samarco regarding the use of Timbopeba pit by Samarco
December 21, 2016 at 03:59 am IST
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Rio de Janeiro, December 20, 2016 - Vale S.A. (Vale) informs that it agreed with BHP Billiton Brasil Ltda. (BHP) and Samarco Mineração S/A (Samarco) a non-binding term sheet outlining the general terms and conditions for the use of Vale's Timbopeba pit by Samarco to deposit its tailings, should Samarco restart. Vale would transfer the Timbopeba pit to Samarco and, as compensation, Samarco would supply to Vale an amount of non-processed ore (Run-of-Mine - ROM) for a certain period.
A definitive agreement remains subject to a successful commercial negotiation, due diligence and relevant government approvals. These processes are likely to occur during 2017.
After obtaining the required environmental licenses, Samarco is expected to temporarily deposit its tailings in its own pit, Alegria Sul, for a period of 2 to 3 years of operations. The use of the Timbopeba pit may allow Samarco to operate for up several years without new tailings structure.
For further information, please contact:
+55-21-3485-3900
André Figueiredo: andre.figueiredo@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.
Vale SA published this content on 20 December 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 20 December 2016 22:28:02 UTC.
Original documenthttp://www.vale.com/EN/investors/information-market/Press-Releases/Pages/vale-about-agreement-with-bhp-and-samarco-regarding-the-use-of-timbopeba-pit-by-samarco.aspx
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Vale S.A. is one of the world's leading metallurgy and mining groups. Revenues break down by family of products as follows:
- ferrous minerals and metals (80,2%): ferrous minerals (85.1% of revenues; 254 Mt sold in 2020), ferrous mineral granules (13.2%; 31.2 Mt), iron alloys and manganese (0.7%; 1.4 Mt), and other (1%);
- non-ferrous minerals and metals (17.9%): nickel, precious metals, and cobalt (69.7% of revenues; 211 Kt of nickel sold) and copper (30.3%; 247 Kt);
- coal (1.2%): metallurgical coal (2.9 Mt sold) and thermal coal (3 Mt);
- other (0.7%).
Revenues are distributed geographically as follows: Brazil (7.3%), the United States (2.6%), Americas (1.5%), China (57.8%), Japan (5.5%), Asia (8.2%), Europe (13.3%) and Middle East/Africa/Oceania (3.8%).