Vale S.A. : Vale S.A. : Vale settles tax issues with Swiss authorities

    Vale S.A. : Vale S.A. : Vale settles tax issues with Swiss authorities

Rio de  Janeiro,  December  19, 2012  -  Vale  S.A. (Vale)  informs  that  its 
wholly-owned subsidiary Vale International (ValeI), based in St. Prex,  Canton 
of Vaud, Switzerland,  has resolved  its tax  dispute with  the Swiss  federal 

The tax dispute was  related to the  federal tax holiday  granted to ValeI  in 
2006 and the differences in its interpretation.

Vale decided to clear the dispute and will pay the additional taxes claimed by
the Swiss federal authorities for a total of CHF 212 million. Vale has made  a 
provision of  US$  37  million  and the  difference  will  impact  our  income 
statement in the fourth quarter of 2012. Payment will be made in installments,
starting in January 2013, with the last one taking place in 2015.

At the  same time,  the federal  and  cantonal tax  exemptions to  ValeI  were 
renewed until 2015 as we will  continue to meet the conditions determined  for 
employment, investment in real estate and cooperation with Swiss universities.


                                      For further information, please contact:


                     Roberto Castello Branco:

                                 Viktor Moszkowicz:

                                    Carla Albano Miller:

                                         Andrea Gutman:

                         Christian Perlingiere:

                                      Marcelo Correa:

                                    Marcio Loures Penna:

                                 Rafael Rondinelli:

                                         Samantha Pons:


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 and  not  on historical  facts,  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), the French Autorité  des Marchés Financiers (AMF), and  The 
Stock Exchange of Hong Kong Limited,  and in particular the factors  discussed 
under "Forward-Looking Statements" and "Risk Factors" in Vale's annual  report 
on Form 20-F.

Vale settles tax issues with Swiss authorities


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Source: Vale S.A. via Thomson Reuters ONE
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