Vale S.A. : Vale S.A. : Vale on ICMS

                     Vale S.A. : Vale S.A. : Vale on ICMS

Rio de Janeiro, December 19, 2012 -  Vale S.A. (Vale) informs that it  decided 
to adhere  to the  new legislation  on  the value-added  tax on  services  and 
circulation of goods (ICMS) recently enacted  by the Brazilian state of  Minas 
Gerais  -  Law  20.540  and  Decree  46.110.  Therefore,  the  existing  legal 
proceedings  described  in  Vale's  annual   report  Form  20-F  will   cease. 
Additionally, there will be no new tax assessments related to the  utilization 
of market value versus  cost of production  as the base  for ICMS taxation  on 
interstate movement of mineral products.

The existing  legal  proceedings,  relative  to 2006  and  2007,  involve  tax 
assessments of R$ 2.1 billion, will be  terminated with the payment of R$  168 
million in 2012. Furthermore, new tax assessments referring to 2008/2012  will 
be avoided with the payment of R$ 495 million, of which R$ 92 million in  2012 
and R$ 403 million over the next couple of years.

Given an existing provision of R$ 135 million, Vale's financial statement  for 
the fourth quarter of 2012  will suffer a negative  impact of R$ 528  million. 
The effect on cash flow will reach R$  260 million in 4Q12 and R$ 403  million 
in 2013/2014.


                                      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 on ICMS


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information contained therein.

Source: Vale S.A. via Thomson Reuters ONE
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