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
For further information, please contact:
Roberto Castello Branco: email@example.com
Viktor Moszkowicz: firstname.lastname@example.org
Carla Albano Miller: email@example.com
Andrea Gutman: firstname.lastname@example.org
Christian Perlingiere: email@example.com
Marcelo Correa: firstname.lastname@example.org
Marcio Loures Penna: email@example.com
Rafael Rondinelli: firstname.lastname@example.org
Samantha Pons: email@example.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 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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(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Vale S.A. via Thomson Reuters ONE
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