Vale S.A. : Vale S.A. : Vale on nickel and aluminum asset review

       Vale S.A. : Vale S.A. : Vale on nickel and aluminum asset review

Rio de Janeiro,  December 20,  2012 -  Vale S.A.  (Vale) informs  that it  has 
concluded the annual assessment of Onça  Puma and aluminum assets, which  will 
imply the recognition of an impairment  charge before tax of US$ 4.2  billion, 
thus affecting our earnings in the fourth quarter of 2012.

The issues with the two furnaces of Onça Puma determined the total stoppage of
its ferronickel operations  since June  2012. After analyzing  the case,  Vale 
decided to  rebuild one  of the  furnaces, at  an estimated  cost of  US$  188 
million in 2013, and plans its start  up in the fourth quarter of 2013.  Given 
this event and in face of the current market environment for ferronickel,  the 
valuation of Onça Puma determined the  need to recognize an impairment  charge 
before tax of US$  2.848 billion. The  book value of Onça  Puma was US$  3.778 
billion as of September 30, 2012.

The downward volatility of aluminum prices and the macroeconomic uncertainties
about the European economy have contributed to reduce the market value of  our 
22% stake in  Hydro ASA  (Hydro), a Norwegian  aluminum producer,  to a  level 
below the  book  value of  our  investment. Based  on  Hydro share  prices  at 
September 30, 2012, we are recognizing an impairment charge before tax of  US$ 
1.3 billion, which will impact our 4Q12 net earnings.

Despite  these  charges,   we  remain  confident   on  the  long-term   market 
fundamentals of the global nickel market. At the same time, we believe on  the 
potential of  Hydro's assets  to  create significant  shareholder value  as  a 
consequence of a unique combination of  a rich endowment of natural  resources 
and technological leadership in aluminum.

Both impairments will not  have any cash  flow impact and  will be treated  as 
exceptional items. Our annual  asset review will  be completed in  conjunction 
with the disclosure of our 2012 financial statements in February 27, 2013.


                                      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 nickel and aluminum asset review


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Source: Vale S.A. via Thomson Reuters ONE
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