Second Half 2014 (2H14)

Transcription

1 REPORT ON SHAREHOLDERS DEBENTURES Second Half 2014 () Negotiation codes: CVRDA6, CVRDB6, CVRDC6, CVRDD6 Rio de Janeiro, March 23, 2015 Vale will pay on March 31, 2015, R$ 124,130,495.05, equivalent to R$ per shareholders debenture, related to the total remuneration for the period between July and December of The total remuneration of R$ 124,130, for refers to the percentage of net revenues obtained from the sale of copper concentrate from the Sossego mine and iron ore from the Northern System. Income tax will be charged on the amount to be paid to debenture holders, as fixed-income investments, applying the rate in relation to the individual situation of the beneficiary, with the exception of those who can provide legal, unequivocal, proof that they are exempt. SHAREHOLDERS DEBENTURE REMUNERATION 6 month period ending Dec 31, 2014 (R$) Remuneration on copper concentrate 10,567, Remuneration on iron ore 113,563, Total remuneration 124,130, Remuneration per debenture rio@vale.com REMUNERATION OF SHAREHOLDERS DEBENTURES R$/Shareholders Debentures 2H06/ Investor Relations Department Rogério Nogueira André Figueiredo Carla Albano Miller Fernando Mascarenhas Andrea Gutman Bruno Siqueira Claudia Rodrigues Marcio Penna Mariano Szachtman Tel: (21) Ã Any additional information about the shareholders debentures, including the Prospectus for Public Trading of Shareholders Debentures, can be obtained on our website, and Debt/Shareholders debentures, from GDC Partners Serviços Fiduciários DTVM Ltda as fiduciary agent for the debentures, and from the CVM (Brazilian Securities and Exchange Commission)..

2 ANNUAL REMUNERATION OF SHAREHOLDERS DEBENTURES R$ Year Per Debenture Total Amount ,687, ,384, ,330, ,458, ,532, ,000, ,889, ,507, ,372, ,260, ,642, ,859, IRON ORE In, Vale s iron ore sales amounted to million tons, of which 59.8 million tons corresponding to the volume from the Northern System which entitles debenture holders to remuneration. Vale s iron ore revenues net of maritime freight costs in that same period were approximately R$ 16.9 billion, of which R$ 7.6 billion corresponds to sales from mines in the Northern System. Thus, taking into account other discounts described in the Deed, the value of the remuneration for the net sales of iron ore is R$ 113,563, REMUNERATION ON IRON ORE R$ million jul-14 aug-14 sep-14 oct-14 nov-14 dec-14 1H14 Net Sales Revenue 1 1, , , , , ,412.5 % Basis for calculation 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8% Remuneration for iron ore Gross sales minus expenses with transport and insurance and taxes on sales, which include taxes and contributions levied on sales separately, or on billing or gross revenues from sales, as well as the financial compensation due to the Brazilian Federal Government, States and Municipalities. In Vale's Southeastern System, iron ore sales from the minerals deposits covered by the Private Deed for Shareholders Debentures totaled 1,086 million metric tons until December 31, Should the annual sales volumes of iron ore from the Southeastern System covered by the Private Deed for Shareholders Debentures remain the same as the volumes reached in the last semester, the level of 1.7 billion metric tons is expected to be reached by December However, this forecast may not be confirmed, resulting in either the anticipation or delay of the aforementioned dates for reaching the accumulated sales levels. 1 The accumulated volume of 1,352 million metric tons, informed previously, referred to total iron ore sales in Southeastern System. 2

3 COPPER IN CONCENTRATE In, sales of copper in concentrate from Sossego totaled 209 thousand metric tons, 9.42% higher sales in the previous half-year of 191 thousand metric tons. Sales of that product generated net revenues of R$ million in that period, a 13.60% increase relative to the previous half-year, which was R$ million. REMUNERATION ON COPPER IN CONCENTRATE R$ million jul-14 aug-14 sep-14 oct-14 nov-14 dec-14 1H14 Net Sales Revenue % Basis for calculation % 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% Remuneration for copper in concentrate Gross sales minus expenses with transport and insurance and taxes on sales, which include taxes and contributions levied on sales separately, or on billing or gross revenues from sales, as well as the financial compensation due to the Brazilian Federal Government, States and Municipalities. 2 On April 15, 1997, Vale only had a 50% stake in Mineração Serra do Sossego S.A. (Sossego). In 2001 Vale bought the remaining 50% of Sossego from Phelps Dodge do Brazil Mineração Ltda. Hence, the percentage basis for calculating remuneration is 2.5%, as described in the Deed of Issue of Debentures, multiplied by the Vale s share in the project at the time, 50%, and therefore, equal to 1.25%. SALES AND LEASING OF MINING RIGHTS In the there was leases of the mining processes of DNPM s 8,774/1961 and 801,204/1975 (Total) and 847/1935 (Parcial), set out in the Deed of Issue of Debentures. LOSSES OF MINING RIGHTS In, there was a reduction in the size of the portfolio, as compared to the previous half-year, in the number of areas and hectares, amounting to 01 (one) area with mining process and 8, hectares. During the period, 03 (three) areas were lost from the portfolio, equivalent to 9, hectares due to the presentation of the negative final report in the Vazante block. In the Carajás block, we didn t present the final report of negative research to 01 (one) area due to its size. Another mining process output was through the resignation of 01 (one) area in the Paragominas block. There was also the entry of 02 (two) areas totaling 1, hectares due to the submission of 02 (two) proposals to the procedure of availability of the area in the Vazante block. The mining rights in force on December 31, 2014, covered by the Deed of Issue of Debentures, amount 384 processes, equivalent to 2,223, hectares and are shown on the maps and lists in the attached Inventory of Mining Rights. 3

4 PROJECTS UNDER DEVELOPMENT On February 26, 2015, Vale announced its fourth quarter earnings results, which is available on our website, Releases. The following table presents the evolution of the announced projects related to future income from shareholders debentures. Description of main projects under execution Project Status Related Future Remuneration Carajás Serra Sul S11D Development of a mine and processing plant, located in the Southern range of Carajás, Pará, Brazil. 90 Mtpy. Conceição Itabiritos II Adaptation of the plant for processing of low-grade itabiritos from Conceição, in Southeastern System, Minas Gerais. 19 Mtpy (without addition of net capacity). Cauê Itabiritos Adaptation of the plant for processing of low-grade itabiritos from Minas do Meio, located in the Southeastern System, Minas Gerais. 24 Mtpy (with net addition of 4 Mtpy capacity in 2017). Installation of precast foundations for the long distance conveyor belts initiated Ongoing vegetation removal for the mine site Grinding and secondary screening foundations for the plant concluded First detonation realized on the mine site 52% of physical progress. Ongoing civil engineering and steel structure assembly of the crushing and screening buildings Flotation cells installation concluded 87% of physical progress. Electromechanical assembly of the quaternary crushing and reagent plants initiated 63% of physical progress. reaches 1.2 billion metric tons in the Northern System. reaches 1.7 billion metric tons in the Southeastern System. reaches 1.7 billion metric tons in the Southeastern System. 4

5 ATTACHMENT Inventory of Mining Rights Block Municipality State Substance(s) Hectares Stage 1 Aroaba/Relógio Serra ES Gneiss carry out research Cachoeiro Cachoeiro do Itapemirim ES Limestone Mining concession Carajás São Félix do Xingu, Parauapebas, Canaã dos Carajás, Marabá, Tucumã, Curionópolis e Água Azul do Norte PA Gold, silver, copper, iron, nickel, quartizito, granite, beryl, tin, tantalum 297, Mining concession Corumbá Ladário e Corumbá MT Iron 7, Mining concession Espinhaço Guanhães, Morro do Pilar, Sabinópolis, Senhora do Porto e Conceição do Mato Dentro MG Gold, iron 23, Mining concession Gradaús Rio Maria, Bannach, Cumarú do Norte, Ourilândia do Norte e Tucumã PA Tungsten, chromium, silver 54, mine Parú Jari Sul Almeirim, Mazagão e Monte Alegre AP, PA Saprolite, sulphur, phosphate, gold, titanium 1,777, carry out research Quadrilátero Ferrífero Santa Bárbara, Mariana, Nova Lima, Itabira, Brumadinho, Ouro Preto, São Gonçalo do Rio Abaixo, Barão de Cocais, Caeté, Rio Piracicaba e Catas Altas MG Dolomite, iron, gold, arsenic, vanadium, quartz, silver, nickel 35, Mining concession Riacho dos Machados Rio Pardo de Minas e Riacho dos Machados MG Iron 9, mine Tapira Tapira MG Phosphate and titanium Salitre Serra do Salitre e Patrocínio MG Phosphate and titanium 1, Mining concession 2, Mining concession Vazante Vazante, Coromandel e Lagamar MG Zinc 11, Research permit 1 Most advanced stage of all areas in the block 5