Vale SA: Vale restructures its investments in power generation

Tickers: VALE
Rio de Janeiro, February 27, 2015 - Vale S.A. (Vale) announces that it concluded the transaction with Cemig Geração e Transmissão S.A (Cemig GT) to create the joint venture Aliança Geração de Energia S/A (Aliança Geração). This transaction is related to the agreement signed with Cemig GT announced in December 19, 2013.

After receiving all regulatory approvals and other customary precedent conditions related to the transaction, Vale and Cemig GT increased capital in Aliança Geração by the incorporation of energy generation assets, leading to a participation on the total capital of this new company of 55% and 45%, respectively. The completion of the transaction does not involve any cash disbursements and has been executed by the transfer of assets. 

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Consequently, Aliança Geração will own the participations previously held by Vale and Cemig GT in the following energy generation assets: Igarapava, Porto Estrela, Funil, Aimorés, Capim Branco I e II, and Candonga. These plants have 1,158 MW of attributable installed capacity and 652 average MW of energy assured. The supply of energy for Vale operations will be assured through long term contracts.

At the same time, the transaction with Cemig GT includes the sale of 49% of the participation of Vale in Aliança Norte Energia Participações S/A (Aliança Norte), which holds the participation of Vale in 9% of the total capital of Norte Energia S.A., company responsible for the construction, operation and exploration of the Belo Monte hydroelectric plant. The closure of the Aliança Norte transaction is expected to happen in the short term.

The transaction is consistent with Vale´s strategy of maximizing value for shareholders as it reduces capital expenditures requirements on non-core assets and increases flexibility for managing these assets in the future.

For further information, please contact:
+55-21-3814-4540

Rogério Nogueira: rogerio.nogueira@vale.com
André Figueiredo: andre.figueiredo@vale.com
Carla Albano Miller: carla.albano@vale.com
Fernando Mascarenhas: fernando.mascarenhas@vale.com
Andrea Gutman: andrea.gutman@vale.com
Bruno Siqueira: bruno.siqueira@vale.com
Claudia Rodrigues: claudia.rodrigues@vale.com
Marcelo Bonança Correa: marcelo.bonanca@vale.com
Marcelo Lobato: marcelo.lobato@vale.com
Marcio Loures Penna: marcio.penna@vale.com
Mariano Szachtman: mariano.szachtman@vale.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.



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This content was issued by Vale SA on the 2015-02-27 and was initially posted on www.vale.com. It was distributed, unedited and unaltered, by noodls on 2015-02-27 22:29:21 UTC. The original issuer is solely responsible for the accuracy of the information contained therein.