Vale completes sale of VNC to Prony Resources

Vale informed that following the announcement on December 8, 2020 that it would formally sell (VNC), a subsidiary of Vale New Caledonia AG, Vale Canada Limited had completed the sale of its stake in NVC to the Prony Resources New Caledonia consortium. The majority interest in this consortium of investors, including Trafigura (Trafigura), is owned by New Caledonia and cannot be diluted.

"I am pleased that after months of negotiations, we have completed the divestiture of VNC, which will benefit employees, New Caledonia and all its stakeholders. Vale is fully committed to completing the deal. This transaction meets financial, social and environmental requirements and provides a sustainable future for operations. " Mr. Berandor (Eduardo Bartolomeo), CEO of Vale, said.

Vale has been committed to withdrawing from New Caledonia in an orderly and responsible manner since the beginning of the divestiture process. The deal achieves this goal.

"We thank Vale for its professionalism throughout the process and for its firm commitment to a responsible withdrawal from New Caledonia." The French government said in a statement today.

The deal provides a cumulative total of US $1.1 billion for the former VNC operation area, of which Vale Canada Ltd. will contribute US $555 million to support the continued operation of the operation area. Vale will also guarantee financing for the Convention on Sustainable Development in the Southern Province.

In addition, Vale will continue to be entitled to a long-term supply agreement for some nickel production in the operation area, thereby continuing to meet the growing demand for nickel in the electric vehicle industry.

"in addition to extending the Southern Provincial Convention on Sustainable Development, the deal also allows the Lucy Project, which aims to achieve dry stacking of tailings, to continue." Mr. Mark Travers, Executive Vice President of Vale's base metals business, said, "We would like to thank all stakeholders, including the French government, for their time and effort in closing this deal, and we especially want to thank the VNC staff for their trust and support during this long and uncertain process."

Vale reaffirms its commitment to shareholders to transform its base metals business by streamlining future operating processes and continuing to focus on core assets. and contribute to maintaining the sustainable environment needed for safe and sustainable operations through the implementation of the new social contract.