OREANDA-NEWS. Vale informs that pursuant to the preemptive rights provided in the articles of incorporation of the Capim Branco consortium, it has exercised its right of first refusal and completed the acquisition of a 12.47% stake in Capim Branco I and II hydroelectric power plants from Suzano Papel e Celulose S.A. for RUSD 223,030,470.52. As a consequence, Vale’s stake will reach 60.89% of Capim Branco I and II, which can generate 1,524 giga watts hours of energy per year by the end of the concession in 2036.

The conclusion of this transaction is subject to the fulfillment of customary regulatory conditions, including approvals of Brazilian government regulatory agencies.

The acquisition of an additional stake in Capim Branco I and II hydropower plants is value accretive as it produces immediate reduction of the cost of energy of our operations, being an investment with a rate of return far above our cost of capital.