NEWS RELEASE: VALE AND GLENCORE TO INITIATE JOINT FEASIBILITY STUDY TO POTENTIALLY DEVELOP RESOURCES ACCESSIBLE FROM NICKEL RIM SOUTH MINE

SUDBURY, December 4, 2018 – Today, Vale and Glencore announced that they are entering into an agreement to facilitate a joint Feasibility Study to explore the possibility of developing and mining resources at depth accessible from the existing workings of Glencore’s Nickel Rim South Mine.

The Study will examine the economic and technical feasibility of using the existing shaft and infrastructure at Glencore’s Nickel Rim South Mine, as well as additional underground infrastructure, to potentially jointly develop and mine deposits in very close proximity to each other. This includes Vale’s Victor property and a shared deposit which exists adjacent to the boundary between each Company’s properties.

“A joint approach could allow for resources to be unlocked that would likely not otherwise be productive,” said Ricus Grimbeek, Chief Operating Officer, Vale’s North Atlantic Operations and Asian Refineries. “Assuming a successful outcome to our Study, this synergy could also lead to significant value generation – including job creation – at a time when the medium to long-term market outlook for both nickel and copper looks very promising,” he added.

“Assuming a positive outcome from the joint Feasibility Study, there are multiple benefits to the potential of coming together to mine deposits adjacent to boundaries that are accessible from Glencore’s Nickel Rim South Mine infrastructure,” said Peter Xavier, Vice President of Glencore’s Sudbury Integrated Nickel Operations.

“The potential opportunity not only preserves significant capital for other future mining opportunities at Glencore, but also would create shareholder and economic value in the Sudbury basin given that currently Nickel Rim South Mine will reach the end of its mine life in 2022,” Xavier added.

A joint approach to the Study is an extension of the parties’ past collaboration in the Basin. It is expected that the Feasibility Study will take approximately a year to complete. More details on the specifics of the potential arrangement will be shared once the Study is complete.

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For more information, contact:

Danica Pagnutti
Vale Canada Limited
[email protected]
705-682-7165

Iyo Grenon
Sudbury Integrated Nickel Operations
[email protected]
705-693-2761, ext. 3120

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