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Name | Symbol | Market | Type |
---|---|---|---|
Vale SA | NYSE:VALE | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.23 | 1.82% | 12.84 | 7,333 | 11:19:11 |
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of
March 2020
Vale S.A.
Praia de Botafogo nº 186, 18º
andar, Botafogo
22250-145 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F x Form 40-F ¨ |
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))
(Check One) Yes ¨ No x |
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))
(Check One) Yes ¨ No x |
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
(Check One) Yes ¨ No x |
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82- .)
COVID-19
Protecting our employees, partners and communities
Vale S.A.
March 31st, 2020
“This presentation 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) and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.”
“Cautionary Note to U.S. Investors - The SEC permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We present certain information in this presentation, including ‘measured resources,’ ‘indicated resources,’ ‘inferred resources,’ ‘geologic resources’, which would not be permitted in an SEC filing. These materials are not proven or probable reserves, as defined by the SEC, and we cannot assure you that these materials will be converted into proven or probable reserves, as defined by the SEC. U.S. Investors should consider closely the disclosure in our Annual Report on Form 20-K, which may be obtained from us, from our website or at http://http://us.sec.gov/edgar.shtml.”
We have been acting to keep our people, operations and community safe
Crisis management: structured to deploy Vale’s global Response Plan
Critical operational teams: physically isolated, minimal contingent for safe operation, backup team and movement restriction
Screening points at site access and intensification of cleaning and social distancing at canteens
Home-office where no physical presence is mandatory
Company-wide communication on the response plan and prevention procedures
Suspension of all non-essential construction works at sites
Suspension of activities where minimum conditions of safety could not be achieved
We are also using our logistics and financial capabilities to help the Brazilian society fight the coronavirus
5 million COVID-19 test kits are | Keeping a healthy value-chain | |
being donated | ecosystem | |
• 500 thousand already received | • | Advance payments to +1,000 |
• 4.5 million to be received in April | companies in Brazil | |
• Also donating PPEs for health | • | Reduce the payment terms to |
professionals | +3,000 companies | |
• | Support to construction | |
companies and workers allocated | ||
to projects which are being halted |
Markets: steel production cuts in Europe to impact iron ore demand while iron ore supply cuts due to lockdowns could soften impact
European idling capacity (as of 26Mar20)
Company | Hot Metal | Cuts | |
production | announced | ||
2019 | |||
Mt | % capacity | ||
ArcelorMittal | 23.0 | 36% | |
(W.Europe) | |||
Ilva | 4.3 | 51% | |
VoestAlpine | 5.8 | 12% | |
EU28 | 87 | 17% |
Iron ore mining production cuts
Region | Seaborne | Lockdown | |
production | period | ||
2019 | |||
Mt | Days | ||
South Africa | 62.0 | 21 | |
& other Africa | |||
Canada | 53.0 | 21 | |
India | 32.6 | 21 | |
Peru | 15.9 | 15 | |
Malaysia | 3.4 | 28 |
Estimated supply disruption ~18Mt
Source: Vale’s Market intelligence, Companies announcements, Commercial team, Technical marketing
Operations: so far we have been weathering the outbreak, with limited impact in operations
Long
Harbour operating
Voisey’s
Sudbury Bay and suspended
Thompson operating
No interruptions at Brazilian operations
No interruptions at Chinese ports
Operations
at Malaysia
DC
suspended
Moatize maintenance postponed
We are using several levers to tackle the risks ahead
Risk |
Mitigation |
Restrictions imposed by regulators and authorities
In Brazil and other regions, governments have stated the essential nature of mining activities.
Disruption of our supply chain
Help our ecosystem of small and medium-sized suppliers, with payments anticipation, reduction in payment terms and payroll support for contractors.
Deterioration of our customers’ financial health
Vale is looking to work closely with our customer base and evaluate support on a case-by-case basis.
Employees absenteeism and insufficient contingent to operate at some sites
H&S measures to protect employees. Preliminary results from weekly internal surveys indicate that
great majority of employees are feeling safeguarded with H&S measures adopted by Vale
In addition, Vale risks facing:
• | Costs and expenses associated with suspension of contractors’ work on non-essential projects |
• | Postponement of production capacity resumption due to delayed inspections , assessments or authorizations |
Vale has been resilient, but severe uncertainties remain ahead
Up to this moment, Vale is performing relatively well, with limited impact on production and sales, but our ecosystem has been highly impacted by the restrictions imposed by the Covid-19 pandemic, which could ultimately affect our operations.
Our priority and efforts have been in the direction of safeguarding the health and safety of our employees, provide business support to our partners and deliver humanitarian support to the communities in which we operate.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Vale S.A.
(Registrant) |
||
By: | /s/ André Figueiredo | |
Date: March 31, 2020 | Director of Investor Relations |
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