Joint-ventures Management

Vale has investments in controlled and uncontrolled companies for important business areas, such as iron ore, pelletizing, nickel, coal, copper, energy and other businesses. Some of our investments are controlled by partners or have separate and independent management, which may reduce our degree of control as well as our ability to identify and manage risk.

These investments may not fully comply with our standards, controls and procedures, including our health, safety, environment and community standards. This may reduce our degree of control, as well as our ability to identify and manage risks.

Vale's Investments are managed in accordance with Vale Group Business and Entity Management Policy.

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Internal policies provide guidelines for equity investment, participation as an associate and / or holder (in the case of Third Sector Entities) and for the appointment of Governance Agents in the respective Governance Bodies.

Principles of Investment Management

Investment Management seeks effectiveness in the decision-making processes in the Invested Companies in line with Vale's corporate governance practices and interests, with the business plan and strategic planning of the investee, in order to ensure the continuity of Vale System's business.

In the management of investments, the following principles should be considered:

Accountability;
Loyalty;
Diligence;
Confidentiality;
Duty to inform about the respective corporate bodies through their Governance Agents.

Practice Guidelines

Among Vale's Guidelines for Investment Management, it is worth mentioning:

We continually asses the investee’s strategic plan with Vale’s strategic guidelines and also look for alternatives to maximize the value of Vale System stakes. When applicable, we negotiate and align interests between partners and invested company;

We follow criteria that ensure the selection of qualified professionals to the invested governance bodies;

We monitor economic and financial performance, risk management, internal controls and compliance in the Investments, when this type of control and monitoring is possible, seeking compliance of the Participations with Vale standards, controls and procedures, when applicable.

Portfolio

The portfolio of joint ventures includes Samarco (iron ore and pelletizing), Companhia Coreana-Brasileira de Pelotização, Companhia Hispano-Brasileira de Pelotização, Companhia Ítalo-Brasileira de Pelotização and Companhia Nipo-Brasileira de Pelotização pelletizings’, VLI (logistics), MRS (logistics), Mineração Rio do Norte (bauxite), Companhia Siderúrgica do Pecém (steel industry), Aliança Geração de Energia (energy), Aliança Norte Energia Participações (energy), among others.

Some exemples of partnerships are: BHP Billiton, Sumitomo, Mistui, JFE Steel, Nippon Steel, Arcelor Mittal, Posco, Ilva, Oman Oil Company, Brookfield and Cemig.