Edgar Filing: Vale S.A.

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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

July, 2015

Vale S.A.

Avenida Graça Aranha, No. 26
20030-900 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 o

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 o 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 o 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 o No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82- .

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Interim Financial Statements

June 30, 2015

BR GAAP

Filed with the CVM, SEC and HKEx on

July 30, 2015

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Vale S.A.

Index to the Interim Financial Statements

		Page

Independent auditor’s report on the review of the quarterly information - ITR		3

Condensed Consolidated and Parent Company Balance Sheets as at June 30, 2015 and December 31, 2014		5

Condensed Consolidated and Parent Company Statements of Income for the three-months and six-months periods ended June 30, 2015 and 2014		7

Condensed Consolidated and Parent Company Statements of Comprehensive Income for the three-months and six-months periods ended June 30, 2015 and 2014		9

Condensed Statement of Changes in Stockholder’s Equity for the six-months period ended June 30, 2015 and 2014		10

Condensed Consolidated Statement of Cash Flow for the three-months and six-months periods ended June 30, 2015 and 2014		11

Condensed Parent Company Statement of Cash Flow for the six-months period ended June 30, 2015 and 2014		12

Condensed Consolidated and Parent Company Statement of Added Value for the three-months and six-months periods ended June 30, 2015 and 2014		13

Selected Notes to the Interim Financial Statements		14

Board of Directors, Fiscal Council, Advisory Committees and Executive Officers		62

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KPMG Auditores Independentes	Central Tel	55 (21) 3515-9400
Av. Almirante Barroso, 52 - 4o	Fax	55 (21) 3515-9000
20031-000 - Rio de Janeiro, RJ - Brasil	Internet	www.kpmg.com.br
Caixa Postal 2888
20001-970 - Rio de Janeiro, RJ - Brasil

Report on the review of quarterly information - ITR

(A free translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM), prepared in accordance with the accounting practices adopted in Brazil, rules of the CVM and of the International Financial Reporting Standards - IFRS)

The Board of Directors and Stockholders of

Vale S.A.

Rio de Janeiro - RJ

Introduction

1. We have reviewed the interim accounting information of Vale S.A. (“the Company”), included in the quarterly information form - ITR for the quarter ended June 30, 2015, which comprises the individual and consolidated balance sheet as of June 30, 2015 and the respective individual and consolidated statements of income and comprehensive income for the three-month and six-month periods ended on June 30, 2015, the individual and consolidated statements of changes in stockholders’ equity for the six-month period then ended and the individual statement of cash flows for the six-month period and the consolidated statement of cash flows for the three-month and six-month periods then ended, including the explanatory notes.

2. The Company`s Management is responsible for the preparation of the interim accounting information in accordance with the Accounting Pronouncement CPC 21(R1) — “Demonstração Intermediária” and the international accounting rule IAS 34 - Interim Financial Reporting, issued by the IASB, as well as the presentation of these information in accordance with the standards issued by the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of quarterly information - ITR. Our responsibility is to express our conclusion on this interim accounting information based on our review.

Scope of the review

3. We conducted our review in accordance with Brazilian and International Interim Information Review Standards (NBC TR 2410 - Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity), respectively. A review of interim information consists of making inquiries primarily of the management responsible for financial and accounting matters and applying analytical procedures and other review procedures. The scope of a review is significantly less than an audit conducted in accordance with auditing standards and, accordingly, it did not enable us to obtain assurance that we were aware of all the material matters that would have been identified in an audit. Therefore, we do not express an audit opinion.

KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça.

KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

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Conclusion on the interim accounting information

4. Based on our review, we are not aware of any fact that might lead us to believe that the individual and consolidated interim accounting information included in the aforementioned quarterly information was not prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34, applicable to the preparation of the quarterly review - ITR, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.

Other matters

Statements of added value

5. We have also reviewed the individual and consolidated interim information of added value for the six-month period ended June 30, 2015, prepared under the responsibility of the Company`s Management, for which presentation is required in the interim information in accordance with the standards issued by the CVM applicable to the preparation of quarterly information - ITR, and considered as supplementary information by IFRS, which does not require the presentation of the statements of added value. These statements were submitted to the same review procedures described previously and, based on our review, we are not aware of any fact that might lead us to believe that they were not prepared, in all material respects, in accordance with the individual and consolidated interim accounting information, taken as a whole.

Rio de Janeiro, July 29, 2015

KPMG Auditores Independentes

CRC SP-014428/O-6 F-RJ

(Original report in Portuguese signed by)

Manuel Fernandes Rodrigues de Sousa

Accountant CRC RJ-052428/O-2

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Condensed Balance Sheet

In millions of Brazilian Reais

	Consolidated			Parent Company
	Notes	June 30, 2015	December 31, 2014	June 30, 2015	December 31, 2014
		(unaudited)		(unaudited)
Assets
Current assets
Cash and cash equivalents	8	9,799	10,555	1,574	685
Financial investments		329	392	18	392
Derivative financial instruments	24	758	441	443	370
Accounts receivable	9	8,652	8,700	30,369	30,599
Related parties	31	1,216	1,537	1,187	2,227
Inventories	10	13,740	11,956	3,974	3,655
Prepaid income taxes		3,559	4,200	3,238	3,782
Recoverable taxes	11	4,820	4,515	3,057	2,687
Others		1,992	1,780	648	1,169
		44,865	44,076	44,508	45,566

Non-current assets held for sale	6	11,193	9,669	—	1,501
		56,058	53,745	44,508	47,067
Non-current assets
Related parties	31	65	93	977	902
Loans and financing		682	609	100	104
Judicial deposits	18(c)	3,299	3,370	2,771	2,721
Prepaid income taxes		1,310	1,271	—	—
Deferred income taxes	20	13,341	10,560	9,179	6,430
Recoverable taxes	11	2,075	1,064	1,328	566
Derivative financial instruments	24	78	231	—	29
Others		2,280	1,873	447	349
		23,130	19,071	14,802	11,101

Investments	12	13,057	10,978	131,195	118,628
Intangible assets, net	13	19,669	18,114	19,005	17,454
Property, plant and equipment, net	14	221,144	207,507	91,095	87,321
		277,000	255,670	256,097	234,504
Total		333,058	309,415	300,605	281,571

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Condensed Balance Sheet

In millions of Brazilian Reais

(continued)

	Consolidated					Parent Company
	Notes	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
		(unaudited)				(unaudited)
Liabilities
Current liabilities
Suppliers and contractors		11,890		11,566		6,221		6,818
Payroll and related charges		1,630		3,089		995		2,017
Derivative financial instruments	24	2,597		3,760		834		948
Loans and financing	16	9,887		3,768		5,854		2,853
Related parties	31	600		813		6,203		5,622
Income taxes - Settlement program	19	1,276		1,213		1,250		1,189
Taxes payable and royalties		1,212		1,461		300		376
Provision for income taxes		553		937		—		—
Employee postretirement obligations	21(a)	239		177		69		66
Asset retirement obligations	17	353		361		85		89
Redeemable noncontrolling interest		434		—		—		—
Others		992		1,074		551		690
		31,663		28,219		22,362		20,668

Liabilities associated with non-current assets held for sale	6	477		294		—		—
		32,140		28,513		22,362		20,668
Non-current liabilities
Derivative financial instruments	24	7,090		4,276		6,126		3,866
Loans and financing	16	82,486		72,749		44,916		38,542
Related parties	31	291		288		48,675		43,606
Employee postretirement obligations	21(a)	6,394		5,941		461		466
Provisions for litigation	18(a)	3,559		3,405		2,422		2,448
Income taxes - Settlement program	19	15,733		15,572		15,411		15,254
Deferred income taxes	20	9,585		8,874		—		—
Asset retirement obligations	17	9,409		8,588		3,334		3,106
Participative stockholders’ debentures	30(b)	2,642		4,584		2,642		4,584
Redeemable noncontrolling interest		—		645		—		—
Deferred revenue - Gold stream	29	5,602		3,516		—		—
Others		3,398		2,863		2,849		2,617
		146,189		131,301		126,836		114,489
Total liabilities		178,329		159,814		149,198		135,157

Stockholders’ equity	25
Preferred class A stock — 7,200,000,000 no-par-value shares authorized and 2,027,127,718 shares issued		29,879		29,879		29,879		29,879
Common stock — 3,600,000,000 no-par-value shares authorized and 3,217,188,402 shares issued		47,421		47,421		47,421		47,421
Treasury stock — 59,405,792 preferred and 31,535,402 common shares		(2,746	)	(2,746	)	(2,746	)	(2,746	)
Results from operations with noncontrolling stockholders		(983	)	(970	)	(983	)	(970	)
Results on conversion of shares		50		50		50		50
Unrealized fair value gain (losses)		(4,084	)	(4,553	)	(4,084	)	(4,553	)
Cumulative translation adjustments		36,281		24,248		36,281		24,248
Profit reserves		45,589		53,085		45,589		53,085
Total company stockholders’ equity		151,407		146,414		151,407		146,414
Noncontrolling stockholders’ interests		3,322		3,187		—		—
Total stockholders’ equity		154,729		149,601		151,407		146,414
Total liabilities and stockholders’ equity		333,058		309,415		300,605		281,571

The accompanying notes are an integral part of these interim financial statements.

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Condensed Statement of Income

In millions of Brazilian Reais, except as otherwise stated

		Consolidated (unaudited)
		Three-months period ended				Six-months period ended
	Notes	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014

Net operating revenue	26(c)	21,441		22,084		39,468		44,493
Cost of goods sold and services rendered	27(a)	(15,968	)	(13,566	)	(30,956	)	(26,738	)
Gross profit		5,473		8,518		8,512		17,755

Operating (expenses) income
Selling and administrative expenses	27(b)	(488	)	(528	)	(1,043	)	(1,195	)
Research and evaluation expenses		(365	)	(355	)	(710	)	(699	)
Pre operating and stoppage operation		(797	)	(589	)	(1,555	)	(1,175	)
Other operating expenses, net	27(c)	(622	)	(364	)	(442	)	(870	)
		(2,272	)	(1,836	)	(3,750	)	(3,939	)
Impairment of non-current assets	15	—		(1,730	)	—		(1,730	)
Gain (loss) on measurement or sale of non-current assets	6 and 7	(172	)	—		374		—
Operating income		3,029		4,952		5,136		12,086

Financial income	28	4,486		2,702		11,437		5,832
Financial expenses	28	(2,862	)	(2,831	)	(23,491	)	(5,633	)
Equity results from joint ventures and associates	12	668		542		(157	)	1,001
Results on sale or disposal of investments from joint ventures and associates	6 and 7	241		(39	)	296		(39	)
Net income (loss) before income taxes		5,562		5,326		(6,779	)	13,247

Income taxes	20
Current tax		(208	)	(1,229	)	(409	)	(3,420	)
Deferred tax		(353	)	(1,007	)	2,497		(1,153	)
		(561	)	(2,236	)	2,088		(4,573	)
Net income (loss)		5,001		3,090		(4,691	)	8,674
Loss attributable to noncontrolling stockholders’ interests		(143	)	(97	)	(296	)	(422	)
Net income (loss) attributable to the Company’s stockholders		5,144		3,187		(4,395	)	9,096

Earnings per share attributable to the Company’s stockholders:
Basic and diluted earnings per share:	25(b)
Preferred share (R$)		1.00		0.62		(0.85	)	1.77
Common share (R$)		1.00		0.62		(0.85	)	1.77

The accompanying notes are an integral part of these interim financial statements.

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Condensed Statement of Income

In millions of Brazilian Reais, except as otherwise stated

		Parent company (unaudited)
		Three-months period ended				Six-months period ended
	Notes	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014

Net operating revenue		9,367		13,700		19,602		29,734
Cost of goods sold and services rendered	27(a)	(6,767	)	(5,922	)	(13,191	)	(11,887	)
Gross profit		2,600		7,778		6,411		17,847

Operating (expenses) income
Selling and administrative expenses	27(b)	(286	)	(301	)	(579	)	(623	)
Research and evaluation expenses		(185	)	(191	)	(352	)	(380	)
Pre operating and stoppage operation		(111	)	(91	)	(224	)	(195	)
Equity results from subsidiaries	12	2,174		(2,569	)	(1,600	)	(4,684	)
Other operating expenses, net	27(c)	(389	)	(435	)	(349	)	(773	)
		1,203		(3,587	)	(3,104	)	(6,655	)
Gain on measurement or sale of non-current assets	6	—		—		546		—
Operating income		3,803		4,191		3,853		11,192

Financial income	28	3,539		2,378		10,462		5,315
Financial expenses	28	(2,310	)	(2,374	)	(21,340	)	(4,660	)
Equity results from joint ventures and associates	12	668		542		(157	)	1,001
Results on sale or disposal of investments from joint ventures and associates	6	—		(39	)	55		(39	)
Net income (loss) before income taxes		5,700		4,698		(7,127	)	12,809

Income taxes	20
Current tax		—		(937	)	—		(2,975	)
Deferred tax		(556	)	(574	)	2,732		(738	)
		(556	)	(1,511	)	2,732		(3,713	)
Net income (loss)		5,144		3,187		(4,395	)	9,096

Earnings per share attributable to the Company’s stockholders:
Basic and diluted earnings per share:	25(b)
Preferred share (R$)		1.00		0.62		(0.85	)	1.77
Common share (R$)		1.00		0.62		(0.85	)	1.77

The accompanying notes are an integral part of these interim financial statements.

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Condensed Statement of Comprehensive Income

In millions of Brazilian Reais

	Consolidated (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Net income (loss)	5,001		3,090		(4,691	)	8,674
Other comprehensive income
Items that will not be reclassified subsequently to income
Retirement benefit obligations
Gross balance for the period	295		183		(23	)	238
Effect of taxes	(83	)	(40	)	74		(46	)
Equity results from entities, net taxes	—		—		—		3
	212		143		51		195
Total items that will not be reclassified subsequently to income	212		143		51		195

Items that will be reclassified subsequently to income
Cumulative translation adjustments
Gross balance for the period	(2,825	)	(1,325	)	12,113		(5,472	)

Cash flow hedge
Gross balance for the period	834		158		1,558		145
Effect of taxes	(10	)	(16	)	(10	)	(8	)
Equity results from entities, net taxes	(1	)	5		(8	)	6
Transfer of realized results to income, net of taxes	(271	)	(34	)	(688	)	(71	)
	552		113		852		72
Total of items that will be reclassified subsequently to income	(2,273	)	(1,212	)	12,965		(5,400	)
Total comprehensive income (loss)	2,940		2,021		8,325		3,469
Comprehensive income (loss) attributable to noncontrolling stockholders’ interests	(258	)	(159	)	218		(613	)
Comprehensive income (loss) attributable to the Company’s stockholders	3,198		2,180		8,107		4,082

	Parent company (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Net income (loss)	5,144		3,187		(4,395	)	9,096
Other comprehensive income
Items that will not be reclassified subsequently to income
Retirement benefit obligations
Gross balance for the period	(40	)	(65	)	(50	)	(127	)
Effect of taxes	14		22		17		43
Equity results from entities, net taxes	238		186		84		279
	212		143		51		195
Total items that will not be reclassified subsequently to income	212		143		51		195

Items that will be reclassified subsequently to income
Cumulative translation adjustments
Gross balance for the period	(2,710	)	(1,263	)	11,599		(5,281	)

Cash flow hedge
Equity results from entities, net taxes	552		113		852		72
	552		113		852		72
Total of items that will be reclassified subsequently to income	(2,158	)	(1,150	)	12,451		(5,209	)
Total comprehensive income (loss)	3,198		2,180		8,107		4,082

The accompanying notes are an integral part of these interim financial statements.

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Condensed Statement of Changes in Stockholders’ Equity

In millions of Brazilian Reais

	Six-months period ended
	Capital	Results on conversion of shares	Results from operation with noncontrolling stockholders		Profit reserves		Treasury stocks		Unrealized fair value gain (losses)		Cumulative translation adjustments		Retained earnings		Total Company stockholder’s equity		Noncontrolling stockholders’ interests		Total stockholder’s equity
December 31, 2013	75,000	50	(840	)	69,262		(7,838	)	(2,815	)	15,527		—		148,346		3,775		152,121
Net income (loss)	—	—	—		—		—		—		—		9,096		9,096		(422	)	8,674
Other comprehensive income:
Retirement benefit obligations	—	—	—		—		—		195		—		—		195		—		195
Cash flow hedge	—	—	—		—		—		72		—		—		72		—		72
Translation adjustments	—	—	—		—		—		97		(5,378	)	—		(5,281	)	(191	)	(5,472	)
Contribution and distribution to stockholders:
Acquisitions and disposal of participation of noncontrolling stockholders	—	—	—		—		—		—		—		—		—		(553	)	(553	)
Capitalization of reserves	2,300	—	—		(2,300	)	—		—		—		—		—		—		—
Capitalization of noncontrolling stockholders advances	—	—	—		—		—		—		—		—		—		150		150
Cancellation of treasury stock	—	—	—		(5,092	)	5,092		—		—		—		—		—		—
Dividends of noncontrolling stockholders	—	—	—		—		—		—		—		—		—		(11	)	(11	)
Dividends and interest on capital of Company’s stockholders	—	—	—		—		—		—		—		(4,632	)	(4,632	)	—		(4,632	)
June 30, 2014 (unaudited)	77,300	50	(840	)	61,870		(2,746	)	(2,451	)	10,149		4,464		147,796		2,748		150,544

	Six-months period ended
	Capital	Results on conversion of shares	Results from operation with noncontrolling stockholders		Profit reserves		Treasury stocks		Unrealized fair value gain (losses)		Cumulative translation adjustments	Retained earnings		Total Company stockholder’s equity		Noncontrolling stockholders’ interests		Total stockholder’s equity
December 31, 2014	77,300	50	(970	)	53,085		(2,746	)	(4,553	)	24,248	—		146,414		3,187		149,601
Loss	—	—	—		—		—		—		—	(4,395	)	(4,395	)	(296	)	(4,691	)
Other comprehensive income:
Retirement benefit obligations	—	—	—		—		—		51		—	—		51		—		51
Cash flow hedge	—	—	—		—		—		852		—	—		852		—		852
Translation adjustments	—	—	—		—		—		(434	)	12,033	—		11,599		514		12,113
Contribution and distribution to stockholders:
Acquisitions and disposal of participation of noncontrolling stockholders	—	—	(13	)	—		—		—		—	—		(13	)	(114	)	(127	)
Capitalization of noncontrolling stockholders advances	—	—	—		—		—		—		—	—		—		46		46
Dividends of noncontrolling stockholders	—	—	—		—		—		—		—	—		—		(15	)	(15	)
Dividends and interest on capital of Company’s stockholders	—	—	—		(3,101	)	—		—		—	—		(3,101	)	—		(3,101	)
June 30, 2015 (unaudited)	77,300	50	(983	)	49,984		(2,746	)	(4,084	)	36,281	(4,395	)	151,407		3,322		154,729

The accompanying notes are an integral part of these interim financial statements.

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Condensed Statement of Cash Flow

In millions of Brazilian Reais

	Consolidated (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Cash flow from operating activities:
Net income (loss)	5,001		3,090		(4,691	)	8,674
Adjustments for:
Equity results from entities	(668	)	(542	)	157		(1,001	)
Loss (gain) on measurement or sale of non-current assets	172		—		(374	)	—
Results on sale or disposal of investments of joint ventures and associates	(241	)	39		(296	)	39
Gain on disposal of property, plant and equipment and intangibles	(48	)	—		(731	)	—
Impairment of non-current assets	—		1,730		—		1,730
Depreciation, amortization and depletion	3,039		1,990		6,039		4,401
Deferred income taxes	353		1,007		(2,497	)	1,153
Foreign exchange and indexation, net	(1,473	)	(320	)	8,379		(1,022	)
Unrealized derivative loss (gain), net	(711	)	(629	)	1,895		(1,087	)
Participative stockholders’ debentures	(1,106	)	598		(1,828	)	647
Others	324		(24	)	(814	)	17
Decrease (increase) in assets:
Accounts receivable	(1,533	)	(412	)	688		3,550
Inventories	(272	)	324		481		(1,747	)
Recoverable taxes	(1,020	)	922		(1,408	)	2,703
Others	352		115		151		272
Increase (decrease) in liabilities:
Suppliers and contractors	772		126		(378	)	166
Payroll and related charges	(46	)	457		(1,627	)	(963	)
Taxes and contributions	(166	)	445		297		480
Deferred revenue - Gold stream	—		—		1,670		—
Income taxes - Settlement program	134		103		224		214
Others	155		193		(669	)	144
Net cash provided by operating activities	3,018		9,212		4,668		18,370

Cash flow from investing activities:
Financial investments redeemed	335		—		737		3
Loans and advances received (granted)	(27	)	343		(33	)	116
Guarantees and deposits granted	(67	)	(36	)	(137	)	(111	)
Additions to investments	(88	)	(170	)	(118	)	(456	)
Acquisition of subsidiary (note 7(b))	—		—		(237	)	—
Additions to property, plant and equipment and intangible	(6,514	)	(6,047	)	(12,773	)	(11,680	)
Dividends and interest on capital received from joint ventures and associates	577		464		651		489
Proceeds from disposal of assets and investments	1,410		709		1,749		709
Proceeds from gold stream transaction	—		—		1,156		—
Net cash used in investing activities	(4,374	)	(4,737	)	(9,005	)	(10,930	)

Cash flow from financing activities:
Loans and financing
Additions	4,748		21		8,424		1,573
Repayments	(1,824	)	(529	)	(2,643	)	(1,226	)
Repayments to stockholders:
Dividends and interest on capital paid to stockholders	(3,101	)	(4,632	)	(3,101	)	(4,632	)
Dividends and interest on capital attributed to noncontrolling stockholders	(28	)	—		(35	)	—
Transactions with noncontrolling stockholders	(125	)	—		(125	)	—
Net cash provided by (used in) financing activities	(330	)	(5,140	)	2,520		(4,285	)

Increase (decrease) in cash and cash equivalents	(1,686	)	(665	)	(1,817	)	3,155
Cash and cash equivalents in the beginning of the period	11,818		16,252		10,555		12,465
Effect of exchange rate changes on cash and cash equivalents	(333	)	(27	)	1,061		(60	)
Cash and cash equivalents at end of the period	9,799		15,560		9,799		15,560

Cash paid during the period for (i):
Interest on loans and financing	(994	)	(769	)	(2,315	)	(1,838	)
Income taxes	(144	)	(146	)	(903	)	(526	)
Income taxes - Settlement program	(317	)	(286	)	(625	)	(566	)
Derivatives received (paid), net	(303	)	192		(2,088	)	233
Non-cash transactions:
Additions to property, plant and equipment - interest capitalization	544		377		1,100		413

(i) Amounts paid are classified as cash flows from operating activities.

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Condensed Statement of Cash Flow

In millions of Brazilian Reais

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015		June 30, 2014
Cash flow from operating activities:
Net income (loss)	(4,395	)	9,096
Adjustments for:
Equity results from entities	1,757		3,683
Gain on measurement or sale of non-current assets	(546	)	—
Results on sale or disposal of investments of joint ventures and associates	(55	)	—
Loss on disposal of property, plant and equipment and intangibles	135		—
Depreciation, amortization and depletion	2,122		1,544
Deferred income taxes	(2,732	)	738
Foreign exchange and indexation, net	13,685		(3,036	)
Unrealized derivative loss (gain), net	2,104		(977	)
Dividends and interest on capital received from subsidiaries	670		19
Participative stockholders’ debentures	(1,828	)	647
Others	(567	)	(62	)
Decrease (increase) in assets:
Accounts receivable	267		(8,397	)
Inventories	43		(139	)
Recoverable taxes	(858	)	3,029
Others	312		345
Increase (decrease) in liabilities:
Suppliers and contractors	(653	)	1,206
Payroll and related charges	(1,073	)	(707	)
Taxes and contributions	718		(474	)
Income taxes - Settlement program	218		209
Others	(486	)	(259	)
Net cash provided by operating activities	8,838		6,465

Cash flow from investing activities:
Financial investments redeemed	374		3
Loans and advances received (granted)	127		923
Guarantees and deposits granted	(122	)	(196	)
Additions to investments	(994	)	(1,384	)
Additions to property, plant and equipment and intangible	(8,045	)	(6,186	)
Dividends and interest on capital received from joint ventures and associates	649		489
Proceeds from disposal of assets and investments	316		709
Net cash used in investing activities	(7,695	)	(5,642	)

Cash flow from financing activities:
Loans and financing
Additions	7,495		3,213
Repayments	(4,648	)	(1,775	)
Repayments to stockholders:
Dividends and interest on capital attributed to noncontrolling interest	(3,101	)	(4,632	)
Net cash provided by (used in) financing activities	(254	)	(3,194	)

Increase (decrease) in cash and cash equivalents	889		(2,371	)
Cash and cash equivalents in the beginning of the period	685		3,635
Cash and cash equivalents at end of the period	1,574		1,264

Cash paid during the period for (i):
Interest on loans and financing	(2,287	)	(1,573	)
Income taxes	—		(60	)
Income taxes - Settlement program	(612	)	(555	)
Derivatives received (paid), net	(601	)	270
Non-cash transactions:
Additions to property, plant and equipment - interest capitalization	551		75

(i) Amounts paid are classified as cash flows from operating activities

The accompanying notes are an integral part of these interim financial statements.

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Condensed Statement of Added Value

In millions of Brazilian Reais

	Six-months period ended (unaudited)
	Consolidated				Parent Company
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Generation of added value
Gross revenue
Revenue from products and services	40,172		45,310		20,096		30,177
Gain (loss) on measurement or sale of non-current assets	670		(39	)	601		(39	)
Other revenues	1,817		486		302		383
Revenue from the construction of own assets	9,802		11,680		6,721		6,186
Allowance for doubtful accounts	4		(7	)	(4	)	10
Less:
Acquisition of products	(1,467	)	(1,975	)	(375	)	(570	)
Material, service and maintenance	(17,661	)	(18,800	)	(10,889	)	(10,472	)
Oil and gas	(1,994	)	(1,964	)	(1,256	)	(1,297	)
Energy	(952	)	(641	)	(483	)	(319	)
Freight	(4,907	)	(3,543	)	—		—
Impairment of non-current assets (includes joint ventures and associates)	—		(1,730	)	—		—
Other costs and expenses	(4,479	)	(3,911	)	(1,032	)	(1,009	)
Gross added value	21,005		24,866		13,681		23,050
Depreciation, amortization and depletion	(6,039	)	(4,401	)	(2,122	)	(1,544	)
Net added value	14,966		20,465		11,559		21,506

Received from third parties
Equity results from entities	(157	)	1,001		(1,757	)	(3,683	)
Financial income	1,199		606		642		436
Monetary and exchange variation of assets	5,550		(763	)	5,525		(720	)
Total added value to be distributed	21,558		21,309		15,969		17,539

Personnel	4,499		4,460		2,081		2,218
Taxes and contributions	4,149		3,016		3,375		2,498
Current income tax	409		3,420		—		2,975
Deferred income tax	(2,497	)	1,153		(2,732	)	738
Financial expense (includes capitalized interest)	5,868		2,959		4,162		2,446
Monetary and exchange variation of liabilities	13,186		(3,047	)	12,577		(3,318	)
Other remunerations of third party funds	635		674		901		886
Reinvested net income (absorbed loss)	(4,395	)	9,096		(4,395	)	9,096
Net income (loss) attributable to noncontrolling interest	(296	)	(422	)	—		—
Distribution of added value	21,558		21,309		15,969		17,539

The accompanying notes are an integral part of these interim financial statements.

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Selected Notes to Interim Financial Statements

Expressed in millions of Brazilian Reais, unless otherwise stated

1. Corporate information

Vale S.A. (the “Parent Company”) is a public company headquartered at 26, Av. Graça Aranha, Rio de Janeiro, Brazil with securities traded on the stock exchanges of São Paulo (“BM&F BOVESPA”), New York (“NYSE”), Paris (“NYSE Euronext”) and Hong Kong (“HKEx”).

Vale S.A. and its direct and indirect subsidiaries (“Vale”, “Group” or “Company”) are principally engaged in the research, production and sale of iron ore and pellets, nickel, fertilizer, copper, coal, manganese, ferroalloys, cobalt, platinum group metals and precious metals. The Company also operates in the segments of energy and steel. The information by segment is presented in note 26.

2. Summary of the main accounting practices and accounting estimates

a) Basis of presentation

The consolidated and individual interim financial statements of the Company (“interim financial statements”) have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as implemented in Brazil by the Brazilian Accountant Pronouncements Committee (“CPC”), approved by the Brazilian Securities Exchange Commission (“CVM”) and by the Brazilian Federal Accounting Council (“CFC”).

The interim financial statements have been prepared under the historical cost convention as adjusted to reflect: (i) the fair value of held for trading financial instruments measured at fair value through the statement of income or available-for-sale financial instruments measured at fair value through the statement of comprehensive income; and (ii) impairment of assets.

These interim financial statements have been reviewed, not audited. However, principles, estimates, accounting practices, measurement methods and standards adopted are consistent with those presented on the financial statements for the year ended December 31, 2014. These interim financial statements were prepared by Vale to update users about relevant information presented in the period and should be read in conjunction with the financial statements for the year ended December 31, 2014.

The Company evaluated subsequent events through July 29, 2015, which is the date the interim financial statements were approved by the Board of Directors.

b) Functional currency and presentation currency

The interim financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”), which in the case of the Parent Company is the Brazilian real (“BRL” or “R$”). For presentation purposes, these interim financial statements are presented in R$.

Operations in other currencies are translated into the functional currency using the actual exchange rates in force on the respective transactions dates. The foreign exchange gains and losses resulting from the translation at the exchange rates in force at the end of the period are recognized in the statement of income as financial expense or financial income. The exceptions are transactions for which gains and losses are recognized in the comprehensive income.

The statement of income and balance sheet of the Group’s entities which functional currency is different from the presentation currency are translated into the presentation currency as follows: (i) assets, liabilities and stockholders’ equity (except components described in item (iii)) are translated at the closing rate at the balance sheet date; (ii) income and expenses are translated at the average exchange rates, except for specific transactions that, considering their significance, are translated at the rate at the transaction date and; (iii) capital, capital reserves and treasury stock are translated at the rate at the date of each transaction. All resulting exchange differences are recognized in comprehensive income as cumulative translation adjustment, and transferred to the statement of income when the operations are realized.

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The exchange rates of the major currencies that impact the operations are as follows:

	Exchange rates used for conversions into R$
	Closing rate as of		Average rate for the six-months period ended
	June 30, 2015	December 31, 2014	June 30, 2015	June 30, 2014
	(unaudited)		(unaudited)	(unaudited)
US dollar (“US$”)	3.1026	2.6562	2.9715	2.2974
Canadian dollar (“CAD”)	2.4877	2.2920	2.4060	2.0954
Australian dollar (“AUD”)	2.3906	2.1765	2.3228	2.1008
Euro (“EUR” or “€”)	3.4603	3.2270	3.3111	3.1485

3. Critical accounting estimates and judgment

The critical accounting estimates and judgment are the same as those adopted when preparing the financial statements for the year ended December 31, 2014.

4. Accounting standards issued but not yet effective

The standards and interpretations issued by IASB but not yet effective are disclosed below:

IFRS 9 Financial instruments - In July 2014 the IASB issued IFRS 9 — Financial instruments, sets out the requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. This Standard replaces IAS 39 Financial Instruments: Recognition and Measurement. The adoption will be required from January 1, 2018 and the Company is currently analyzing potential impacts regarding this pronouncement on the financial statements.

IFRS 15 Revenue from contracts with customers - In May 2014 the IASB issued IFRS 15 statement - Revenue from Contracts with customers, sets out the requirements for revenue recognition that apply to all contracts with customer (except for contracts that are within the scope of the Standards on leases, insurance contracts and financial instruments), and replaces the current pronouncements IAS 18 - revenue, IAS 11 - Construction contracts and interpretations related to revenue recognition. The principle core in that framework is that a company should recognize revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The adoption will be required from January 1, 2018 and the Company is currently analyzing potential impacts regarding this pronouncement on the financial statements.

5. Risk management

There was no significant change in relation to risk management policies disclosed in the financial statements for the year ended December 31, 2014.

6. Non-current assets and liabilities held for sale

	Consolidated
	June 30, 2015	December 31, 2014
	Nacala	Energy	Nacala	Total
	(unaudited)
Non-current assets held for sale
Accounts receivable	7	—	21	21
Other current assets	546	—	417	417
Investments	—	233	—	233
Intangible assets, net	66	—	—	—
Property, plant and equipment, net	10,574	1,268	7,730	8,998
Total assets	11,193	1,501	8,168	9,669

Liabilities associated with non-current assets held for sale
Suppliers and contractors	431	—	143	143
Other current liabilities	46	—	151	151
Total liabilities	477	—	294	294
Net assets held for sale	10,716	1,501	7,874	9,375

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Nacala logistic corridor (“Nacala”)

In December 2014, the Company signed an agreement with Mitsui & Co., Ltd. (“Mitsui”) to sell 50% of its stake of 70% in the Nacala corridor, Nacala is a combination of railroad and port concessions under construction located in Mozambique and Malawi.

After completion of the transaction, Vale will share control of Nacala with Mitsui and therefore will not consolidate the assets, liabilities and results of those entities. The net assets were transferred to assets held for sale with no impact in the statement of income.

Energy generation assets

In December 2013, the Company signed agreements with CEMIG Geração e Transmissão S.A. (“CEMIG GT”), as follows:

(a) A new entity Aliança Norte Participações S.A., was incorporated and Vale contributed its 9% investment in Norte Energia S.A. (“Norte Energia”), which is the company in charge of construction and operation of the Belo Monte Hydroelectric facility. Vale committed to sell 49% and share control of the new entity to CEMIG GT. In the first quarter of 2015, after receiving all regulatory approvals and other customary precedent conditions the Company concluded the transaction and received cash proceeds of R$306, recognizing a gain of R$55 as result on sale or disposal of investment from joint ventures and associates in the statement of income.

(b) A new entity Aliança Geração de Energia S.A. (“Aliança Geração”) was incorporated and Vale committed to contribute its shares over several power generation assets which use to supply energy for the Company’s operations. In exchange CEMIG GT committed to contribute its stakes in some of its power generation assets. In the first quarter of 2015, after receiving all regulatory approvals and other customary precedent conditions, the exchange of assets was completed and Vale holds 55% and shares control of the new entity with CEMIG GT. A long term contract was signed between Vale and Aliança Geração for the energy supply. Due to the completion of this transaction, the Company (i) derecognized the assets held for sale related to this transaction; (ii) recognized as investment its share in the joint venture Aliança Geração; and (iii) recognized R$546 in the income statement as gain (loss) on measurement or sales of non-current asset based on the fair value of the assets transferred by CEMIG GT. This transaction has no cash proceeds or disbursements.

7. Acquisitions and divestitures

In July 29, 2015 (subsequent event), the Company signed a Contract of Purchase and Sale of Shares with Fundo de Investimento em Participações Multisetorial Plus II (“FIP Multisetorial”), whose shares are held by Banco Bradesco BBI S.A., through which it promised to sell class A preferred shares, representing 36.4% of the share capital of Minerações Brasileiras Reunidas S.A. (“MBR”), for R$4 billion, subject to the condition precedent of a prior approval of the sell by the Conselho Administrativo de Defesa Econômica (“CADE”). MBR is a subsidiary of which Vale holds, directly and indirectly, 98.9% of the total capital.

After the completion of the transaction, the Company will keep a stake of 62.5% of the total capital of MBR and will maintain its stake in ordinary capital at 98.9%. The participation and rights of the new shareholder will be recognized as noncontrolling stockholders’ equity.

Vale will also hold a call option on FIP Multisetorial’s shares with a right to exercise it in the period that ranges from the beginning of the 3rd year until the end of the 10th year (inclusive) from the completion of the transaction. FIP multisetorial may sell its shares to third parties after the 8th year following the completion of the transaction, in which case, Vale may exercise its pre-emptive rights to purchase the shares at the price and conditions presented by the potential buyer.

a) Divestiture of VBG-Vale BSGR Limited (“VBG”)

VBG is the holding company which held the Simandou mining rights located in Guinea. In April 2014, the Government of Guinea revoked VBG mining rights, without any finding of wrongdoing by Vale. During 2014, as a result of the loss of the mining rights, Vale recognized full impairment of the assets related to VBG. During the first quarter of 2015, the Company sold its stake in VBG to its partner in the project and kept the right to any recoverable amount it may derive from the Simandou project. The transaction had no impact on cash or in the statement of income.

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b) Acquisition of Facon Construção e Mineração S.A. (“Facon”)

During the first quarter of 2015, the Company acquired all shares of Facon, a wholly owned subsidiary of Fagundes Construção e Mineração S.A. (“FCM”). FCM is a logistic service provider for Vale Fertilizantes S.A. The Facon business was carved out from FCM with assets and liabilities directly related to the fertilizer business being transferred to Vale Fertilizantes S.A. The purchase price allocation based on the fair value of acquired assets and liabilities was calculated based on studies performed by the Company. Subsequently, Facon was merged into Vale Fertilizantes S.A.

	June 30, 2015
Purchase price	237
Book value of property, plant and equipment	203
Book value of other assets acquired and liabilities assumed, net	(182	)
Adjustment to fair value of property, plant and equipment and mining rights	114
Goodwill	102

c) Divestiture of shipping assets

In the second quarter of 2015, the Company and China Ocean Shipping Company (“Cosco”), the largest dry bulk carrier in China and one of the largest dry bulk shipping operators worldwide, completed the sale of four very large ore carriers with capacity of 400,000 tons. The Company received cash proceeds of R$1,384 and recognized a loss of R$172 as gain (loss) on measurement or sale of non-current assets.

d) Divestiture of Shandong Yankuang International Coking Co., Ltd. (“Yankuang”)

In the second quarter of 2015, the Company concluded the sale of its participation in Yankuang, a producer of coke, methanol and other products. In this transaction, Vale recognized a gain of R$241 as results on sale or disposal of investments from joint ventures and associates.

e) Divestiture of Vale Florestar Fundo de Investimento em Participações (“Vale Florestar”)

In the second quarter of 2014, the Company signed an agreement with a subsidiary of Suzano Papel e Celulose S.A. for the sale of its entire stake in Vale Florestar. A loss on this transaction of R$39 was recorded as results on sale or disposal of investments from joint ventures and associates in 2014.

8. Cash and cash equivalents

	Consolidated		Parent Company
	June 30, 2015	December 31, 2014	June 30, 2015	December 31, 2014
	(unaudited)		(unaudited)
Cash and bank deposits	5,604	5,601	88	41
Short-term investments	4,195	4,954	1,486	644
	9,799	10,555	1,574	685

Cash and cash equivalents includes cash, immediately redeemable deposits and short-term investments with an insignificant risk of changes in value. They are readily convertible to cash, part in R$, indexed to the Brazilian Interbank Interest rate (“DI Rate”or”CDI”) and part denominated in US$, mainly time deposits.

9. Accounts receivable

	Consolidated				Parent Company
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(unaudited)				(unaudited)
Ferrous minerals	5,875		5,724		28,105		28,809
Coal	196		324		—		—
Base metals	1,975		2,064		2,273		1,790
Fertilizers	415		361		17		18
Others	418		457		50		58
	8,879		8,930		30,445		30,675

Provision for doubtful debts	(227	)	(230	)	(76	)	(76	)
	8,652		8,700		30,369		30,599

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The consolidated accounts receivable related to the steel sector represented 75.06% and 77.97% of total receivables on June 30, 2015 and December 31, 2014, respectively. In the parent company, accounts receivable of the steel sector represents 86.69% and 93.98% on June 30, 2015 and December 31, 2014, respectively.

No individual customer represents over 10% of receivables or revenues.

The provision for doubtful debts recorded in the consolidated statement of income for the three-months period ended on June 30, 2015 and 2014 totaled R$4 and R$46 and for the six-months period ended on June 30, 2015 and 2014 totaled R$4 and R$(7), respectively. The Company recognized write-offs for the three-months period ended on June 30, 2015 and 2014 in the amount of R$0 and R$42 and for the six-months period ended totaled R$19 and R$96, respectively.

10. Inventories

	Consolidated		Parent Company
	June 30, 2015	December 31, 2014	June 30, 2015	December 31, 2014
	(unaudited)		(unaudited)
Product inventory

Ferrous minerals
Iron ore	3,516	2,949	1,881	1,842
Pellets	419	498	258	183
Manganese and ferroalloys	203	183	64	51
	4,138	3,630	2,203	2,076

Coal	479	411	—	—

Base metals
Nickel and other products	4,137	3,811	301	334
Copper	97	70	51	26
	4,234	3,881	352	360

Fertilizers
Potash	64	31	—	—
Phosphates	1,151	822	—	—
Nitrogen	77	62	—	—
	1,292	915	—	—

Other products	12	8	—	—
Total product inventory	10,155	8,845	2,555	2,436

Consumable inventory	3,585	3,111	1,419	1,219
Total	13,740	11,956	3,974	3,655

As at June 30, 2015 product inventory is stated net of provisions for nickel, coal, phosphate and pig iron in the amount of R$152 (R$50 as of December 31, 2014), R$1,070 (R$757 as of December 31, 2014), R$12 (R$0 as of December 31, 2014) and R$4 (R$0 as of December 31, 2014), respectively.

Changes in inventories are as follows:

	Consolidated (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Product inventory
Balance at beginning of the period	9,424		7,796		8,845		6,784
Production and acquisition	14,638		11,575		26,748		23,641
Transfer from consumable inventory	1,917		1,791		4,031		3,660
Cost of goods sold	(15,542	)	(13,080	)	(30,110	)	(25,626	)
Provision for market value adjustment	(61	)	(39	)	(431	)	(330	)
Translation adjustments	(221	)	(146	)	1,072		(232	)
Balance at end of the period	10,155		7,897		10,155		7,897

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	Parent company (unaudited)
	Six-months period ended
	June 30, 2015		June 30, 2014
Product inventory
Balance at beginning of the period	2,436		2,114
Production and acquisition	11,086		9,463
Transfer from consumable inventory	1,678		1,873
Cost of goods sold	(12,646	)	(11,096	)
Balance at end of the period	2,555		2,354

	Consolidated (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Consumable inventory
Balance at beginning of the period	3,613		2,961		3,111		2,878
Acquisition	1,964		1,963		4,185		3,957
Transfer to product inventory	(1,917	)	(1,791	)	(4,031	)	(3,660	)
Translation adjustments	(75	)	(49	)	320		(91	)
Balance at end of the period	3,585		3,084		3,585		3,084

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015		June 30, 2014
Consumable inventory
Balance at beginning of the period	1,219		1,173
Acquisition	1,878		1,918
Transfer to product inventory	(1,678	)	(1,873	)
Balance at end of the period	1,419		1,218

11. Recoverable taxes

Recoverable taxes are presented net of provisions for losses on tax credits.

	Consolidated		Parent Company
	June 30, 2015	December 31, 2014	June 30, 2015	December 31, 2014
	(unaudited)		(unaudited)
Value-added tax	2,899	2,806	1,339	1,189
Brazilian federal contributions (PIS/Cofins)	3,925	2,682	2,988	2,006
Others	71	91	58	58
Total	6,895	5,579	4,385	3,253

Current	4,820	4,515	3,057	2,687
Non-current	2,075	1,064	1,328	566
Total	6,895	5,579	4,385	3,253

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12. Investments

Changes in investments are as follows:

	Consolidated (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Balance at beginning of the period	12,230		12,029		10,978		8,397
Aquisitions (i)	—		—		1,819		—
Additions	24		151		54		437
Disposals (ii)	241		—		241		—
Transfer due to acquisition of control	—		—		—		181
Translation adjustment	(76	)	(58	)	250		(99	)
Equity results on statement of income	668		542		(157	)	1,001
Equity results on statement of comprehensive income	(1	)	5		(8	)	6
Dividends declared	(147	)	(1,202	)	(223	)	(1,296	)
Other transfers	118		—		118		—
Transfer to held for sale - Others	—		(216	)	(15	)	(216	)
Transfer to held for sale - VLI S.A.	—		—		—		2,840
Balance at end of the period	13,057		11,251		13,057		11,251

(i) Refers to Aliança Geração de Energia S.A., see note 6.

(ii) Refers to Shandong Yankuang International Coking Co., Ltd., see note 7(d).

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015		June 30, 2014
Balance at beginning of the period	118,628		123,370
Aquisitions (i)	1,819		—
Additions	940		1,367
Translation adjustment	10,964		(5,017	)
Equity results on statement of income	(1,757	)	(3,683	)
Equity results on statement of comprehensive income	920		349
Dividends declared	(341	)	(1,570	)
Other transfers	52		—
Transfer to held for sale - Others	(30	)	(216	)
Transfer to held for sale - VLI S.A.	—		2,840
Balance at end of the period	131,195		117,440

(i) Refers to Aliança Geração de Energia S.A., see note 6.

Table of Contents

Investments (continued)

			Investments			Equity results (unaudited)								Received dividends (iv)(unaudited)
			As of			Three-months period ended				Six-months period ended				Six-months period ended
	% ownership	% voting capital	June 30, 2015		December 31, 2014	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014		June 30, 2015	June 30, 2014
			(unaudited)
Subsidiaries
Aços Laminados do Pará S.A.	100.00	100.00	336		332	—		—		—		—		—	—
Biopalma da Amazônia S.A.	89.05	89.05	593		646	(12	)	(33	)	(233	)	(37	)	—	—
Companhia Portuária da Baía de Sepetiba	100.00	100.00	597		385	122		86		212		157		—	—
Compañia Minera Miski Mayo S.A.C.	40.00	51.00	579		563	5		(3	)	17		(11	)	83	—
Mineração Corumbaense Reunida S.A.	100.00	100.00	1,357		1,150	15		140		100		182		—	—
Minerações Brasileiras Reunidas S.A.	98.32	98.32	6,014		5,201	79		37		41		(12	)	324	—
Potássio Rio Colorado S.A.	100.00	100.00	1,489		1,474	7		(12	)	(6	)	(17	)	—	—
Salobo Metais S.A.	100.00	100.00	7,994		7,591	199		87		368		136		—	—
Tecnored Desenvolvimento Tecnológico S.A.	100.00	100.00	57		86	(14	)	(19	)	(27	)	(23	)	—	—
Vale International Holdings GmbH	100.00	100.00	11,091		7,283	24		(1,434	)	2,526		(1,500	)	—	—
Vale Canada Holdings Inc.	100.00	100.00	5,565		5,127	—		(3	)	(10	)	(7	)	—	—
Vale Canada Limited	100.00	100.00	20,591		16,182	(758	)	(134	)	(1,435	)	(166	)	—	—
Vale Fertilizantes S.A.	100.00	100.00	13,401		13,236	150		(30	)	(373	)	(100	)	—	—
Vale International S.A.	100.00	100.00	36,111		20,978	2,917		(1,278	)	(1,768	)	(3,198	)	—	—
Vale Malaysia Minerals Sdn. Bhd.	100.00	100.00	3,538		3,251	(11	)	(23	)	(229	)	(11	)	—	—
Vale Manganês S.A.	100.00	100.00	671		721	(7	)	16		(32	)	(9	)	—	—
Vale Mina do Azul S.A.	100.00	100.00	—		—	—		19		—		22		—	19
Vale Moçambique S.A.	100.00	100.00	(2,004	)	14,480	(531	)	(152	)	(903	)	(124	)	—	—
Vale Shipping Holding Pte. Ltd.	100.00	100.00	8,829		7,432	(70	)	88		80		172		—	—
Others			1,329		1,532	59		79		72		(138	)	490	—
			118,138		107,650	2,174		(2,569	)	(1,600	)	(4,684	)	897	19
Joint ventures
Aliança Geração de Energia S.A. (i)	55.00	55.00	1,877		—	55		—		59		—		—	—
Aliança Norte Energia Participações S.A. (i)	51.00	51.00	282		—	(1	)	—		5		—		—	—
California Steel Industries, Inc.	50.00	50.00	588		489	(27	)	13		(41	)	18		—	—
Companhia Coreano-Brasileira de Pelotização	50.00	50.00	210		228	20		18		31		36		33	19
Companhia Hispano-Brasileira de Pelotização (i)	50.89	51.00	204		213	7		9		18		17		44	25
Companhia Ítalo-Brasileira de Pelotização (i)	50.90	51.00	184		162	14		8		27		18		36	13
Companhia Nipo-Brasileira de Pelotização (i)	51.00	51.11	362		378	41		49		72		78		51	63
Companhia Siderúrgica do Pecém (ii)	50.00	50.00	1,730		1,925	166		(12	)	(195	)	(19	)	—	—
MRS Logística S.A.	47.59	46.75	1,400		1,355	44		48		70		81		—	—
Norte Energia S.A. (ii) (iii)	—	—	—		241	—		(1	)	—		(2	)	—	—
Samarco Mineração S.A.	50.00	50.00	395		533	388		396		(137	)	804		459	369
Others			121		96	(3	)	(4	)	(2	)	1		1	—
			7,353		5,620	704		524		(93	)	1,032		624	489
Associates
Henan Longyu Energy Resources Co., Ltd.	25.00	25.00	1,129		943	10		18		9		47		—	—
Mineração Rio Grande do Norte S.A.	40.00	40.00	271		243	39		5		29		18		—	—
Teal Minerals Inc.	50.00	50.00	535		514	(52	)	(15	)	(64	)	(27	)	—	—
Thyssenkrupp Companhia Siderúrgica do Atlântico Ltd.	26.87	26.87	350		545	(96	)	(22	)	(96	)	(64	)	—	—
VLI S.A.	37.60	37.60	2,982		2,945	68		42		59		42		25	—
Zhuhai YPM Pellet Co.	25.00	25.00	76		64	1		—		1		—		—	—
Others			361		104	(6	)	(10	)	(2	)	(47	)	2	—
			5,704		5,358	(36	)	18		(64	)	(31	)	27	—
Total of joint ventures and associates			13,057		10,978	668		542		(157	)	1,001		651	489
Total			131,195		118,628	2,842		(2,027	)	(1,757	)	(3,683	)	1,548	508

(i) Although the Company held majority of the voting capital, the entities are accounted under equity method due to existing veto rights held by other stockholders.

(ii) Pre-operational stage.

(iii) The Company’s interest in Norte Energia S.A. is indirectly owned by Aliança Norte Energia Participações S.A. (note 6).

(iv) Dividends received by the Parent Company during the year ended at June 30, 2015 and June 30, 2014 were R$ 1.319 and R$ 509, respectively.

Table of Contents

13. Intangible assets

	Consolidated
	June 30, 2015 (unaudited)				December 31, 2014
	Cost	Amortization		Net	Cost	Amortization		Net
Indefinite useful life
Goodwill	10,746	—		10,746	9,987	—		9,987

Finite useful life
Concessions	10,078	(3,419	)	6,659	9,086	(3,210	)	5,876
Right of use	1,604	(815	)	789	1,375	(586	)	789
Software	3,868	(2,393	)	1,475	3,603	(2,141	)	1,462
	15,550	(6,627	)	8,923	14,064	(5,937	)	8,127
Total	26,296	(6,627	)	19,669	24,051	(5,937	)	18,114

	Parent Company
	June 30, 2015 (unaudited)				December 31, 2014
	Cost	Amortization		Net	Cost	Amortization		Net
Indefinite useful life
Goodwill	10,746	—		10,746	9,987	—		9,987

Finite useful life
Concessions	10,078	(3,419	)	6,659	9,086	(3,210	)	5,876
Right of use	223	(98	)	125	223	(94	)	129
Software	3,868	(2,393	)	1,475	3,603	(2,141	)	1,462
	14,169	(5,910	)	8,259	12,912	(5,445	)	7,467
Total	24,915	(5,910	)	19,005	22,899	(5,445	)	17,454

Changes in intangible assets are as follows:

	Consolidated (unaudited)
	Three-months period ended
	Goodwill		Concessions		Right of use		Software		Total
Balance on March 31, 2014	9,451		4,789		545		1,269		16,054
Additions	—		171		—		1		172
Disposals	—		(2	)	—		—		(2	)
Amortization	—		(237	)	(16	)	(76	)	(329	)
Translation adjustment	(12	)	—		3		—		(9	)
Balance on June 30, 2014	9,439		4,721		532		1,194		15,886

	Consolidated (unaudited)
	Three-months period ended
	Goodwill		Concessions		Right of use		Software		Total
Balance on March 31, 2015	10,889		6,069		824		1,550		19,332
Additions	—		724		—		53		777
Disposals	—		(12	)	—		—		(12	)
Amortization	—		(122	)	(33	)	(128	)	(283	)
Translation adjustment	(144	)	—		(2	)	—		(146	)
Acquisition of subsidiary (note 7(b))	1		—		—		—		1
Balance on June 30, 2015	10,746		6,659		789		1,475		19,669

Table of Contents

	Consolidated
	Six-months period ended
	Goodwill		Concessions		Right of use		Software		Total
Balance on December 31, 2013	9,698		4,466		594		1,338		16,096
Additions	—		606		—		12		618
Disposals	—		(9	)	—		—		(9	)
Amortization	—		(342	)	(33	)	(156	)	(531	)
Translation adjustment	(259	)	—		(29	)	—		(288	)
Balance on June 30, 2014 (unaudited)	9,439		4,721		532		1,194		15,886

	Consolidated
	Six-months period ended
	Goodwill	Concessions		Right of use		Software		Total
Balance on December 31, 2014	9,987	5,876		789		1,462		18,114
Additions	—	1,073		—		266		1,339
Disposals	—	(49	)	—		—		(49	)
Amortization	—	(241	)	(63	)	(253	)	(557	)
Translation adjustment	657	—		63		—		720
Acquisition of subsidiary (note 7(b))	102	—		—		—		102
Balance on June 30, 2015 (unaudited)	10,746	6,659		789		1,475		19,669

	Parent Company
	Six-months period ended
	Goodwill		Concessions		Right of use		Software		Total
Balance on December 31, 2013	9,698		4,466		134		1,338		15,636
Additions	—		606		—		12		618
Disposals	—		(9	)	—		—		(9	)
Amortization	—		(342	)	(2	)	(156	)	(500	)
Translation adjustment	(259	)	—		—		—		(259	)
Balance on June 30, 2014 (unaudited)	9,439		4,721		132		1,194		15,486

	Parent Company
	Six-months period ended
	Goodwill	Concessions		Right of use		Software		Total
Balance on December 31, 2014	9,987	5,876		129		1,462		17,454
Addition	102	1,073		—		266		1,441
Disposals	—	(48	)	—		—		(48	)
Amortization	—	(242	)	(4	)	(253	)	(499	)
Translation adjustment	657	—		—		—		657
Balance on June 30, 2015 (unaudited)	10,746	6,659		125		1,475		19,005

Table of Contents

14. Property, plant and equipment

	Consolidated
	June 30, 2015 (unaudited)				December 31, 2014
	Cost	Accumulated Depreciation		Net	Cost	Accumulated Depreciation		Net
Land	3,098	—		3,098	2,839	—		2,839
Buildings	45,493	(8,063	)	37,430	37,569	(6,614	)	30,955
Facilities	46,959	(15,663	)	31,296	41,831	(13,110	)	28,721
Equipment	44,867	(15,767	)	29,100	38,200	(13,531	)	24,669
Mineral properties	59,232	(18,455	)	40,777	55,687	(16,033	)	39,654
Others	45,137	(13,091	)	32,046	39,543	(10,448	)	29,095
Construction in progress	47,397	—		47,397	51,574	—		51,574
	292,183	(71,039	)	221,144	267,243	(59,736	)	207,507

	Parent Company
	June 30, 2015 (unaudited)				December 31, 2014
	Cost	Accumulated Depreciation		Net	Cost	Accumulated Depreciation		Net
Land	1,595	—		1,595	1,452	—		1,452
Buildings	18,983	(2,437	)	16,546	15,631	(2,267	)	13,364
Facilities	23,649	(5,374	)	18,275	22,367	(5,030	)	17,337
Equipment	12,526	(4,564	)	7,962	11,368	(4,271	)	7,097
Mineral properties	5,258	(1,027	)	4,231	5,278	(882	)	4,396
Others	18,009	(6,585	)	11,424	16,016	(6,196	)	9,820
Construction in progress	31,062	—		31,062	33,855	—		33,855
	111,082	(19,987	)	91,095	105,967	(18,646	)	87,321

Consolidated property, plant and equipment (net book value) pledged to secure judicial claims on June 30, 2015 and December 31, 2014 were R$160 and R$179, respectively. For the parent company, the amount were R$159 and R$179 at June 30, 2015 and December 31, 2014, respectively.

Changes in property, plant and equipment are as follows:

	Consolidated (unaudited)
	Three-months period ended
	Land		Building		Facilities		Equipment		Mineral properties		Others		Constructions in progress		Total
Balance on March 31, 2014	2,496		18,520		28,318		19,673		36,655		24,513		59,378		189,553
Additions (i)	—		—		—		—		—		—		6,252		6,252
Disposals	(1	)	(85	)	—		(2	)	(67	)	(4	)	(233	)	(392	)
Depreciation and amortization	—		(460	)	(106	)	(660	)	(382	)	(229	)	—		(1,837	)
Impairment (note 15)	—		—		(1	)	—		(1,715	)	(4	)	(10	)	(1,730	)
Translation adjustment	(7	)	(348	)	(361	)	(591	)	(676	)	(671	)	(860	)	(3,514	)
Transfers	73		580		(556	)	1,053		2,191		828		(4,169	)	—
Balance on June 30, 2014	2,561		18,207		27,294		19,473		36,006		24,433		60,358		188,332

	Consolidated (unaudited)
	Three-months period ended
	Land		Building		Facilities		Equipment		Mineral properties		Others		Constructions in progress		Total
Balance on March 31, 2015	2,960		36,387		31,505		28,762		40,662		32,019		51,328		223,623
Additions (i)	—		—		—		—		—		—		5,256		5,256
Disposals	—		—		(19	)	(46	)	—		(1,574	)	—		(1,639	)
Depreciation and amortization	—		(437	)	(571	)	(824	)	(748	)	(558	)	—		(3,138	)
Translation adjustment	(20	)	(887	)	(423	)	(729	)	(499	)	(510	)	110		(2,958	)
Transfers	158		2,367		804		1,937		1,362		2,669		(9,297	)	—
Balance on June 30, 2015	3,098		37,430		31,296		29,100		40,777		32,046		47,397		221,144

(i) Includes interest capitalized and ARO, see cash flow.

Table of Contents

	Consolidated
	Six-months period ended
	Land		Building		Facilities		Equipment		Mineral properties		Others		Constructions in progress		Total
Balance on December 31, 2013	2,215		18,236		25,622		19,689		38,129		24,642		62,775		191,308
Additions (i)	—		—		—		—		—		—		11,475		11,475
Disposals	(2	)	(110	)	(7	)	(13	)	(204	)	(71	)	(278	)	(685	)
Depreciation and amortization	—		(638	)	(738	)	(1,379	)	(908	)	(667	)	—		(4,330	)
Impairment (note 15)	—		—		(1	)	—		(1,715	)	(4	)	(10	)	(1,730	)
Translation adjustment	138		(552	)	(1,055	)	(547	)	(2,197	)	(1,000	)	(2,493	)	(7,706	)
Transfers	210		1,271		3,473		1,723		2,901		1,533		(11,111	)	—
Balance on June 30, 2014 (unaudited)	2,561		18,207		27,294		19,473		36,006		24,433		60,358		188,332

	Consolidated
	Six-months period ended
	Land	Building		Facilities		Equipment		Mineral properties		Others		Constructions in progress		Total
Balance on December 31, 2014	2,839	30,955		28,721		24,669		39,654		29,095		51,574		207,507
Additions (i)	—	—		—		—		—		—		11,275		11,275
Disposals	—	(14	)	(22	)	(60	)	(434	)	(1,592	)	(5	)	(2,127	)
Depreciation and amortization	—	(824	)	(1,167	)	(1,707	)	(1,372	)	(1,126	)	—		(6,196	)
Translation adjustment	73	780		739		1,602		2,879		1,518		2,777		10,368
Transfers	186	6,533		3,025		4,595		50		3,835		(18,224	)	—
Acquisition of subsidiary (note 7(b))	—	—		—		1		—		316		—		317
Balance on June 30, 2015 (unaudited)	3,098	37,430		31,296		29,100		40,777		32,046		47,397		221,144

(i) Includes interest capitalized and ARO, see cash flow.

	Parent Company
	Six-months period ended
	Land	Building		Facilities		Equipment		Mineral properties		Others		Constructions in progress		Total
Balance on December 31, 2013	1,322	9,449		14,350		5,641		2,366		8,680		28,897		70,705
Additions (i)	—	—		—		—		—		—		5,643		5,643
Disposals	—	(23	)	(2	)	(10	)	(92	)	(9	)	(42	)	(178	)
Depreciation and amortization	—	(166	)	(330	)	(590	)	(289	)	(147	)	—		(1,522	)
Transfers	59	80		2,725		630		242		497		(4,233	)	—
Balance on June 30, 2014 (unaudited)	1,381	9,340		16,743		5,671		2,227		9,021		30,265		74,648

	Parent Company
	Six-months period ended
	Land	Building		Facilities		Equipment		Mineral properties		Others		Constructions in progress		Total
Balance on December 31, 2014	1,452	13,364		17,337		7,097		4,396		9,820		33,855		87,321
Additions (i)	—	—		—		—		—		—		5,733		5,733
Disposals	—	(10	)	(8	)	(52	)	—		(25	)	—		(95	)
Depreciation and amortization	—	(238	)	(431	)	(473	)	(172	)	(550	)	—		(1,864	)
Transfers	143	3,430		1,377		1,390		7		2,179		(8,526	)	—
Balance on June 30, 2015 (unaudited)	1,595	16,546		18,275		7,962		4,231		11,424		31,062		91,095

(i) includes capitalized and ARO, see cash flow.

Table of Contents

15. Impairment

The Company did not identify any impairment indicators for the period ended June 30, 2015.

During the second quarter of 2014, the Company identified evidence and recognized impairment in relation to certain of the Company’s operations as presented below.

Property plant and equipment

i. Coal

Australian assets

In May 2014, the Company announced that Integra and Isaac Plains mining complex, both in Australia, were put into care and maintenance since the operation is not economically feasible under current market conditions. As a consequence, the Company recognized an impairment of R$612 in the second quarter of 2014.

ii. Iron ore projects

VGB - Vale BSGR Limited

Vale’s former 51%-owned subsidiary VBG-Vale BSGR Limited (“VBG”) held iron ore concession rights in Simandou South (Zogota) and iron ore exploration permits in Simandou North (Blocks 1 & 2) in Guinea. On April 25, 2014 the government of Guinea revoked VBG’S mining concessions, based on the recommendation of a technical committee established pursuant to Guinean legislation. The decision was based on the allegations of fraudulent conduct in connection with the acquisition of licenses by BSGR (Vale´s former partner in VBG) more than one year before Vale had made any investment at VBG. The decision does not indicate any involvement by Vale and therefore does not prohibit Vale from participating in any future concession of the mining titles. Due to the uncertainties at that time R$1,118 was recognized as impairment. During the first quarter of 2015, the investment was sold (note 7a).

16. Loans and financing

a) Total debt

	Consolidated
	Current liabilities		Non-current liabilities
	June 30, 2015	December 31, 2014	June 30, 2015	December 31, 2014
	(unaudited)		(unaudited)
Debt contracts in the international markets
Floating rates in:
US$	691	950	18,442	13,531
Others currencies	—	—	6	7
Fixed rates in:
US$	6,252	183	37,684	35,166
EUR	—	—	5,191	4,841
Accrued charges	900	887	—	—
	7,843	2,020	61,323	53,545
Debt contracts in Brazil
Floating rates in:
R$, indexed to TJLP, TR, IPCA, IGP-M and CDI	797	785	14,787	14,617
Basket of currencies and US$ indexed to LIBOR	760	561	4,648	3,623
Fixed rates in:
R$	174	128	1,728	964
Accrued charges	313	274	—	—
	2,044	1,748	21,163	19,204
	9,887	3,768	82,486	72,749

Table of Contents

	Parent Company
	Current liabilities		Non-current liabilities
	June 30, 2015	December 31, 2014	June 30, 2015	December 31, 2014
	(unaudited)		(unaudited)
Debt contracts in the international markets
Floating rates in:
US$	676	670	15,136	11,721
Fixed rates in:
US$	2,978	159	4,654	3,984
EUR	—	—	5,190	4,841
Accrued charges	270	338	—	—
	3,924	1,167	24,980	20,546
Debt contracts in Brazil
Floating rates in:
R$, indexed to TJLP, TR, IPCA, IGP-M and CDI	748	734	13,672	13,511
Basket of currencies and US$ indexed to LIBOR	752	554	4,636	3,609
Fixed rates in:
R$	162	123	1,628	876
Accrued charges	268	275	—	—
	1,930	1,686	19,936	17,996
	5,854	2,853	44,916	38,542

Below are the future flows of debt payments (principal and interest) per nature of funding:

	Consolidated					Parent Company
	Bank loans (i)	Capital market (i)	Development agencies (i)	Debt principal (i)	Estimated future payments of interest(ii)	Debt principal (i)
2015	3,033	—	1,262	4,295	2,214	4,096
2016	110	2,951	2,829	5,890	4,619	2,516
2017	575	3,760	3,114	7,449	4,342	2,765
2018	5,523	2,595	3,536	11,654	4,296	11,192
2019	1,584	3,103	4,063	8,750	3,752	5,236
2020	4,474	3,432	2,618	10,524	3,362	6,292
Between 2021 and 2025	4,068	10,197	6,428	20,693	10,445	12,850
2026 onwards	1,179	20,154	572	21,905	18,078	5,285
	20,546	46,192	24,422	91,160	51,108	50,232

(i) Does not include accrued charges.

(ii) Consists of estimated future payments of interest on loans, financings and debentures, calculated based on interest rate curves and foreign exchange rates applicable as of June 30, 2015 and considering that all amortization payments and payments at maturity on loans, financings and debentures will be made on their contracted payments dates. The amount includes the estimated values of future interest payments (not yet accrued), in addition to interest already recognized in the financial statements.

At June 30, 2015, the average annual interest rates by currency are as follows:

	Consolidated			Parent Company
	Average interest rate (i)		Total debt	Average interest rate (i)		Total debt
Loans and financing in US$	4.86	%	68,500	3.68	%	29,040
Loans and financing in R$ (ii)	10.09	%	17,773	10.07	%	16,453
Loans and financing in EUR (iii)	4.06	%	5,277	4.06	%	5,277
Loans and financing in others currencies	6.36	%	823			—
			92,373			50,770

(i) In order to determine the average interest rate for debt contracts with floating rates, the Company used the last renegotiated rate at June 30, 2015.

(ii) R$ denominated debt that bears interest at IPCA, CDI or TJLP, plus spread. For a total of R$13,791, the Company entered into derivative transactions to mitigate the exposure to the cash flow variations of the floating rate debt denominated in R$, resulting in an average cost of 2.27% per year in US$.

(iii) Eurobonds, for which the Company entered into derivatives to mitigate the exposure to the cash flow variations of the debt denominated in EUR, resulting in an average cost of 4.42% per year in US$.

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b) Credit lines

Amounts drawn on

Type

Contractual
currency

Date of agreement

Available for

Total amount

June 30, 2015

December 31,
2014

(unaudited)

Revolving credit lines

Revolving credit facility

US$

May 2015

5 years

9,308

—

Revolving credit facility

US$

July 2013

5 years

6,205

—

Credit lines

Export-Import Bank of China and Bank of China Limited

US$

September 2010

(i)

13 years

3,812

3,337

3,294

BNDES

April 2008

(ii)

10 years

7,300

5,545

4,864

Financing

BNDES - CLN 150

September 2012

(iii)

10 years

3,883

3,476

3,339

BNDES - Tecnored 3.5%

December 2013

(iv)

8 years

137

BNDES - S11D e S11D Logística

May 2014

(v)

10 years

6,163

2,501

1,866

(i) Acquisition of twelve large ore carriers from Chinese shipyards.

(ii) Memorandum of understanding signature date, however term is considered from the signature date of each contract amendment.

(iii) Capacitação Logística Norte 150 Project (“CLN 150”).

(iv) Support to Tecnored’s investment plan from 2013 to 2015.

(v) Iron ore project S11D and S11D Logistica implementation.

Total amounts and amounts disbursed, when not contracted in the reporting currency, are affected by exchange rate variation.

c) Guarantees

As of June 30, 2015 and December 31, 2014 financing and loans in the amount of R$3,639 and R$3,485, respectively, are secured by property, plant and equipment and receivables.

17. Asset retirement obligations

The Company applies judgment and assumptions when measuring its asset retirement obligation. The accrued amounts of these obligations are not deducted from the potential costs covered by insurance or indemnities.

The long term interest rates used to discount these obligations to present value and to update the provisions at June 30, 2015 was of 5.51% p.a. in Brazil, 2.05% p.a. in Canada and between 1.61% - 8.81% p.a. for the others locations.

Changes in asset retirement obligations are as follows:

	Consolidated (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Balance at beginning of the period	9,663		6,320		8,949		6,194
Interest expense	251		92		465		249
Settlements	(77	)	(16	)	(148	)	(24	)
Revisions on cash flows estimates	12		(66	)	32		54
Translation adjustment	(87	)	(6	)	464		(149	)
Balance at end of the period	9,762		6,324		9,762		6,324

Current	353		357		353		357
Non-current	9,409		5,967		9,409		5,967
	9,762		6,324		9,762		6,324

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015		June 30, 2014
Balance at beginning of the period	3,195		1,946
Interest expense	229		111
Settlements	(5	)	(2	)
Balance at end of the period	3,419		2,055

Current	85		89
Non-current	3,334		1,966
	3,419		2,055

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18. Litigation

a) Provision for litigation

Vale is party to labor, civil, tax and other ongoing lawsuits, at administrative and court levels. Provisions for losses resulting from lawsuits are estimated and updated by the Company, based by legal consultants.

Changes in provision for litigation are as follows:

	Consolidated (unaudited)
	Three-months period ended
	Tax litigation		Civil litigation		Labor litigation		Environmental litigation		Total of litigation provision
Balance on March 31, 2014	779		461		1,748		119		3,107
Additions	130		—		124		1		255
Reversals	—		(32	)	(70	)	—		(102	)
Payments	(13	)	(9	)	(17	)	(4	)	(43	)
Indexation and interest	3		58		55		(17	)	99
Translation adjustment	(8	)	—		—		(2	)	(10	)
Balance on June 30, 2014	891		478		1,840		97		3,306

	Consolidated (unaudited)
	Three-months period ended
	Tax litigation		Civil litigation		Labor litigation		Environmental litigation		Total of litigation provision
Balance on March 31, 2015	980		367		1,910		229		3,486
Additions	41		95		114		—		250
Reversals	(20	)	(57	)	(46	)	(1	)	(124	)
Payments	(15	)	(4	)	(67	)	(13	)	(99	)
Indexation and interest	27		4		28		2		61
Translation adjustment	(10	)	—		—		(5	)	(15	)
Balance on June 30, 2015	1,003		405		1,939		212		3,559

	Consolidated (unaudited)
	Six-months period ended
	Tax litigation		Civil litigation		Labor litigation		Environmental litigation		Total of litigation provision
Balance on December 31, 2013	771		498		1,653		67		2,989
Additions	225		21		248		43		537
Reversals	(62	)	(52	)	(127	)	(9	)	(250	)
Payments	(15	)	(15	)	(31	)	(4	)	(65	)
Indexation and interest	(13	)	26		97		7		117
Translation adjustment	(15	)	—		—		(7	)	(22	)
Balance on June 30, 2014 (unaudited)	891		478		1,840		97		3,306

	Consolidated (unaudited)
	Six-months period ended
	Tax litigation		Civil litigation		Labor litigation		Environmental litigation		Total of litigation provision
Balance on December 31, 2014	972		311		1,876		246		3,405
Additions	443		142		215		—		800
Reversals	(516	)	(90	)	(120	)	(1	)	(727	)
Payments	(24	)	(4	)	(80	)	(59	)	(167	)
Indexation and interest	83		45		48		6		182
Translation adjustment	45		1		—		20		66
Balance on June 30, 2015 (unaudited)	1,003		405		1,939		212		3,559

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	Parent Company
	Six-months period ended
	Tax litigation		Civil litigation		Labor litigation		Environmental litigation		Total of litigation provision
Balance on December 31, 2013	280		221		1,472		35		2,008
Additions	157		7		231		39		434
Reversals	6		(42	)	(105	)	(10	)	(151	)
Payments	(14	)	(13	)	(27	)	—		(54	)
Indexation and interest	(4	)	10		90		(3	)	93
Balance on June 30, 2014 (unaudited)	425		183		1,661		61		2,330

	Parent Company
	Six-months period ended
	Tax litigation		Civil litigation		Labor litigation		Environmental litigation		Total of litigation provision
Balance on December 31, 2014	436		186		1,732		94		2,448
Additions	330		59		193		—		582
Reversals	(500	)	(45	)	(94	)	—		(639	)
Payments	(24	)	(11	)	(73	)	(37	)	(145	)
Indexation and interest	130		47		(7	)	6		176
Balance on June 30, 2015 (unaudited)	372		236		1,751		63		2,422

b) Contingent liabilities

Contingent liabilities consist of administrative and judicial claims, which expectation of loss is classified as possible, and for which the recognition of a provision is not considered necessary by the Company, based on legal support.

	Consolidated		Parent Company
	June 30, 2015	December 31, 2014	June 30, 2015	December 31, 2014
	(unaudited)		(unaudited)
Tax litigations	19,425	16,187	14,567	13,084
Civil litigations	4,258	3,734	3,456	2,962
Labor litigations	6,475	5,194	5,643	4,491
Environmental litigations	3,937	2,981	3,781	2,881
Total	34,095	28,096	27,447	23,418

c) Judicial deposits

In addition to the provisions and contingent liabilities, the Company is required by law to make judicial deposits to secure a potential adverse outcome of certain lawsuits. These court-ordered deposits are monetarily adjusted and reported as non-current assets until a judicial decision to draw the deposit occurs.

	Consolidated		Parent Company
	June 30, 2015	December 31, 2014	June 30, 2015	December 31, 2014
	(unaudited)		(unaudited)
Tax litigations	870	940	594	664
Civil litigations	226	333	141	115
Labor litigations	2,166	2,096	2,001	1,942
Environmental litigations	37	1	35	—
Total	3,299	3,370	2,771	2,721

d) Others

On April 30, 2014, Rio Tinto plc (“Rio Tinto”) filed a lawsuit against Vale, BSGR, and other defendants in the United States District Court for the Southern District of New York, alleging violations of the U.S. Racketeer Influenced and Corrupt Organizations Act (RICO) in relation to Rio Tinto’s loss of certain Simandou mining rights, the Government of Guinea’s assignment of those rights to BSGR, and Vale’s subsequent investment in VBG. Discovery has begun and under the current schedule will be completed in March 2016. Vale intends to vigorously defend the action, which it believes to be without merit.

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19. Income taxes - Settlement program (“REFIS”)

In November 2013, the Company elected to participate in the REFIS, a federal tax settlement program, to settle most of the claims related to the collection of income tax and social contribution on equity gain of foreign subsidiaries and affiliates from 2003 to 2012.

On June 30, 2015, the balance of R$17,009 (R$1,276 in current and R$15,733 in non-current) is due in 160 monthly installments, bearing interest at the SELIC rate.

20. Income taxes

a) Deferred income tax

	Consolidated (unaudited)
	Three-months period ended
	Assets		Liabilities		Total
Balance on March 31, 2014	10,614		7,264		3,350
Net income effect	(887	)	120		(1,007	)
Translation adjustment	(79	)	(56	)	(23	)
Other comprehensive income	22		78		(56	)
Balance on June 30, 2014	9,670		7,406		2,264

	Consolidated (unaudited)
	Three-months period ended
	Assets		Liabilities		Total
Balance on March 31, 2015	14,036		9,942		4,094
Net income effect	(492	)	(139	)	(353	)
Translation adjustment	(254	)	(362	)	108
Other comprehensive income	51		144		(93	)
Balance on June 30, 2015	13,341		9,585		3,756

	Consolidated
	Six-months period ended
	Assets		Liabilities		Total
Balance on December 31, 2013	10,596		7,562		3,034
Net income effect	(954	)	199		(1,153	)
Translation adjustment	(15	)	(452	)	437
Other comprehensive income	43		97		(54	)
Balance on June 30, 2014 (unaudited)	9,670		7,406		2,264

	Consolidated
	Six-months period ended
	Assets		Liabilities		Total
Balance on December 31, 2014	10,560		8,874		1,686
Loss effect	2,336		(161	)	2,497
Translation adjustment	423		883		(460	)
Other comprehensive income	53		(11	)	64
Acquisition of subsidiary	(31	)	—		(31	)
Balance on June 30, 2015 (unaudited)	13,341		9,585		3,756

	Parent Company
	Six-months period ended
	Assets
Balance on December 31, 2013	7,418
Net income effect	(738	)
Other comprehensive income	43
Balance on June 30, 2014 (unaudited)	6,723

	Parent Company
	Six-months period ended
	Assets
Balance on December 31, 2014	6,430
Loss effect	2,732
Other comprehensive income	17
Balance on June 30, 2015 (unaudited)	9,179

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Deferred tax assets arising from tax losses, negative social contribution basis and temporary differences are registered taking into consideration the analysis of future performance, based on economic and financial projections, prepared based on internal assumptions and macroeconomic, trade and tax scenarios that may be subject to changes in future.

The income tax in Brazil comprises taxation on income and social contribution on profit. The statutory rate applicable in the period presented is 34%. In other countries where the Company has operations, it is subject to various rates, depending on jurisdiction.

b) Income tax reconciliation

The total amount presented as income taxes in the statement of income is reconciled to the rate established by law, as follows:

	Consolidated (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Net income (loss) before income taxes	5,562		5,326		(6,779	)	13,247
Income taxes at statutory rates - 34%	(1,891	)	(1,811	)	2,305		(4,504	)
Adjustments that affect the basis of taxes:
Income tax benefit from interest on stockholders’ equity	509		658		1,054		1,317
Tax incentives	75		101		75		412
Results of overseas companies taxed by different rates which differs from the parent company rate	867		(308	)	(118	)	(975	)
Equity results on statement of income	228		184		(53	)	340
Undeductible effect of impairment	—		(382	)	—		(382	)
Provision or reversal of tax loss carryforward	—		(272	)	—		(255	)
Others	(349	)	(406	)	(1,175	)	(526	)
Income taxes	(561	)	(2,236	)	2,088		(4,573	)

					Parent company (unaudited)
					Six-months period ended
					June 30, 2015		June 30, 2014
Net income (loss) before income taxes					(7,127	)	12,809
Income taxes at statutory rates - 34%					2,423		(4,355	)
Adjustments that affect the basis of taxes:
Income tax benefit from interest on stockholders’ equity					1,054		1,317
Tax incentives					—		412
Equity results on statement of income					(598	)	(1,253	)
Others					(147	)	166
Income taxes					2,732		(3,713	)

21. Employee benefits obligations

At June 30, 2015 the Company contributed R$404 and does not expect significant changes in relation to the estimate disclosed in the financial statements for the year ended December 31, 2014.

a) Employee postretirements obligations

i. Reconciliation of assets and liabilities in balance sheet

	June 30, 2015 (unaudited)						December 31, 2014
	Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans		Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans
Balance at beginning of the period	3,455		—		—		2,790		—		—
Interest income	214		—		—		335		—		—
Changes on asset ceiling and onerous liability	75		—		—		330		—		—
Balance at end of the period	3,744		—		—		3,455		—		—

Amount recognized in the balance sheet
Present value of actuarial liabilities	(10,167	)	(13,204	)	(4,387	)	(9,902	)	(12,009	)	(3,981	)
Fair value of assets	13,911		10,958		—		13,357		9,872		—
Effect of the asset ceiling	(3,744	)	—		—		(3,455	)	—		—
Liabilities provisioned	—		(2,246	)	(4,387	)	—		(2,137	)	(3,981	)

Current liabilities	—		(60	)	(179	)	—		(42	)	(135	)
Non-current liabilities	—		(2,186	)	(4,208	)	—		(2,095	)	(3,846	)
Liabilities provisioned	—		(2,246	)	(4,387	)	—		(2,137	)	(3,981	)

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ii. Costs recognized in the statement of income

	Consolidated (unaudited)
	Three-months period ended
	June 30, 2015					June 30, 2014
	Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans	Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans
Current service cost	16		117		28	17		35		17
Interest expense on liabilities	294		150		53	279		116		57
Interest income on plan assets	(404	)	(126	)	—	(368	)	(87	)	—
Interest expense on effect of asset (ceiling) and onerous liability	107		—		—	84		—		—
Total of cost, net	13		141		81	12		64		74

	Consolidated (unaudited)
	Six-months period ended
	June 30, 2015					June 30, 2014
	Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans	Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans
Current service cost	31		159		47	34		71		36
Interest expense on liabilities	588		278		104	558		241		110
Interest income on plan assets	(807	)	(234	)	—	(736	)	(178	)	—
Interest expense on effect of asset (ceiling) and onerous liability	214		—		—	168		—		—
Total of cost, net	26		203		151	24		134		146

iii. Costs recognized in the statement of comprehensive income

	Consolidated (unaudited)
	Three-months period ended
	June 30, 2015						June 30, 2014
	Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans		Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans
Balance at beginning of the period	(387	)	(1,815	)	(564	)	(260	)	(805	)	(448	)
Return on plan assets (excluding interest income)	250		143		191		76		290		—
Changes on asset ceiling and onerous liability	(289	)	—		—		(95	)	(88	)	—
Gross balance for the period	(39	)	143		191		(19	)	202		—
Deferred income tax	13		(37	)	(59	)	7		(47	)	—
Other comprehensive income	(26	)	106		132		(12	)	155		—
Translation adjustment	—		56		14		(2	)	21		10
Accumulated comprehensive income	(413	)	(1,653	)	(418	)	(274	)	(629	)	(438	)

	Consolidated (unaudited)
	Six-months period ended
	June 30, 2015						June 30, 2014
	Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans		Overfunded pension plans		Underfunded pension plans		Others underfunded pension plans
Balance at beginning of the period	(380	)	(1,515	)	(350	)	(219	)	(926	)	(460	)
Return on plan assets (excluding interest income)	1		81		(55	)	33		408		—
Changes on asset ceiling and onerous liability	(50	)	—		—		(115	)	(88	)	—
Gross balance for the period	(49	)	81		(55	)	(82	)	320		—
Deferred income tax	16		33		25		27		(73	)	—
Other comprehensive income	(33	)	114		(30	)	(55	)	247		—
Translation adjustment	—		(252	)	(38	)	—		50		22
Accumulated comprehensive income	(413	)	(1,653	)	(418	)	(274	)	(629	)	(438	)

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b) Profit sharing program (“PLR”)

The Company recorded as cost of goods sold and services rendered and other operating expenses related to PLR R$160 as at June 30, 2015 (R$589 in June 30, 2014) in consolidated and R$103 in June 30, 2015 (R$463 in June 30, 2014) in parent company.

c) Long-term compensation plan

In order to promote stockholder culture, in addition to increasing the ability to retain executives and to strengthen the culture of sustainability performance, Vale has a long-term incentive programs (Matching plan and long-term incentive plan – ILP) for some executives of the Company, covering 3 to 4 year cycles.

Liabilities of the plans are measured at fair value on the date of each issuance of the report, based on market rates. Compensation costs incurred are recognized by the defined vesting period of three years. At June 30, 2015 and December 31, 2014 the Company recorded a liability with the same impact in the statement of income of R$136 and R$163, respectively.

22. Classification of financial instruments

	Consolidated
	June 30, 2015 (unaudited)				December 31, 2014
	Loans and receivables (i)	At fair value through profit or loss (ii)	Derivatives designated as hedge (iii)	Total	Loans and receivables (i)	At fair value through profit or loss (ii)	Derivatives designated as hedge (c)	Total
Financial assets
Current
Cash and cash equivalents	9,799	—	—	9,799	10,555	—	—	10,555
Financial investments	329	—	—	329	392	—	—	392
Derivative financial instruments	—	758	—	758	—	441	—	441
Accounts receivable	8,652	—	—	8,652	8,700	—	—	8,700
Related parties	1,216	—	—	1,216	1,537	—	—	1,537
	19,996	758	—	20,754	21,184	441	—	21,625
Non-current
Related parties	65	—	—	65	93	—	—	93
Loans and financing	682	—	—	682	609	—	—	609
Derivative financial instruments	—	78	—	78	—	231	—	231
Others	175	—	—	175	—	—	—	—
	922	78	—	1,000	702	231	—	933
Total of financial assets	20,918	836	—	21,754	21,886	672	—	22,558

Financial liabilities
Current
Suppliers and contractors	11,890	—	—	11,890	11,566	—	—	11,566
Derivative financial instruments	—	2,007	590	2,597	—	2,539	1,221	3,760
Loans and financing	9,887	—	—	9,887	3,768	—	—	3,768
Related parties	600	—	—	600	813	—	—	813
	22,377	2,007	590	24,974	16,147	2,539	1,221	19,907
Non-current
Derivative financial instruments	—	7,090	—	7,090	—	4,273	3	4,276
Loans and financing	82,486	—	—	82,486	72,749	—	—	72,749
Related parties	291	—	—	291	288	—	—	288
Participative stockholders’ debentures	—	2,642	—	2,642	—	4,584	—	4,584
Others (iv)	—	357	—	357	—	303	—	303
	82,777	10,089	—	92,866	73,037	9,160	3	82,200
Total of financial liabilities	105,154	12,096	590	117,840	89,184	11,699	1,224	102,107

(i) Non-derivative financial instruments with determinable cash flow.

(ii) Financial instruments for trading in short term.

(iii) See note 24(a).

(iv) See note 23(a).

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	Parent Company
	June 30, 2015 (unaudited)			December 31, 2014
	Loans and receivables (i)	At fair value through profit or loss (ii)	Total	Loans and receivables (i)	At fair value through profit or loss (ii)	Total
Financial assets
Current
Cash and cash equivalents	1,574	—	1,574	685	—	685
Financial investments	18	—	18	392	—	392
Derivative financial instruments	—	443	443	—	370	370
Accounts receivable	30,369	—	30,369	30,599	—	30,599
Related parties	1,187	—	1,187	2,227	—	2,227
	33,148	443	33,591	33,903	370	34,273
Non-current
Related parties	977	—	977	902	—	902
Loans and financing	100	—	100	104	—	104
Derivative financial instruments	—	—	—	—	29	29
	1,077	—	1,077	1,006	29	1,035
Total of financial assets	34,225	443	34,668	34,909	399	35,308

Financial liabilities
Current
Suppliers and contractors	6,221	—	6,221	6,818	—	6,818
Derivative financial instruments	—	834	834	—	948	948
Loans and financing	5,854	—	5,854	2,853	—	2,853
Related parties	6,203	—	6,203	5,622	—	5,622
	18,278	834	19,112	15,293	948	16,241
Non-current
Derivative financial instruments	—	6,126	6,126	—	3,866	3,866
Loans and financing	44,916	—	44,916	38,542	—	38,542
Related parties	48,675	—	48,675	43,606	—	43,606
Participative stockholders’ debentures	—	2,642	2,642	—	4,584	4,584
Others (iv)	—	357	357	—	303	303
	93,591	9,125	102,716	82,148	8,753	90,901
Total of financial liabilities	111,869	9,959	121,828	97,441	9,701	107,142

(i) Non-derivative financial instruments with determinable cash flow.

(ii) Financial instruments for trading in short term.

(iii) See note 24(a).

(iv) See note 23(a).

23. Fair value estimate

The Company considered the same assumptions and calculation methods as presented on the financial statements for the year ended December 31, 2014, to measure the fair value of assets and liabilities for the period.

a) Assets and liabilities measured and recognized at fair value

	Consolidated
	June 30, 2015 (unaudited)			December 31, 2014
	Level 2	Level 3	Total	Level 2	Level 3	Total
Financial assets
Current
Derivatives at fair value through profit or loss	758	—	758	441	—	441
	758	—	758	441	—	441
Non-current
Derivatives at fair value through profit or loss	78	—	78	231	—	231
	78	—	78	231	—	231
Total of financial assets	836	—	836	672	—	672

Financial liabilities
Current
Derivatives at fair value through profit or loss	2,007	—	2,007	2,539	—	2,539
Derivatives designated as hedge	590	—	590	1,221	—	1,221
	2,597	—	2,597	3,760	—	3,760
Non-current
Derivatives at fair value through profit or loss	7,090	—	7,090	4,273	—	4,273
Derivatives designated as hedge	—	—	—	3	—	3
Participative stockholders’ debentures	2,642	—	2,642	4,584	—	4,584
Others (minimum return instrument)	—	357	357	—	303	303
	9,732	357	10,089	8,860	303	9,163
Total of financial liabilities	12,329	357	12,686	12,620	303	12,923

Table of Contents

	Parent Company
	June 30, 2015 (unaudited)			December 31, 2014
	Level 2	Level 3	Total	Level 2	Level 3	Total
Financial assets
Current
Derivatives at fair value through profit or loss	443	—	443	370	—	370
	443	—	443	370	—	370
Non-current
Derivatives at fair value through profit or loss	—	—	—	29	—	29
	—	—	—	29	—	29
Total of financial assets	443	—	443	399	—	399

Financial liabilities
Current
Derivatives at fair value through profit or loss	834	—	834	948	—	948
	834	—	834	948	—	948
Non-current
Derivatives at fair value through profit or loss	6,126	—	6,126	3,866	—	3,866
Participative stockholders’ debentures	2,642	—	2,642	4,584	—	4,584
Others (minimun return instrument)	—	357	—	—	303	303
	8,768	357	8,768	8,450	303	8,753
Total of financial liabilities	9,602	357	9,602	9,398	303	9,701

b) Fair value measurement compared to book value

The fair value estimate for level 1 is based on market approach considering the secondary market contracts. For loans allocated to level 2, the income approach is adopted and the fair value for both fixed-indexed rate debt and floating rate debt is determined on a discounted cash flows basis using LIBOR future values and Vale’s bonds curve.

The fair values and carrying amounts of non-current loans (net of interest) are as follows:

	Consolidated				Parent Company
	Balance	Fair value (ii)	Level 1	Level 2	Balance	Fair value (ii)	Level 1	Level 2
Financial liabilities
June 30, 2015 (unaudited)
Loans (long term) (i)	91,160	88,179	46,392	41,787	50,232	46,755	10,655	36,100

December 31, 2014
Loans (long term) (i)	75,356	78,302	42,077	36,225	40,782	46,886	9,953	36,933

(i) Net interest of US$1,213 on consolidated and US$538 on parent company at June 30, 2015 and US$1,161 on consolidated and US$613 on parent company at December 31, 2014.

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24. Derivative financial instruments

a) Derivatives effects on balance sheet

	Consolidated
	Assets
	June 30, 2015 (unaudited)		December 31, 2014
	Current	Non-current	Current	Non-current
Derivatives not designated as hedge
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap	495	—	364	29
IPCA swap	15	—	18	—
Eurobonds swap	—	—	—	109
Pre dollar swap	18	—	5	—
	528	—	387	138
Commodities price risk
Nickel	119	18	54	7
Bunker oil	111	9	—	—
	230	27	54	7
Warrants
SLW options (note 29)	—	51	—	86
	—	51	—	86
Total	758	78	441	231

	Consolidated
	Liabilities
	June 30, 2015 (unaudited)		December 31, 2014
	Current	Non-current	Current	Non-current
Derivatives not designated as hedge
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap	533	5,842	1,173	3,599
IPCA swap	—	352	—	167
Eurobonds swap	440	83	24	238
Pre dollar swap	305	273	81	262
	1,278	6,550	1,278	4,266
Commodities price risk
Nickel	101	19	60	7
Bunker oil	628	351	1,201	—
	729	370	1,261	7
Others
VLI option	—	170	—	—
	—	170	—	—
Derivatives designated as cash flow hedge
Bunker oil	541	—	1,152	—
Foreign exchange	49	—	69	3
	590	—	1,221	3
Total	2,597	7,090	3,760	4,276

	Parent Company
	Assets
	June 30, 2015 (unaudited)		December 31, 2014
	Current	Non-current	Current	Non-current
Derivatives not designated as hedge
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap	417	—	354	29
IPCA swap	17	—	11	—
Pre dollar swap	9	—	5	—
Total	443	—	370	29

	Parent Company
	Liabilities
	June 30, 2015 (unaudited)		December 31, 2014
	Current	Non-current	Current	Non-current
Derivatives not designated as hedge
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap	530	5,501	867	3,535
IPCA swap	—	182	—	70
Pre dollar swap	304	273	81	261
	834	5,956	948	3,866
Others
VLI option	—	170	—	—
	—	170	—	—
Total	834	6,126	948	3,866

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b) Effects of derivatives on the statement of income, cash flow and other comprehensive income

	Consolidated (unaudited)
	Three-months period ended
	Amount of gain (loss) recognized in the statement of income				Financial settlement inflows(outflows)				Amount of gain(loss) recognized in OCI
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014		June 30, 2015	June 30, 2014
Derivatives not designated as hedge
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap	534		739		37		212		—	—
IPCA swap	73		19		9		—		—	—
Eurobonds swap	86		3		(39	)	—		—	—
Pre dollar swap	37		49		(5	)	7		—	—
	730		810		2		219		—	—
Commodities price risk
Nickel	(34	)	(7	)	(34	)	6		—	—
Bunker oil	236		34		30		1		—	—
	202		27		(4	)	7		—	—
Warrants
SLW options (note 29)	(33	)	15		—		—		—	—
	(33	)	15		—		—		—	—
Others
VLI option	(170	)	—		—		—		—	—
	(170	)	—		—		—		—	—
Embedded derivatives
Gas - Oman	—		3		—		—		—	—
	—		3		—		—		—	—
Derivatives designated as cash flow hedge
Bunker oil	(291	)	(13	)	(271	)	(13	)	524	59
Foreign exchange	(30	)	(21	)	(30	)	(21	)	29	49
	(321	)	(34	)	(301	)	(34	)	553	108
Total	408		821		(303	)	192		553	108

	Consolidated (unaudited)
	Six-months period ended
	Amount of gain (loss) recognized in the statement of income				Financial settlement inflows(outflows)				Amount of gain(loss) recognized in OCI
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014		June 30, 2015	June 30, 2014
Derivatives not designated as hedge
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap	(2,359	)	1,195		(879	)	279		—	—
IPCA swap	(150	)	36		20		—		—	—
Eurobonds swap	(338	)	18		(39	)	24		—	—
Pre dollar swap	(235	)	75		(11	)	12		—	—
	(3,082	)	1,324		(909	)	315		—	—
Commodities price risk
Nickel	(57	)	(9	)	(79	)	9		—	—
Bunker oil	84		40		(382	)	(20	)	—	—
	27		31		(461	)	(11	)	—	—
Warrants
SLW options (note 29)	(52	)	34		—		—		—	—
	(52	)	34		—		—		—	—
Embedded derivatives
Gas - Oman	—		2		—		—		—	—
	—		2		—		—		—	—
Others
VLI option	(170	)	—		—		—		—	—
	(170	)	—		—		—		—	—
Derivatives designated as cash flow hedge
Bunker oil	(634	)	(19	)	(646	)	(19	)	832	41
Foreign exchange	(72	)	(52	)	(72	)	(52	)	28	25
	(706	)	(71	)	(718	)	(71	)	860	66
Total	(3,983	)	1,320		(2,088	)	233		860	66

Table of Contents

	Parent company (unaudited)
	Six-months period ended
	Amount of gain (loss) recognized in the statement of income			Financial settlement inflows(outflows)			Amount of gain(loss) recognized in OCI
	June 30, 2015		June 30, 2014	June 30, 2015		June 30, 2014	June 30, 2015	June 30, 2014
Derivatives not designated as hedge
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap	(2,197	)	1,125	(601	)	258	—	—
IPCA swap	(103	)	46	11		—	—	—
Pre dollar swap	(235	)	75	(11	)	11	—	—
	(2,535	)	1,246	(601	)	269	—	—
Others
VLI option	(170	)	—	—		—	—	—
	(170	)	—	—		—	—	—
Cash flow hedge of entities
Bunker oil	—		—	—		—	832	41
Foreign exchange	—		—	—		—	28	25
	—		—	—		—	860	66
Total	(2,705	)	1,246	(601	)	269	860	66

Related to the effects of derivatives in the statement of income, the Company recognized R$620 as cost of goods sold and services rendered and R$3,349 as financial expense for the six-months period ended on June 30, 2015.

The maturities dates of the derivative financial instruments are as follows:

		Maturity dates
Currencies and interest rates		July 2023
Gas - Oman		April 2016
Nickel		August 2017
Copper		September 2015
Warrants		February 2023
Others		December 2027
Bunker oil		December 2016

Additional information about derivatives financial instruments

The risk of the derivatives portfolio is measured using the delta-Normal parametric approach, which considers that the future distribution of the risk factors and its correlations tends to present the same statistic properties verified in the historical data. The value at risk estimate considers a 95% confidence level for a one business day time horizon.

There was no cash amount deposited as margin call regarding derivative positions on June 30, 2015. The contracts subject to margin calls refer only to part of nickel trades executed by the wholly-owned subsidiary Vale Canada Ltd.

The derivative positions described in this document didn’t have initial costs associated.

The following tables detail the derivatives positions for Vale and its controlled companies as of March 31, 2015, with the following information: notional amount, fair value including credit risk, gains or losses in the period, value at risk and the fair value breakdown by year of maturity.

a) Foreign exchange and interest rates derivative positions

(i) Protection programs for the R$ denominated debt instruments

In order to reduce cash flow volatility, swap transactions were implemented to convert into US$ the cash flows from certain debt instruments denominated in R$ with interest rates linked mainly to CDI, TJLP and IPCA. In those swaps, Vale pays fixed or floating rates in US$ and receives payments in R$ linked to the interest rates of the protected debt instruments.

The swap transactions were negotiated over-the-counter and the protected items are the cash flows from debt instruments linked to R$. These programs transform into US$ the obligations linked to R$ to achieve a currency offset in the Company’s cash flows, by matching its receivables - mainly linked to US$ - with its payables.

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	Notional							Fair value				Realized gain / loss		Value at Risk	Fair value by year
Flow	June 30, 2015		December 31, 2014		Index	Average rate		June 30, 2015		December 31, 2014		June 30, 2015		June 30, 2015	2015		2016		2017		2018+

CDI vs. US$ fixed rate swap
Receivable	R$	4,939	R$	4,511	CDI	109.03	%	5,194		4,736		1,645
Payable	US$	2,199	US$	2,284	US$+	3.35	%	(7,037	)	(6,180	)	(2,138	)
Net								(1,843	)	(1,444	)	(493	)	97	225		(1,226	)	(145	)	(697	)
Net adjusted for credit risk								(1,885	)	(1,453	)				223		(1,239	)	(154	)	(715	)

CDI vs. US$ floating rate swap
Receivable	—		R$	428	CDI	103.50	%	—		448		460
Payable	—		US$	250	Libor +	0.99	%	—		(668	)	(663	)
Net								—		(220	)	(203	)	—	—		—		—		—
Net adjusted for credit risk								—		(220	)				—		—		—		—

TJLP vs. US$ fixed rate swap
Receivable	R$	5,868	R$	6,247	TJLP +	1.33	%	5,219		5,444		788
Payable	US$	2,810	US$	3,051	USD +	1.71	%	(8,498	)	(7,802	)	(972	)
Net								(3,279	)	(2,358	)	(184	)	237	(118	)	(570	)	(827	)	(1,764	)
Net adjusted for credit risk								(3,754	)	(2,531	)				(119	)	(586	)	(901	)	(2,147	)

TJLP vs. US$ floating rate swap
Receivable	R$	281	R$	295	TJLP +	0.94	%	239		243		24
Payable	US$	164	US$	173	Libor +	-1.21	%	(468	)	(413	)	(23	)
Net								(229	)	(170	)	1		14	(1	)	(9	)	(16	)	(202	)
Net adjusted for credit risk								(241	)	(175	)				(1	)	(9	)	(17	)	(214	)

R$ fixed rate vs. US$ fixed rate swap
Receivable	R$	699	R$	735	Fix	3.89	%	812		649		75
Payable	US$	371	US$	395	US$+	-1.69	%	(1,317	)	(972	)	(86	)
Net								(505	)	(323	)	(11	)	27	(92	)	(252	)	(20	)	(140	)
Net adjusted for credit risk								(560	)	(337	)				(93	)	(259	)	(22	)	(185	)

IPCA vs. US$ fixed rate swap
Receivable	R$	1,000	R$	1,000	IPCA +	6.55	%	1,134		1,113		56
Payable	US$	434	US$	434	US$+	3.98	%	(1,460	)	(1,259	)	(38	)
Net								(326	)	(146	)	19		28	—		15		12		(353	)
Net adjusted for credit risk								(337	)	(150	)				—		15		12		(364	)

(ii) Protection program for EUR denominated debt instruments

In order to reduce the cash flow volatility, swap transactions were implemented to convert into US$ the cash flows from certain debt instruments denominated issued in Euros by Vale. In those swaps, Vale receives fixed rates in EUR and pays fixed rates in US$.

The swap transactions were negotiated over-the-counter and the protected items are the cash flows from debt instruments linked to EUR. The gain or loss shown below is offset by the protected items’ gain or loss due to EUR/US$ exchange rate.

	Notional ($ million)							Fair value				Realized gain / loss		Value at Risk	Fair value by year
Flow	June 30, 2015		December 31, 2014		Index	Average rate		June 30, 2015		December 31, 2014		June 30, 2015		June 30, 2015	2015	2016		2017		2018+

Receivable	€	1,000	€	1,000	EUR	4.06	%	3,925		3,800		133
Payable	US$	1,302	US$	1,302	US$	4.51	%	(4,444	)	(3,941	)	(171	)
Net								(519	)	(141	)	(38	)	67	—	(440	)	(17	)	(61	)
Net adjusted for credit risk								(523	)	(154	)				—	(442	)	(17	)	(64	)

(iii) Foreign exchange hedging program for disbursements in CAD

In order to reduce the cash flow volatility, forward transactions were implemented to mitigate the foreign exchange exposure that arises from the currency mismatch between revenues denominated in US$ and disbursements denominated in CAD.

The forward transactions were negotiated over-the-counter and the protected item is part of the CAD denominated disbursements. The gain or loss shown below is offset by the protected items’ gain or loss due to CAD/US$ exchange rate. This program is classified under the hedge accounting requirements.

	Notional ($ million)				Bought /	Average rate	Fair value				Realized gain / loss	Value at Risk	Fair value by year
Flow	June 30, 2015		December 31, 2014		Sold	(CAD / USD)	June 30, 2015		December 31, 2014		June 30, 2015	June 30, 2015	2015		2016

Forward	CAD	90	CAD	230	B	1.023	(49	)	(73	)	—	2	(43	)	(6	)
Total adjusted for credit risk							(49	)	(73	)			(44	)	(6	)

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b) Commodities derivative positions

(i) Bunker Oil purchase cash flows protection program

In order to reduce the impact of bunker oil price fluctuation on maritime freight hiring/supply and, consequently, reducing the company’s cash flow volatility, bunker oil derivatives were implemented. These transactions are usually executed through forward purchases and zero cost-collars.

The derivative transactions were negotiated over-the-counter and the protected item is part of the Vale’s costs linked to bunker oil prices. The gain or loss shown below is offset by the protected items’ gain or loss due to bunker oil prices changes. Part of this program is classified under the hedge accounting requirements.

	Notional (ton)		Bought /	Average strike	Fair value				Realized gain / loss		Value at Risk	Fair value by year
Flow	June 30, 2015	December 31, 2014	Sold	(US$/ton)	June 30, 2015		December 31, 2014		June 30, 2015		June 30, 2015	2015		2016

Bunker Oil protection
Forwards	2,872,500	2,205,000	B	449	(793	)	(964	)	(145	)	67	77		(871	)
Call options	1,501,500	—	B	394	24		—		—		5	3		22
Put options	1,501,500	—	S	341	(105	)	—		—		15	(22	)	(83	)
Total adjusted for credit risk					(877	)	(964	)	—			58		(935	)

Bunker Oil hedge
Forwards	975,000	1,950,000	B	498	(454	)	(986	)	(456	)	22	(454	)	—
Total adjusted for credit risk					(455	)	(987	)				(455	)	—

(ii) Protection programs for base metals raw materials and products

In the operational protection program for nickel sales at fixed prices, derivatives transactions were implemented to convert into floating prices the contracts with clients that required a fixed price in order to keep nickel revenues exposed to nickel price fluctuations. Those operations are usually implemented through the purchase of nickel forwards, which are unwind before the original maturity in order to match the settlement dates of the commercial contracts in which the prices were fixed.

In the operational protection program for the purchase of raw materials and products, derivatives transactions were implemented, usually through the sale of nickel and copper forward or futures, in order to eliminate the mismatch between the pricing period of purchases (concentrate, cathode, sinter, scrap and others) and the pricing period of the final product sales to the clients.

The derivative transactions are negotiated at London Metal Exchange or over-the-counter and the protected item is part of the Vale’s revenues and costs linked to nickel and copper prices. The gain or loss shown below is offset by the protected items’ gain or loss due to nickel and copper prices changes.

	Notional (ton)		Bought /	Average strike	Fair value				Realized gain / loss		Value at Risk	Fair value by year
Flow	June 30, 2015	December 31, 2014	Sold	(US$/ton)	June 30, 2015		December 31, 2014		June 30, 2015		June 30, 2015	2015		2016		2017

Fixed prices sales protection
Nickel forwards	13,468	11,264	B	14,903	(119	)	(65	)	(81	)	14	(70	)	(43	)	(6	)
Total adjusted for credit risk					(120	)	(65	)				(70	)	(44	)	(6	)

Raw materials purchase protection
Nickel forwards	152	140	S	13,266	0.6		0.4		1.1		0.2	0.6		—		—
Copper forwards	311	360	S	6,162	0.4		0.3		0.6		0.1	0.4		—		—
Total adjusted for credit risk					1.0		0.7					1.0		—		—

c) Silver Wheaton Corp. warrants

The company owns warrants of Silver Wheaton Corp. (SLW), a Canadian company with stocks negotiated in Toronto Stock Exchange and New York Stock Exchange. Such warrants configure American call options and were received as part of the payment regarding the sale of 25% of gold payable flows produced as a sub product from Salobo copper mine during its life and 70% of gold payable flows produced as a sub product from some nickel mines in Sudbury during 20 years.

Fair value

Notional (quantity)

Bought /

Average strike

Fair value

Realized gain / loss

Value at Risk

by year

Flow

June 30, 2015

December 31, 2014

Sold

(US$/share)

June 30, 2015

December 31, 2014

June 30, 2015

2023

Call options

10,000,000

—

Total adjusted for credit risk

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d) Call options from debentures

The company has debentures in which lenders have call options of an specified amount of Ferrovia Norte Sul SA ordinary shares, later changed to VLI SA shares. The call option’s strike price is given by the debentures’ remaining notional in each exercise date.

Fair value

Notional (quantity)

Bought /

Average strike

Fair value

Realized gain / loss

Value at Risk

by year

Flow

June 30, 2015

December 31, 2014

Sold

(R$/share)

June 30, 2015

December 31, 2014

June 30, 2015

2027

Call options

140,239

—

8,560

(167

)

—

(167

)

Total adjusted for credit risk

(168

)

—

(168

)

e) Embedded derivatives in commercial contracts, insurance and debt instruments

The Company has some nickel concentrate and raw materials purchase agreements in which there are provisions based on nickel and copper future prices behavior. These provisions are considered as embedded derivatives.

Fair value

Notional (ton)

Bought /

Average strike

Fair value

Realized gain / loss

Value at Risk

by year

Flow

June 30, 2015

December 31, 2014

Sold

(US$/ton)

June 30, 2015

December 31, 2014

June 30, 2015

2015

Nickel Forward

5.237

4.491

13.061

4,6

(1,5

)

4,6

Copper Forward

4.219

6.310

6.051

2,9

3,0

2,9

Total

7,4

1,5

—

7,0

7,4

The Company has also a natural gas purchase agreement in which there´s a clause that defines that a premium can be charged if the Company’s pellet sales prices trade above a pre-defined level. This clause is considered an embedded derivative and both his fair value and value at risk were not material as of June 30, 2015.

f) Sensitivity analysis of derivative financial instruments

The table below presents the potential value of the instruments given hypothetical stress scenarios for the market risk factors that impact the derivatives positions. The scenarios were defined as follows:

· Scenario I: fair value calculation considering market curves and prices as of June 30, 2015

· Scenario II: fair value estimated considering a 25% deterioration in the market curves of the main market risk factors

· Scenario III: fair value estimated considering a 50% deterioration in the market curves of the main market risk factors

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Instrument	Instrument’s main risks	Scenario I		Scenario II		Scenario III

CDI vs. US$ fixed rate swap	R$ depreciation	(1,885	)	(3,644	)	(5,403	)
	US$ interest rate inside Brazil decrease	(1,885	)	(1,940	)	(1,997	)
	Brazilian interest rate increase	(1,885	)	(1,904	)	(1,925	)
Protected item: R$ denominated debt	R$ depreciation	n.a.		—		—

TJLP vs. US$ fixed rate swap	R$ depreciation	(3,754	)	(5,879	)	(8,003	)
	US$ interest rate inside Brazil decrease	(3,754	)	(3,890	)	(4,034	)
	Brazilian interest rate increase	(3,754	)	(4,079	)	(4,369	)
	TJLP interest rate decrease	(3,754	)	(3,936	)	(4,121	)
Protected item: R$ denominated debt		n.a.		—		—

TJLP vs. US$ floating rate swap	R$ depreciation	(241	)	(358	)	(475	)
	US$ interest rate inside Brazil decrease	(241	)	(252	)	(265	)
	Brazilian interest rate increase	(241	)	(260	)	(277	)
	TJLP interest rate decrease	(241	)	(252	)	(263	)
Protected item: R$ denominated debt	R$ depreciation	n.a.		—		—

R$ fixed rate vs. US$ fixed rate swap	R$ depreciation	(560	)	(890	)	(1,219	)
	US$ interest rate inside Brazil decrease	(560	)	(576	)	(592	)
	Brazilian interest rate increase	(560	)	(599	)	(633	)
Protected item: R$ denominated debt	R$ depreciation	n.a.		—		—

IPCA vs. US$ fixed rate swap	R$ depreciation	(337	)	(702	)	(1,067	)
	US$ interest rate inside Brazil decrease	(337	)	(366	)	(397	)
	Brazilian interest rate increase	(337	)	(454	)	(555	)
	IPCA index decrease	(337	)	(400	)	(459	)
Protected item: R$ denominated debt	R$ depreciation	n.a.		—		—

EUR fixed rate vs. US$ fixed rate swap	EUR depreciation	(523	)	(1,504	)	(2,486	)
	Euribor increase	(523	)	(553	)	(582	)
Protected item: EUR denominated debt	US$ Libor decrease	(523	)	(602	)	(687	)
	EUR depreciation	n.a.		1,504		2,486

CAD Forward	CAD depreciation	(49	)	(117	)	(185	)
Protected item: Disbursement in CAD	CAD depreciation	n.a.		117		185


Instrument	Instrument’s main risks	Scenario I		Scenario II		Scenario III

Bunker Oil protection
Forwards and options	Bunker Oil price decrease	(877	)	(2,000	)	(3,186	)
Protected item: Part of costs linked to bunker oil prices	Bunker Oil price decrease	n.a.		2,000		3,186

Bunker Oil hedge
Forwards	Bunker Oil price decrease	(455	)	(718	)	(980	)
Protected item: Part of costs linked to bunker oil prices	Bunker Oil price decrease	n.a.		718		980

Nickel sales fixed price protection
Forwards	Nickel price decrease	(120	)	(245	)	(370	)
Protected item: Part of nickel revenues with fixed prices	Nickel price fluctuation	n.a.		245		370

Purchase protection program
Nickel forwards	Nickel price increase	0.6		(0.8	)	(2.2	)
Protected item: Part of costs linked to nickel prices	Nickel price increase	n.a.		0.8		2.2

Copper forwards	Copper price increase	0.4		(1.0	)	(2.4	)
Protected item: Part of costs linked to copper prices	Copper price increase	n.a.		1.0		2.4

SLW warrants	SLW stock price decrease	51		25		8

VLI call options	VLI stock value increase	(168	)	(254	)	(355	)

Table of Contents

Instrument	Main risks	Scenario I	Scenario II		Scenario III

Embedded derivatives - Raw material purchase (nickel)	Nickel price increase	5	(47	)	(99	)
Embedded derivatives - Raw material purchase (copper)	Copper price increase	3	(16	)	(35	)

g) Financial counterparties’ ratings

The transactions of derivative instruments, cash and cash equivalents as well as investments are held with financial institutions whose exposure limits are periodically reviewed and approved by the delegated authority. The financial institutions credit risk is performed through a methodology that considers, among other information, ratings provided by international rating agencies.

The table below presents the ratings in foreign currency published by agencies Moody’s and S&P regarding the main financial institutions that we had outstanding positions as of June 30, 2015.

Long term ratings by counterparty	Moody’s	S&P
ANZ Australia and New Zealand Banking	Aa2	AA-
Banco Bradesco	Baa2	BBB-
Banco de Credito del Peru	Baa1	BBB+
Banco do Brasil	Baa2	BBB-
Banco do Nordeste	Baa3	BBB-
Banco Safra	Baa2	BBB-
Banco Santander	Baa2	BBB-
Banco Votorantim	Baa3	BB+
Bank of America	Baa1	A-
Bank of Nova Scotia	Aa2	A+
Banpara	Ba3	BB
Barclays	Baa3	BBB
BBVA	A3	BBB
BNP Paribas	A1	A+
BTG Pactual	Baa3	BB+
Caixa Economica Federal	Baa2	BBB-
Citigroup	Baa1	A-
Credit Agricole	A2	A
Deutsche Bank	A3	BBB+
Goldman Sachs	A3	A-
HSBC	A1	A
Intesa Sanpaolo Spa	Baa1	BBB-
Itau Unibanco	Baa3	BBB-
JP Morgan Chase & Co	A3	A
Morgan Stanley	A3	A-
National Australia Bank NAB	Aa2	AA-
Royal Bank of Canada	Aa3	AA-
Societe Generale	A2	A
Standard Bank Group	Baa3	—
Standard Chartered	Aa3	A-

h) Market curves

The curves used on the pricing of derivatives instruments were developed based on data from BM&F, Central Bank of Brazil, London Metals Exchange and Bloomberg.

(i) Products

Nickel

Maturity	Price (US$/ton)	Maturity	Price (US$/ton)	Maturity	Price (US$/ton)
SPOT	11,680.00	DEC15	12,025.28	JUN16	12,107.78
JUL15	11,947.01	JAN16	12,038.89	JUN17	12,220.57
AUG15	11,963.75	FEB16	12,055.50	JUN18	12,264.01
SEP15	11,977.52	MAR16	12,069.80	JUN19	12,264.19
OCT15	11,992.28	APR16	12,082.50
NOV15	12,010.00	MAY16	12,098.50

Copper

Maturity	Price (US$/lb)	Maturity	Price (US$/lb)	Maturity	Price (US$/lb)
SPOT	2.62	DEC15	2.62	JUN16	2.63
JUL15	2.61	JAN16	2.62	JUN17	2.65
AUG15	2.61	FEB16	2.62	JUN18	2.66
SEP15	2.61	MAR16	2.63	JUN19	2.66
OCT15	2.62	APR16	2.63
NOV15	2.62	MAY16	2.63

Bunker Oil

Maturity	Price (US$/ton)	Maturity	Price (US$/ton)	Maturity	Price (US$/ton)
SPOT	338.18	DEC15	355.93	JUN16	369.23
JUL15	341.04	JAN16	359.31	JUN17	390.57
AUG15	344.36	FEB16	361.43	JUN18	419.85
SEP15	348.10	MAR16	363.67	JUN19	456.55
OCT15	350.97	APR16	365.58
NOV15	353.60	MAY16	367.49

Table of Contents

(ii) Foreign exchange and interest rates

US$-Brazil Interest Rate

Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)
08/03/15	0.74	06/01/16	1.75	07/02/18	2.73
09/01/15	0.83	07/01/16	1.80	10/01/18	2.82
10/01/15	0.97	10/03/16	2.02	01/02/19	2.91
11/03/15	1.04	11/01/16	2.09	04/01/19	2.97
12/01/15	1.11	01/02/17	2.24	07/01/19	3.05
01/04/16	1.33	04/03/17	2.34	10/01/19	3.12
02/01/16	1.34	07/03/17	2.43	01/02/20	3.20
03/01/16	1.44	10/02/17	2.50	04/01/20	3.25
04/01/16	1.57	01/02/18	2.61	07/01/20	3.31
05/02/16	1.64	04/02/18	2.67	10/01/20	3.36

US$ Interest Rate

Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)
1M	0.19	6M	0.44	11M	0.51
2M	0.23	7M	0.46	12M	0.52
3M	0.28	8M	0.48	2Y	0.91
4M	0.36	9M	0.49	3Y	1.28
5M	0.41	10M	0.50	4Y	1.60

TJLP

Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)
08/03/15	6.00	06/01/16	6.00	07/02/18	6.00
09/01/15	6.00	07/01/16	6.00	10/01/18	6.00
10/01/15	6.00	10/03/16	6.00	01/02/19	6.00
11/03/15	6.00	11/01/16	6.00	04/01/19	6.00
12/01/15	6.00	01/02/17	6.00	07/01/19	6.00
01/04/16	6.00	04/03/17	6.00	10/01/19	6.00
02/01/16	6.00	07/03/17	6.00	01/02/20	6.00
03/01/16	6.00	10/02/17	6.00	04/01/20	6.00
04/01/16	6.00	01/02/18	6.00	07/01/20	6.00
05/02/16	6.00	04/02/18	6.00	10/01/20	6.00

BRL Interest Rate

Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)
08/03/15	13.68	06/01/16	14.28	07/02/18	13.07
09/01/15	13.87	07/01/16	14.27	10/01/18	12.99
10/01/15	14.03	10/03/16	14.16	01/02/19	12.92
11/03/15	14.10	11/01/16	14.08	04/01/19	12.88
12/01/15	14.20	01/02/17	13.94	07/01/19	12.85
01/04/16	14.24	04/03/17	13.76	10/01/19	12.81
02/01/16	14.27	07/03/17	13.60	01/02/20	12.77
03/01/16	14.29	10/02/17	13.45	04/01/20	12.74
04/01/16	14.30	01/02/18	13.26	07/01/20	12.72
05/02/16	14.29	04/02/18	13.16	10/01/20	12.70

Implicit Inflation (IPCA)

Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)
08/03/15	7.29	06/01/16	7.71	07/02/18	6.31
09/01/15	7.47	07/01/16	7.63	10/01/18	6.23
10/01/15	7.62	10/03/16	7.37	01/02/19	6.17
11/03/15	7.69	11/01/16	7.28	04/01/19	6.13
12/01/15	7.78	01/02/17	7.13	07/01/19	6.10
01/04/16	7.82	04/03/17	6.93	10/01/19	6.06
02/01/16	7.85	07/03/17	6.55	01/02/20	6.02
03/01/16	7.87	10/02/17	6.65	04/01/20	6.00
04/01/16	7.88	01/02/18	6.48	07/01/20	5.98
05/02/16	7.79	04/02/18	6.39	10/01/20	5.95

EUR Interest Rate

Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)
1M	0.07	6M	0.07	11M	0.07
2M	0.07	7M	0.07	12M	0.07
3M	0.07	8M	0.07	2Y	0.12
4M	0.07	9M	0.07	3Y	0.22
5M	0.07	10M	0.07	4Y	0.35

CAD Interest Rate

Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)	Maturity	Rate (% p.a.)
1M	0.99	6M	1.03	11M	0.89
2M	0.99	7M	0.99	12M	0.87
3M	0.99	8M	0.95	2Y	0.90
4M	1.01	9M	0.93	3Y	1.04
5M	1.02	10M	0.91	4Y	1.20

Currencies - Ending rates

CAD/US$

0.8014

US$/BRL

3.1026

EUR/US$

1.1153

Table of Contents

25. Stockholders’ equity

a) Capital

Stockholders’ equity is represented by common shares (“ON”) and preferred non-redeemable shares (“PNA”) without par value. Preferred shares have the same rights as common shares, with the exception of voting rights to elect members of the Board of Directors. The Board of Directors may, regardless of changes to bylaws, issue new shares (authorized capital), including the capitalization of profits and reserves to the extent authorized.

At June 30, 2015, the capital was R$77,300 corresponding to 5,244,316,120 shares without par value.

	June 30, 2015 (unaudited)
Stockholders	ON	PNA	Total
Valepar S.A.	1,716,435,045	20,340,000	1,736,775,045
Brazilian Government (Golden Share)	—	12	12
Foreign investors - ADRs	828,004,184	664,276,831	1,492,281,015
FMP - FGTS	80,340,725	—	80,340,725
PIBB - BNDES	1,540,182	1,934,936	3,475,118
BNDESPar	206,378,882	66,185,272	272,564,154
Foreign institutional investors in local market	239,400,587	625,819,715	865,220,302
Institutional investors	77,190,974	172,874,325	250,065,299
Retail investors in Brazil	36,362,421	416,290,835	452,653,256
Treasury stock	31,535,402	59,405,792	90,941,194
Total	3,217,188,402	2,027,127,718	5,244,316,120

b) Basic and diluted earnings per share

Basic and diluted earnings per share are as follows:

	(unaudited)
	Three-months period ended		Six-months period ended
	June 30, 2015	June 30, 2014	June 30, 2015		June 30, 2014
Net income (loss) attributable to the Company’s stockholders	5,144	3,187	(4,395	)	9,096

Basic and diluted earnings per share:
Income (loss) available to preferred stockholders	1,964	1,217	(1,678	)	3,473
Income (loss) available to common stockholders	3,180	1,970	(2,717	)	5,623
Total	5,144	3,187	(4,395	)	9,096

Weighted average number of shares outstanding (thousands of shares) - preferred shares	1,967,722	1,967,722	1,967,722		1,967,722
Weighted average number of shares outstanding (thousands of shares) - common shares	3,185,653	3,185,653	3,185,653		3,185,653
Total	5,153,375	5,153,375	5,153,375		5,153,375

Basic and diluted earnings per share
Preferred share	1.00	0.62	(0.85	)	1.77
Common share	1.00	0.62	(0.85	)	1.77

c) Remuneration to Company’s stockholders

	Dividends	Interest on capital	Total	Amount per share
Amounts paid in 2014
First installment - April	—	4,632	4,632	0.898904129
Total	—	4,632	4,632	0.898904129

Amounts paid in 2015
First installment - April	—	3,101	3,101	0.601760991
Total	—	3,101	3,101	0.601760991

Table of Contents

26. Information by business segment and by geographic area

The information presented to the Executive Board on the performance of each segment is derived from the accounting records, adjusted for reallocations between segments.

a) Operating income (loss) and adjusted EBITDA

Adjusted EBITDA is used by management to support the decision making process for segments. The definition of adjusted EBITDA for the Company is the operating income or loss added by dividends received from joint ventures and associates and excluded by depreciation, depletion and amortization, impairment and results on measurement or sales of non-current assets.

	Consolidated (unaudited)
	Three-months period ended
	June 30, 2015
	Statement of income													Adjusted by
	Net operating revenue	Costs		Expenses, net		Research and evaluation expenses		Pre operating and stoppage operation		Depreciation and others results		Operating income (loss)		Dividends received from joint ventures and associates	Depreciation, depletion and amortization	Gain on measurement or sale of non- current assets	Adjusted EBITDA
Ferrous minerals
Iron ore	10,451	(5,990	)	(584	)	(109	)	(74	)	(1,077	)	2,617		—	905	172	3,694
Pellets	2,989	(1,751	)	1		(4	)	(27	)	(268	)	940		552	268	—	1,760
Ferroalloys and manganese	165	(164	)	—		—		(12	)	(16	)	(27	)	—	16	—	(11	)
Others ferrous products and services	418	(294	)	(5	)	(3	)	(1	)	(71	)	44		25	71	—	140
	14,023	(8,199	)	(588	)	(116	)	(114	)	(1,432	)	3,574		577	1,260	172	5,583

Coal	450	(575	)	(138	)	(20	)	(35	)	(145	)	(463	)	—	145	—	(318	)

Base metals
Nickel and other products (i)	3,813	(2,566	)	(81	)	(71	)	(370	)	(1,219	)	(494	)	—	1,219	—	725
Copper (ii)	1,254	(683	)	(44	)	(6	)	—		(162	)	359		—	162	—	521
Others base metals products	—	—		—		—		—		—		—		—	—	—	—
	5,067	(3,249	)	(125	)	(77	)	(370	)	(1,381	)	(135	)	—	1,381	—	1,246
Fertilizers
Potash	95	(61	)	19		(40	)	(12	)	(23	)	(22	)	—	23	—	1
Phosphates	1,370	(916	)	(13	)	(19	)	(40	)	(199	)	183		—	199	—	382
Nitrogen	242	(158	)	1		(2	)	(4	)	(16	)	63		—	16	—	79
Others fertilizers products	42	—		—		—		—		—		42		—	—	—	42
	1,749	(1,135	)	7		(61	)	(56	)	(238	)	266		—	238	—	504

Others	152	(96	)	(163	)	(91	)	—		(15	)	(213	)	—	15	—	(198	)
Total	21,441	(13,254	)	(1,007	)	(365	)	(575	)	(3,211	)	3,029		577	3,039	172	6,817

(i) Includes nickel by-products and by-products (copper, precious metal, cobalt and others).

(ii) Includes copper concentrate and does not include the cooper by-product of nickel.

Table of Contents

	Consolidated (unaudited)
	Three-months period ended
	June 30, 2014
	Statement of income													Adjusted by
	Net operating revenue	Costs		Expenses, net		Research and evaluation expenses		Pre operating and stoppage operation		Depreciation and others results		Operating income (loss)		Dividends received from joint ventures and associates	Depreciation, depletion and amortizatio	Impairment	Adjusted EBITDA
Ferrous minerals
Iron ore	11,941	(5,262	)	(477	)	(151	)	(75	)	(1,797	)	4,179		—	679	1,118	5,976
Pellets	2,795	(1,388	)	(33	)	—		(14	)	(126	)	1,234		464	126	—	1,824
Ferroalloys and manganese	242	(150	)	(19	)	—		(16	)	(21	)	36		—	21	—	57
Others ferrous products and services	498	(333	)	8		—		—		(57	)	116		—	57	—	173
	15,476	(7,133	)	(521	)	(151	)	(105	)	(2,001	)	5,565		464	883	1,118	8,030

Coal	447	(674	)	(91	)	(5	)	(20	)	(642	)	(985	)	—	30	612	(343	)

Base metals
Nickel and other products (i)	3,430	(2,107	)	36		(75	)	(323	)	(724	)	237		—	724	—	961
Copper (ii)	783	(395	)	(1	)	(2	)	(6	)	(75	)	304		—	75	—	379
	4,213	(2,502	)	35		(77	)	(329	)	(799	)	541		—	799	—	1,340
Fertilizers
Potash	76	(78	)	(4	)	(8	)	(7	)	(19	)	(40	)	—	19	—	(21	)
Phosphates	1,045	(891	)	(36	)	(28	)	(18	)	(212	)	(140	)	—	212	—	72
Nitrogen	190	(128	)	(2	)	(5	)	(4	)	(27	)	24		—	27	—	51
Others fertilizers products	59	—		—		—		—		—		59		—	—	—	59
	1,370	(1,097	)	(42	)	(41	)	(29	)	(258	)	(97	)	—	258	—	161

Others	578	(389	)	(162	)	(79	)	—		(20	)	(72	)	—	20	—	(52	)
Total	22,084	(11,795	)	(781	)	(353	)	(483	)	(3,720	)	4,952		464	1,990	1,730	9,136

(i) Includes nickel by-products and by-products (copper, precious metal, cobalt and others).

(ii) Includes copper concentrate and does not include the cooper by-product of nickel.

Table of Contents

	Consolidated (unaudited)
	Six-months period ended
	June 30, 2015
	Statement of income													Adjusted by
	Net operating revenue	Costs		Expenses, net		Research and evaluation expenses		Pre operating and stoppage operation		Depreciation and others results		Operating income (loss)		Dividends received from joint ventures and associates	Depreciation, depletion and amortization	Gain on measurement or sale of non- current assets		Adjusted EBITDA
Ferrous minerals
Iron ore	18,310	(11,538	)	(1,073	)	(203	)	(148	)	(2,136	)	3,212		—	1,964	172		5,348
Pellets	5,767	(3,453	)	11		(8	)	(43	)	(514	)	1,760		624	514	—		2,898
Ferroalloys and manganese	372	(301	)	(1	)	(1	)	(28	)	(34	)	7		—	34	—		41
Others ferrous products and services	753	(579	)	25		(6	)	(3	)	(128	)	62		25	128	—		215
	25,202	(15,871	)	(1,038	)	(218	)	(222	)	(2,812	)	5,041		649	2,640	172		8,502

Coal	869	(1,120	)	(332	)	(34	)	(71	)	(212	)	(900	)	—	212	—		(688	)

Base metals
Nickel and other products (i)	7,667	(5,000	)	(268	)	(150	)	(675	)	(2,433	)	(859	)	—	2,433	—		1,574
Copper (ii)	2,356	(1,331	)	(31	)	(10	)	(2	)	(299	)	683		—	299	—		982
Others base metals products	—	—		722		—		—		—		722		—	—	—		722
	10,023	(6,331	)	423		(160	)	(677	)	(2,732	)	546		—	2,732	—		3,278
Fertilizers
Potash	180	(119	)	17		(69	)	(25	)	(41	)	(57	)	—	41	—		(16	)
Phosphates	2,390	(1,658	)	(60	)	(38	)	(65	)	(355	)	214		—	355	—		569
Nitrogen	465	(316	)	(6	)	(4	)	(7	)	(33	)	99		—	33	—		132
Others fertilizers products	76	—		—		—		—		—		76		—	—	—		76
	3,111	(2,093	)	(49	)	(111	)	(97	)	(429	)	332		—	429	—		761

Others	263	(174	)	(304	)	(187	)	(1	)	520		117		2	26	(546	)	(401	)
Total	39,468	(25,589	)	(1,300	)	(710	)	(1,068	)	(5,665	)	5,136		651	6,039	(374	)	11,452

(i) Includes nickel by-products and by-products (copper, precious metal, cobalt and others).

(ii) Includes copper concentrate and does not include the cooper by-product of nickel.

Table of Contents

	Consolidated (unaudited)
	Six-months period ended
	June 30, 2014
	Statement of income													Adjusted by
	Net operating revenue	Costs		Expenses, net		Research and evaluation expenses		Pre operating and stoppage operation		Depreciation and others results		Operating income (loss)		Dividends received from joint ventures and associates	Depreciation, depletion and amortization	Impairment	Adjusted EBITDA
Ferrous minerals
Iron ore	24,009	(9,818	)	(1,240	)	(294	)	(131	)	(2,656	)	9,870		—	1,538	1,118	12,526
Pellets	6,175	(2,833	)	(40	)	(1	)	(66	)	(246	)	2,989		489	246	—	3,724
Ferroalloys and manganese	405	(279	)	(24	)	—		(29	)	(36	)	37		—	36	—	73
Others ferrous products and services	959	(757	)	12		—		—		(127	)	87		—	127	—	214
	31,548	(13,687	)	(1,292	)	(295	)	(226	)	(3,065	)	12,983		489	1,947	1,118	16,537

Coal	770	(1,232	)	(217	)	(7	)	(39	)	(735	)	(1,460	)	—	123	612	(725	)

Base metals
Nickel and other products (i)	6,734	(4,023	)	(23	)	(149	)	(596	)	(1,638	)	305		—	1,638	—	1,943
Copper (ii)	1,556	(871	)	15		(2	)	(15	)	(163	)	520		—	163	—	683
	8,290	(4,894	)	(8	)	(151	)	(611	)	(1,801	)	825		—	1,801	—	2,626
Fertilizers
Potash	160	(150	)	(4	)	(18	)	(22	)	(32	)	(66	)	—	32	—	(34	)
Phosphates	1,997	(1,700	)	(84	)	(53	)	(70	)	(409	)	(319	)	—	409	—	90
Nitrogen	376	(260	)	(8	)	(10	)	(8	)	(56	)	34		—	56	—	90
Others fertilizers products	96	—		—		—		—		—		96		—	—	—	96
	2,629	(2,110	)	(96	)	(81	)	(100	)	(497	)	(255	)	—	497	—	242

Others	1,256	(833	)	(235	)	(162	)	—		(33	)	(7	)	—	33	—	26
Total	44,493	(22,756	)	(1,848	)	(696	)	(976	)	(6,131	)	12,086		489	4,401	1,730	18,706

(i) Includes nickel by-products and by-products (copper, precious metal, cobalt and others).

(ii) Includes copper concentrate and does not include the cooper by-product of nickel.

Table of Contents

b) Adjusted EBITDA and information of assets by segment

	Consolidated (unaudited)
	June 30, 2015
	Three-months period ended
	Adjusted EBITDA		Investments	Property, plant and equipment and intangible assets	Additions to property, plant and equipment and intangible (iii)
Ferrous minerals
Iron ore	3,694		1,520	100,509	3,885
Pellets	1,760		1,433	4,384	46
Ferroalloys and manganese	(11	)	—	679	19
Others ferrous products and services	140		2,982	807	9
	5,583		5,935	106,379	3,959

Coal	(318	)	1,129	14,492	1,210

Base metals
Nickel and other products (i)	725		59	86,169	901
Copper (ii)	521		534	9,140	225
Others base metals products	—		—	—	—
	1,246		593	95,309	1,126
Fertilizers
Potash	1		—	444	—
Phosphates	382		—	15,032	154
Nitrogen	79		—	—	—
Others fertilizers products	42		—	—	—
	504		—	15,476	154

Others	(198	)	5,400	9,157	65
Total	6,817		13,057	240,813	6,514

(i) Includes nickel by-products and by-products (copper, precious metal, cobalt and others).

(ii) Includes copper concentrate and does not include the cooper by-product of nickel.

(iii) Includes only acquisitions realized with cash and cash equivalents.

	Consolidated (unaudited)
	June 30, 2014
	Three-months period ended
	Adjusted EBITDA		Investments	Property, plant and equipment and intangible assets	Additions to property, plant and equipment and intangible (iii)
Ferrous minerals
Iron ore	5,976		1,401	85,104	2,544
Pellets	1,824		1,799	4,227	74
Ferroalloys and manganese	57		—	659	16
Others ferrous products and services	173		—	788	40
	8,030		3,200	90,778	2,674

Coal	(343	)	828	13,283	1,779

Base metals
Nickel and other products (i)	961		46	64,720	783
Copper (ii)	379		478	8,874	239
	1,340		524	73,594	1,022
Fertilizers
Potash	(21	)	—	370	—
Phosphates	72		—	—	—
Nitrogen	51		—	16,851	42
Others fertilizers products	59		—	—	—
	161		—	17,221	42

Others	(52	)	6,699	9,342	530
Total	9,136		11,251	204,218	6,047

(i) Includes nickel by-products and by-products (copper, precious metal, cobalt and others).

(ii) Includes copper concentrate and does not include the cooper by-product of nickel.

(iii) Includes only acquisitions realized with cash and cash equivalents.

Table of Contents

	Consolidated (unaudited)
	June 30, 2015
	Six-months period ended
	Adjusted EBITDA		Investments	Property, plant and equipment and intangible assets	Additions to property, plant and equipment and intangible (iii)
Ferrous minerals
Iron ore	5,348		1,520	100,509	8,056
Pellets	2,898		1,433	4,384	77
Ferroalloys and manganese	41		—	679	24
Others ferrous products and services	215		2,982	807	18
	8,502		5,935	106,379	8,175

Coal	(688	)	1,129	14,492	2,210

Base metals
Nickel and other products (i)	1,574		59	86,169	1,508
Copper (ii)	982		534	9,140	427
Others base metals products	722		—	—	—
	3,278		593	95,309	1,935
Fertilizers
Potash	(16	)	—	444	—
Phosphates	569		—	15,032	314
Nitrogen	132		—	—	—
Others fertilizers products	76		—	—	—
	761		—	15,476	314

Others	(401	)	5,400	9,157	139
Total	11,452		13,057	240,813	12,773

(i) Includes nickel by-products and by-products (copper, precious metal, cobalt and others).

(ii) Includes copper concentrate and does not include the cooper by-product of nickel.

(iii) Includes only acquisitions realized with cash and cash equivalents.

	Consolidated (unaudited)
	June 30, 2014
	Six-months period ended
	Adjusted EBITDA		Investments	Property, plant and equipment and intangible assets	Additions to property, plant and equipment and intangible (iii)
Ferrous minerals
Iron ore	12,526		1,401	85,104	5,633
Pellets	3,724		1,799	4,227	248
Ferroalloys and manganese	73		—	659	80
Others ferrous products and services	214		—	788	71
	16,537		3,200	90,778	6,032

Coal	(725	)	828	13,283	2,737

Base metals
Nickel and other products (i)	1,943		46	64,720	1,419
Copper (ii)	683		478	8,874	497
	2,626		524	73,594	1,916
Fertilizers
Potash	(34	)	—	370	—
Phosphates	90		—	—	—
Nitrogen	90		—	16,851	227
Others fertilizers products	96		—	—	—
	242		—	17,221	227

Others	26		6,699	9,342	768
Total	18,706		11,251	204,218	11,680

(i) Includes nickel by-products and by-products (copper, precious metal, cobalt and others).

(ii) Includes copper concentrate and does not include the cooper by-product of nickel.

(iii) Includes only acquisitions realized with cash and cash equivalents.

Table of Contents

c) Results by segment and revenues by geographic area

	Consolidated (unaudited)
	June 30, 2015
	Three-months period ended
	Ferrous minerals		Coal		Base metals		Fertilizers		Others		Total
Results
Net operating revenue	14,023		450		5,067		1,749		152		21,441
Cost and expenses	(9,017	)	(768	)	(3,821	)	(1,245	)	(350	)	(15,201	)
Gain on measurement or sale of non-current assets	(172	)	—		—		—				(172	)
Depreciation, depletion and amortization	(1,260	)	(145	)	(1,381	)	(238	)	(15	)	(3,039	)
Operating income (loss)	3,574		(463	)	(135	)	266		(213	)	3,029

Financial result	1,868		53		(311	)	10		4		1,624
Results on sale or disposal of investments from joint ventures and associates	—		—		—		—		241		241
Equity results from joint ventures and associates	553		10		(47	)	—		152		668
Income taxes	(640	)	147		36		(78	)	(26	)	(561	)
Net income (loss)	5,355		(253	)	(457	)	198		158		5,001
Income (loss) attributable to noncontrolling interests	28		(60	)	(117	)	7		(1	)	(143	)
Income (loss) attributable to the Company’s stockholders	5,327		(193	)	(340	)	191		159		5,144

Sales classified by geographic area:
America, except United States and Brazil	310		13		1,020		57		—		1,400
United States of America	15		—		708		—		24		747
Europe	1,940		116		1,762		105		—		3,923
Middle East/Africa/Oceania	874		100		52		—		—		1,026
Japan	1,101		32		147		—		—		1,280
China	7,382		38		553		—		—		7,973
Asia, except Japan and China	1,015		130		673		79		—		1,897
Brazil	1,386		21		152		1,508		128		3,195
Net operating revenue	14,023		450		5,067		1,749		152		21,441

	Consolidated (unaudited)
	June 30, 2014
	Three-months period ended
	Ferrous minerals		Coal		Base metals		Fertilizers		Others		Total
Results
Net operating revenue	15,476		447		4,213		1,370		578		22,084
Cost and expenses	(7,910	)	(790	)	(2,873	)	(1,209	)	(630	)	(13,412	)
Impairment of non-current assets	(1,118	)	(612	)	—		—		—		(1,730	)
Depreciation, depletion and amortization	(883	)	(30	)	(799	)	(258	)	(20	)	(1,990	)
Operating income (loss)	5,565		(985	)	541		(97	)	(72	)	4,952

Financial result	(44	)	72		(155	)	16		(18	)	(129	)
Results on sale or disposal of investments from joint ventures and associates	—		—		—		—		(39	)	(39	)
Equity results from joint ventures and associates	521		18		(15	)	—		18		542
Income taxes	(1,857	)	(226	)	(139	)	16		(30	)	(2,236	)
Net income (loss)	4,185		(1,121	)	232		(65	)	(141	)	3,090
Income (loss) attributable to noncontrolling interests	(20	)	(29	)	(26	)	(5	)	(17	)	(97	)
Income (loss) attributable to the Company’s stockholders	4,205		(1,092	)	258		(60	)	(124	)	3,187

Sales classified by geographic area:
America, except United States and Brazil	409		—		573		26		27		1,035
United States of America	—		—		586		—		240		826
Europe	2,247		52		1,533		56		15		3,903
Middle East/Africa/Oceania	866		62		92		—		—		1,020
Japan	1,612		85		516		—		8		2,221
China	7,484		77		369		—		—		7,930
Asia, except Japan and China	1,151		153		538		26		—		1,868
Brazil	1,707		18		6		1,262		288		3,281
Net operating revenue	15,476		447		4,213		1,370		578		22,084

Table of Contents

	Consolidated (unaudited)
	June 30, 2015
	Six-months period ended
	Ferrous minerals		Coal		Base metals		Fertilizers		Others		Total
Results
Net operating revenue	25,202		869		10,023		3,111		263		39,468
Cost and expenses	(17,349	)	(1,557	)	(6,745	)	(2,350	)	(666	)	(28,667	)
Gain on measurement or sale of non-current assets	(172	)	—		—		—		546		374
Depreciation, depletion and amortization	(2,640	)	(212	)	(2,732	)	(429	)	(26	)	(6,039	)
Operating income (loss)	5,041		(900	)	546		332		117		5,136

Financial result	(11,590	)	293		(583	)	(194	)	20		(12,054	)
Results on sale or disposal of investments from joint ventures and associates	—		—		—		—		296		296
Equity results from joint ventures and associates	98		9		(64	)			(200	)	(157	)
Income taxes	2,601		74		(73	)	(476	)	(38	)	2,088
Net income (loss)	(3,850	)	(524	)	(174	)	(338	)	195		(4,691	)
Income (loss) attributable to noncontrolling interests	13		(93	)	(212	)	25		(29	)	(296	)
Income (loss) attributable to the Company’s stockholders	(3,863	)	(431	)	38		(363	)	224		(4,395	)

Sales classified by geographic area:
America, except United States and Brazil	579		13		1,887		98		—		2,577
United States of America	43		—		1,392		—		46		1,481
Europe	3,796		151		3,016		187		—		7,150
Middle East/Africa/Oceania	1,733		199		167		9		—		2,108
Japan	2,272		115		564		—		—		2,951
China	12,174		38		972		—		—		13,184
Asia, except Japan and China	1,892		302		1,489		108		—		3,791
Brazil	2,713		51		536		2,709		217		6,226
Net operating revenue	25,202		869		10,023		3,111		263		39,468

	Consolidated (unaudited)
	June 30, 2014
	Six-months period ended
	Ferrous minerals		Coal		Base metals		Fertilizers		Others		Total
Results
Net operating revenue	31,548		770		8,290		2,629		1,256		44,493
Cost and expenses	(15,500	)	(1,495	)	(5,664	)	(2,387	)	(1,230	)	(26,276	)
Impairment of non-current assets	(1,118	)	(612	)	—		—		—		(1,730	)
Depreciation, depletion and amortization	(1,947	)	(123	)	(1,801	)	(497	)	(33	)	(4,401	)
Operating income (loss)	12,983		(1,460	)	825		(255	)	(7	)	12,086

Financial result	512		165		(465	)	19		(32	)	199
Results on sale or disposal of investments from joint ventures and associates	—		—		—		—		(39	)	(39	)
Equity results from joint ventures and associates	1,028		47		(26	)	—		(48	)	1,001
Income taxes	(4,209	)	(165	)	(221	)	61		(39	)	(4,573	)
Net income (loss)	10,314		(1,413	)	113		(175	)	(165	)	8,674
Income (loss) attributable to noncontrolling interests	(47	)	(51	)	(289	)	(16	)	(19	)	(422	)
Income (loss) attributable to the Company’s stockholders	10,361		(1,362	)	402		(159	)	(146	)	9,096

Sales classified by geographic area:
America, except United States and Brazil	883		7		1,395		50		27		2,362
United States of America	5		—		1,206		—		533		1,744
Europe	5,037		76		2,933		119		15		8,180
Middle East/Africa/Oceania	1,890		96		175		—		—		2,161
Japan	3,189		201		904		—		7		4,301
China	14,655		89		734		—		—		15,478
Asia, except Japan and China	2,409		283		937		33		—		3,662
Brazil	3,480		18		6		2,427		674		6,605
Net operating revenue	31,548		770		8,290		2,629		1,256		44,493

d) Investment, intangible and property, plant and equipment by geographic area

There was no significant change in relation to the information of assets by geographic area disclosed in the financial statements for the year ended December 31, 2014.

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27. Cost of goods sold and services rendered, and selling and administrative expenses and other operating expenses (income), net, by nature

a) Cost of goods sold and services rendered

	Consolidated (unaudited)
	Three-months period ended		Six-months period ended
	June 30, 2015	June 30, 2014	June 30, 2015	June 30, 2014
Personnel	1,941	1,479	3,509	3,085
Material and service	3,045	2,639	5,904	5,673
Fuel oil and gas	1,086	981	1,973	1,964
Maintenance	2,130	1,542	4,039	2,549
Energy	529	298	943	641
Acquisition of products	763	999	1,467	1,975
Depreciation and depletion	2,714	1,771	5,366	3,981
Freight	2,638	1,920	4,906	3,543
Others	1,122	1,937	2,849	3,327
Total	15,968	13,566	30,956	26,738

Cost of goods sold	15,542	13,080	30,110	25,626
Cost of services rendered	426	486	846	1,112
Total	15,968	13,566	30,956	26,738

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015	June 30, 2014
Personnel	1,785	1,538
Material and service	2,817	3,038
Fuel oil and gas	1,242	1,297
Maintenance	2,656	1,633
Energy	478	319
Acquisition of products	375	570
Depreciation and depletion	1,933	1,388
Others	1,905	2,104
Total	13,191	11,887

Cost of goods sold	12,646	11,096
Cost of services rendered	545	791
Total	13,191	11,887

b) Selling and administrative expenses

	Consolidated (unaudited)
	Three-months period ended		Six-months period ended
	June 30, 2015	June 30, 2014	June 30, 2015	June 30, 2014
Personnel	223	222	462	481
Services (consulting, infrastructure and others)	77	109	158	213
Advertising and publicity	8	13	16	25
Depreciation and amortization	103	115	185	220
Travel expenses	9	21	17	26
Taxes and rents	11	6	28	19
Others	57	42	177	211
Total	488	528	1,043	1,195

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015	June 30, 2014
Personnel	275	267
Services (consulting, infrastructure and others)	88	117
Advertising and publicity	12	21
Depreciation and amortization	161	148
Travel expenses	9	15
Taxes and rents	11	1
Others	23	54
Total	579	623

Table of Contents

c) Others operational expenses (incomes), net

	Consolidated (unaudited)
	Three-months period ended			Six-months period ended
	June 30, 2015		June 30, 2014	June 30, 2015		June 30, 2014
Provision for litigation	126		153	73		287
Provision for loss with VAT credits (ICMS)	194		81	313		184
Provision for profit sharing program	(7	)	18	54		112
Provision for disposal of materials and inventories	97		48	282		97
Gold stream transaction	—		—	(722	)	—
Scrap sales	72		24	100		55
Others	140		40	342		135
Total	622		364	442		870

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015		June 30, 2014
Provision for litigation	(57	)	283
Provision for loss with VAT credits (ICMS)	313		188
Provision for profit sharing program	37		87
Provision for disposal of materials and inventories	11		21
Scrap sales	72		55
Others	(27	)	139
Total	349		773

28. Financial result

	Consolidated (unaudited)
	Three-months period ended				Six-months period ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Financial expenses
Interest	(701	)	(891	)	(1,264	)	(1,797	)
Labor, tax and civil lawsuits	(53	)	(81	)	(147	)	(99	)
Derivative financial instruments	(267	)	(50	)	(4,316	)	(94	)
Indexation and exchange rate variation (a)	(1,934	)	(585	)	(17,846	)	(1,729	)
Participative stockholders’ debentures	1,107		(598	)	1,828		(647	)
Expenses of REFIS	(439	)	(389	)	(848	)	(780	)
Others	(575	)	(237	)	(898	)	(487	)
	(2,862	)	(2,831	)	(23,491	)	(5,633	)
Financial income
Short-term investments	65		87		139		216
Derivative financial instruments	966		871		967		1,414
Indexation and exchange rate variation (b)	3,431		1,669		10,210		4,013
Others	24		75		121		189
	4,486		2,702		11,437		5,832
Financial results, net	1,624		(129	)	(12,054	)	199

Summary of indexation and exchange rate variation
Loans and financing	2,735		1,433		(12,355	)	3,431
Related parties	(5	)	(8	)	(4	)	1
Others	(1,233	)	(341	)	4,723		(1,148	)
Net (a) + (b)	1,497		1,084		(7,636	)	2,284

Table of Contents

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015		June 30, 2014
Financial expenses
Interest	(1,628	)	(1,664	)
Labor, tax and civil lawsuits	(141	)	(90	)
Derivative financial instruments	(3,229	)	—
Indexation and exchange rate variation (a)	(16,872	)	(1,237	)
Participative stockholders’ debentures	1,829		(647	)
Expenses of REFIS	(830	)	(764	)
Others	(469	)	(258	)
	(21,340	)	(4,660	)
Financial income
Short-term investments	64		172
Derivative financial instruments	524		1,246
Indexation and exchange rate variation (b)	9,820		3,835
Others	54		62
	10,462		5,315
Financial results, net	(10,878	)	655

Summary of indexation and exchange rate variation
Loans and financing	(4,287	)	1,510
Related parties	(7,653	)	1,115
Others	4,888		(27	)
Net (a) + (b)	(7,052	)	2,598

29. Deferred revenue - Gold stream

In 2013, the Company entered into a gold stream transaction (“original transaction”) with Silver Wheaton Corp. (“SLW”) to sell 25% of the gold extracted during the life of the mine as a by-product of Salobo copper mine (“Salobo transaction”) and 70% of the gold extracted during the next 20 years as a by-product of the Sudbury nickel mines (“Sudbury transaction”).

The original transaction was amended in March, 2015 to include an additional 25% of gold extracted during the life of the mine as a by-product of Salobo copper mine (“amended transaction”). The Company received up-front cash proceeds of US$900 (R$2,826). The Company may also receive an additional cash payment contingent on its decision to expand the capacity to process Salobo copper ores until 2036. The additional amount could range from US$88 million to US$720 million depending on timing and size of the expansion.

As the gold is delivered to SLW, Vale receives a payment equal to the lesser of: (i) US$400 per ounce of refined gold delivered (which payment will be subject to an annual increase of 1% per year commencing on January 1, 2017 for the original and amended transactions and each January 1 thereafter) and (ii) the reference market price on the date of delivery.

This transaction was bifurcated into two identifiable components: (i) the sale of the mineral rights and, (ii) the services for gold extraction on the portion in which Vale operates as an agent for SLW gold extraction.

The result of the sale of the mineral rights of R$722 was recognized in the statement of income under other operating expenses, net. The portion related to the provision of future services for gold extraction was recorded as deferred revenue (liability) in the amount of R$1,670 and will be recognized in the statement of income as the service is rendered and the gold extracted. During the three-months period ended June 30, 2015 and 2014, the Company recognized R$101 and R$54, respectively, and during the six-months period ended June 30, 2015 and 2014, R$145 and R$107, respectively, in statement of income related to rendered services related to the original and amended transactions.

The deferred revenue is recognized based on the units of gold extracted compared to the total of proven and probable gold reserves negotiated with SLW. Defining the gain on sale of mineral interest and the deferred revenue portion of the transaction requires the use of critical accounting estimates as follow:

· Discount rates used to measure the present value of future inflows and outflows;

· Allocation of costs between copper and gold based on relative prices;

· Expected margin for the independent elements (sale of mineral rights and service for gold extraction) based on Company’s best estimate.

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30. Commitments

a) Base metals operations

There has been no material changes to the commitments of the base metals operations disclosed in the financial statements as at December 31, 2014, except for letters of credit and guarantees in the amount of R$3,397 (R$2,675 at December 31, 2014) associated with items such as environment reclamation, asset retirement obligation commitments, insurance, electricity commitments, post-retirement benefits, community service commitments and import and export duties.

b) Participative stockholders’ debentures

During the period, there was no issuance of new debentures, or any change in the par value or the indicators affecting debentures issued. The Company paid as semiannual remuneration the amount of R$124 and R$124, respectively, for the six-months period ended June 30, 2015 and 2014.

c) Operating lease

The total amount of operational leasing expenses for the three-months period ended on June 30, 2015 and 2014 are R$206 and R$186, respectively, and for the six-months period ended on June 30, 2015 and 2014 are R$404 and R$405, respectively.

d) Concession agreements

The contractual basis and deadlines for completion of concessions railways and port terminals are unchanged in the period.

e) Guarantees provided

At June 30, 2015, corporate guarantees provided by Vale (within the limit of its direct or indirect interest) for the companies Norte Energia S.A. and Companhia Siderúrgica do Pecém S.A. totaled R$850 and R$2,339, respectively. Due to the conclusion of the energy generation assets transaction (note 6), the guarantee of Norte Energia S.A. is shared with Cemig GT.

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31. Related parties

Transactions with related parties are made by the Company at arm´s-length, observing the price and usual market conditions and therefore do not generate any undue benefit to their counterparties or loss to the Company.

In the normal course of operations, Vale enters into contracts with related parties (subsidiaries, associates, joint ventures and stockholders), related to the sale and purchase of products and services, leasing of assets, sale of raw material and railway transportation services.

The balances of these related party transactions and their effects on the financial statements are as follows:

	Assets
	Consolidated				Parent Company
	June 30, 2015 (unaudited)		December 31, 2014		June 30, 2015 (unaudited)		December 31, 2014
	Accounts receivable	Related parties	Accounts receivable	Related parties	Accounts receivable	Related parties	Accounts receivable	Related parties
Baovale Mineração S.A.	10	—	10	24	10	—	10	24
Ferrovia Norte Sul	30	—	24	—	—	—		—
Mitsui & Co., Ltd.	36	—	25	—	—	—	—	—
MRS Logística S.A.	9	90	9	64	9	34	9	28
Samarco Mineração S.A.	171	326	63	822	171	326	63	822
Teal Minerals Inc.	—	718	—	573	—	—	—	—
VLI Multimodal S.A.	19	—	67	—	19	—	67	—
VLI Operações Portuárias S.A.	41	—	69	—	41	—	69	—
VLI S.A.	490	—	25	—	490	—	25	—
Biopalma da Amazônia	—	—	—	—	—	1,119	—	992
Mineração Brasileiras Reunidas S.A.	—	—	—	—	—	—	—	352
Mineração Corumbaense Reunidas S.A.	—	—	—	—	45	118	37	226
Vale International S.A.	—	—	—	—	29,448	336	30,019	276
Others	167	147	278	147	388	231	267	409
Total	973	1,281	570	1,630	30,621	2,164	30,566	3,129

Current	973	1,216	570	1,537	30,621	1,187	30,566	2,227
Non-current	—	65	—	93	—	977	—	902
Total	973	1,281	570	1,630	30,621	2,164	30,566	3,129

	Liabilities
	Consolidated				Parent Company
	June 30, 2015 (unaudited)		December 31, 2014		June 30, 2015 (unaudited)		December 31, 2014
	Suppliers	Related parties	Suppliers	Related parties	Suppliers	Related parties	Suppliers	Related parties
Baovale Mineração S.A.	87	—	10	—	87	—	10	—
Companhia Coreano-Brasileira de Pelotização	107	97	3	227	107	—	3	—
Companhia Hispano-Brasileira de Pelotização	64	24	85	—	64	—	85	—
Companhia Ítalo-Brasileira de Pelotização	70	38	2	125	70	—	2	—
Companhia Nipo-Brasileira de Pelotização	163	181	5	389	163	—	5	—
Ferrovia Centro-Atlântica S.A.	—	264	—	261	—	264	—	261
Mitsui & Co., Ltd.	33	—	25	—	—	—	28	—
MRS Logística S.A.	60	—	67	—	60	—	67	—
VLI S.A.	—	261	—	—	—	261	—	—
Companhia Portuária Baía de Sepetiba	—	—	—	—	341	—	148	—
Vale International S.A.	—	—	—	—	—	53,996	314	48,532
Others	80	26	89	99	129	357	93	435
Total	664	891	286	1,101	1,021	54,878	755	49,228

Current	664	600	286	813	1,021	6,203	755	5,622
Non-current	—	291	—	288	—	48,675	—	43,606
Total	664	891	286	1,101	1,021	54,878	755	49,228

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	Consolidated (unaudited)
	Three-months period ended
	June 30, 2015					June 30, 2014
	Net operating revenue	Costs and expenses		Financial results		Net operating revenue	Costs and expenses		Financial results
Baovale Mineração S.A.	—	(47	)	—		—	(11	)	—
California Steel Industries, Inc.	—	—		—		197	—		—
Companhia Coreano-Brasileira de Pelotização	—	(57	)	—		—	(51	)	—
Companhia Hispano-Brasileira de Pelotização	—	(27	)	—		—	(29	)	—
Companhia Ítalo-Brasileira de Pelotização	—	(44	)	—		—	(29	)	—
Companhia Nipo-Brasileira de Pelotização	—	(78	)	—		—	(78	)	—
Ferrovia Centro Atlântica S.A.	38	(29	)	—		42	(26	)	—
Mitsui & Co., Ltd.	155	—		—		53	(13	)	—
MRS Logística S.A.	—	(433	)	—		—	(246	)	—
Samarco Mineração S.A.	176	—		—		136	—		—
Thyssenkrupp Companhia Siderúrgica do Atlântico Ltd.	—	—		—		—	(221	)	—
VLI S.A.	209	—		—		209	—		6
Others	37	(36	)	(7	)	64	(4	)	7
Total	615	(751	)	(7	)	701	(708	)	13

	Consolidated (unaudited)
	Six-months period ended
	June 30, 2015				June 30, 2014
	Net operating revenue	Costs and expenses		Financial results	Net operating revenue	Costs and expenses		Financial results
Baovale Mineração S.A.	—	(60	)	—	—	(23	)	—
California Steel Industries, Inc.	—	—		—	420	—		—
Companhia Coreano-Brasileira de Pelotização	—	(103	)	—	—	(112	)	—
Companhia Hispano-Brasileira de Pelotização	—	(63	)	—	—	(68	)	—
Companhia Ítalo-Brasileira de Pelotização	—	(83	)	—	—	(53	)	—
Companhia Nipo-Brasileira de Pelotização	—	(150	)	—	—	(172	)	—
Ferrovia Centro Atlântica S.A.	73	(62	)	—	77	(64	)	—
Mitsui & Co., Ltd.	325	—		—	146	—		—
MRS Logística S.A.	—	(775	)	—	—	(572	)	—
Samarco Mineração S.A.	266	—		—	282	—		—
Thyssenkrupp Companhia Siderúrgica do Atlântico Ltd.	—	—		—	—	(495	)	—
VLI S.A.	387	—		—	413	—		21
Others	100	(70	)	4	103	(59	)	23
Total	1,151	(1,366	)	4	1,441	(1,618	)	44

	Parent company (unaudited)
	Six-months period ended
	June 30, 2015					June 30, 2014
	Net operating revenue	Costs and expenses		Financial results		Net operating revenue	Costs and expenses		Financial results
Baovale Mineração S.A.	—	(60	)	—		—	(23	)	—
Companhia Coreano-Brasileira de Pelotização	—	(103	)	—		—	(112	)	—
Companhia Hispano-Brasileira de Pelotização	—	(63	)	—		—	(68	)	—
Companhia Ítalo-Brasileira de Pelotização	—	(83	)	—		—	(53	)	—
Companhia Nipo-Brasileira de Pelotização	—	(150	)	—		—	(172	)	—
Companhia Portuária Baia de Sepetiba	—	(395	)	—		—	(298	)	—
Ferrovia Centro Atlântica S.A.	73	(62	)	—		77	(62	)	—
Mineração Brasileira Reunidas S.A.	—	(359	)	—		—	(345	)	—
Mitsui & Co., Ltd.	—	—		—		—	(8	)	—
MRS Logística S.A.	—	(775	)	—		—	(572	)	—
Samarco Mineração S.A.	266	—		—		282	—		—
Vale International S.A.	17,004	—		(996	)	26,483	—		(590	)
Vale Mina do Azul S.A	—	—		—		20	—		—
Vale Operações Ferroviárias S.A.	—	(13	)	—		4	—		—
VLI Multimodal S.A.	—	—		—		301	—		—
Vale Energia S.A	—	—		—		—	(58	)	—
VLI S.A.	387	—		—		112	—		21
Others	102	(153	)	201		47	(5	)	(14	)
Total	17,832	(2,216	)	(795	)	27,326	(1,776	)	(583	)

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							Statement of income (unaudited)
	Balance sheet		Three-months period ended				Six-months period ended
	June 30, 2015	December 31, 2014	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
	(unaudited)
Cash and cash equivalents
Bradesco	48	89	2		1		3		2
	48	89	2		1		3		2
Loans and financing payable
BNDES	13,432	11,981	(58	)	(109	)	(108	)	(221	)
BNDESPar	1,501	1,564	(4	)	(24	)	(32	)	(48	)
	14,933	13,545	(62	)	(133	)	(140	)	(269	)

Remuneration of key management personnel

	(unaudited)
	Three-months period ended		Six-months period ended
	June 30, 2015	June 30, 2014	June 30, 2015	June 30, 2014
Short-term benefits	9	9	50	50
Wages or pro-labor	6	6	12	12
Direct and indirect benefits	3	3	14	11
Bonus	—	—	24	27

Long-term benefits	—	—	2	2
Based on stock	—	—	2	2

Termination of position	5	—	16	—
	14	9	68	52

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Board of Directors, Fiscal Council, Advisory Committees and Executive Officers

Board of Directors
		Governance and Sustainability Committee
Dan Antonio Marinho Conrado		Fernando Jorge Buso Gomes
Chairman		Arthur Prado Silva
		Eduardo de Oliveira Rodrigues Filho
Sérgio Alexandre Figueiredo Clemente		Ricardo Rodrigues Morgado
Vice-President		Ricardo Simonsen

Marcel Juviniano Barros		Fiscal Council
Gueitiro Matsuo Genso
Tarcísio José Massote de Godoy		Marcelo Amaral Moraes
Fernando Jorge Buso Gomes		Chairman
Hiroyuki Kato
Oscar Augusto de Camargo Filho		Marcelo Barbosa Saintive
Luciano Galvão Coutinho		Cláudio José Zucco
Lucio Azevedo		Aníbal Moreira dos Santos
Alberto Guth		Raphael Manhães Martins

Alternate		Alternate
Arthur Prado Silva		Paulo Fontoura Valle
Moacir Nachbar Junior		Marcos Tadeu Siqueira
Francisco Ferreira Alexandre		Oswaldo Mário Pego de Amorim Azevedo
Gilberto Antonio Vieira		Pedro Paulo de Souza
Robson Rocha
Luiz Mauricio Leuzinger
Yoshitomo Nishimitsu		Executive Officers
Eduardo de Oliveira Rodrigues Filho
Victor Guilherme Tito		Murilo Pinto de Oliveira Ferreira
Carlos Roberto de Assis Ferreira		Chief Executive Officer

Advisory Committees of the Board of Directors		Vânia Lucia Chaves Somavilla
		Executive Officer (Human Resources, Health & Safety, Sustainability and Energy)
Controlling Committee
Eduardo Cesar Pasa		Luciano Siani Pires
Moacir Nachbar Junior		Executive Officer (Finance and Investors Relations)
Oswaldo Mário Pego de Amorim Azevedo
Marcos Paulo Pereira da Silva		Roger Allan Downey
		Executive Officer (Fertilizers, Coal and Strategy)
Executive Development Committee
Oscar Augusto de Camargo Filho		Gerd Peter Poppinga
Marcel Juviniano Barros		Executive Officer (Ferrous)
Fernando Jorge Buso Gomes
Tatiana Boavista Barros Heil		Galib Abrahão Chaim
		Executive Officer (Capital Projects Implementation)
Strategic Committee
Murilo Pinto de Oliveira Ferreira		Humberto Ramos de Freitas
Dan Antonio Marinho Conrado		Executive Officer (Logistics and Mineral Research)
Gueitiro Matsuo Genso
Luiz Carlos Trabuco Cappi		Vacant
Oscar Augusto de Camargo Filho		Executive Officer (Base Metals)
Luciano Galvão Coutinho
		Marcelo Botelho Rodrigues
Finance Committee		Global Controller Director
Gilmar Dalilo Cezar Wanderley
Fernando Jorge Buso Gomes		Murilo Muller
Eduardo de Oliveira Rodrigues Filho		Chief Accountant and Controllership Director
Tatiana Boavista Barros Heil		CRC-PR - 046788/O-5 “S” RJ

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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/ Rogerio T. Nogueira
Date: July 30, 2015		Rogerio T. Nogueira
		Director of Investor Relations