VALE APPLAUDS GOVERNMENT'S DECISION TO APPOINT MEDIATOR

TORONTO, Sept. 16 /CNW/ - Vale applauds today's decision by the provincial government of Newfoundland and Labrador to appoint an independent mediator to assist in finding a resolution to a strike at the company's mining and milling operations in Voisey's Bay.

Today's announcement continues a pattern of government assistance. Conciliation officers appointed by the provincial government have been actively involved in contract talks since before the strike began on August 1, 2009. The company says it welcomes and shares the government's desire to see an end to the dispute.

The last round of contract talks between the company and the union broke off on July 20, 2010 after the USW tabled a proposal that introduced significant new monetary demands that, if accepted, would drive up labour costs at Voisey's Bay by 45% and demonstrated a continued unwillingness to commit to meaningful talks.

The company is hoping the added assistance of a provincially-appointed mediator will help lead to meaningful negotiations. Vale looks forward to meeting with the USW this weekend.

For further information: Cory McPhee, Vice-President, Corporate Affairs, Vale, Base Metals, 416.361.7669, [email protected]