Our Business

Vale SA is one of the world’s largest mining companies, working with passion to transform natural resources into prosperity. Our headquarters are located in Brazil and we have worldwide operations in South America, North America, Europe, Africa, the Middle East and Asia. In the UK, our principal activities are holding company for the Vale base metals group of companies (“VBM Group”) and toll refining of intermediate nickel products into finished nickel products.

For more information on our global business, please click here.  

As a global group, we conduct our business activities guided by a set of values that reflect high ethical and moral standards, aimed at assuring credibility and preserving the company’s image in the markets in which it regularly operates, in the short and long term and this extends to our approach to tax.  

As a business, our main commitments are: 

• To promote complete transparency in terms of governance, policy, procedures, practices and the Vale’s performance to our global stakeholders; 
   
• To pursue opportunities that contribute to global targets’ achievements related to our business, by seeking partnerships, solutions and technology for challenges to sustainable development;
     
• To work harmoniously with our stakeholders to contribute to the construction of a positive legacy for future generations, balancing the social, environmental, and economic aspects of our business, and 
   
• To monitor and anticipate trends in global themes of sustainability by developing, adopting, sharing, and promoting insights of best practices, to continuously improve our performance.

Our approach to tax risk management and governance 

Our approach to tax is set by the Global tax compliance team of the Group’s headquarters in Brazil which supports the Group’s business activities and commitments. The Global tax compliance team in Brazil implemented a global compliance program with the involvement of local experts in each country in which the Group operates, to assist and support local Finance teams to ensure that each of the affiliates comply with local laws and requirements for tax purposes. 

Vale Base Metals Limited, a UK incorporated company, is the top holding company for the VBM Group, and as such is the indirect parent company of Vale Europe Limited, a UK incorporated company that performs toll refining services in the UK. The tax function for the VBM Group is led by the Head of Tax & Treasury, an officer of Vale Base Metals Limited. As such, those with responsibility for VBM Group tax matters report to the Head of Tax & Treasury, including the team responsible for tax matters at Vale Europe Limited. The Head of Tax & Treasury reports to the VBM Group’s Chief Financial Officer (CFO) and, in turn, to the Board of Directors of Vale Base Metals Limited (‘the Base Metals Board’), and ultimately to the Board of Directors of the Vale SA, where necessary.

The Base Metals Board is accountable for VBM Group affairs, including the tax affairs with day-to-day tax and treasury responsibilities delegated to Head of Tax & Treasury.

Where necessary, the Our tax affairs are discussed at Base Metals Board. Tax is also regularly discussed with other business functions, whether at corporate and/or refinery management meetings to ensure that the tax implications of significant business developments are appropriately considered. 

We aim to ensure that our tax returns are prepared accurately and are submitted in a timely manner. Whilst preparing our returns, we ensure that there is a segregation of duties. For example, separate individuals review the tax returns before these returns are submitted. 

We have a low tax risk tolerance, and we seek third party advice on significant or complex tax matters to mitigate potential tax risks, as necessary.  

Our attitude to tax planning 

Our approach to tax is aligned with the commercial activities of our business.  We benefit from government incentives in a manner as intended by government, these include capital allowances. The Base Metals Tax team in Canada provides support and additional expertise on uncertain UK tax matters where necessary. Significant tax decisions in the UK are discussed with the Head of Tax & Treasury to ensure that our approach to tax is consistent with the wider group. In addition to this, we will seek third party advice from external advisors, as necessary.

Our approach to engaging with tax authorities 

In the UK, we maintain an open, transparent, and collaborative relationship with HMRC. We are in regular contact with our Customer Compliance Manager at HMRC and proactively discuss significant tax matters and business developments.

This tax strategy has been prepared in accordance with the requirements of paragraph 19 (2) contained within Schedule 19 of the Finance Act 2016. It has been approved by the Board of Directors of Vale Base Metals Limited and relates to the year ended 31st December 2023.