2.2.0.25falsefalse0205 - Disclosure - Major acquisitions and disposalstruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010 USD ($) USD ($) / shares $Jan-01-2010_Dec-31-2010http://www.sec.gov/CIK0000917851duration2010-01-01T00:00:002010-12-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0vale_MajorAcquisitionsAndDisposalsAbstractvalefalsenadurationMajor acquisitions and disposals.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringMajor acquisitions and disposals.falsefalseMajor acquisitions and disposals [Abstract]3false0vale_MajorAcquisitionsAndDispositionsTextBlockvalefalsenadurationRepresent the business acquisitions and disposals made by the Company in the period.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00  <div style="font-family: Helvetica,Arial,sans-serif"> <div style="margin-top: 12pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="3%" nowrap="nowrap" align="left"><b>5</b></td> <td width="1%"> </td> <td><b> Major acquisitions and disposals</b></td> </tr> </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b>a) Fertilizers Businesses</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In line with our strategy to become a leading global player in the fertilizer business, we acquired in May 2010, 58.6% of the equity capital of Fertilizantes Fosfatados S.A. (Fosfertil), currently Vale Fertilizantes S.A., and the Brazilian fertilizer assets of Bunge Participações e Investimentos S.A. (BPI), currently named Vale Fosfatados S.A. for a total of US$4.7 billion in cash. An additional payment of US$55 was made in July, as a complement of the purchase price of Vale Fosfatados. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As part of this acquisition, we exercised in September an option contract to acquire additional 20.27% stake in Vale Fertilizantes S.A., for US$1.0 billion. Also, we launched a mandatory offer to acquire the common shares held by the noncontrolling stockholders. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As at December 31, 2010, we have 78.92% of the total capital and 99.83% of the voting capital of Vale Fertilizantes and 100% of the capital of Vale Fosfatados. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As this transaction occurred within the previous twelve months, information about the purchase price allocation presented below based on the fair values of identified assets acquired and liabilities assumed is preliminary. Such allocation, currently being performed internally by the Company, with the assistance of specialists will be finalized during future periods, and accordingly, the preliminary purchase price allocation information set forth below is subject to revision, which may be material. </div> <div align="right"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="96%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Purchase price </div></td> <td> </td> <td> </td> <td align="right">5,795</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Noncontrolling consideration </div></td> <td> </td> <td> </td> <td align="right">767</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Book value of property, plant and equipment and mining rights </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1,987</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Book value of other assets acquired and liabilities assumed, net </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(395</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Adjustment to fair value of property, plant and equipment and mining rights </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5,146</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Adjustment to fair value of inventories </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(98</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred taxes on the above adjustments </div></td> <td> </td> <td> </td> <td align="right">1,783</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Goodwill</b> </div></td> <td> </td> <td> </td> <td align="right"><b>719</b></td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The acquired business contributed net revenues of US$1,507 and to reduce net income of US$10 to the group for the period from June to December, 2010. If this acquisition had been completed on January 1, 2010, our net revenues would increase by US$770 and our net income would decrease by US$12. These amounts have been calculated using our accounting policies and by adjustment the results of the subsidiaries to reflect additional depreciation and amortization that would have been charged assuming the fair value adjustments to property plant and equipment and intangible assets had been applied from January 1, 2010, together with consequential tax effects. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The goodwill balance arises primarily due to the synergies between the acquired assets and the potash operations in Taquari-Vassouras, Carnalita, Rio Colorado and Neuquém and phosphates in Bayóvar I and II, in Peru, and Evate, in Mozambique. The future development of our projects combined with the acquisition of the portfolio of fertilizer assets will allow Vale to be one of the top players in the world’s fertilizer business. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b>b) Other transactions — 2010</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In September 2010, we acquired 51% stake in Sociedade de Desenvolvimento do Corredor Norte S.A (SDCN) for US$21. The SDCN has a concession to create a logistic infrastructure necessary for the production flow resulting from the second phase at our Moatize Coal Project. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As part of our efforts to meet our future production targets, we acquired in April 2010, 51% interest on iron ore concession rights in Simandou South (Zogota), Guinea, and iron ore exploration permits in Simandou North. From this amount, US$500 is payable immediately and the remaining US$2 billion upon achievement of specific milestones. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif"> <div align="right" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">This joint venture is also committed to renovate 660km of the Trans-Guinea railway for passenger transportation and light commercial use. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In July 2010, we concluded the sale of minority stakes in the Bayóvar project in Peru through the newly-formed company MVM Resources International B.V. (MVM). We sold 35% of the total capital of MVM to Mosaic for US$385 and 25% to Mitsui for US$275. Vale retains control of the Bayóvar project, holding a 40% stake of the total capital and 51% of voting shares of the newly-formed company. The capital amount invested as at June 30, 2010 was approximately US$550. The difference between the fair value and carrying amount of US$321 on this transaction was accounted for in equity in accordance with the accounting rules related to the gains/losses when control is retained. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In June 2010, we acquired an additional 24.5% stake in the Belvedere coal project (Belvedere) for US$92 from AMCI Investments Pty Ltd (AMCI). As an outcome of this transaction, Vale increased its participation in Belvedere from 51.0% to 75.5%. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In May 2010, we entered into an agreement with Oman Oil Company S.A.O.C. (OOC), a company wholly-owned by the Government of the Sultanate of Oman, to sell 30% of Vale Oman Pelletizing Company LLC (VOPC), for US$125. The transaction remains subject to the terms set forth in the definitive share purchase agreement to be signed after the fulfillment of precedent conditions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We have entered into negotiations and agreements to sell our Kaolin, aluminum and alumina assets. For further details see Note 13. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><b>c) Other transactions — 2009</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In September 2009, we acquired from Rio Tinto Plc, Mineração Corumbá Reunidas S.A. (MCR) for US$802. MCR is the owner of an iron ore mining operations with high iron content and a strategic importance to our product portfolio, adding a substantial volume of lump ore to our reserves. The purchase price allocation mainly adjustments refers to fair value of inventories, property plant and equipment and intangible and there was no goodwill recorded on this transaction. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In September 2009, we concluded an agreement with ThyssenKrupp Steel AG signed in July, to increase our stake in ThyssenKrupp CSA Siderúrgica do Atlântico Ltda. (CSA) to 26.87% through a capital subscripton of US$1,424. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In April 2009, we concluded the sale of all common shares we held in, Usiminas Siderúrgicas de Minas Gerais S.A. — Usiminas, for US$273 generating a gain of US$153. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In March 2009, we acquired 100% of Diamond Coal Ltd that owns coal assets in Colombia for US$300, from Cement Argos. Cash payment was made during the quarter ending June 30, 2009. The primary reason for the acquisition was that the coal assets are an important part of our growth strategy. Therefore, Vale is seeking to build a coal asset platform in Colombia, as it is the world’s third largest exporter of high-quality thermal coal, given its low level of sulfur and high calorific value. The purchase price allocation mainly adjustments refers to fair value of, property plant and equipment and there was no goodwill recorded on this transaction. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In March 2009, we acquired 50% of the joint venture with African Rainbow Minerals Limited of Teal Minerals Incorporated for US$60. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In February 2009, acquired Green Mineral Resources that owns the Regina Project (Canada) and Colorado Project (Argentina) which are in development stage, from Rio Tinto, for US$850. The acquisition of potash assets is aligned with Vale’s strategy to become a large producer of fertilizers to benefit from the exposure to rising global consumption. The purchase price allocation mainly adjustments refers to fair value of, property plant and equipment and there was no goodwill recorded on this transaction. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif"> <div align="right" style="font-size: 10pt; margin-top: 12pt"> </div> </div>  <!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringRepresent the business acquisitions and disposals made by the Company in the period.No authoritative reference available.falsefalseMajor acquisitions and disposals12Major acquisitions and disposalsUnKnownUnKnownUnKnownUnKnownfalsetrue