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Vale S.A., formerly ''Companhia Vale do Rio Doce'' (the Sweet River Valley Company, referring to the
Doce River The Doce River (literally the "sweet river"; pt, Rio Doce ) is a river in southeast Brazil with a length of . The river basin is economically important. In 2015 the collapse of a dam released highly contaminated water from mining into the river ...
) () is a Brazilian
multinational corporation A multinational company (MNC), also referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation or a stateless corporation with subtle but contrasting senses, i ...
engaged in metals and mining and one of the largest logistics operators in Brazil. Vale is the largest producer of
iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
and
nickel Nickel is a chemical element with symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive but large pieces are slow to ...
in the world. It also produces manganese, ferroalloys, copper,
bauxite Bauxite is a sedimentary rock with a relatively high aluminium content. It is the world's main source of aluminium and gallium. Bauxite consists mostly of the aluminium minerals gibbsite (Al(OH)3), boehmite (γ-AlO(OH)) and diaspore (α-AlO(OH ...
, potash,
kaolin Kaolinite ( ) is a clay mineral, with the chemical composition Al2 Si2 O5( OH)4. It is an important industrial mineral. It is a layered silicate mineral, with one tetrahedral sheet of silica () linked through oxygen atoms to one octahedral s ...
, and
cobalt Cobalt is a chemical element with the symbol Co and atomic number 27. As with nickel, cobalt is found in the Earth's crust only in a chemically combined form, save for small deposits found in alloys of natural meteoric iron. The free element, ...
, currently operating nine
hydroelectricity Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined a ...
plants, and a large network of railroads, ships, and ports used to transport its products. The company has had two catastrophic tailings dam failures in Brazil: Mariana, in 2015, and Brumadinho, in 2019; the Brumadinho dam disaster caused the company to lose its license to operate eight tailings dams in
Minas Gerais Minas Gerais () is a state in Southeastern Brazil. It ranks as the second most populous, the third by gross domestic product (GDP), and the fourth largest by area in the country. The state's capital and largest city, Belo Horizonte (literally ...
,"Vale ordered to halt operations at Brucutu", by Kelsey Rolfe, ''CIM magazine'', Canadian Institute of Mining, Metallurgy and Petroleum, February 04, 2019. Retrieved February 10, 2019.
/ref> and its stock to lose nearly 25 percent in value."Vale Denied Having ‘Upstream’ Dams Ahead of Deadly Accident"
'' Wall Street Journal'' February 10, 2019. Retrieved February 10, 2019.
Vale is considered the most valuable company in
Latin America Latin America or * french: Amérique Latine, link=no * ht, Amerik Latin, link=no * pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived ...
, with an estimated market value of US$ 111 billion in 2021.


Current operations

Although the company's primary operations are in
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
, Vale has operations in 30 countries, which are detailed below and on the company's website.


Ownership structure

The company is listed on the stock exchanges of
São Paulo São Paulo (, ; Portuguese for ' Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the Ga ...
,
New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
,
Jakarta Jakarta (; , bew, Jakarte), officially the Special Capital Region of Jakarta ( id, Daerah Khusus Ibukota Jakarta) is the capital city, capital and list of Indonesian cities by population, largest city of Indonesia. Lying on the northwest coa ...
,
Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
and
Madrid Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...
.


Mining business

Iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
: Vale is the world's largest iron ore producer. Sales of iron ore fines and pellets represented 65% of total company revenues in 2014. In 2014, Vale sold 256 million metric tonnes of iron ore fines and 44 million metric tonnes of iron ore pellets.Vale 2014 Form 20-F Annual Report
/ref> Vale's Mariana Hub was the 9th largest iron ore mining center in the world in 2014, with an output of 39 million metric tonnes. Vale's Serra Sul / S11D is the largest mining reserve in the world. The company's iron ore mines are primarily in
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
.
Nickel Nickel is a chemical element with symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive but large pieces are slow to ...
: Vale is the world's largest nickel producer. Sales of nickel represented 17% of total company revenues in 2014. In 2014, Vale sold 272,000 metric tonnes of nickel. The company owns nickel mines in
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world ...
,
Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
,
New Caledonia ) , anthem = "" , image_map = New Caledonia on the globe (small islands magnified) (Polynesia centered).svg , map_alt = Location of New Caledonia , map_caption = Location of New Caledonia , mapsize = 290px , subdivision_type = Sovereign st ...
and
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
. Tesla is known to buy the majority of their Nickel from Vale. In May 2022, Vale said that it had signed a long term deal of supplying nickel for Tesla. The agreement involves supplying low-carbon Class 1 nickel which Tesla needs for its electric vehicles' batteries. In line with this, Vale is pushing to increase its exposure to the electric vehicle industry. Fertilizer products, primarily
phosphate In chemistry, a phosphate is an anion, salt, functional group or ester derived from a phosphoric acid. It most commonly means orthophosphate, a derivative of orthophosphoric acid . The phosphate or orthophosphate ion is derived from pho ...
s and
nitrogen Nitrogen is the chemical element with the symbol N and atomic number 7. Nitrogen is a nonmetal and the lightest member of group 15 of the periodic table, often called the pnictogens. It is a common element in the universe, estimated at sevent ...
: Sales of fertilizer products represented 6% of total company revenues in 2014. In 2014, Vale sold 9 million metric tonnes of fertilizer products.
Copper Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkish- ...
: Sales of copper concentrate represented 4% of total company revenues in 2014. In 2014, Vale sold 353,000 metric tonnes of copper. The company owns copper mines in
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
,
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world ...
,
Chile Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
and
Zambia Zambia (), officially the Republic of Zambia, is a landlocked country at the crossroads of Central, Southern and East Africa, although it is typically referred to as being in Southern Africa at its most central point. Its neighbours are ...
.
Manganese Manganese is a chemical element with the symbol Mn and atomic number 25. It is a hard, brittle, silvery metal, often found in minerals in combination with iron. Manganese is a transition metal with a multifaceted array of industrial all ...
and
alloys An alloy is a mixture of chemical elements of which at least one is a metal. Unlike chemical compounds with metallic bases, an alloy will retain all the properties of a metal in the resulting material, such as electrical conductivity, ductilit ...
: Sales of manganese and alloys represented 1% of total company revenues in 2014. In 2014, Vale sold 2 million metric tonnes of manganese and alloys.
Coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed when dead ...
: Sales of coal represented 2% of total company revenues in 2014. In 2014, Vale sold 7.5 million metric tonnes of coal. The company owns coal mines in Australia and
Mozambique Mozambique (), officially the Republic of Mozambique ( pt, Moçambique or , ; ny, Mozambiki; sw, Msumbiji; ts, Muzambhiki), is a country located in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Mal ...
.


Logistics


Railroads

From 2000 to 2006, Vale invested more than $1.3 billion on the acquisition of over 361
locomotive A locomotive or engine is a rail transport vehicle that provides the motive power for a train. If a locomotive is capable of carrying a payload, it is usually rather referred to as a multiple unit, motor coach, railcar or power car; t ...
s and around 14,090 freight cars, those locomotives were primarily for
iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
transportation, but some were for regular cargo. Some of the locomotives purchased were secondhand for refurbishment but at least 55 of the locomotives acquired were new ones of the model EMD SD70M, each one costing about $2 million. After those investments, Vale became the owner of over 800 locomotives and more than 35,000 freight cars. Vale owns the concession of three Brazilian railways:
Vitória-Minas Railway The Vitória-Minas Railway (; EFVM) is a railway line linking the cities of Belo Horizonte, Minas Gerais and Vitória, Espírito Santo, in Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the ...
(EFVM), Ferrovia Centro-Atlântica (FCA) and Carajás railroad (EFC). * Vitória a Minas railroad - Vale operates under a 30-year contract this 905 km, railroad, which is used to transport iron from the ''Iron Quadrangle'' in
Minas Gerais Minas Gerais () is a state in Southeastern Brazil. It ranks as the second most populous, the third by gross domestic product (GDP), and the fourth largest by area in the country. The state's capital and largest city, Belo Horizonte (literally ...
to the
Port of Tubarão The Port of Tubarão is a port in Brazil, near the city of Vitória in Espírito Santo. The port was created in 1966 by the Brazilian mining company Vale to export iron ore extracted from the Iron Quadrangle in Minas Gerais. In 2007, the Port of ...
in the state of
Espírito Santo Espírito Santo (, , ; ) is a state in southeastern Brazil. Its capital is Vitória, and its largest city is Serra. With an extensive coastline, the state hosts some of the country's main ports, and its beaches are significant tourist attr ...
. The concession expires in 2027. This railroad also carried 1.1 million passengers in 2006. *Carajás railroad - The concession of this 892 km, gauge railroad also expires in 2027, it links Carajás iron ore mines in the state of Pará to
Ponta da Madeira Ponta da Madeira is a Brazilian private port, a large iron ore loading port in São Luís, in the Northern part of Brazil, and one of the only terminals in the country suited for the ultra large Valemax ships. In 2020, the port of Ponta da Mad ...
port terminal in the state of
Maranhão Maranhão () is a state in Brazil. Located in the country's Northeast Region, it has a population of about 7 million and an area of . Clockwise from north, it borders on the Atlantic Ocean for 2,243 km and the states of Piauí, Tocantins and ...
. Vale operates a train of 3.2 km and 340 cars on this railroad. *Ferrovia Centro-Atlântica - Vale controls this railroad through the subsidiary ''FCA''. As it is shown on the ''Vale's operations map'' above, this 7,000 km, railroad extends through 6 Brazilian states, this railroad originally belonged to the
RFFSA The Rede Ferroviária Federal, Sociedade Anônima (RFFSA, pronounced as ''Refesa'') () was the State-owned national railway company of Brazil created from ''Brazilian Federal Law #3.115'' on March 16, 1957, after several railroads were nationali ...
. Vale's concession of this railroad expires in 2026. *Vale also has a stake in railway operators in Mozambique and Malawi via the
Nacala Logistics Corridor The Nacala Logistics Corridor is a logistical mega-enterprise for connecting areas in Southeast Africa, which includes the creation and management of railways, highways, ports and airports, which directly serve Mozambique and Malawi, and indirectly ...
.


Ports and container terminals


=Brazil

= On February 5, 2019, the state court of the Province of
Minas Gerais Minas Gerais () is a state in Southeastern Brazil. It ranks as the second most populous, the third by gross domestic product (GDP), and the fourth largest by area in the country. The state's capital and largest city, Belo Horizonte (literally ...
ordered Vale to halt use of eight of its tailings dams, including the Laranjeiras dam at Brucutu. *
Port of Tubarão The Port of Tubarão is a port in Brazil, near the city of Vitória in Espírito Santo. The port was created in 1966 by the Brazilian mining company Vale to export iron ore extracted from the Iron Quadrangle in Minas Gerais. In 2007, the Port of ...
- Vale owns and operates this port located in Vitória, Brazil in the state of Espirito Santo. It's the largest iron ore embarking port in the world. Around 80 million metric tons of iron ore (30% of the company's annual production) are shipped through this port. *
Ponta da Madeira Ponta da Madeira is a Brazilian private port, a large iron ore loading port in São Luís, in the Northern part of Brazil, and one of the only terminals in the country suited for the ultra large Valemax ships. In 2020, the port of Ponta da Mad ...
- Located in the state of
Maranhão Maranhão () is a state in Brazil. Located in the country's Northeast Region, it has a population of about 7 million and an area of . Clockwise from north, it borders on the Atlantic Ocean for 2,243 km and the states of Piauí, Tocantins and ...
, it ships around 70 million metric tons mostly of iron ore, but also of
manganese Manganese is a chemical element with the symbol Mn and atomic number 25. It is a hard, brittle, silvery metal, often found in minerals in combination with iron. Manganese is a transition metal with a multifaceted array of industrial all ...
and
copper Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkish- ...
for the company; it is being upgraded for the S11D project * Port of Sepetiba - Vale operates two maritime terminals in the Port of Sepetiba area located in the state of
Rio de Janeiro Rio de Janeiro ( , , ; literally 'River of January'), or simply Rio, is the capital of the state of the same name, Brazil's third-most populous state, and the second-most populous city in Brazil, after São Paulo. Listed by the GaWC as a ...
, together they ship around 60 million metric tons of iron ore. * Samarco mine – a joint-venture with
BHP BHP Group Limited (formerly known as BHP Billiton) is an Australian multinational mining, metals, natural gas petroleum public company that is headquartered in Melbourne, Victoria, Australia. The Broken Hill Proprietary Company was founded ...
and the site of the Mariana dam disaster on 5 November 2015. * Feijão mine – site of the Brumadinho dam disaster on 25 January 2019. Vale also operates port terminals in the state of
Sergipe Sergipe (), officially State of Sergipe, is a state of Brazil. Located in the Northeast Region along the Atlantic coast of the country, Sergipe is the smallest state in Brazil by geographical area at , larger only than the Federal District. Serg ...
and two others in the state of Espirito Santo.


=Malaysia

= * Teluk Rubiah Maritime Terminal (TRMT), a state of the art maritime terminal in the state of
Perak Perak () is a state of Malaysia on the west coast of the Malay Peninsula. Perak has land borders with the Malaysian states of Kedah to the north, Penang to the northwest, Kelantan and Pahang to the east, and Selangor to the south. Thailand's ...
, operates as a distribution centre for iron ore in the Asia Pacific region.


Ships

Vale has also entered the shipping business by ordering 35
Very Large Ore Carrier A bulk carrier or bulker is a merchant ship specially designed to transport unpackaged bulk cargo — such as grains, coal, ore, steel coils, and cement — in its cargo holds. Since the first specialized bulk carrier was built in 1852, econo ...
s (VLOC) to transport iron ore between South America and Asia. These , 400,000 DWT ships are the longest and largest dry bulk carriers in the world. The first ship, ''Vale Brasil'', was delivered in March 2011.


Energy

Vale's energy business is focused at power production to fulfill the needs of its mining operations, as well as supplying the general Brazilian power grid. In 2005 it consumed 16.9 TWh of electrical power, accounting for 4.4% of Brazil's total consumption in that year. Vale has participation in 8 hydroelectric plants, with 7 of these located in the state of
Minas Gerais Minas Gerais () is a state in Southeastern Brazil. It ranks as the second most populous, the third by gross domestic product (GDP), and the fourth largest by area in the country. The state's capital and largest city, Belo Horizonte (literally ...
. Vale's investment in hydroelectric power plants totals $880 million.SEC Info - Companhia Vale do Rio Doce, et al. - 20-F - For 12/31/05
/ref> The company also plans to build a 600 MW thermoelectric power plant in the state of
Pará Pará is a state of Brazil, located in northern Brazil and traversed by the lower Amazon River. It borders the Brazilian states of Amapá, Maranhão, Tocantins, Mato Grosso, Amazonas and Roraima. To the northwest are the borders of Guyana and S ...
.A CVRD Anuncia a Construção de uma Térmica a Carvão - Adriano Pires: O Globo Online
/ref> Vale also operates hydroelectric plants in Canada and
Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
.


Rebranding

In November 2007, the company retired the name ''CVRD'' in favour of simplified company name of ''Vale'', and rebranded.


History

Companhia Vale do Rio Doce (widely known as CVRD prior to 2007) (in English, "
Doce River The Doce River (literally the "sweet river"; pt, Rio Doce ) is a river in southeast Brazil with a length of . The river basin is economically important. In 2015 the collapse of a dam released highly contaminated water from mining into the river ...
Valley Company") was founded in
Itabira Itabira is a Brazilian municipality and a major city in the state of Minas Gerais. The city belongs to the Belo Horizonte metropolitan area mesoregion and to the Itabira microregion. It is currently the twenty-fourth largest city in the state in ...
,
Minas Gerais Minas Gerais () is a state in Southeastern Brazil. It ranks as the second most populous, the third by gross domestic product (GDP), and the fourth largest by area in the country. The state's capital and largest city, Belo Horizonte (literally ...
, by the Brazilian Federal Government on 1 June 1942.Vale History Book: Chapter 1
/ref> One year later the ''Vitória a Minas'' railroad was inaugurated. The 1950s marked Companhia Vale do Rio Doce's entry into the global iron ore market, after the company's mine-railroad-port complex was modernized and iron ore prices doubled. At first, sales were mostly to the United States, but exports to Europe increased over the course of the decade.Vale History Book: Chapter 3
/ref> In 1966, the company inaugurated in Espirito Santo the
Port of Tubarão The Port of Tubarão is a port in Brazil, near the city of Vitória in Espírito Santo. The port was created in 1966 by the Brazilian mining company Vale to export iron ore extracted from the Iron Quadrangle in Minas Gerais. In 2007, the Port of ...
, which was to become the most important port for CVRD and is still used to export
iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
mined from the ''Iron Quadrangle'' in
Minas Gerais Minas Gerais () is a state in Southeastern Brazil. It ranks as the second most populous, the third by gross domestic product (GDP), and the fourth largest by area in the country. The state's capital and largest city, Belo Horizonte (literally ...
. The company acquired a majority interest in the Carajás Mine, with over 1.5 billion tonnes of iron ore in reserves, in 1970.Vale History Book 5
/ref> In 1974, Vale became the world's biggest exporter of iron ore, a title which it still holds today. In 1982, Vale began to diversify after it started to produce
aluminium Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. It ...
in
Rio de Janeiro Rio de Janeiro ( , , ; literally 'River of January'), or simply Rio, is the capital of the state of the same name, Brazil's third-most populous state, and the second-most populous city in Brazil, after São Paulo. Listed by the GaWC as a ...
. In the mid 1980s, profits increased considerably under the leadership of Eliezer Batista, father of Eike Batista. In 1985, Vale started to explore the Carajás Mine in the state of
Pará Pará is a state of Brazil, located in northern Brazil and traversed by the lower Amazon River. It borders the Brazilian states of Amapá, Maranhão, Tocantins, Mato Grosso, Amazonas and Roraima. To the northwest are the borders of Guyana and S ...
just after the gauge Carajás railroad was opened. In 1986, Ponta Madeira port terminal, which is still used to export iron ore mined at the Carajás Mine, was inaugurated in the state of
Maranhão Maranhão () is a state in Brazil. Located in the country's Northeast Region, it has a population of about 7 million and an area of . Clockwise from north, it borders on the Atlantic Ocean for 2,243 km and the states of Piauí, Tocantins and ...
. In March 2017, Vale SA chose a
commodities In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a co ...
industry veteran, Fabio Schvartsman, as
chief executive officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
. Schvartsman was
CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especiall ...
of Klabin SA, Brazil's largest paper and cardboard producer, for the previous six years.


Privatization in 1997

In May 1997, despite protests by Vale employees and some politicians, the
Brazilian Government The politics of Brazil take place in a framework of a federal presidential representative democratic republic, whereby the President is both head of state and head of government, and of a multi-party system. The political and administrative o ...
auctioned a 41.73% interest in the company, which was sold for R$3.34 billion (US$3.13 billion). The largest interest purchased was a 16.3% stake purchased by Brazilian steel company
Companhia Siderúrgica Nacional Companhia Siderúrgica Nacional (CSN) is the largest fully integrated steel producer in Brazil and one of the largest in Latin America in terms of crude steel production.
.


Sale of wood pulp businesses

In 2001, Vale sold its Cenibra wood pulp business for US$670.5 million to focus on mining and logistics. In 2002, Vale sold 100,000 acres of land and the eucalyptus forests thereon related to its wood pulp business for R$137 million.


Sale of steel businesses

In 2000, the company sold its stake in Açominas to
Gerdau Gerdau is the largest producer of long steel in the Americas, with steel mills in Brazil, Argentina, Canada, Colombia, Dominican Republic, Mexico, Peru, United States, Uruguay and Venezuela. Currently, Gerdau has an installed capacity of ...
in exchange for preferred shares in
Gerdau Gerdau is the largest producer of long steel in the Americas, with steel mills in Brazil, Argentina, Canada, Colombia, Dominican Republic, Mexico, Peru, United States, Uruguay and Venezuela. Currently, Gerdau has an installed capacity of ...
. In 2001, Vale sold its stake in
Companhia Siderúrgica Nacional Companhia Siderúrgica Nacional (CSN) is the largest fully integrated steel producer in Brazil and one of the largest in Latin America in terms of crude steel production.
for R$520 million. In 2004, Vale sold its stake in CST to
Arcelor Arcelor S.A. was the world's largest steel producer in terms of turnover and the second largest in terms of steel output, with a turnover of €30.2 billion and shipments of 45 million metric tons of steel in 2004. The company was created in 2002 b ...
for US$415.1 million. In 2006, Vale sold its interest in Siderar to
Ternium Ternium S.A. is a manufacturer of flat and long steel products with production centers in Argentina, Brazil, Mexico, Guatemala, Colombia, and the United States. It is the leading steel company in Latin America with highly integrated processes to ...
for US$107.5 million. In 2006, the company sold 5,362,928 shares in
Usiminas Usiminas is one of the largest producers of steel in the Americas, with major steel mills in Brazil with a total capacity of 9.5 million metric tons of steel per year. The company accounts for 28% of total steel output in Brazil. Usiminas has an ...
for or R$378.6 million. In 2007, the company sold the majority of its stake in
Usiminas Usiminas is one of the largest producers of steel in the Americas, with major steel mills in Brazil with a total capacity of 9.5 million metric tons of steel per year. The company accounts for 28% of total steel output in Brazil. Usiminas has an ...
. In 2009, the company sold its remaining stake in
Usiminas Usiminas is one of the largest producers of steel in the Americas, with major steel mills in Brazil with a total capacity of 9.5 million metric tons of steel per year. The company accounts for 28% of total steel output in Brazil. Usiminas has an ...
.


Acquisitions of Brazilian iron ore companies

In May 2000, the company acquired Sociomex, owner of the Gongo Sôco Mine, with proven reserves of approximately 75 million tons. In May 2000, the company also acquired a controlling interest in Samitri, one of the biggest pelletizing companies of Brazil. In April 2001, the company acquired Ferteco, then the third largest Brazilian producer of iron ore, with a production capacity of 15 million tonnes per year. In 2006, the company acquired Rio Verde Mineracao for $47 million.


Acquisition of

Caemi Caemi Mineração e Metallurgia S.A. was a major Brazilian mining holding company that ceased to exist in December 2006 after it was merged into Companhia Vale do Rio Doce, Vale. Caemi means ''Companhia Auxiliar de Empresas de Mineração''. Oper ...
and acquisition and partial disposition of MBR

On 1 April 2000, Vale offered to pay
Mitsui is one of the largest ''keiretsu'' in Japan and one of the largest corporate groups in the world. The major companies of the group include Mitsui & Co. ( general trading company), Sumitomo Mitsui Banking Corporation, Nippon Paper Industrie ...
US$277 million for 50% of the common shares and US$150 million for 40% of the preferred stock in
Caemi Caemi Mineração e Metallurgia S.A. was a major Brazilian mining holding company that ceased to exist in December 2006 after it was merged into Companhia Vale do Rio Doce, Vale. Caemi means ''Companhia Auxiliar de Empresas de Mineração''. Oper ...
. Caemi owned MBR, Brazil's second largest iron ore producer, mining over 60 million tonnes per year. The acquisition was approved by European regulators subject to conditions. In September 2003, Vale purchased an additional stake in Caemi from Mitsui for US$426.4 million. On 23 January 2006, the company announced a
stock swap In corporate finance a stock swap is the exchange of one equity-based asset for another, where, during the merger or acquisition, the swap provides an opportunity to pay with stock rather than with cash; see . Overview The acquiring company e ...
merger to acquire the interest Caemi that it did not already own. In 2007, increased its ownership in MBR by purchasing additional interests from
Mitsui is one of the largest ''keiretsu'' in Japan and one of the largest corporate groups in the world. The major companies of the group include Mitsui & Co. ( general trading company), Sumitomo Mitsui Banking Corporation, Nippon Paper Industrie ...
for US$114.5 million. Also in 2007, Vale announced that it will lease the shares of MBR that it did not already own from their 7 Japanese shareholders for a 30-year period. The agreement required the company to pay a total of US$60.5 million in 2007 and US$48.1 million annually for a 30-year period and gave it total control of MBR. In 2015, Vale announced the sale of a 36.4% interest in MBR for R$4 billion.


Diversification into non-ferrous metals,

coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed when dead ...
and
phosphate In chemistry, a phosphate is an anion, salt, functional group or ester derived from a phosphoric acid. It most commonly means orthophosphate, a derivative of orthophosphoric acid . The phosphate or orthophosphate ion is derived from pho ...

In 2001, Vale increased its copper mining operations by purchasing the Sossego mine in Carajas, in northern Brazil, for $48.5 million. In 2005, Vale acquired Canico Resource, owner of a
nickel Nickel is a chemical element with symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive but large pieces are slow to ...
mine in Brazil, after increasing its offer to $865 million. In October 2006, Vale acquired Canadian-based nickel producer
Inco Vale Canada Limited (formerly Vale Inco, CVRD Inco and Inco Limited; for corporate branding purposes simply known as "Vale" and pronounced in English) is a wholly owned subsidiary of the Brazilian mining company Vale. Vale's nickel mining and ...
for $18.9 billion, including $17.7 billion in cash and the assumption of $1.2 billion in debt. To gain approval from Canadian authorities, Vale promised to continue investments in Canada and not lay off people for 3 years after closing. In 2007, Vale made a major entry into coal mining by acquiring AMCI Holdings Australia for AU$835 million. In 2010, Vale launched a public offer to acquire fertilizer and copper producer Paranapanema. In 2010, Vale acquired a controlling interest in Fosfertil via a series of transactions. In June 2011, Jason Chenier and Jordan Fram were killed at the 3,000 foot level of the Frood Mine near
Sudbury, Ontario Sudbury, officially the City of Greater Sudbury is the largest city in Northern Ontario by population, with a population of 166,004 at the 2021 Canadian Census. By land area, it is the largest in Ontario and the fifth largest in Canada. It is a ...
. In 2011, the company sold its aluminum business to Norsk Hydro in a US$5.27 billion transaction. In July 2012, Vale sold its ferro-manganese plants in Europe to
Glencore Glencore plc is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. Glencore's oil and gas head office is in London and its registered office is in Saint Helier, Jersey. The current company wa ...
for $160 million. In 2014, Vale announced the sale of coal assets in
Mozambique Mozambique (), officially the Republic of Mozambique ( pt, Moçambique or , ; ny, Mozambiki; sw, Msumbiji; ts, Muzambhiki), is a country located in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Mal ...
to
Mitsui is one of the largest ''keiretsu'' in Japan and one of the largest corporate groups in the world. The major companies of the group include Mitsui & Co. ( general trading company), Sumitomo Mitsui Banking Corporation, Nippon Paper Industrie ...
in a $950 million transaction. In 2014, Vale sold its interest in Fosbrasil S.A., a manufacturer of phosphate-based products. In 2015, the company announced that it would sell a 25% interest in gold produced from its Salobo mine, located in Brazil, to Silver Wheaton for US$900 million. In 2015, the company entered into a
letter of intent A letter of intent (LOI or LoI, or Letter of Intent) is a document outlining the understanding between two or more parties which they intend to formalize in a legally binding agreement. The concept is similar to a heads of agreement, term she ...
to sell bauxite assets to
Norsk Hydro Norsk Hydro ASA (often referred to as just ''Hydro'') is a Norwegian aluminium and renewable energy company, headquartered in Oslo. It is one of the largest aluminium companies worldwide. It has operations in some 50 countries around the world a ...
. On 26 November 2015, Vale announced that it planned to reduce its
budget A budget is a calculation play, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environment ...
for
capital expenditure Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure ...
s from US$8 billion in 2015 to US$6.2 billion in 2016, with further reductions to US$4–5 billion by 2018.


Disasters and Incidents


Bento Rodrigues dam collapse

On 5 November 2015, the Mariana dam disaster caused 19 deaths and massive environmental contamination when a
tailings dam A tailings dam is typically an earth-fill embankment dam used to store byproducts of mining operations after separating the ore from the gangue. Tailings can be liquid, solid, or a slurry of fine particles, and are usually highly toxic and poten ...
collapsed at the
Samarco Samarco Mineração S.A. is a Brazilian mining company founded in 1977. It is currently a joint-venture between the Brazilian Vale and the English-Australian BHP, each one holding 50% of the company's stocks. Structure Samarco is hosted in ...
mining site, co-owned by Vale and
BHP BHP Group Limited (formerly known as BHP Billiton) is an Australian multinational mining, metals, natural gas petroleum public company that is headquartered in Melbourne, Victoria, Australia. The Broken Hill Proprietary Company was founded ...
. Heavy metal contamination of the
Doce River The Doce River (literally the "sweet river"; pt, Rio Doce ) is a river in southeast Brazil with a length of . The river basin is economically important. In 2015 the collapse of a dam released highly contaminated water from mining into the river ...
caused water emergencies in many downstream cities which depend on the river for drinking water. Activities at the mine were suspended, and the companies agreed to pay compensation of R$4.4 billion (US$1.55 billion). An investigation into the disaster commissioned by BHP, Vale and Samarco found the collapse was due to a variety of construction and design flaws. In June 2018, Samarco, Vale and BHP signed an agreement to drop a US$7 billion lawsuit and allow two years for the companies to address the greater US$55 billion suit seeking social, environmental and economic compensation.


Brumadinho dam disaster

On 25 January 2019, the Brumadinho dam disaster occurred at the Córrego do Feijão mine in the Brazilian state of Minas Gerais, releasing 3 billion gallons of mine waste,"Court Orders Vale To Stop Using Tailings Dams As Death Toll Climbs Above 120", by Vanessa Roma, February 4, 2019. Retrieved February 10, 2019.
/ref> in a wave of red iron ore which destroyed the mine's cafeteria, where many workers were present and lost their lives, and which flooded the town of Brumadinho. Two hundred and seventy people were killed. In 2020, prosecutors found that Vale had falsified safety reports for at least ten of its dams. They later charged sixteen officials of Vale including its CEO, with manslaughter. In 2021, Vale agreed to pay victims $7 billion. Though substantially deadlier, the environmental devastation was not as severe as with Bento Rodrigues. Following the Córrego do Feijão disaster, a Brazilian court ordered Vale to stop disposing of tailings at eight dams.


Tax dispute

In 2013, Vale S.A. agreed to pay the equivalent of $9.5 billion to settle a tax dispute with the Brazilian authorities regarding its overseas profits from 2003 to 2012.


Totten Mine

On September 28, 2021, thirty-nine miners were trapped underground for 24 hours at the Totten Mine in Ontario after the entrance shaft became obstructed.


Criticism

In January 2012, Vale received the "people's choice" Public Eye Award as the corporation with the most "contempt for the environment and human rights" in the world. Vale received 25,000 votes, with the
Belo Monte Dam The Belo Monte Dam (''formerly known as'' Kararaô) is a hydroelectric dam complex on the northern part of the Xingu River in the state of Pará, Brazil. After its completion, with the installation of its 18th turbine, in November 2019, the ins ...
cited as a reason. During the interim between the two dam disasters of 2015 and 2019; Vale had denied owning an upstream tailings waste structure such as collapsed, causing the Brumadinho dam to burst. Following the 2019 disaster,
BBC News BBC News is an operational business division of the British Broadcasting Corporation (BBC) responsible for the gathering and broadcasting of news and current affairs in the UK and around the world. The department is the world's largest broadc ...
reported that "Correspondents say the alarm system the company had installed to warn residents of any risk did not go off." In February 2021, an agreement was signed that required Vale to pay over $7 billion in compensation to the families of the victims.


Carbon footprint

Vale reported Total CO2e emissions (Direct + Indirect) for 31 December 2020 at 10,250Alt URL
/ref> Kt (-1,850 /-15.3% y-o-y). This is a higher rate of decline than over the period since 4Q'18 (-10.9% CAGR).


References


Bibliography

* Michel Braudeau, « Mourir dans l'or à Serra Pelada », in ''Le rêve amazonien'', éditions Gallimard, 2004 ().


External links


The company's home page in Portuguese

The company's home page in English

Rheebu Nuu - indigenous group attempting to halt CVRD's mining projects in the South Pacific

Eyewitness Survivor Account and video.
"Brumadinho: novas imagens revelam detalhes da tragédia, ''Jornol O Globo'', February 1, 2019. Retrieved February 10, 2019. * {{Authority control Conglomerate companies of Brazil 1942 establishments in Brazil Aluminium companies of Brazil Coal companies of Brazil Conglomerate companies established in 1942 Railway companies established in 1942 Energy companies established in 1942 Iron ore mining companies Companies listed on B3 (stock exchange) Mining companies of Brazil Multinational companies headquartered in Brazil Railway companies of Brazil Privatized companies of Brazil Non-renewable resource companies established in 1942 Metal companies of Brazil