Caemi Mineração e Metallurgia S.A. was a major

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 ...

ian mining

holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

that ceased to exist in December 2006 after it was merged into Vale. Caemi means ''Companhia Auxiliar de Empresas de Mineração''.

Operations

The company owned

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 ...

mines in the so-called ''Iron Quadrangle'' region of 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 (literall ...

, and

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 octahed ...

mines in the northern states of

Amapá Amapá () is one of the 26 states of Brazil. It is in the northern region of Brazil. It is the second least populous state and the eighteenth largest by area. Located in the far northern part of the country, Amapá is bordered clockwise by Fr ...

and

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 a ...

. The company also owned a stake in MRS Logística, which owns a railway network in southeastern Brazil. Caemi's stock was traded on

Bovespa B3 S.A. - Brasil, Bolsa, Balcão (in English, ''B3 - Brazil Stock Exchange and Over-the-Counter Market''), formerly BM&FBOVESPA, is a stock exchange located in São Paulo, Brazil, and the second oldest of the country. Its current form can be tra ...

MBR – Minerações Brasileiras Reunidas

Caemi started MBR in a partnership with M. A. Hanna Company in 1965. MBR since 1971 had been the second biggest iron ore producer in

, mining in 2005 over 50 million tonnes of iron ore or around 25% of Brazilian production. MBR until Vale acquired 100% of Caemi's capital in 2006 was owned by two companies: Caemi and ''EBM'' (Empreendimentos Brasileiros de Mineração S.A.). Caemi had a 49% stake at MBR while ''EBM'' owned the other 51% of the company. The problem is that Caemi also owned 70.1% of ''EBM'', this fact brings Caemi's total stake at MBR to 84.75%. Caemi's 84.75% participation at MBR is recognized at the company's 2005 Annual Report, which was Caemi's last. ''EBM'', besides Caemi had two other investors: * Vale owned 9.9% of ''EBM'' since 2001, participation which was purchased from

Bethlehem Steel The Bethlehem Steel Corporation was an American steelmaking company headquartered in Bethlehem, Pennsylvania. For most of the 20th century, it was one of the world's largest steel producing and shipbuilding companies. At the height of its succ ...

* Japanese investors owned the remaining 20% of ''EBM'' and in this group were included the following companies:

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 Industries ...

, Nisshin Steel,

Nippon Steel was formed in 2012 by the merger of the old Nippon Steel and Sumitomo Metal. was established in 1970 by the merger of Fuji Iron & Steel and Yawata Iron & Steel. Nippon Steel is the world's third largest steel producer by volume as of 2019. ...

Mitsubishi Corporation is Japan's largest trading company ( sogo shosha) and a member of the Mitsubishi keiretsu. As of 2022, Mitsubishi Corporation employs over 80,000 people and has ten business segments, including finance, banking, energy, machinery, chemicals, a ...

JFE Steel JFE Steel () is the second largest Japanese steel manufacturer. The company was created in 2002 through the merger of the steel manufacturing business of Kawasaki Steel and NKK (Nihon Kokan). It is owned by JFE Holdings, which is listed on the T ...

Itochu is a Japanese corporation based in Umeda, Kita-ku, Osaka and Aoyama, Minato, Tokyo. It is one of the largest Japanese ''sogo shosha'' (general trading companies). Among Japanese trading companies, it is distinguished by not being descende ...

Sumitomo The is one of the largest Japanese ''keiretsu'', or business groups, founded by Masatomo Sumitomo (1585-1652) around 1615 during the early Edo period. History The Sumitomo Group traces its roots to a bookshop in Kyoto founded circa 1615 by Ma ...

Group,

Marubeni (, OSE: 8002, NSE: 8002) is a '' sōgō shōsha'' (general trading company) headquartered in Nihonbashi, Chuo, Tokyo, Japan. It is one of the largest ''sogo shosha'' and has leading market shares in cereal and paper pulp trading as well as a ...

and

Kobe Steel Kobe Steel, Ltd. (株式会社神戸製鋼所, ''Kabushiki gaisha Kōbe Seikō-sho''), is a major Japanese steel manufacturer headquartered in Chūō-ku, Kobe. KOBELCO is the unified brand name of the Kobe Steel Group. Kobe Steel has the low ...

Vale acquires MBR

After Vale bought 100% of Caemi, Vale's stake at MBR reached 89.8%, that's because Vale became the owner of Caemi's 84.75% stake at MBR and Vale already indirectly owned 5.05% of MBR through its 9.9% stake at ''EBM''. This meant that Vale had only to acquire the remaining 20% of ''EBM'' at the hands of the Japanese investors in order to become owner of 100% of MBR. This objective was achieved in May 2007 when Vale bought for $231 million 6.25% of ''EBM'' from the Japanese investors and simultaneously leased the 13.75% left from the Japanese group in exchange for a

down payment Down payment (also called a deposit in British English), is an initial up-front partial payment for the purchase of expensive items/services such as a car or a house. It is usually paid in cash or equivalent at the time of finalizing the transactio ...

of $60.5 million and annual fee of $48.1 million for the next 30 years. Vale now owns 100% of MBR.

Vale acquires Caemi

The

mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic ...

company Vale bought between 2001 and 2006 100% of Caemi's capital for a total cost of $3.2 billion. Back in 2001 Vale bought for $278.7 million 16.82% of Caemi's capital then in 2003 Vale purchased

's participation on Caemi for $426.4 million,http://www.secinfo.com/svr4.173y raising Vale's participation to 60.2% of Caemi's total capital. Finally on 31 March 2006 Vale purchased the remaining 39.8% of Caemi's capital in 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 ...

deal worth $2.5 billion.SEC Info – Companhia Vale do Rio Doce – 20-F – For 12/31/06
/ref> In May the company's shares stopped being negotiated at

and then in December Caemi was merged into Vale and ceased to exist.

References

{{reflist Mining companies of Brazil Companies based in Minas Gerais Non-renewable resource companies established in 1942 Non-renewable resource companies disestablished in 2006 1942 establishments in Brazil 2006 disestablishments in Brazil