The story
Founded by Federal Government of Brazil in 1942, in Itabira.1
Companhia Vale do Rio Doce (widely known as CVRD prior to 2007) (in English, "Doce River Valley Company") was founded in Itabira, Minas Gerais, by the Brazilian Federal Government on 1 June 1942.
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.
In 1966, the company inaugurated in Espírito Santo the Port of Tubarão, which was to become the most important port for CVRD and is still used to export iron ore mined from the Iron Quadrangle in Minas Gerais.
The company acquired a majority interest in the Carajás Mine, with over 1.5 billion tonnes of iron ore in reserves, in 1970.
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 in Rio de Janeiro.
In the early-to-mid-1980s, profits increased considerably under the leadership of Eliezer Batista, father of Eike Batista.
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In 1985, Vale started to explore the Carajás Mine in the state of Pará just after the 1,600 mm (5 ft 3 in) 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.
In March 2017, Vale SA chose a commodities industry veteran, Fabio Schvartsman, as chief executive officer. Schvartsman was CEO 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 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.
Sale of wood pulp businesses
In 2001, Vale sold its Cenibra wood pulp business to Aracruz and Votorantim Celulose e Papel jointly 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 in exchange for preferred shares in Gerdau.
In 2001, Vale sold its stake in Companhia Siderúrgica Nacional for R$520 million.
In 2004, Vale sold its stake in CST to Arcelor for US$415.1 million.
In 2006, Vale sold its interest in Siderar to Ternium for US$107.5 million.
In 2006, the company sold 5,362,928 shares in Usiminas for or R$378.6 million. In 2007, the company sold the majority of its stake in Usiminas. In 2009, the company sold its remaining stake in Usiminas.
Sale of coal businesses
In 2014, Vale announced the sale of coal assets in Mozambique to Mitsui in a $950 million transaction.
In 2015, Vale's Integra coal mine located in Australia's Hunter Valley in New South Wales was sold to Glencore and Bloomfield in a complex multi-party deal.
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 tonnes.
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 Mineração for $47 million.
Acquisition of Caemi and acquisition and partial disposition of MBR
On 1 April 2000, Vale offered to pay Mitsui US$277 million for 50% of the common shares and US$150 million for 40% of the preferred stock in Caemi. 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 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 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 and phosphate
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 mine in Brazil, after increasing its offer to $865 million.
In October 2006, Vale acquired Canadian-based nickel producer Inco 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.
In 2011, the company sold its aluminum business to Norsk Hydro in a US$5.27 billion transaction. Norsk Hydro thus became a truly integrated aluminium company. This gave Hydro the world's largest alumina refinery and aimed to "secure raw materials for more than a hundred years of aluminum production". Hydro gained a large bauxite supply, including control of the Paragominas mine, one of the largest bauxite mines in the world. It also gained large alumina refining and aluminum production capacity, including a 51 percent stake in the Albras aluminum plant and 91 percent ownership of Alunorte, then the world's largest alumina refinery and now the largest outside China.
In July 2012, Vale sold its ferro-manganese plants in Europe to Glencore for $160 million.
In 2014, Vale sold its interest in Fosbrasil S.A., a manufacturer of phosphate-based products to Israel Chemicals Ltd for $52 million.
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 to sell bauxite assets to Norsk Hydro.
On 26 November 2015, Vale announced that it planned to reduce its budget for capital expenditures from US$8 billion in 2015 to US$6.2 billion in 2016, with further reductions to US$4–5 billion by 2018.
In May 2023 it was announced by Eduardo Bartolomeo that Mark Cutifani would be appointed as Chair of the new Vale Base Metals (VBM) subsidiary in a spin-off event. Vale was looking to divest from its tar baby, as early as December 2022. At the time VBM was a supplier to Tesla and General Motors. Reports were afoot that GM, Mitsui, and the Saudi Public Investment Fund were interested buyers of a 10% stake. Former Tesla executive Jerome Guillen would join the "energy transition board" of VBM along with Cutifani.
Vale spun out its metals business as a separate ringfenced entity headquartered in Toronto, with an independent board chaired by Cutifani. That process completed in July 2023. The unit was then one of the world’s largest producers of nickel, copper, and cobalt, and has operations across the globe. The parent company's chief executive stated that Cutifani could help the division explore a future “liquidity event”. In early 2023, the parent company earned 80% of its profits in its South American iron mines, and the balance from its Base Metals group.
From Wikipedia’s article on Vale S.A., shared under CC BY-SA 4.0.8