Vale was established by the Brazilian federal government on 1 June 1942, in Itabira, Minas Gerais, to harness the region’s potential in mineral resources.
The federal government privatized the company on 7 May 1997, through an auction of 41.73% of the company’s voting equity. The auction, organized by the Rio de Janeiro stock market, was won by the Consórcio Brasil consortium, led by Companhia Siderúrgica Nacional (CSN), which paid US$ 3.338 billion for the shares.
In March 2001, the cross-shareholding involving Vale and CSN was dissolved. Nowadays the group of controlling shareholders is made up of domestic and foreign institutional investors.
Over the course of its history, Vale has expanded its operating field and become a global company. It has also diversified its portfolio of mineral products, consolidated its logistics services provision and started to invest in electricity generation to support mining activities.
The company acts in a responsible way, especially with regard to the environment, where it seeks sustainability. Through its operational areas and the Vale Foundation, the company conducts programs which aim at the economic, environmental and social development of the communities with which it interacts, respecting local culture.
Vale is the world’s second-largest mining and metal company in market value, with assets of more than US$ 100 billion.
It is the world leader in production and export of iron ore and pellets and an important producer of nickel, copper concentrate, bauxite, alumina, potassium, kaolin, manganese and iron alloys.
It is the world leader in production and export of iron ore and pellets and an important producer of nickel. The company also produces copper, coal, potassium, phosphate, manganese and iron alloys, in addition of PGM and cobalt as by-products.
It is one of the largest biodiesel (B20) consumers in the world and the first Brazilian company to use it to power trains.
The company is the largest contributor to the Brazilian balance of trade.
Vale is classified as an investment grade company by the world’s four main risk agencies – Dominion Bond, Standard & Poor’s, Moody’s and Fitch – reflecting the financial community’s confidence in the company.
A global mining company, Vale operates in many countries and has a diversified portfolio: it produces and trades iron ore, pellet, nickel, copper, coal, potassium, phosphate, manganese and iron alloys.
With the acquisition of Inco in 2006, Vale became the world’s biggest nickel producer. This development was in line with its long-term corporate strategies involving non-ferrous metals, creating greater diversification of products, markets and mineral geographical locations. Vale Inco is also an important producer of copper, cobalt and precious metals.
In June 2004, Vale opened its first copper-extraction operation in Brazil: Sossego Project, in Pará State, with an average capacity of 140,000 tons of copper concentrate per year.
In October 2006, Vale opened the Brucutu Mine, the biggest iron ore mine in the world with initial production capacity of 30 million tons per year.
In February 2007, Vale acquired Australian company AMCI, creating a strong platform for growth in the coal sector and contributing to the further diversification of its product portfolio.
To provide support for its mining activities and guarantee that Brazilian production reaches global markets, Vale counts on an integrated logistical organization, involving approximately 10,000 km of railways, six sea terminals and one highway/rail terminal.
Shortening distances and creating export corridors, Vale is responsible for 16% of freight movements in Brazil and 30% of Brazilian harbor operations.
Vale has the biggest railway network in the country – covering 9,820 km – which is currently undergoing a modernization program.
Vale’s orders for wagons have resulted in 100% occupation of the capacity of Brazil’s train-building industry.
Since 2000, the company has maintained annual growth of 9% for third-party cargo transportation, significantly higher than the growth in Brazil’s Gross Domestic Product.
Vale's transportation logistics link important regions of the country, allowing the expansion of Brazilian agricultural frontiers, especially in the North and Center-West regions.
As a result, Vale is boosting the competitiveness of Brazilian products on international markets, as well as encouraging development in the country’s regions.
Vale is one of the largest investors in electric energy in Brazil.
Vale, along with its subsidiaries, associated companies and joint ventures, is the largest consumer of electricity in Brazil.
The company is part of a group that runs six hydro-electric power plants, all in Minas Gerais state: Igarapava, Porto Estrela, Candonga, Funil, Eliezer Batista, and Amador Aguiar I and II . Together, these plants generate 1,422 megawatts of power.
An additional hydroelectric plant is yet to come online: Estreito, in Maranhão State, which will generate 1,087 megawatts.
The energy generated by these plants is used by the company’s operational units, thereby considerably cutting production costs.
