Mineradora Vale, the largest iron and nickel producer on the planet, also exports copper, gold and rare minerals, surpassing Petrobras in market value

Grande Carajás Mining Project: Vale discovered a large amount of iron ore, manganese, copper, gold and rare ores

Discover the history of this Brazilian giant: Vale, the largest company in Brazil by market value, is one of the largest mining companies in the world and also the largest producer of iron ore, pellets and nickel, with interests in the electricity and logistics sectors. It also produces copper, cobalt and other precious metals.

Vale's history is a successful journey, from its origins as a railway transport company to becoming one of the largest iron ore producers in the world. Over the years, Vale has faced challenges and overcome obstacles, expanding its operations internationally and becoming a reference in sustainability in mining.

With innovative projects, investments in infrastructure and a long-term vision, Vale continues to play a fundamental role in the global iron ore market. In this article, let's explore the success story of this Brazilian giant that became a global reference.

Discover the history of the largest company in Brazil in terms of market value, surpassing Petrobras, the Brazilian oil giant!

Iron ore and pellets:

The essential raw material for making steel is found in nature in the form of rocks mixed with other elements. Through several high-technology industrial processes, iron ore is processed and then sold to the steel industry.

It's part of everyday life: It is present in the construction of houses, the manufacture of cars and the production of household appliances.

The ore found in Carajás has 67% iron content, considered the best quality on the planet. In the North of Brazil, our mines occupy just 3% of the Carajás National Forest. The remaining 97%, we protect in partnership with institutes.

Nickel

Vale leads the production of this metal, which is considered one of the most versatile in the world. Hard but also malleable, it is resistant to corrosion and maintains its properties even when subjected to extreme temperatures.

It's part of everyday life: It is used in the production of batteries and items ranging from coins to a car.

The ores obtained from its mines contain more than just nickel. Therefore, by extracting and processing it, we also produce cobalt, copper and precious metals;

Copper

Of extreme importance for modern industry, it is malleable, recyclable, resistant to corrosion and high temperatures.

It's part of everyday life: It is used in the generation and transmission of energy, in wiring and in practically all electronic equipment, such as television and cell phones.

Copper is the third most used metal in the world, behind iron and aluminum. There are records of objects made with the metal dating back to 8 thousand years before Christ. 66% of annual copper consumption is used for electrical applications.

Vale’s origins

Vale's history dates back to the beginning of the 13th century, when Companhia Estrada de Ferro Vitória, Minas, carried out its first operation on May 1904, 1908. This railway is one of the few in Brazil that still maintains continuous passenger transport. Following the implementation of the railway, in XNUMX, with the expansion of the Itabira iron deposits, two English engineers founded the Brazilian Heatmaid Syndicate, or Brazilian Hematite Union, obtaining authorization to transport ore by railway.

In 1911, American businessman Percival Farquhar acquired all shares in the company, changing its name to Itabira Iron Ore Company and receiving authorization from the Brazilian government to operate.

Vale started to explore iron ore on a large scale

During the Vargas government, there was an emphasis on the nationalization of mineral reserves. In 1939, the Itabira Iron Ore contract was considered invalid, leading to the loss of federal and state concessions. However, the company still owned the Itabira land and iron mines, in accordance with the Minas Code. During World War II, the Itabira mines were transferred to the Brazilian government to meet England's emergency demand for iron ore.

This was ratified by Decree Law No. 4.352 on June 1, 1942, which officially created Companhia Vale do Rio Doce, a state-owned company controlled by the Federal Union. From that moment on, Vale began to explore iron ore on a large scale, boosting social, economic and structural development in Itabira. The company also became the owner of the Vitória Minas Railway.

Vale was built as a corporation, and its shares were auctioned on the Rio de Janeiro Stock Exchange in 1956

Vale's first shipment of iron ore occurred in July 1942, when the Americans were looking for raw materials for the production of weapons during the Second World War. However, the English ship SS Baron Napier was attacked by Germans shortly after departure, resulting in the loss of 5.700 tons of ore. Despite this setback, Vale managed to gradually expand its production.

However, demand for iron ore was still limited in Brazil at that time, and Vale supplied mainly to national steel mills, with Companhia Siderúrgica Nacional being the largest of them. In 1943, Vale was built as a corporation, and its shares were auctioned on the Rio de Janeiro Stock Exchange in 1956. During this period, engineer Francisco de Salles assumed the presidency of the company, modernizing its posts and establishing the first offices abroad.

In 1961, Eliezer Batista was appointed to the presidency of Vale by former president Jânio Quadros. Eliezer is known for connecting Vale to the world and creating the concept of economic distance. He saw an opportunity to supply iron ore to Japan, which needed to expand its steel industry damaged during World War II. This concept allowed Vale to compete with iron ore mines in Australia, despite the geographical distance.

Grande Carajás Project: Vale geologists discovered a large amount of iron ore, manganese, copper, gold and rare ores

In 1967, geologists from US Steel, accompanied by geologists from Vale, discovered a large quantity of high-quality iron ore in the Serra dos Carajás region of Pará. This discovery went beyond expectations, including not only iron ore, but also manganese, copper, gold and rare ores.

The Grande Carajás Project was officially started in 1982, and the region has become the world's largest reserve of high-grade iron ore. To make the operation viable, several infrastructure projects were carried out in the region, such as the Tucuruí hydroelectric plant, the Carajás-Itacuí railway and the port of Ponta da Madeira. The project came into operation in 1985, resulting in a new record for iron ore extraction by Vale in 1989, with 108 million metric tons.

Privatization and International Expansion

On May 6, 1997, during the government of Fernando Henrique Cardoso, Vale was privatized and acquired by Consórcio Brasil, led by Companhia Siderúrgica Nacional. Vale's production was 114 million tons per year at the time of privatization, but increased significantly in the following years due to several acquisitions, such as the incorporation of Samitri, Soucomex, DIC, Ferteco and KM. In 2005, Vale became the world's largest exporter of iron ore, driven by rising iron ore prices and operational efficiency.

Vale acquired Canadian mining company Inco

In 2006, Vale acquired the Canadian mining company Inco, further diversifying its product portfolio and expanding its operations internationally. In the same year, the company was renamed Vale, changing its visual identity. However, in the following years, the company faced two of Brazil's biggest social and environmental disasters.

In 2015, the Mariana dam collapsed, resulting in 18 fatalities. In 2019, the collapse of the Brumadinho dam caused the deaths of more than 270 people, becoming the biggest work accident in Brazil and the second biggest industrial disaster of the century. Since then, Vale has dedicated itself to sustainability initiatives and repairing the damage caused by disasters.

In addition to the production of ferrous and non-ferrous minerals, Vale operates in the logistics and energy segments.

Currently, in addition to the production of ferrous and non-ferrous minerals, Vale operates in the logistics and energy segments. In 2022, the company had a profit of R$95,9 billion and net revenue of R$226,5 billion. Vale's shareholding composition is distributed at 59,98% to the market, with four groups holding more than 5% of the company's capital: PREV, Banco do Brasil Employees' Pension Fund, The Capital Group Companies and BlackRock. Furthermore, special class preferred shares, known as Golden Shares, are mandatory held by the Brazilian government due to the company's history of privatization.

Vale has focused on solutions for sustainable mining, investing in logistics and energy to ensure the efficiency of its operations. With operations, research laboratories, projects and offices on five continents, the company meets the global demand for iron ore. Eduardo Bartolomeu is the current president of Vale, bringing his vast experience in integrated operations and bulk commodities.

On February 22 of this year, Vale released its financial results for the fourth quarter of 2023.

Vale reported on February 22, 2024, pro forma adjusted EBITDA from continuing operations of US$6,7 billion in 4Q, an increase of 35% y/y and 50% q/q, as a result of improved operational performance and higher prices of iron ore.

2023 was a landmark year for Vale. Its results reflected the evolution of its cultural transformation focused on safety and progress towards operational excellence. Iron ore production of 321 Mt in 2023 exceeded guidance and provided evidence of greater asset and process reliability. In addition, it opened the first briquette plant and signed a partnership with Anglo American in a world-class operation, important steps to sustain growth in volumes with quality.

On its way to transforming the Metals for Energy Transition business, copper production saw an impressive 50% growth in the 4th quarter, while nickel production was in line with guidance.

Mineradora Vale is looking for more than 150 professionals with and without experience to work in its factories

Mineradora Vale has dozens of job openings available for candidates from various areas of activity. There are vacancies at Vale for mechanics, engineers, technicians and much more! In addition, future employees will receive an exemplary benefits package, which includes: Private Pension, an extra Food Voucher at Christmas, Wellbeing Program, Funeral Assistance, discounts on car rental, PLR, Gympass, Group Life Insurance, and the Apoiar program.

Inscrição: Those interested in finding out about the 159 job vacancies available can register their CV directly on the company's website, HERE.

I would love to know if you already knew the history of the mining company Vale. Tell us in the comments section if you have worked or work for this giant. Don't forget to leave 5 stars and activate CPG notifications to keep up with all the news from the mining world. Until next time!