History Vale (company)

1 history

1.1 privatization in 1997
1.2 sale of wood pulp businesses
1.3 sale of steel businesses
1.4 acquisitions of brazilian iron ore companies

1.4.1 acquisition of caemi , acquisition , partial disposition of mbr


1.5 diversification non-ferrous metals, coal , phosphate

history

founded companhia vale rio doce (widely known cvrd prior 2007) (in english, doce river valley company ) founded in itabira, minas gerais, brazilian federal government on 1 june 1942.

one year later vitória minas railroad inaugurated.

the 1950s marked companhia vale rio doce’s entry global iron ore market, after company s mine-railroad-port complex modernized , iron ore prices doubled. @ first, sales united states, exports europe increased on course of decade.

in 1966, company inaugurated in espirito santo port of tubarão, become important port cvrd , still used export iron ore mined iron quadrangle in minas gerais.

the company acquired majority interest in carajás mine, on 1.5 billion tonnes of iron ore in reserves, in 1970.

in 1974, vale became world s biggest exporter of iron ore, title still holds today.

in 1982, vale began diversify after started produce aluminium in rio de janeiro.

in mid 1980s, profits increased considerably under leadership of eliezer batista, father of eike batista.

in 1985, vale started explore carajás mine in state of pará after 1,600 mm (5 ft 3 in) gauge carajás railroad opened.

in 1986, ponta madeira port terminal, still used export iron ore mined @ carajás mine, inaugurated in state of maranhão.

in march 2017, vale sa choose commodities industry veteran, fabio schvartsman chief executive officer. schvartsman ceo of klabin sa, brazil s largest paper , cardboard producer, past 6 years.

privatization in 1997

in may 1997, despite protests vale employees , politicians, brazilian government auctioned 41.73% interest in company, sold r$3.34 billion (us$3.13 billion). largest interest purchased 16.3% stake purchased brazilian steel company companhia siderúrgica nacional.

sale of wood pulp businesses

in 2001, vale sold cenibra wood pulp business us$670.5 million focus on mining , logistics.

in 2002, vale sold 100,000 acres of land , eucalyptus forests thereon related wood pulp business r$137 million.

sale of steel businesses

in 2000, company sold stake in açominas gerdau in exchange preferred shares in gerdau.

in 2001, vale sold stake in companhia siderúrgica nacional r$520 million.

in 2004, vale sold stake in cst arcelor us$415.1 million.

in 2006, vale sold interest in siderar ternium us$107.5 million.

in 2006, company sold 5,362,928 shares in usiminas or r$378.6 million.

in 2007, company sold majority of stake in usiminas.

in 2009, company sold remaining stake in usiminas.

acquisitions of brazilian iron ore companies

in may 2000, company acquired sociomex, owner of gongo sôco mine, proven reserves of approximately 75 million tons.

in may 2000, company acquired controlling interest in samitri, 1 of biggest pelletizing companies of brazil.

in april 2001, company acquired ferteco, third largest brazilian producer of iron ore, production capacity of 15 million tonnes per year.

in 2006, company acquired rio verde mineracao $47 million.

acquisition of caemi , acquisition , partial disposition of mbr

on 1 april 2000, vale offered pay mitsui us$277 million 50% of common shares , us$150 million 40% of preferred stock in caemi. caemi owned mbr, brazil s second largest iron ore producer, mining on 60 million tonnes per year.

the acquisition approved european regulators subject conditions.

in september 2003, vale purchased additional stake in caemi mitsui us$426.4 million.

on 23 january 2006, company announced stock swap merger acquire interest caemi did not own.

in 2007, increased ownership in mbr purchasing additional interests mitsui us$114.5 million.

also in 2007, vale announced lease shares of mbr did not own 7 japanese shareholders 30-year period. agreement required company pay total of us$60.5 million in 2007 , us$48.1 million annually 30-year period , gave total control of mbr.

in 2015, vale announced sale of 36.4% interest in mbr r$4 billion.

diversification non-ferrous metals, coal , phosphate

in 2001, vale increased copper mining operations purchasing sossego mine in carajas, in northern brazil, $48.5 million.

in 2005, vale acquired canico resource, owner of nickel mine in brazil, after increasing offer $865 million.

in october 2006, vale acquired canadian-based nickel producer inco, $18.9 billion, including $17.7 billion in cash , assumption of $1.2 billion in debt. gain approval canadian authorities, vale promised continue investments in canada , not layoff people 3 years after closing.

in 2007, vale made major entry coal mining acquiring amci holdings australia au$835 million.

in 2010, vale launched public offer acquire fertilizer , copper producer paranapanema.

in 2010, vale acquired controlling interest in fosfertil via series of transactions.

in june 2011, jason chenier , jordan fram killed @ 3,000 foot level of frood mine near sudbury, ontario.

in 2011, company sold aluminum business norsk hydro in us$5.27 billion transaction.

in july 2012, vale sold ferro-manganese plants in europe glencore $160 million.

in 2014, vale announced sale of coal assets in mozambique mitsui in $950 million transaction.

in 2014, vale sold interest in fosbrasil s.a., manufacturer of phosphate-based products.

in 2015, company announced sell 25% interest in gold produced salobo mine, located in brazil, silver wheaton us$900 million.

in 2015, company entered letter of intent sell bauxite assets norsk hydro.

on 5 november 2015, dam collapsed @ samarco mining site, co-owned vale , bhp billiton. accident resulted in 17 deaths , massive environmental contamination. activities @ mine suspended, , companies agreed pay compensation of r$4.4 billion (us$1.55 billion).

on 26 november 2015, vale announced planned reduce budget capital expenditures us$8 billion in 2015 us$6.2 billion in 2016, further reductions us$4–5 billion 2018.