Profile: Vale SA (VALE.N)
29 Jan 2015
Vale S.A. (Vale), incorporated on January 11, 1943, is a metals and mining company. Vale is also a producer of iron ore and iron ore pellets. The Company also produces manganese ore, ferroalloys, copper, thermal and coking coal, phosphates, potash, cobalt, kaolin, and platinum group metals (PGMs). It operates logistics systems in Brazil, including railroads, maritime terminals and a port, which are integrated with its mining operations. Directly and through affiliates and joint ventures, Vale has investments in energy and steel businesses. On February 1, 2011, Vale Fosfatados merged into Vale Fertilizantes. During the year ended December 31, 2010, Vale acquired a 51% interest in VBG-Vale BSGR Limited (formerly BSG Resources (Guinea) Limited). During 2010, the Company acquired the Brazilian phosphate operations of Vale Fertilizantes (formerly Fertilizantes Fosfatados S.A.-Fosfertil) and Vale Fosfatados S.A. (formerly Bunge Participacoes e Investimentos S.A.). In September 2010, it acquired a 51% interest in Sociedade de Desenvolvimento do Corredor Norte S.A (SDCN). In April, 2010, it acquired a 51% interest on iron ore concession rights in Simandou South (Zogota), Guinea, and iron ore exploration permits in Simandou North.
The Company operates four systems in Brazil for producing and distributing iron ore, which include the Northern, Southeastern, Southern and Midwestern systems. The Northern and the Southeastern Systems consists of mines, railroads, a maritime terminal and a port. The Southern System consists of three mining sites and two maritime terminals. It operates 10 pellet plants in Brazil and it has two in Oman coming on stream. It also has a 50% interest in a joint venture that owns three integrated pellet plants in Brazil and a 25% interest in two pellet companies in China. It conducts the manganese mining operations through subsidiaries in Brazil, and it produces several types of manganese ferroalloys through subsidiaries in Brazil, France and Norway.
The Company produces metallurgical and thermal coal through Vale Australia Holdings (Vale Australia), which operates coal assets in Australia through wholly owned subsidiaries and unincorporated joint ventures. Through its subsidiary Vale Coal Colombia Ltd. Sucursal Colombia (Vale Colombia), it produces thermal coal in the Cesar department of Colombia. It also has minority interests in Chinese coal and coke producers.
The Company principal nickel mines and processing operations are conducted by its wholly owned subsidiary Vale Canada Limited (Vale Canada, formerly Vale Inco Limited), which has mining operations in Canada and Indonesia. It owns and operates, or has interests in, nickel refining facilities in the United Kingdom, Japan, Taiwan, South Korea and China. In Brazil, it produces copper concentrates at Sossego in Carajas, in the state of Para. In Canada, it produces copper concentrates, copper anodes and copper cathodes in conjunction with its nickel mining operations at Sudbury and Voisey Bay. In Chile, it is ramping up the Tres Valles copper SX-EW (solvent extraction electro winning) operation, located in the Coquimbo region.
In February 2011, the Company is engaged in bauxite mining, alumina refining and aluminum smelting through subsidiaries in Brazil. In February 2011, it held a 22.0% interest in Norsk Hydro ASA (Hydro), which it received as part of the consideration for the transfer to Hydro of its interests in Aluminio Brasileiro S.A. (Albras), Alumina do Norte do Brasil S.A. (Alunorte) and Companhia de Alumina do Para (CAP). It is engaged in bauxite mining through a 40.0% interest in Mineracao Rio do Norte S.A. (MRN), and a remaining 40.0% interest in Mineracao Paragominas S.A. (Paragominas). Both of MRN and Paragominas are located in Brazil. It produces cobalt as a by-product of its nickel mining and processing operations in Canada and refines the majority of it at its Port Colborne facilities.
The Company produces PGMs as by-products of its nickel mining and processing operations in Canada. The PGMs are concentrated at its Port Colborne facilities, in the Province of Ontario, Canada, and refined at its metals refinery in Acton, England. It produces gold and silver as by-products of its nickel mining and processing operations in Canada. Some of these metals are upgraded at its facilities in Port Colborne, Ontario.
The Company produces potash in Brazil, with operations in Rosario do Catete, in the state of Sergipe. The Company’s phosphate operations are conducted by its subsidiary Vale Fertilizantes S.A. (Vale Fertilizantes), which holds the majority of its fertilizer assets in Brazil and is the Brazilian producer of phosphate rock, phosphate and nitrogen fertilizers. In addition, it is ramping up operations at Bayovar, a phosphate rock mine in Peru.
The Company is a provider of logistics services in Brazil, with railroads, maritime terminals and a port. Two of its four iron ore systems incorporate an integrated railroad network linked to automated port and terminal facilities, which provide rail transportation for its mining products, general cargo and passengers, bulk terminal storage, and ship loading services for its mining operations and for customers. It conducts seaborne dry bulk shipping and provides tug boat services. It owns and charters vessels to transport its iron ore sold on a cost and freight (CFR) basis to customers. Its tug boat services provide a towing service at its terminals in Brazil. It also owns a 31.3% interest in Log-In Logistica Intermodal S.A. (Log-In), which provides intermodal logistics services in Brazil, Argentina and Uruguay, and a 41.5% interest in MRS Logistica S.A. (MRS), which transports its iron ore products from the Southern System mines to its Guaiba Island and Itaguai maritime terminals, in the state of Rio de Janeiro.
The Company competes with BHP Billiton plc, Rio Tinto Ltd., Kumba Iron Ore Limited, Luossavaara Kiirunavaara AB, Societe Nationale Industrielle et Miniere, Rio Tinto Ltd, Anglo Ferrous Brazil, MMX, MHAG, Bahia Mineracao, Companhia Siderurgica Nacional, V&M do Brasil S.A., Usiminas, LKAB, Cleveland-Cliffs Inc., Quebec Cartier Mining Co., Iron Ore Company and Gulf Industrial Investment Co.
Av. Graca Aranha, 26 12 andar, C
RIO DE JANEIRO 20030-900
Company Web Links
- Vale's mega-ships dock at five Chinese ports - executive
- S&P downgrades Vale to BBB+; outlook raised to 'stable'
- Vale's nickel unit a good target for X2 but higher price needed
- EMERGING MARKETS-Falling commodity prices hurt Chilean peso, Vale shares
- Former Xstrata CEO considering bid for Vale's nickel assets - Bloomberg