SAO PAULO (Reuters) - Vale SA, the world’s largest iron ore miner, intends to resume growth with acquisitions and diversification, new Chief Executive Officer Fabio Schvartsman told analysts on Friday.
Analyst reports from Bradesco BBI and Credit Suisse Securities issued on Friday said Schvartsman means to avoid keeping “all eggs in one basket,” referring to the firm’s strong reliance on iron ore.
Analysts at Bradesco BBI said the company has yet to decide which operations to expand, pending further analysis. Its nickel business, for instance, does not yield high enough returns, Bradesco’s report said.
Schvartsman, who took charge on Monday, set up working groups to measure the risks and returns of each of Vale’s business units, according to the Credit Suisse report. A first assessment is expected in 60 days.
Vale also hired Brazilian consultancy firm Falconi to advise on cost-cutting efforts.
Reporting by Luciano Costa and Paula Arend Laier; Writing by Tatiana Bautzer; Editing by Frances Kerry