Vale S.A., formerly Companhia Vale do Rio Doce (the Sweet River Valley Company, referring to the Doce River)[4] (Portuguese pronunciation: [ˈvali]) is a Brazilian multinational corporation engaged in metals and mining and one of the largest logistics operators in Brazil. Vale is the largest producer of iron ore and nickel in the world. It also produces manganese, ferroalloys, copper, bauxite, potash, kaolin, and cobalt, currently operating nine hydroelectricity plants, and a large network of railroads, ships, and ports used to transport its products.[5]
The company has had two catastrophic tailings dam failures in Brazil: Mariana, in 2015, and Brumadinho, in 2019; the Brumadinho dam disaster caused the company to lose its license to operate eight tailings dams in Minas Gerais,[6][7] and its stock to lose nearly 25 percent in value.[8] Vale is considered the most valuable company in Latin America, with an estimated market value of US$ 111 billion in 2021.[9]
Current operations
Although the company’s primary operations are in Brazil, Vale has operations in 30 countries, which are detailed below and on the company’s website.[10]
Ownership structure
The company is listed on the stock exchanges of São Paulo, New York City, Jakarta, Paris and Madrid.
Mining business
Iron ore: Vale is the world’s largest iron ore producer.[11] Sales of iron ore fines and pellets represented 65% of total company revenues in 2014. In 2014, Vale sold 256 million metric tonnes of iron ore fines and 44 million metric tonnes of iron ore pellets.[5] Vale’s Mariana Hub was the 9th largest iron ore mining center in the world in 2014, with an output of 39 million metric tonnes.[12] Vale’s Serra Sul / S11D is the largest mining reserve in the world. The company’s iron ore mines are primarily in Brazil.[5]
Nickel: Vale is the world’s largest nickel producer.[11] Sales of nickel represented 17% of total company revenues in 2014. In 2014, Vale sold 272,000 metric tonnes of nickel.[5] The company owns nickel mines in Canada, Indonesia, New Caledonia and Brazil. Tesla is known to buy the majority of their Nickel from Vale.[5] In May 2022, Vale said that it had signed a long term deal of supplying nickel for Tesla. The agreement involves supplying low-carbon Class 1 nickel which Tesla needs for its electric vehicles’ batteries. In line with this, Vale is pushing to increase its exposure to the electric vehicle industry.[13]
Fertilizer products, primarily phosphates and nitrogen: Sales of fertilizer products represented 6% of total company revenues in 2014. In 2014, Vale sold 9 million metric tonnes of fertilizer products.[5]
Copper: Sales of copper concentrate represented 4% of total company revenues in 2014. In 2014, Vale sold 353,000 metric tonnes of copper. The company owns copper mines in Brazil, Canada, Chile and Zambia.[5]
Manganese and alloys: Sales of manganese and alloys represented 1% of total company revenues in 2014. In 2014, Vale sold 2 million metric tonnes of manganese and alloys.[5]
Coal: Sales of coal represented 2% of total company revenues in 2014. In 2014, Vale sold 7.5 million metric tonnes of coal. The company owns coal mines in Australia and Mozambique.[5]