Vale (mining company)
1873300
225726882
2008-07-15T02:50:19Z
87.185.170.168
/* External links */
{{Infobox_Company |
company_name = Vale |
company_logo = [[Image:Vale do Rio Doce.jpg]]|
company_type = [[Public company|Public]] ([[NYSE]]: [http://www.nyse.com/about/listed/lcddata.html?ticker=RIO RIO])|
foundation = [[1942]] |
location =
{{flagicon|Brazil}}[[Rio de Janeiro, Brazil]] |
key_people = Roger Agnelli, CEO<br> Fabio Barbosa, CFO |
revenue = {{profit}}$36.5 billion [[United States dollar|USD]] ([[2007]])<ref>[http://economia.uol.com.br/ultnot/2008/04/15/ult4294u1216.jhtm Receita das maiores empresas das Bolsas latino-americanas cresce 29% em 2007 - 15/04/2008 - UOL Economia<!-- Bot generated title -->]</ref>] |
net_income = {{profit}}$11.82 billion ([[2007]])<ref>[http://www.vale.com/vale_us/media/vale_usgaap_4t07i.pdf Microsoft Word - vale_usgaap_4t07i.doc<!-- Bot generated title -->]</ref> |
num_employees = 52,646 <ref>[http://www.secinfo.com/dsvr4.u7b2.htm#vwlk SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref> |
industry = [[Mining]], [[Logistics]], [[Energy]], [[Steel]] |
products = Basic metal materials, logistics optimization, railway transport, port operations |
subsid = [[Vale Inco]] |
homepage = [http://www.vale.com/ www.vale.com]
}}
'''Vale''' is a diversified [[mining]] [[multinational corporation]] and one of the largest [[logistics]] operators in [[Brazil]]<ref>[http://www.brazilinfocenter.org/bic-members.html BIC<!-- Bot generated title -->]</ref>. In addition to being the second-largest mining company in the world, <ref>[http://news.bbc.co.uk/2/hi/business/6081390.stm BBC NEWS | Business | Brazilian miner buys Canada rival<!-- Bot generated title -->]</ref>Vale is also the largest producer of [[iron ore]]<ref>[http://www.secinfo.com/dXxPe.53z.htm SEC Info - BHP Billiton Ltd - 6-K - For 5/31/00<!-- Bot generated title -->]</ref>, [[Pelletizing|pellets]]<ref>[http://www.prnewswire.co.uk/cgi/news/release?id=156708 CVRD Approves Increase in Pellet Production Capacity<!-- Bot generated title -->]</ref>, and second largest of [[nickel]].<ref>[http://www.ft.com/cms/s/0/929d1fe0-d422-11dc-a8c6-0000779fd2ac.html?nclick_check=1 FT.com / Columnists / European View - Minority investors caught in the Russian crossfire<!-- Bot generated title -->]</ref> Vale also produces [[manganese]], ferroalloys, [[copper]], [[bauxite]], [[potash]], [[kaolin]], alumina and [[aluminum]]. In the electric energy sector, the company participates in consortia and currently operates nine [[hydroelectricity|hydroelectric]] plants.<ref>[http://www.secinfo.com/dsvr4.u7b2.htm#1d75i SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref>
==History==
''Companhia Vale do Rio Doce'' (CVRD), as the company was known until 2007, was founded in [[Itabira]] as a public company by the Brazilian Federal Government on [[June 1]] [[1942]]. One year later the ''Vitória a Minas'' railroad was inaugurated.<ref name="History">[http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?sid=13 Vale: History]</ref> CVRD, just seven years after its foundation, was already responsible for 80% of Brazilian iron ore exports.<ref name="History"/> In 1966, the company inaugurated in [[Espirito Santo]] the [[Port of Tubarão]], which was to become the most important port for CVRD<ref name="History"/> and is still used to export [[iron ore]] mined from the ''Iron Quadrangle'' in [[Minas Gerais]].
The ''Carajás Mine'', on which Vale still has over 1.5 billion tonnes of iron ore in reserves<ref>[http://www.secinfo.com/dsvr4.u7b2.htm SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref>, started to have Vale as a majority stakeholder in 1970.<ref name="History"/> In 1974, Vale became the world's biggest exporter of iron ore, title which it still holds today.<ref name="History"/> Then, in 1982, Vale began to diversify itself after it started to produce [[aluminum]] in [[Rio de Janeiro]].<ref name="History"/> Throughout its history, CVRD’s activities, once restricted to the Southeast, were expanded to the Northeast, Central-West, and North of [[Brazil]], diversifying its mineral product portfolio and consolidating [[logistic]]s services.
Vale in 1985 started to explore the ''Carajás Mine'' in the state of [[Pará]] just after the Carajás railroad was opened and in 1986 Ponta Madeira port terminal, which is still used to export iron ore mined at the ''Carajás Mines'', was inaugurated in the state of [[Maranhão]].<ref name="History"/>
=== Vale's privatization in 1997 ===
Vale had its control transferred from the Brazilian Federal Government to the private sector ([[privatization]]) on [[May 6]] [[1997]], when the Consórcio Brasil (Brazil Consortium), led by the National Steel Company - CSN acquired 41.73% of the Federal Government’s common stock for [[R$]] 3,338 billion,<ref name="History"/> or $3.14 billion at that time.<ref>[http://www.ipeadata.gov.br/ipeaweb.dll/ipeadata?62784921 Ipeadata<!-- Bot generated title -->]</ref> The decision to privatize Vale caused much controversy and some politicians opposed the privatization <ref>[http://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/340497.pdf Iron Ore in 1997<!-- Bot generated title -->]</ref> . Vale remained a public traded company both in the Bolsa de Valores de São Paulo ([[BOVESPA]]) and NYSE (through [[American Depositary Receipt]] - ADR).
===Focus and diversification on the mining business ===
After being privatized, Vale decided to focus exclusively on the mining business.<ref name="SEC 2000">[http://www.secinfo.com/$/SEC/Filing.asp?D=svr4.325q SEC Info - Companhia Vale do Rio Doce - 20-F/A - For 12/31/00<!-- Bot generated title -->]</ref> Vale's operations on the [[energy]] and [[logistics]] sectors are meant to primarily reduce the costs and the risks of the company's mining operations and not to generate revenues, so for example even though Vale has invested over $880 million on various energy projects,<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=svr4.v6Qc SEC Info - Companhia Vale do Rio Doce, et al. - 20-F - For 12/31/05<!-- Bot generated title -->]</ref> the energy business generates not even 1% of Vale's total revenues.<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=svr4.u7b2 SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref> The company's logistics operations contribute with around 7% of total revenues.
Vale's [[plan]] to focus on the mining business had three phases:
*Sale of non strategic [[assets]] - mainly the [[steel]] and [[wood pulp]] businesses.
*Consolidation through acquisition of the Brazilian [[iron ore]] industry. - completed with the purchase of ''MBR''.
*Diversification of its mining business in order to reduce Vale's dependence on the [[iron ore]] business - achieved with the acquisition of [[Vale Inco|Inco]].
===[[Steel]] and [[wood pulp]] businesses are sold===
In line with Vale's decision to focus exclusively on its mining business,<ref name="SEC 2000"/> the company between 2000 and 2007 sold over $2.9 billion in businesses that operated on the [[steel]] and [[wood pulp]] sectors<ref>[http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?sid=385 Vale<!-- Bot generated title -->]</ref> and effectively withdrew itself from those industries.
Vale's [[wood pulp]] and paper businesses were all sold in 2001, sales which totaled $990.5 million. ''Bahia Sul'' was sold for $320 million, while ''Cenibra'' was bought away for $670.5 million.<ref name="SEC 2000"/>
Vale's steel businesses took longer to be sold away, given the fact that Vale owned participation in many [[steel]] companies. The $1.91 billion [[divestment]] program began in 2000, when the company sold its stake at ''Açominas'' and [[Companhia Siderúrgica Nacional]] for $10 million and $249 million, respectively.<ref name="SEC 2000"/> Then in 2004 Vale earned $579 million by selling its stake at ''CST''.<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=svr4.z6qr SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/04<!-- Bot generated title -->]</ref> In 2006 all Vale's stake at [[Gerdau]] and ''Siderar'' were sold for $67 million and $108 million respectively, also on that year Vale got $176 million by selling some of its shares of ''Usiminas''. An additional $728 million was earned in 2007 when Vale sold yet more shares of ''Usiminas'', Vale now owns just 3% of ''Usiminas''.<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=svr4.u7b2 SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref>
===Vale consolidates the Brazilian iron ore industry===
The consolidation process that Vale started in 2000 consumed over $4.9 billion<ref>[http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?sid=385 Vale<!-- Bot generated title -->]</ref> when it finished in 2007 Vale had under its control over 85% of Brazil's 300 million tonnes annual iron ore production.<ref>[http://www.sinferbase.com.br/relatorios.php SINFERBASE - Sindicato Nacional da Indústria da Extração do Ferro e Metais Básicos<!-- Bot generated title -->]</ref> Below is a table containing Vale's acquisitions prior to the purchase of [[Caemi]], which was the most significant one of Vale's consolidation drive in [[Brazil]].
{| border="1" cellpadding="5" cellspacing="0" align="center"
|+'''Vale's acquisitions on the brazilian [[iron ore]] industry'''<ref name="SEC 2000"/>
|-
|-
|style="background:#ffdead;" |'''Name'''
|Price
|Annual iron ore production at the time
|Reserves at the time
|Year
|Vale's ownership
|-
|'''Socoimex'''
|$55 million
|7 million tonnes
|106 million tonnes
|2000
|100%
|-
|'''[[Caemi#MBR - Minera.C3.A7.C3.B5es Brasileiras Reunidas|MBR]]'''<ref name="SEC 2000"/><ref>[http://200.150.146.163/publique/media/CAEMI%20DF%202005%20publicacao.pdf Microsoft Word - CAEMI_Rel Adm 2005_publicação.doc<!-- Bot generated title -->]</ref>
|$25 million
|
|
|2001
|5%
|-
|'''Samitri'''
|$710 million
|17 million tonnes
|709 million tonnes
|2001
|100%
|-
|'''Ferteco'''
|$523 million
|11.4 million tonnes<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=sVQx.3k4 SEC Info - Companhia Vale do Rio Doce, et al. - 20-F - For 12/31/01<!-- Bot generated title -->]</ref>
|138 million tonnes<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=sVQx.3k4 SEC Info - Companhia Vale do Rio Doce, et al. - 20-F - For 12/31/01<!-- Bot generated title -->]</ref>
|2001
|100%
|-
|'''Rio Verde'''
|$47 million
|3.5 million tonnes<ref>http://www.dnpm.gov.br/assets/galeriaDocumento/SumarioMineral2007/ferro_SM2007.doc</ref>
|37 million tonnes<ref>[http://www1.folha.uol.com.br/folha/dinheiro/ult91u104016.shtml Folha Online - Dinheiro - Caemi compra Rio Verde Mineração por US$ 45 milhões - 06/01/2006<!-- Bot generated title -->]</ref>
|2006
|100%
|}
'''[[Caemi#MBR - Minera.C3.A7.C3.B5es Brasileiras Reunidas|MBR]]'s acquisition'''
On [[March 31]] [[2006]], Vale, which already owned 60.2% of Caemi, acquired in a [[stock swap]] the remaining 39.8% of [[Caemi]] for $2.55 billion.<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=svr4.u7b2 SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref> In all Vale spent over $3.2 billion acquiring 100% of [[Caemi]]. The acquisition of [[Caemi]] gave Vale 84.75% of ''[[Caemi#MBR - Minera.C3.A7.C3.B5es Brasileiras Reunidas|MBR]]'', Brazil's second largest iron ore producer, mining over 60 million tonnes.<ref>http://www.dnpm.gov.br/assets/galeriaDocumento/SumarioMineral2007/ferro_SM2007.doc</ref> Together with the 5% stake of ''MBR'' acquired in 2001, the acquisition of [[Caemi]] at the end of 2006 gave Vale a 89.8% ownership of ''MBR''.<ref>[http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?infoid=1867&sid=450 Vale<!-- Bot generated title -->]</ref>
Then in 2007 Vale purchased another 3.1% of ''[[Caemi#MBR - Minera.C3.A7.C3.B5es Brasileiras Reunidas|MBR]]'' for $231 million from [[Mitsui]] and other [[Japan]]ese investors. That meant that the company raised its stake at ''MBR'' to 92.9%, the remaining 7.1% stake at ''MBR'' was acquired in [[lease]] agreement by Vale for the next 30 years for a [[down payment]] of $60 million plus an annual fee of $48.1 million.<ref>[http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?infoid=1867&sid=450 Vale<!-- Bot generated title -->]</ref> In this way, Vale now owns 100% of ''MBR'' for the next 30 years (period of the Lease Agreement).
The acquisition of ''[[Caemi#MBR - Minera.C3.A7.C3.B5es Brasileiras Reunidas|MBR]]'' marked the end of an acquisition campaign that began in 2000, this acquisition campaign was the consequence of Vale's decision to consolidate the iron [[mining]] business in [[Brazil]]. After [[Caemi#MBR - Minera.C3.A7.C3.B5es Brasileiras Reunidas|MBR]]'s purchase Vale became the owner of all Brazilian iron ore exporters.<ref>[http://europa.eu/rapid/pressReleasesAction.do?reference=IP/01/1515 EUROPA - Rapid - Press Releases<!-- Bot generated title -->]</ref>
===Diversification===
Vale's diversification program sought to increase the participation of [[non-ferrous metals]] on total revenues reducing, in the process, Vale's dependence on the price of the iron ore for both [[net income]] and [[revenues]]. Business diversification has been achieved mainly with the acquisition of Inco and to a lesser extent with the acquisition of [[Caemi]] and managed to increase the participation of [[non-ferrous metals]] on total revenues from 7% in 2000 to around 34% in 2006.<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=svr4.u7b2 SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref><ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=12atd.23vn SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/02<!-- Bot generated title -->]</ref>
Vale branched into [[copper mining]] in 2001 when it bought for $48.5 miilion the ''Sossego Mine'' located in the ''Carajás'' complex.<ref>[http://www.secinfo.com/$/SEC/Filing.asp?D=sVQx.3k4 SEC Info - Companhia Vale do Rio Doce, et al. - 20-F - For 12/31/01<!-- Bot generated title -->]</ref>
The ''Sossego Mine'', inaugurated in 2004, was the first Brazilian copper mine. The company expects to extract around 650 thousand tonnes of [[copper]] a year from that mine by 2010.<ref name="History"/>
The acquisition of [[Caemi]] in 2006 also helped Vale's diversification strategy by making the company a [[kaolin]] producer through former [[Caemi]] subsidiaries CADAM S.A. and PPSA. With that acquisition Vale now owns 61.48% and 85.57% of those subsidiaries respectively.<ref>[http://stocks.us.reuters.com/stocks/fullDescription.asp?rpc=66&symbol=RIO Companhia Vale do Rio Doce (RIO) Full Description | Stocks | Reuters.com<!-- Bot generated title -->]</ref><ref>[http://200.150.146.163/publique/media/CAEMI%20FS2005.pdf Microsoft Word - CAEMI FS2005_manag report.doc<!-- Bot generated title -->]</ref>
In 2005, Vale bought Canico Resources, a [[Canadian]] [[nickel]] mining company, for $800 million.<ref>[http://www.vale.com/vale/cgi/cgilua.exe/sys/start.htm?sid=435 Vale<!-- Bot generated title -->]</ref><ref>[http://goliath.ecnext.com/coms2/product-compint-0000521434-page.html Canico Resource Corp. | Vancouver, Canada | Company Profile, Research, News, Information, Contacts<!-- Bot generated title -->]</ref> This acquisition increased Vale's business diversifiction by bringing [[non-ferrous metals]] to its product line up.<ref>[http://www.prnewswire.co.uk/cgi/news/release?id=160123 CVRD Successfully Completes Take-Over Bid for Canico<!-- Bot generated title -->]</ref>
Also in accordance with its diversification strategy, Vale has entered the coal mining business. In 2007 the company purchased the [[Australian]] coal mining company AMCI Holdings for $656 million.<ref>[http://www.smh.com.au/news/Business/CVRD-buys-AMCI-Australia-for-A863m/2007/02/27/1172338583465.html CVRD buys AMCI Australia for $A863m - Breaking News - Business - Breaking News<!-- Bot generated title -->]</ref><ref>[http://www.vale.com/vale/cgi/cgilua.exe/sys/start.htm?sid=435 Vale<!-- Bot generated title -->]</ref>
====Inco is acquired for $18.9 billion====
In October 2006, Vale acquired [[Canada]]'s second largest mining company, [[Vale Inco|Inco]], for $18.9 billion, <ref>[http://www.secinfo.com/dsvr4.u7b2.htm SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref> paying Inco's [[shareholder]]s $17.7 billion in cash <ref>[http://www.prnewswire.co.uk/cgi/news/release?id=176997 CVRD Announces Proposed All-Cash Offer to Acquire Inco<!-- Bot generated title -->]</ref> and absorbing Inco's debt of $1.2 billion.<ref>[http://www.secinfo.com/dsvr4.u7b2.htm SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref> This purchase was the largest acquisition ever made by a Brazilian company.
In order to assure the Canadian government's approval of the Inco acquisition, Vale agreed to keep Inco open as its nickel mining division, with its head office to remain in Canada and also agreed that the Inco division would assume responsibility for all Vale's nickel mining business.<ref>[http://news.bbc.co.uk/2/hi/business/6081390.stm BBC NEWS | Business | Brazilian miner buys Canada rival<!-- Bot generated title -->]</ref>
Inco, which is now called ''[[Vale Inco]]'', specialized in nickel mining. The acquisition of Inco was the most remarkable event of Vale's divesification strategy because it turned Vale into the world's second largest mining company<ref>[http://news.bbc.co.uk/2/hi/business/6081390.stm BBC NEWS | Business | Brazilian miner buys Canada rival<!-- Bot generated title -->]</ref> and the world's second largest nickel producer<ref>[http://www.cbc.ca/money/story/2006/08/11/inco-cvrd.html Brazil's CVRD bids $17B for Inco<!-- Bot generated title -->]</ref> behind Russia's [[MMC Norilsk Nickel]].
==Vale today==
Vale is headquartered in [[Rio de Janeiro]] and has its logistical office in [[São Paulo]]. [[Image:Vale's Global Operations.JPG| thumb| right|Vale's Global Operations]]
Vale, besides being present in 16 [[Brazilian states]] is also present in 6 continents: [[South America]], [[North America]], [[Europe]], [[Africa]], [[Asia]] and [[Oceania]].
Vale has managed to establish itself as a global mining company through [[joint ventures]] and acquisitions abroad. As it can be seen on ''Vale's Global Operations'' map<ref>http://www.vale.com/vale/media/20F_2006_p.pdf</ref>, Vale has participation on mining operations in [[Finland]], [[Canada]], [[Australia]], [[Mongolia]], [[China]], [[India]], [[Angola]], [[South Africa]], [[Chile]], [[Peru]] and other countries.
=== Vale world offices ===
Vale also has offices in places such as:
*{{Flagicon|Argentina}} [[Buenos Aires]]
*{{Flagicon|South Africa}} [[Johannesburg]]
*{{Flagicon|Peru}} [[Lima]]
*{{Flagicon|United Kingdom}} [[London]]
*{{Flagicon|South Korea}} [[Seoul]]
*{{Flagicon|Singapore}} [[Singapore]]
*{{Flagicon|China}} [[Shanghai]]
*{{Flagicon|Japan}} [[Tokyo]]
*{{Flagicon|Canada}} [[Toronto]]
*{{Flagicon|Switzerland}} [[Vaud]]
On November 2007, the company retired the brand ''CVRD'' in favor of the new brand ''Vale''.<ref>[http://www1.folha.uol.com.br/folha/dinheiro/ult91u349809.shtml Folha Online - Dinheiro - Desafio da Vale é encontrar preço global para minério - 29/11/2007<!-- Bot generated title -->]</ref> The company has announced it will spend $50 million establishing its new logo and brand worldwide.
Vale has an investment budget of $11 billion for 2008, the largest annual investment program ever undertaken by Vale or by any mining company in the world. The 2008 budget is part of the firm’s strategic plan and underpins the 5 year, $59 billion investment program, and consequently involves a significant increase in [[capex]] for organic growth as compared with the period 2003-2007, estimated at $18 billion.
==Mining business==
[[Image:Vale Brazilian Operations 2006.jpg|thumb|left|Vale Operations in Brazil in 2006]]
'''Iron Ore''': Vale is the world leader in the iron ore and pellets market. The company which produced around 90 million tonnes in the mid 90s<ref>[http://www.bndes.gov.br/conhecimento/setorial/ferro.pdf Minério de Ferro<!-- Bot generated title -->]</ref><ref>http://www.dnpm.gov.br/assets/galeriadocumento/balancomineral2001/ferro.pdf</ref> is now producing over 250 million tonnes of iron ore and pellets<ref>[http://www.secinfo.com/dsvr4.u7b2.htm#vwlk SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref>. This means that Vale produces over 60% of all the iron in Brazil and around 15% of all the iron in the world.<ref>[http://www.sinferbase.com.br/relatorios.php SINFERBASE - Sindicato Nacional da Indústria da Extração do Ferro e Metais Básicos<!-- Bot generated title -->]</ref> Brazil has one of the largest iron ore reserves in the world, the mineral that is the most produced and consumed in the planet.
'''Manganese and Alloys''': In 1999, Vale incorporated the manganese and alloy business into its structure. Consolidated as the second largest manganese producer in the world, Vale annually produces close to 2.3 million tons of manganese ore and 500,000 tons of manganese alloys.
''' Nickel''': Vale has become the world’s largest producer of nickel, with a production of 250,600 tons. Found in nature in association with iron and sulphur, nickel is a transition element that presents ferrous and non-ferrous metal properties such as resistance to corrosion, alloy formation, ductility and electro-coating settlement among others. By virtue of this characteristic to confer properties to the more noble metallic steels, nickel is demanded mainly by the metallurgical sector, and 63% of such demand is destined to the production of stainless steel.
'''Copper''': Vale's copper production began in the first half of 2004, with the start-up of the Sossego Mine, whose average installed capacity is 140 thousand tons per year of copper in concentrate. The start-up of the copper cathode production plant with extraction by solvent and electrowinning - Project 118 - is estimated for the beginning of 2007. This project will have an installed capacity of 45 thousand tons/year of copper cathodes. Other projects such as Salobo (in feasibility studie) and others under intensive geological survey works in the Carajás region, in Chile and in Peru. In 2006, the consolidation of Vale Inco also increased the total sale of concentrated copper, which amounted to 169 thousand tons.
'''Coal''': Vale is present in Venezuela, Australia, South Africa, Mozambique and Angola with offices, ore search works and development of new businesses of coal. Currently it has minority stakes on Chinese coal producers, such as Longyu and Shandong Yankuang International Coking Co. Meanwhile, its major project, Moatize, in Mozambique, estimated to produce 14 million ton of metallurgic and energetic coal for 70 years is in economical feasibility study. With AMCI acquisition, Vale added to its coal portfolio the underground coal deposit in Belvedere, Queensland State, Australia, with estimated resources of 2,7 billion of ton.
'''Potash'''<ref>http://www.mp.gov.br/arquivos_down/dest/perfil_empresas_estatais/1994_a_1999/cvrd_texto.pdf</ref>: Vale produces potash at The Taquari-Vassouras Operational Unit, an underground mine with a treatment plant on the surface. “Taquari-Vassouras” is the name of the ore deposit. This unit is the single manufacturer of potassium chloride (KCl) in activity in Brazil. Potassium Chloride is an important component for the manufacture of fertilizers, and it is obtained through the underground mine of sylvite and later on improved by the flotation process. Presently all production is for domestic market and assure 13% of the Brazilian demand for the product. Since 1992 production comprised 24.7 million tonnes of ROM with an average grade of 31.80 percent KCl, containing a total of 7.8 million tonnes of KCl.
'''Kaolin''': a fine White aluminum silicate used as a coating agent, filler, extender and absorbent in the paper, ceramics and pharmaceutical industries. Despite being abundantly found in nature, its commercial reserves are restricted to Brazil, United Kingdom and the US. At 2006, Vale shipped 1.323 million tons, a volume 8.6% higher than that sold in 2005.
==Aluminium==
Vale is involved in all stages of the aluminum chain, from [[bauxite]] mining and [[alumina]] refining to primary aluminum production.
Vale strategy for the aluminium business is to focus on the upstream of the production chain - developing low-cost bauxite and alumina projects. We have large, undeveloped high-quality bauxite reserves and opportunities for low-cost expansions in alumina refining. We are currently working on the development of these opportunities. For primary aluminium our strategy focuses on the development of projects in countries with low energy costs.
Alumina is the main raw material for primary aluminum production. It is obtained from the refining of bauxite, an ore abundant in the state of Pará, especially in the regions of the Trombetas River and Paragominas.
==Logistics==
'''[[Rail transport|Railroads]]'''<ref>[http://www.secinfo.com/dsvr4.u7b2.htm#vwlk SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref>
From 2000 to 2006 Vale invested more than $1.3 billion on the acquisition of over 361 [[locomotive]]s and around 14,090 [[Wagon (railroad)#Freight cars|freight cars]], those locomotives were primarily for [[iron ore]] transportation, but some were for regular cargo. <ref>[http://www.secinfo.com/dsvr4.u7b2.htm SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref><ref>[http://www.vale.com/vale_us/media/2601CapexI.pdf Microsoft Word - 2601CapexI.doc<!-- Bot generated title -->]</ref><ref>http://www.secinfo.com/svr4.v6Qc</ref><ref>http://www.secinfo.com/svr4.325q</ref><ref>http://www.secinfo.com/svr4.z6qr</ref><ref>http://www.secinfo.com/12atd.23vn</ref> Some of the [[locomotives]] purchased were secondhand for refurbishment but at least 55 of the locomotives acquired were new ones of the model [[EMD SD70M#SD70M|EMD SD70M]], each one costing about $2 million.<ref>[http://findarticles.com/p/articles/mi_m0BQQ/is_2_46/ai_n16071088 CVRD-controlled Carajas Railway received 12 new SD70M locomotives from Electro-Motive Diesel in December to handle growing traffic | International Railway Journal | Find Articles at BNET.com<!-- Bot generated title -->]</ref><ref>[http://www.emdiesels.com/en/locomotive/international/sd70m/index.htm EMD: JT2CWR<!-- Bot generated title -->]</ref>
After those investments, Vale became the owner of over 800 [[locomotives]] and more than 35,000 [[Wagon (railroad)#Freight cars|freight cars]] <ref>http://www.vale.com.br/files/2801investimentosi.pdf</ref> but the company informed that it will reduce its investment in [[rolling stock]] in the coming years.<ref>[http://www.vale.com/vale_us/media/2601CapexI.pdf Microsoft Word - 2601CapexI.doc<!-- Bot generated title -->]</ref>
Vale owns the concession of three Brazilian railways: [[Vitória a Minas railroad]] (EFVM), [[Ferrovia Centro Atlântica]] (FCA) and [[Carajás railroad]] (EFC). [[Image:FCA e Vitória a Minas railroads.jpg| thumb | right |Ferrovia Centro-Atlântica and Vitória a Minas railroads]]
* Vitória a Minas railroad - Vale operates under a 30 year contract this 905 km railroad, which is used to transport iron from the ''Iron Quadrangle'' in [[Minas Gerais]] to the [[Port of Tubarão]] in the state of [[Espírito Santo]] . The concession expires in 2027. This railroad also carried 1.1 million passengers in 2006.
*Carajás railroad - The concession of this 892 km railroad also expires in 2027, it links Carajás iron ore mines in the state of [[Pará]] to Ponta Madeira port terminal in the state of [[Maranhão]]. Vale plans to operate a train of 3.2 km and 340 cars on this railroad.
*Ferrovia Centro-Atlântica - Vale controls this railroad through the subsidiary ''FCA''. As it is shown on the ''Vale's operations map'' above, this 7,000 km railroad extends through 6 [[brazilian states]], this railroad originally belonged to the [[RFFSA]]. Vale's concession of this railroad expires in 2026.
'''[[Port]]s and [[Container terminal]]s'''<ref>[http://www.secinfo.com/dsvr4.u7b2.htm#vwlk SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref>
* [[Port of Tubarão]] - Vale owns and operates this port located in [[Vitória]] in the state of [[Espirito Santo]].<ref>[http://www.vitoria.es.gov.br/negocios/investe6.htm Porto e Negócios<!-- Bot generated title -->]</ref> It's the largest iron ore embarking port in the world.<ref>[http://www.icondirect.net/news/?a=show&id=750 News Article<!-- Bot generated title -->]</ref> Around 80 million metric tons of iron ore are shipped through the this port,<ref>[http://www.secinfo.com/dsvr4.u7b2.htm#vwlk SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref> this means that roughly 30% of Vale's iron ore production are shipped through the Tubarão Port.
*Ponta Madeira port terminal - Located in the state of [[Maranhão]], it ships around 70 million metric tons mostly of iron ore, but also of [[manganese]] and [[copper]] for the company.
*Port of Sepetiba - Vale operates two maritime terminals in the Port of Sepetiba area located in the state of [[Rio de Janeiro]], together they ship around 60 million metric tons of iron ore.
Vale also operates port terminals in the state of [[Sergipe]] and two others in the state of [[Espirito Santo]].
==Energy==
Vale's energy business is focused at power production to fulfill the needs of its mining operations, as well as supplying the general Brazilian power grid. In 2005 it consumed 16,9 TWh of electrical power, accounting for 4,4% of Brazil's total consumption in that year.
Vale has participation in 8 [[Hydroelectricity|hydroelectric plants]], with 7 of these located in the state of [[Minas Gerais]]. Vale's investment in hydroeletric power plants totals $880 million.<ref>[http://www.secinfo.com/dsvr4.v6Qc.htm SEC Info - Companhia Vale do Rio Doce, et al. - 20-F - For 12/31/05<!-- Bot generated title -->]</ref> The company also plans to build a 600 MW thermoeletric power plant in the state of [[Pará]].<ref>[http://oglobo.globo.com/blogs/adriano/post.asp?cod_Post=56924&a=72 A CVRD Anuncia a Construção de uma Térmica a Carvão - Adriano Pires: O Globo Online<!-- Bot generated title -->]</ref>
{| border="1" cellpadding="5" cellspacing="0" align="center"
|+'''Vale's Hydroeletric power plants'''<ref>[http://www.secinfo.com/dsvr4.v6Qc.htm SEC Info - Companhia Vale do Rio Doce, et al. - 20-F - For 12/31/05<!-- Bot generated title -->]</ref><ref>[http://oglobo.globo.com/blogs/adriano/post.asp?cod_Post=56924&a=72 A CVRD Anuncia a Construção de uma Térmica a Carvão - Adriano Pires: O Globo Online<!-- Bot generated title -->]</ref>
|-
|-
|style="background:#ffdead;" |'''Name'''
|Location
|Production Capacity
|Vale's Ownership
|Vale's Investment
|Start of Operations
|-
|'''Aimorés'''
|[[Minas Gerais]]
|330 MW
|51%
|$141 million
|July 2005
|-
|'''Candonga'''
|[[Minas Gerais]]
|140 MW
|50%
|$46 million
|September 2004
|-
|'''Capim Branco I'''
|[[Minas Gerais]]
|240 MW
|48.42%
|$90 million
|February 2006
|-
|'''Capim Branco II'''
|[[Minas Gerais]]
|210 MW
|48.42%
|$90 million
|May 2007
|-
|'''Estreito'''
|[[Tocantins]]
|1,087 MW
|30%
|$355 million
|August 2009
|-
|'''Funil'''
|[[Minas Gerais]]
|180 MW
|51%
|$49 million
|December 2002
|-
|'''Igarapava'''
|[[Minas Gerais]]
|210 MW
|38.15%
|$88.1 million
|January 1999
|-
|'''Porto Estrela'''
|[[Minas Gerais]]
|112 MW
|33.33%%
|$20 million
|September 2001
|}
Vale also operates hydroeletric plants in [[Canada]] and two others in [[Indonesia]]. The company is building a third hydroeletric plant on the Larona River, [[Indonesia]].<ref>[http://www.secinfo.com/dsvr4.u7b2.htm SEC Info - Companhia Vale do Rio Doce - 20-F - For 12/31/06<!-- Bot generated title -->]</ref>
==References==
{{reflist|2}}
==External links==
* [http://www.vale.com/vale/cgi/cgilua.exe/sys/start.htm?tpl=home The company's home page in Portuguese]
* [http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?tpl=home The company's home page in English]
* [http://www.rheebunuu.com/index_en.php Rheebu Nuu - indigenous group attempting to halt CVRD's mining projects in the South Pacific]
{{Ibovespa companies}}
[[Category:Coal companies of Brazil]]
[[Category:Mining companies of Brazil]]
[[Category:Companies of Brazil]]
[[Category:Companies listed on the New York Stock Exchange]]
[[Category:Rail transport in Brazil]]
[[Category:Companies established in 1942]]
[[Category:Iron ore mining companies]]
[[Category:Aluminium companies]]
[[Category:Multinational companies]]
[[ar:فالي دي ريو دوسي]]
[[de:Vale (Unternehmen)]]
[[fr:Companhia Vale do Rio Doce]]
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[[it:Companhia Vale do Rio Doce]]
[[ja:ヴァーレ]]
[[no:Companhia Vale do Rio Doce]]
[[pms:Vale]]
[[pt:Companhia Vale do Rio Doce]]
[[ro:Vale (companie)]]
[[zh:淡水河谷公司]]