REVIEW OF 2011: Vale takes prudent stance under Ferreira leadership
Dec 29, 2011 | 11:28 AM
For Vale, the world's largest iron ore producer and its second largest miner, 2011 marked a year of major change.
After ten successful years as head of the Brazilian miner, Roger Agnelli was replaced in May by Murilo Ferreira, a former ceo of Vale’s nickel
operation in Canada and a former executive director of nickel and base metals
Agnelli's management style was widely credited as one of the reasons for Vale
boosting its financial results over the past decade on the back of China’s
ever-growing appetite for iron ore.
In 2001, when he took office, Vale’s revenues reached 11 billion reais ($4.7
billion at that time), with net profit of 3 billion reais ($1.3 billion).
In 2010, both revenues and profit reached all-time highs of $46.5 billion and $17.3 billion respectively.
Export revenues jumped from $3.2 to $29 billion over the same period, with iron
ore sales rising to 255 million tonnes from 110 million tonnes.
Some of Agnelli’s greatest achievements included the huge increase in iron ore
production and the ambitious acquisition of Inco in 2006, which made Vale one
of the world’s largest producers of nickel.
He also had the idea of developing Vale’s own fleet of vessels to ship iron
ore, especially to China, in an effort to reduce exposure to high freight costs.
But Agnelli clashed with Brazil’s former president, Lula da Silva, during the
recession in 2008 and 2009.
Lula da Silva criticised Vale for having fired 1,300 employees in December 2008
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.