Introduction

Vale has grown from a state-owned enterprise to become one of the largest mining companies. The company holds premier position in iron ore production and a secondary position in the nickel market. Vale reinvented their business to focus exclusively on consolidating the Brazilian iron ore markets. Diversifying into other mining products has been a key objective.

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Highlights

Diversifying into other mining products has been a key objective, with assets from the state-owned era such as a highly integrated logistics system and power generation made subordinate to mining. Further acquisitions were made to expand the international footprint and investments are being made to increase economies of scale in freight delivery.
Vale has faced a myriad of problems. The company’s focus on iron ore has led to them being highly vulnerable to cyclical shocks of the steel industry. Diversification efforts have not been fully successful, and acquisitions have run into trouble, particularly in the nickel segment.

Your key questions answered

* How has Vale grown to become one of the largest mining companies globally?
* What challenges does the company face, and how are they adapting to them?