Mining Magazine > Panorama > Replacement nominated for Vale CEO

The Brazilian government has successfully ended the reign of Vale chief executive officer Roger Agnelli, as controlling shareholders of the mining giant nominate Vale veteran Murilo Ferreira as his replacement. First joining Vale as a director of the company’s aluminium business, Ferreira has also served as CEO of the Vale Inco nickel business, which is currently known as Vale Canada. He has also been the executive director of Vale’s nickel and base metal sales. Notably, coal mining was not mentioned by Vale as part of Ferreira’s background.

The company’s US$1.3 billion Moatize coal project in Mozambique is expected to kickoff mid-year, and is targeting 11Mtpa of production including 8.5Mtpa of hard coking coal under first-stage development.

Back in February 2007, Vale established its coal business in Australia after purchasing a portfolio of mines and projects from private company AMCI for  US$879m, with Vale owning stakes of the Carborough Downs, Isaac Plains and Integra coal mines.

While the Brazilian government privatised Vale in 1997, it still owns the dominant stake of the company through a development bank and a state-run pension fund.

Agnelli’s departure follows government criticism of the major iron-ore exporter for not increasing investment into the country’s steelmaking industry.

Vale is also partnered with rival Rio Tinto for the world-class Simandou iron ore project in Guinea, which is expected to start production in five years.

Ferreira is one of three candidates recommended by an executive recruitment company to replace Agnelli on May 22.

Vale shareholders also stated their appreciation of Agnelli’s “successful performance as CEO of Vale during the last few years”.