Brazil’s interim president, Michel Temer, is expected to replace Vale’s CEO, Murilo Ferreira, due to political concerns.
Ferreira is said to be an ally of suspended president Dilma Rousseff and former finance minister Guido Mantega, and despite being a privately-held company, state pension funds have seats on Vale’s board through Valepar, which owns 56 percent of Vale’s voting shares.
A similar moved happened when former Vale’s president, Roger Agnelli, who died in a plane crash earlier this year, was replaced during Rousseff’s first term, following pressure from Brazil’s government.
Ferreira has been focusing on Vale’s cost reduction and debt cutting. Earlier this week, Vale admitted it could sell a stake at its iron ore business.