Brazilian mining giant Vale has said that the company's controlling shareholders have nominated one of its former executive directors, Murilo Pinto de Oliveira Ferreira, as president of the company replacing the outgoing CEO Roger Agnelli, who was forced out following Brazilian government pressure and criticism for not spending enough on Brazilian projects. The nomination is subject to approval of Vale's board of directors, at a meeting yet to be announced.
Murilo Ferreira, 58 years old, began to work for Vale in 1998 as director of Vale do Rio Doce Aluminio - Aluvale, acting in several senior management positions until 2008, when he became CEO of Vale Inco (currently Vale Canada) and executive director of Nickel and Base Metals Sales of Vale.
As the Financial Times reported, Brazil has been trying to regain control over the nation's lucrative mining assets for the past few years, and it also objects to Vale's reliance on the Chinese market and the fact that the company is building many of its ships in Asia instead of Brazil. Asia accounted for more that 53 percent of Vale's operating revenue last year, with China contributing more than 33 percent and Japan 11 percent. The company had said it expected China to contribute an even greater share of its revenue this year.
Mr. Agnelli had rejected the government's demand for Vale to turn its focus away from China and start investing more in the local domestic steel, shipbuilding and fertilizer industries. This prompted the government, which owns the largest stake in Vale, to go directly to other shareholders last month and convince them to help vote him out.