Vale CEO will remain in position through 2024

Vale SA CEO Eduardo Bartolomeo will continue in his position until December while the company searches for his successor. Vale is one of the largest mining firms globally. Bartolomeo will aid in the transition process starting in 2025 and serve as a company advisor until December of next year, as confirmed by a statement released by the company late Friday.

The outcome comes after weeks of turmoil regarding Vale’s leadership succession, amidst increasing pressure from the Brazilian government to intervene in the process. Despite being privatised in 1997, the government’s influence in the mining sector has been highlighted by this struggle.

The Board’s decision was not unanimous, with two Directors expressing opposition, according to sources familiar with the matter.

Bartolomeo, who assumed the CEO role five years ago, publicly expressed his desire in early December to continue as CEO after his current term expires in May.

During his tenure, the 59-year-old CEO focused on restoring Vale’s reputation among investors concerned about environmental, social, and governance issues. He worked to mitigate the risks associated with the storage of mining waste following two tailings dam disasters in 2015 and 2019. Bartolomeo also divested non-core businesses and transformed the base metals operations into a separate entity to unlock value from Vale’s nickel and copper assets.

Bartolomeo’s safety efforts, such as plans to eliminate risky tailings dams and a $7.6 billion settlement for the Brumadinho dam collapse, are praised by the market. Yet, investors are worried about operational performance, cost control, and Vale’s government relations. Vale’s role in revitalising Brazil’s economy under President Lula da Silva is crucial. Government support can help overcome bureaucratic obstacles, like environmental permits and railroad concessions. Vale’s succession plan involves hiring an international consultancy to select the next CEO from three candidates.