194419311980

CHAPTER 6 Times of Reinvention: the 1980s

6.1 North and South Systems running at an annualized rate of 235.11%. In February 1986, Sarney, 177 alongside his finance minister, Dilson Funaro, unveiled the Cruzado Carajás began reinventing Companhia Vale do Rio Doce in the Plan. This initiative would change the name of the country’s 1980s. The discovery of immense mineral deposits in Pará shifted currency from the cruzeiro to the cruzado, while dropping the three the axis of the company’s ore exploration work in Brazil. Since last three zeros from its face value. The change in currency was tied then, all of the company’s production in the country – from mines to a freezing of prices. Housewives across Brazil, transformed into to ports, via railroads – has been underpinned by its North and “Sarney’s inspectors,” spent their days in the supermarkets trying South systems. to restrain any increase in the price of goods. Both Figueiredo and Output and exports grew, diversification was necessary and Sarney, through the third and fourth National Development Plans1 the concept of sustainability (expressed at the time in terms such of 1979 and 1985, respectively, reserved for the state the role of as “defending the environment” or simply “ecology”) definitively merely providing essential services, giving the private sector the entered the mining company’s vocabulary. There was a lot of work central role in reestablishing economic growth. In this context, to do and plenty of iron ore, and the whole world needed more steel. CVRD, then a state-owned enterprise, was an exception. Thanks to However, although CVRD was doing well, the same could not be the discovery in Carajás, the company had estimated reserves of said of the rest of Brazil’s economy. at least 18 billion metric tons of iron ore. The loans taken out from The 1980s were marked by an unprecedented crisis in the the World Bank in 1979, indispensible to starting the project, were Brazilian economy. The country’s gross domestic product (GDP) fell, guaranteed by the ore found there. By developing its North System, especially from 1981 to 1983, after having risen for some years at CVRD was redrawing the world’s mining map and expanding a new an annual rate of 6% to 7%. Inflation was reaching stratospheric exploration and export zone. levels. Meanwhile, political instability – which culminated in 1984 with the rejection of a proposal in the National Congress to hold The North System direct presidential elections – deterred foreign investment, and the On February 28, 1985, 18 months ahead of schedule, the Carajás government’s foreign debt was growing ever larger. Railroad (EFC) began operating. The railroad was the method Figueiredo’s departure from the government, while representing chosen to transport output from southeast Pará to the sea in São the end of the 21-year military government, did not mean an Luís, Maranhão, at Ponta da Madeira Maritime Terminal. It was immediate return to democracy. Tancredo Neves, appointed the equivalent, in the north of the country, of the complex that president in January 1985 following an indirect election by an extracted ore from the mines of Itabira and transported it to the electoral college, died even before his inauguration ceremony. sea at Tubarão Terminal in Espírito Santo. His place was taken by José Sarney, who came from the National For some time, there were questions about whether creating a Alliance of Renewal (Aliança Renovadora Nacional, or Arena), waterway system using the region’s rivers would not have been a which in 1980 was renamed the Social Democratic Party (Partido Democrático Social, or PDS). This was the party that had sustained 1 - The fourth National Development Plan was also called the first National Development the military government throughout its existence. Plan of the New Republic. See República Federativa do Brasil, I Plano Nacional de The new president took office in March 1985, as the whole Desenvolvimento da Nova República. This plan was never implemented, nor even discussed by society. Curiously, it was approved by the National Congress by default, on a lapse-of- country was battling inflation, which by the end of the year was time basis.

Vale Our History Vale Our History 178 better choice. However, the decision to build a railroad – due to its project began to enjoy tax incentives – granted by Declaratory Act 179 transportation capacity, its independence from natural phenomena 1/81 of August 4, 1981, issued by the Executive Secretariat of the and, above all, its power to spur regional development – proved to Inter-Ministerial Council of the Greater Carajás Program – and a be the best one. Accordingly, the railroad, which linked the Carajás loosening of rules on the importation of machinery and equipment. Mountains in Pará to São Marcos Bay in Maranhão, was built , after Months before, in April 1981, CVRD absorbed Amazônia it was authorized by Decree 77,608 of May 13, 1976. Mineração S.A. (AMZA). After this, the project was managed by At the time the Carajás Iron Project was launched, CVRD’s then- the Carajás Iron Project Implementation Superintendent’s Office, president, Eliezer Batista, highlighted the urgent need to develop created by the company, with a similar structure to that of the alternatives to the mines of Itabira in Minas Gerais: “The quality of incorporated company.3 Itabira’s ore is declining as the mining deepens.” Afterward, Batista Concerned to raise more resources to implement the project, said that it was necessary to make a choice: “Either we avoid new CVRD issued bonds on the international market, and debentures investments and begin to decline as an iron ore producer, or we convertible into shares on the domestic market. The issuing of make new investments, provided that it is economic and compatible the convertible debentures – worth US$163.6 million in 1982 and with our financial situation.”2 US$18 million in 1983 – sparked intense controversy. To many Supported by such arguments, CVRD worked hard to publicize the people, the decision would endanger the federal government’s project abroad. In 1979, the first memorandums of understanding majority shareholding in the company. This concern led to the were signed for sales with West Germany and Japan, providing establishment in 1984 of a Parliamentary Commission of Inquiry, for the supply of 5 million and 10 million metric tons per year, led by Senator Severo Gomes.4 They were the first discussions on a respectively. These agreements were transformed in 1981 into long- subject that would return with much greater force 13 years later, term contracts involving the sale of 25 million metric tons per year, during CVRD’s privatization process. not only to the Germans and Japanese, but also to other traditional customers of the company such as Italy and France, at prices to be The construction of a new mine-railroad-port complex established on the date the ore would be shipped, planned for 1985. Carajás’ iron ore reserves were evaluated at 18 billion metric tons, In order for these agreements to come to fruition at a time with average iron content of 66.13%, distributed in four deposits: of strong contraction in the global market, CVRD used various the North, South, East and São Felix Mountains. Due to its large arguments. It emphasized the quality of its products, raised the measured reserves – 1.3 billion metric tons – and its ease of access prospect of discounts and special conditions for shipping charges, to the railroad under construction, the so-called Eastern Arm of the and offered loans to potential purchasers. N4 deposit was selected for the start of mining activities. The success that CVRD had achieved in foreign markets led the federal government to provide financial support for the definitive implementation of the Carajás Iron Project. In October 1980, the 3 - See Board of Directors’ Report, 1981. Economic Development Council authorized the National Treasury 4 - Concerning this subject, see Gomes, Severo, Companhia Vale do Rio Doce: uma investigação to endorse the company’s loans from Brazil and abroad. The truncada, and Machado, Iran, Recursos minerais: política e sociedade, p. 377. A note published in Previous page: aerial view of the iron Brasil Mineral, April 1986, p. 8, stated that CVRD would incorporate into its bylaws a decree ore processing plant at Carajás Mine in signed by Brazilian President José Sarney to maintain the federal government’s ownership 2010. Above: the opening of the Carajás 2 - See Brasil Mineral, April 1985, p. 2. of at least 51% of its shares. Railroad on February 28, 1985.

Vale Our History Vale Our History An off-highway truck in Carajás, Pará. Previous page (top): a train crosses a bridge over the Tocantins River along a stretch of the Carajás Railroad, in 1993. Previous page (bottom): aerial view of the labyrinthine benches in Carajás Mine, in 2000.

180 The integrated project (composed of a mine, plant, railroad and and handling equipment. In December 1985, the whole iron ore 181 port) was designed to achieve overall output of 35 million metric processing complex at the N4E mine came into operation, with tons per year, to be reached in three stages: 15 million metric tons production capacity of 15 million metric tons per year. One year in 1986; 25 million metric tons in 1987, and 35 million later in later, the mine was running at a capacity of 20 million metric tons 1987. The open-pit mining method would be used, with 15-meter- per year, all the civil engineering works had been completed, and high benches (terraced steps). The harder ores would be dislodged the conveyor belts, stackers and reclaimers had been assembled. using explosives, and the softer and more powdery ones through excavation. The project began to move forward. The Carajás Railroad: the start Giant trucks weighing 154 metric tons would be used to transport The Carajás Railroad (EFC),7 designed at the time to transport 35 the material removed to the processing plant. Carajás’ ore would million metric tons of iron ore per year, would be 892 kilometers be processed through primary and secondary crushing, secondary long. Due to pressure to reduce the cost of the construction work, screening, tertiary crushing, milling and tertiary screening a relatively small number of major engineering works, such as operations. These operations would result in two products: lump spectacular bridges, would be built: in all there would be 62 bridges ore measuring between 6.35 mm and 50 mm across,5 and fine with a total length of 11.3 kilometers (including the 2.34-kilometer- ore, called sinter feed, ranging in size from 6.35 mm to 0.15 mm.6 long bridge across the Tocantins River). After processing, the ore would be transported to the 1.6 million The design included the installation of 43 switching yards. The metric ton capacity stockyard by means of two conveyor belts. At most important ones would be located at the Ponta da Madeira the stockyard, the ore would be handled by two stackers with the railroad terminal (situated at the railroad’s “0 km” mark) and at the capacity to move 10,000 metric tons per hour. Control of ore quality Carajás railroad terminal, where the train cars would be loaded with and quantity in the processing and storage phase would take place ore. The Ponta da Madeira railroad terminal would also serve as the using precision scales located on the main conveyor belts and five center for coordinating all railroad operations. Besides carrying ore, automatic sampling stations. the railroad would transport passengers and general freight, and The mine’s design also featured auxiliary facilities – a maintenance maintenance trains were also acquired for future operation. center, a physical and chemical laboratory, an explosives storehouse, The first trains to be used on the railroad would be composed and water, energy and oil supply facilities – and the urban settlement of three 3,000-hp diesel-electric locomotives and 160 ore cars, of Carajás. each weighing 120 metric tons and able to carry up to 98 metric In 1983, the primary and secondary crushing plants were tons of iron ore. To transport 35 million metric tons per year, 68 completed, as well as industrial facilities and ore mining, processing locomotives and 2,876 cars would be needed. These were just the first trains to be used on the railroad. In 2008, the biggest train in the world was put into action, consisting of 330 cars, 3.5 5 - Basic Mining Course, Valer – Vale Education, Module III, p. 15. kilometers in length, and capable of transporting 40,000 metric 6 - Analyses of Carajás’ iron ore were conducted at laboratories in Brazil (Deteg and Usiminas) tons of freight. and at the laboratories of major Japanese, European and North American steel companies. The tests found that the sinter feed ore was high grade, requiring low fuel consumption to process it. In terms of lump ore, it was concluded that it was suitable for direct reduction usage in blast furnaces. Concerning this subject, see Brasil Mineral, June 1989, p. 24. Regarding 7 - The text about the railroad was based on Barros, José Raymundo Mendes, O Projeto Ferro ore sizes, see the Basic Mining Course, Valer – Vale Education, Module III, p. 15. Carajás e outros bens minerais na área, p. 34.

Vale Our History Vale Our History The Carajás Railroad gained an important regional integration role, transporting not just ore, but also agricultural products, medicine and passengers. Around 1,100 people travel every day on the passenger train service, which crosses 25 municipalities in the states of Pará and Maranhão

182 183

Like the Vitória-Minas Railroad, the Carajás Railroad gained up to 280,000 DWT, and its natural access channel would permit an important regional integration role, transporting not just ore, simultaneous two-way traffic involving large ships. Besides having but also agricultural products, medicine and passengers. Around good visibility, the region was located outside all storm paths. 1,100 people travel every day on the passenger train service, which The terminal could also operate free from wave action practically crosses 25 municipalities in the states of Pará and Maranhão. The throughout the year. To provide protection from tidal currents, complete journey takes approximately 12 hours. The passenger two breakwaters would be built at right angles in the direction of train service began operating in 1986. mooring. All port operations were tested in a scale model that even By 1982, the infrastructure work along the 892 kilometers to this day supports the company’s studies. It is one of the oldest of track was practically complete. In November 1983, the first scale models of its kind in operation in the world. 213-kilometer stretch of the railroad, between Santa Inês and In 1985, loading tests were conducted with the ship Docepolo, São Luís (both in Maranhão), was delivered. Finally, in February involving 127,000 metric tons of ore. Ponta da Madeira Maritime 1985, in the presence of Brazil’s president, João Figueiredo, the Terminal began regular operations in January 1986. This first EFC was officially opened. The ceremony was attended by around year, 11.6 million metric tons of iron ore was shipped out from 150 foreign business people, mainly CVRD customers or potential the terminal.9 investors in initiatives planned for the Carajás Iron Project. The implementation of the Carajás Iron Project employed thousands of workers, hired in the region and in other parts of A port for Carajás Brazil. In 1982, during peak construction work, 27,483 people were The design of Ponta da Madeira Maritime Terminal8 basically involved in developing the project. According to estimates made consisted of an analysis of the location and the development of port in 1984, once target output of 35 million metric tons per year was operations. In terms of its location, it was taken into consideration reached, the operation was expected to generate 5,683 jobs, broken that São Marcos Bay, where the new terminal would be built, down as shown in Table 1. was sufficiently wide and deep to accommodate bulk carriers of A train loaded with ore at the 872 km mark along the Carajás Railroad, at the beginning of its journey, 8 - The text about the terminal was based on Barros, José Raymundo Mendes, op. cit., on April 29, 1987. pp. 17-19. 9 - See Board of Directors’ Reports, 1985-1986.

Vale Our History Vale Our History TABLE 1

TECHNICAL TECHNICAL SKILLED SEMI-SKILLED UNSKILLED TOTAL UNIVERSITY LEVEL HIGH SCHOOL LEVEL

Mine 67 314 209 937 516 2,043

Railroad 43 475 616 1,043 345 2,522

Port 35 250 42 232 78 637

Urban 4 15 112 75 102 308 Settlement

Central 30 29 18 61 35 173 Administration 184 185 TOTAL 179 1,083 997 2,348 1,076 5,683

Source: CVRD 50 anos de história.

To meet the basic needs of its employees and their families extended from there to the sea in Maranhão. Finally, it was linked in terms of housing, health, education, food supply, leisure and by the PA-275 highway to Marabá, an important regional center. recreation, CVRD built urban settlements in the Carajás Mountains (In 1988, Parauapebas separated from the municipality of Marabá and along the EFC. By 1989, Carajás was already inhabited by around and formed its own municipality.) In the early years, the avalanche 7,500 people, including employees of CVRD and service companies of immigrants and its disordered settlement gave Parauapebas an supporting the industrial facilities and residential center, as well as image of urban chaos with many pockets of poverty. people working on activities conducted by third parties without a With time, however, Parauapebas became not only one of the direct link to the company, and all their dependants.10 largest cities in the state in terms of population, but also one of its wealthiest in per capita income: its Municipal Human Development A citadel in Carajás Index (IDH-M) score went from 0.657 in 1991 to 0.741 in 2000.11 The Carajás urban settlement warrants a chapter of its own in In the city, CVRD built Euclides Figueiredo School (named for the company’s history. After the discovery of ore in the region was the brother of Brazil’s then president, João Figueiredo), a police announced, a large part of southeast Pará was gradually occupied station, a municipal hospital, a municipal government office and by people interested in exploiting the new business in some way. electric power facilities. The community gained its political and The mines opened up opportunities not just for skilled mining administrative autonomy in 1988, as did the neighboring area of workers, but also for people in an enormous range of activities in Curionópolis, home to the Pelada Mountains. the surrounding areas. Part of the area – 32% or 440,000 hectares – was incorporated Little by little, the region saw the arrival of small-scale into environmental conservation units and the indigenous reserve prospectors, traders, civil engineers, manual workers, white-collar of the Xikrin do Cateté people. The Indians inhabited the area workers and adventurers in search of riches. The occupation began when the new residents arrived in the late 1970s, occupying the in 1981 in the town of Parauapebas, which in Tupi-Guarani means neighborhood known as Rio Verde and Cidade Nova. The urban “River of Waters.” Those arriving found it hard to pronounce the center has comprehensive infrastructure, including an airport, name. Some called it “Paraopebas,” others “Piropebas,” and these school, cinema and theater, a specific area for commerce, a sports days some people call it “Peba.” However people referred to it, center and even a zoo. The streets are paved and tree-lined, and within a short time what had been a small village was taking on the homes conform to a standard of comfort and architecture. the appearance of a city. It was strategically located on the banks The area is surrounded by a 5-meter-high screen to prevent large of the river for which it was named, right at the entrance of Carajás felines from entering. It was there that during a visit to Brazil, the National Forest. It was also the starting point of the EFC, which Above: building the Parauapebas urban center in Pará. Below: Prince Charles of Great Britain plants a tree 11 - Data from the United Nations Development Program (UNDP). Available at http://www. during a visit to Carajás, Pará, observed by Princess 10 - See Brasil Mineral, June 1989, p. 26. pnud.org.br/atlas/tabelas/index.php. Diana and then president of Vale, Wilson Brumer.

Vale Our History Vale Our History Agripino Abranches Viana, in 1986. Facing page, left to right: Piçarrão Mine in Nova Era, Minas Gerais, in September 1978, and ore loading at Periquito Mine in Itabira, Minas Gerais, on May 21, 1976.

British royal couple Charles and Diana (who walked around hand- in-hand with boys and girls from a school) declared that they were stunned by the exuberance of the Amazon Rainforest. The people of Parauapebas have access to the services of the urban center, and the Chico Mendes Institute for Biodiversity Conservation (ICMBio) now administers access to Carajás National Forest, where it is located. While developing Carajás Complex, CVRD began to bear the fruit of the diversification policy it implemented the previous decade. To ensure its position as the world’s biggest iron ore exporter, the CVRD System, encompassing its subsidiaries and affiliates, grew into one of the country’s largest conglomerates. Besides iron ore, the 186 agreement, most of this affiliate’s gross output would be acquired TABLE 2 187 company produces and exports a number of other raw materials of by CVRD, which would process and sell the ore.13 OVERALL PRODUCTION OF SOUTH SYSTEM Agripino Abranches Viana mineral and vegetable origin. The investments made by the company in its South System in (MILLION METRIC TONS) the 1980s were very modest if compared with those of the previous The South System decade, given that CVRD was now investing in Carajás. The main Agripino Abranches Viana (Pedra do Anta, Minas At the start of the 1980s, CVRD’s iron reserves in Minas Gerais, achievement in the period was the completion of the first phase of ORE ACQUIRED FROM THIRD PARTIES Gerais, 1934 – Belo Horizonte, Minas Gerais, 1995)1 led YEAR OWN PRODUCTION especially in the Iron Quadrangle region, amounted to an estimated the Timbopeba Project, a mining and metallurgical complex located AND PROCESSED BY CVRD CVRD between 1987 and 1990. He graduated from the 18.2 billion metric tons. Besides the traditional mines of Cauê, in the municipality of Ouro Preto with the capacity to process 1979 52.9 3.3 Rural University of Minas Gerais State (now the Federal Conceição and Dois Córregos in Itabira, since the mid-1970s the around 7.5 million metric tons of ore per year from the mines of University of Viçosa) and he later served as Agriculture company had also been running the mines of Piçarrão in Nova Era, Timbopeba, belonging to CVRD, and all the output acquired by the 1980 63.3 3.9 and Caraça in Santa Bárbara.12 Secretary of Minas Gerais. In 1979, he joined CVRD at the company from MSG (on average, 10.5 million metric tons per year). 1981 54.1 4.0 At all of its open-pit mines, CVRD had modern facilities for invitation of Eliezer Batista, to direct the Goiás-Minas- Over the course of the 1980s, CVRD’s operational performance processing the raw ore it extracted. The ore fines crushing, in the South System was very irregular. In 1980, its ore production 1982 49.8 5.1 Espírito Santo Export Corridor Program, the Cerrados classification and concentration plant at Cauê Mine, opened in hit a record of 63.3 million metric tons, corresponding to 56% of Project and the Carajás Railroad Export Corridor Project. 1983 43.7 4.2 the early 1970s, has since then accounted for the largest share Brazil’s total that year. Between 1981 and 1983, taking into account From 1981 to 1982, he was the director of Florestas Rio of the company’s production in southeast Brazil. The Conceição the recession in the international steel industry, there was a 1984 55.2 6.6 Doce S.A., and subsequently director of CVRD’s Timber, Project, which processes and fully recovers ore extracted from significant reduction in the company’s output, which fell to 43.7 1985 60.8 9.5 Pulp and Environment area. Upon the death of Raymundo the Conceição and Dois Córregos mines, began operating in 1978, million metric tons in 1983. As the steel industry recovered and the Mascarenhas, he was appointed president of the company, enabling the company to raise its output of sinter feed and pellet Timbopeba Project was opened in 1984, the company’s production 1986 49.5 7.7 feed to 20 million metric tons per year. expanded once more, and in 1985, 60.8 million metric tons of ore and also served as chairman on the Board of Directors 1987 44.2 10.2 In 1981, with the acquisition of the Onça, Chacrinha, Periquito were extracted. of Vale do Rio Doce Navegação S.A. (Docenave). During and Esmeril mines from Acesita, CVRD incorporated into its In 1986, however, as CVRD started to export ore produced in 1988 * * his administration, he eliminated the use of charcoal portfolio reserves estimated at one billion metric tons of ore, with Carajás, its operations in the South System were scaled back produced from native forests and guaranteed that the average iron content of 50%. The purchase of these mines meant significantly. The company’s plan was to maintain production in 1989 44.5 18.5 fuel was grown sustainably in plantations. In addition, he the termination of Itavale, a company established by CVRD and the region at an annual average of 47 million metric tons, to supply 1990 38.5 15.1 produced the company’s 1989-2000 Strategic Plan, which Acesita in 1974 to implement a joint project to exploit the reserves Brazilian steel mills, pig iron producers and pellet production focused on international expansion. Viana remained controlled by this steel maker. In exchange, CVRD undertook to affiliates. Other than the Argentine and Japanese markets, CVRD’s * Data unavailable. supply Acesita with all the ore it needed. president of the company until April 1990, when he foreign customers would be progressively supplied by ore produced Sources: Board of Directors’ Reports, 1979-1987, 1989 and 1990. Through Mineração Serra Geral (MSG), a joint venture with a in the North System. was replaced by Wilson Brumer, appointed by the then group of Japanese companies led by Kawasaki Steel, in August CVRD’s iron ore output in the South System from 1979 to 1990 is On the road president of the Republic, Fernando Collor de Mello. 1982, CVRD began running Capanema Mine in the municipality of shown in Table 2, which also indicates the volume acquired by the Besides transporting the iron ore produced by CVRD, Ferteco and Ouro Preto, Minas Gerais. As established in MSG’s shareholders’ company from MSG and small producers in the Itabira region. Samitri, the Vitória-Minas Railroad became an ever more important export corridor for Minas Gerais’ industrial production in the 1980s. 1 - About this subject, see “Viana, Agripino Abranches,” DHBB, vol. 5, p. 6,027, and The provision of railroad services for third parties accounted for “Conheça todos os presidentes da história da Vale” (Learn about all the presidents 12 - Information on CVRD’s iron ore production in the South System was taken from the 13 - Between 1982 and 1990, MSG produced approximately 80 million metric tons of raw in Vale’s history), Exame magazine, April 5, 2011. Board of Directors’ Reports, 1979-1990. ore, most of which (more than 80%) was sold to CVRD. a growing, although secondary, share of the company’s revenues.

Vale Our History Vale Our History Between 1980 and 1990, the proportion of third parties’ goods link between the Vitória-Minas and the RFFSA’s railroad network transported by the railroad rose from 24% to 37.8%. Iron ore benefited not only grain producers, but also steel mills in Minas remained by far the main product carried by the EFVM, followed Gerais, enabling their products to reach major consuming centers by goods produced by steel mills and coal imported by them. The at more competitive rates.14 railroad also transported limestone, pig iron, cement, pulp, timber, CVRD’s investments in the Vitória-Minas Railroad also included livestock and other freight, as well as passengers (on average, 2.5 building a 15-kilometer branch line connecting the main line with million per year). Açominas’ facilities and another branch line establishing a link with 189 As of the mid-1980s, CVRD received requests from the government a dedicated pulp exporting port in Barra do Riacho, Espírito Santo. to lend its transport infrastructure to transport grain produced Table 3 shows the volumes of different types of freight in Minas Gerais and Goiás. Given this new function, in 1986 the transported by the EFVM, breaking down the origin of the products company signed an agreement with the Federal Railroad Network (CVRD itself or third parties). (Rede Ferroviária Federal S.A., or RFFSA) to construct a 46-kilometer branch line connecting Costa Lacerda Station with Capitão Eduardo Station, near Belo Horizonte, which opened in February 1992. The 14 - For more information about the Costa Lacerda-Capitão Eduardo branch line, see Jornal do Brasil (Business and Finance section), February 13, 1992, pp. 7-9.

TABLE 3 PRODUCTS TRANSPORTED BY THE EFVM, 1979-1990 (MILLION METRIC TONS)

1979* 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990

IRON ORE AND PELLETS 67.8 75.9 67.9 63.7 61.1 80.1 84.9 71.7 65.8 72.3 79.0 74.4

Own production (66.5) (57.6) (53.4) (51.5) (69.6) (74.8) (62.0) (57.2) (62.0) (64.1) (58.7)

Third parties' production (9.4) (10.3) (10.3) (9.6) (10.5) (10.1) (9.7) (8.6) (10.3) (14.9) (15.7)

OTHER PRODUCTS 8.8 13.0 11.0 12.1 12.3 16.4 18.2 19.4 21.2 24.8 21.3 21.2

Own production (0.9) (1.2) (2.0) (2.1) (1.9) (1.3) (1.3) (1.1) (1.1) (1.0) (0.8)

Third parties' production (12.1) (9.8) (10.1) (10.2) (14.5) (16.9) (18.1) (20.1) (23.7) (20.3) (20.4)

TOTAL

Own production 67.4 58.8 55.4 53.6 71.5 76.1 63.3 58.3 63.1 65.1 59.5 Vale employees working Third parties’ production to complete the Capitão 21.5 20.1 20.4 19.8 25.0 27.0 27.8 28.7 34.0 35.2 36.1 Eduardo-Costa Lacerda branch line on the Vitória- GRAND TOTAL 76.6 88.9 78.9 75.8 73.4 96.5 103.1 91.1 87.0 97.1 100.3 95.6 Minas Railroad, close to the Sabará Tunnel in Minas * For this year, the source does not break down own production and third parties’ production. Source: Board of Directors’ Reports, 1979-1990. Gerais, in November 1991.

Vale Our History Vale Our History Previous page: construction work at Praia Mole Maritime Terminal at Tubarão Complex, Vitória, Espírito Santo.

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At the port for them. To meet growing demand in this sector, in 1980 CVRD, in The South System’s output of iron ore and pellets was exported association with Siderbras and Portobras, began implementing the from the maritime terminals operated by CVRD on the coast of Praia Mole Project, which entailed building a steel product export Espírito Santo – Atalaia, Paul and, most importantly, Tubarão, the terminal and a coal import terminal at Tubarão Maritime Terminal. world’s biggest dedicated iron ore export port, capable of receiving The US$230 million coal terminal was opened in 1983, with ships of over 300,000 deadweight tonnage (DWT). Opened in 1966, an initial handling capacity of 8 million metric tons per year. As Tubarão Maritime Terminal handled the bulk of the company’s well as importing metallurgical coal to supply CST, Usiminas and Above: aerial view of the iron output, the pellet exports of affiliates Itabrasco, Nibrasco and Açominas, Praia Mole coal terminal, operated directly by CVRD, Docecanyon at Tubarão Complex in Vitória, Espírito Hispanobras, and iron ore produced by Samitri and Ferteco. also supplied the company’s pulp mills and pelletizing plants with Santo. Below: pellets being Starting in the 1970s, CVRD also played a major role exporting thermal coal. The steel products terminal began operating in July taken to plant furnaces goods produced by steel mills in Minas Gerais and importing coal 1984, administered by Siderbras. at Tubarão Complex, Vitória, Espírito Santo.

Vale Our History Vale Our History Aerial view of Albras facility in Barcarena, Pará, in September 1990.

192 6.2 A decade of capitalization In line with guidance from the government to intensify its 193 integration with private Brazilian and foreign companies, CVRD also In 1980, CVRD published its Preliminary Development Plan entered two new mining-metallurgical ventures related to ferrosilicon for the Eastern Amazon (Amazônia Oriental – Plano Preliminar de and quartz powder (widely used by the construction industry, in Desenvolvimento), which demonstrated that the infrastructure of ceramic liners), which came on line in 1986 and 1989, respectively. the Carajás Iron Project, then being built, would make it feasible As part of the company’s diversification strategy, gold was also a to develop a number of other projects to harness the region more successful option, quickly generating a handsome cash flow. extensively, in the mining, metallurgical, forestry and agricultural sectors. The federal government’s approval of this plan gave rise Gold16 to the Greater Carajás Program, managed by an Inter-Ministerial CVRD’s first initiatives in the gold sector occurred in the 1970s, when Council reporting to the Presidential Planning Secretariat (Seplan). studies were undertaken to exploit the gold found in association The Greater Carajás Program would be the Brazilian government’s with iron ore in its reserves in Itabira. In the 1980s, with the first main initiative in the mining sector in the 1980s.15 results of research conducted by Docegeo at the deposits discovered In 1980, CVRD was already active in bauxite and manganese in 1978 in northeast Bahia (in the so-called Weber Strip between the mining, through its affiliates Mineração Rio do Norte and Urucum municipalities of Araci and Teofilândia), gold showed itself to be an Mineração S.A., respectively. It also produced pulp through affiliate attractive investment option for the company. Cenibra, and it owned two pelletizing plants. In addition, the In 1984, when the Itabira Gold Project was under way, CVRD company had stakes in three other pellet ventures, in association began operating the open-pit Fazenda Brasileiro Mine, with annual with foreign partners. In 1982, with the establishment of Valesul, gold production capacity of 500 kilograms. At the end of 1985, the CVRD entered the aluminum sector, contributing to a reduction company’s total accumulated raw gold output was 772 kilograms, in Brazil’s imports of this metal. The company’s diversification, including 117 produced in Itabira. which at the start of the decade had seemed a distant option, That same year, CVRD established its Noble Metals Superintendent’s became a reality. Office (Sumen) to coordinate its activities in the new segment. Among In the two following years, CVRD developed manganese other initiatives, there was the second phase at Fazenda Brasileiro operations in Pará. In 1985, besides starting up operations at the Mine, involving underground mining and a second gold recovery plant. Carajás Iron Project, it began the Albras Project, which involved It was predicted that the company would reach output of 6 metric producing aluminum in Barcarena, Pará. This was an important tons in 1994. Due to CVRD’s inexperience in this kind of mining, it was milestone for the company. necessary to develop technology and train teams.

Above: manganese extracted from Urucum Mine in Corumbá, 15 - About the Greater Carajás Program, see Fernandes, Francisco do Rego (org.), Os Mato Grosso do Sul, in 2003. maiores mineradores, vol. 1, pp. 112-115, 132-144; Brazilian Institute of Social and Economic 16 - Information regarding CVRD’s activities in the gold sector was taken from the Board of Below: geologists working Analyses (Ibase), Carajás: o Brasil hipoteca o seu futuro, pp. 85-137; the Brazilian government’s Directors’ Reports, 1984-1990, Brasil Mineral, April 1987, p. 30; July 1987, pp. 20 and 30-31; May in a gold mine in Mariana, Planning Secretariat (Seplan), Programa Grande Carajás; Brazil’s Ministry of Mines and 1988, pp. 32-33; September 1989, pp. 50-59; December 1989, pp. 18-20; and September Minas Gerais, in 1987. Energy, Programa Grande Carajás; and Companhia Vale do Rio Doce, Projeto Ferro Carajás. 1990, pp. 20-22; and Mineração Metalurgia, March 1989, p. 10.

Vale Our History Vale Our History Opposite page, left to right: aluminum ingots produced by Valesul, and a Companhia Vale do Rio Doce share certificate from 1972.

In 1987, with a rising gold price on the international market 1990) and, as of 1990, by Wilson Nélio Brumer (1990-1992), CVRD and the pressing need to generate resources in the short term – stood out in this period for its implementation of an environmental 194 especially to pay the first installments of the loans taken out to preservation policy in its areas of activity. fund the Carajás Iron Project – the company decided to intensify Ecological questions, which for decades had been treated as its investment in the gold sector. The company expected to produce secondary issues (and often not even this), gained prominence around 20 kilograms of gold per month in Minas Gerais, as of both at the company and throughout the world. A significant set 1988, using a small plant to treat high-grade gold-bearing itabirite of specific laws and resolutions were then created for the field in from the mines of Itabira (one gram of gold per metric ton), to be Brazil, most notably the requirement for an Environmental Impact obtained by selective mining, and by recovering gold from the 15 Report (Rima) for many activities, including mining.17 TABLE 4 million metric tons of iron ore tailings accumulated since 1971. Over the course of the 1980s, CVRD also placed special emphasis REVENUES GENERATED BY CVRD (INCLUDING SUBSIDIARIES AND AFFILIATES), 1985-1990 (MILLION DOLLARS) Also in Minas Gerais, in 1988 CVRD began underground mining on developing new technological processes. The idea was to balance at the Caetés deposit and it started implementing the Riacho do productivity and the quality of mining output. At the same time, the 1985 1986 1987 1988 1989 1990 Machado Project to exploit the Ouro Fino deposit. In addition, the company made greater efforts to reduce its energy consumption company opened the Maria Preta Project, an open-pit mine in from oil products or even replace this type of fuel with alternative Iron ore and pellets 1,089.6 1,069.9 1,127.2 1,188.3 1,465.3 1,627.2 Bahia, in July 1990. The last initiative was the Igarapé Bahia Project energy sources. CVRD’s dependence on energy generated by other Bauxite 147.2 260.1 399.2 522.4 485.9 500.5 to extract gold found in the Carajás region. In 1988, 100 kilograms companies was a subject that warranted ever more attention, and of gold was produced there on an experimental scale. An industrial the company resolved the issue the following decade by constructing Shipping 171.6 123.0 131.4 188.2 168.9 170.6 plant capable of producing two metric tons per year began operating its own hydroelectric power plants. Pulp 72.3 86.4 127.1 178.0 185.4 143.3 in 1992. Igarapé Bahia would become one of the most profitable Given that CVRD’s production was largely export oriented, the gold mines in the world. company’s commercial and financial performance in the early Manganese 2.9 7.3 9.1 14.6 35.5 39.6 With all these projects, CVRD expected to reach total gold 1980s was strongly affected by the global economic crisis that Other 16.4 1.0 9.3 17.3 9.5 17.0 production of 13 metric tons per year as of 1992 and become Brazil’s followed the 1979 oil crisis, leading to a reduction in industrial second largest gold producer, after Mineração Morro Velho. inputs’ prices and demand. Even so, the export revenues generated TOTAL 1,500.0 1,547.7 1,803.3 2,108.8 2,344.5 2,498.2 by CVRD and its subsidiaries and affiliates between 1980 and 1985 The environment and new technological processes reached an annual average level of US$1.5 billion, not including Sources: Board of Directors’ Reports, 1985-1990. To enable the simultaneous implementation of all these projects, the revenues obtained from domestic sales, railroad activities, and CVRD continuously raised extra capital during the decade, both loading and unloading services at the maritime terminals operated by issuing new shares and, in particular, by issuing debentures on by the company. CVRD accounted for 13.23% of Brazil’s raw mineral Despite its positive commercial performance, successive Finally, in 1988, with the relative stabilization of the dollar and the international market. To meet Carajás’ needs, various series of production in 1985 and it stood out as one of the country’s most devaluations of the US dollar between 1985 and 1987 drastically growing sales on both domestic and foreign markets, the company stock-convertible debentures were also issued in Brazil. At the same profitable companies. affected CVRM’s financial results. The company had taken out managed to turn things around, ending the year with a net income time, the company took out successive loans from credit institutions Due to its expanding export volumes of iron ore, pellets, pulp, loans in Japanese yen and German marks, currencies that were of US$210.5 million. The following year, its profits increased further, in Brazil and other countries, notably Japan and Germany. aluminum and bauxite, and growth in the prices of these goods on now strengthening against the dollar. CVRD’s net income fell by to around US$734.5 million. As a result of economic stabilization The company’s new corporate configuration also led to successive the international market as of 1985, as well as its revenues from 34% between 1984 and 1985, and then a further 25% in 1985. The measures approved by the Brazilian government at the start of reforms in its administrative structure. New superintendent’s offices shipping, the CVRD System generated an ever larger amount of persistence of this situation led the company to make a loss of 1990, CVRD’s financial performance that year was significantly and departments were created. Led once more by Eliezer Batista revenues for Brazil, as shown in Table 4. US$170 million in 1987. Its debt had grown to the equivalent of worse than in 1989, presenting a net income of US$106 million. (1961-1964 and 1979-1986) and Raymundo Mascarenhas (1969- around US$3 billion. 1974 and 1986-1987), followed by Agripino Abranches Viana (1987- 17 - See Brasil Mineral (special edition about the environment), October 1991, n.p.

Vale Our History Vale Our History 6.3 Highs and lows on the pellet market Besides its two wholly owned units, Tubarão pelletizing complex also featured four more plants: two owned by Nibrasco, In the late 1970s, CVRD stood out ever more as an important one owned by Itabrasco and one owned by Hispanobras. pellet producer. By 1980, its two plants, both located at Tubarão These companies were established by CVRD (as their majority Maritime Terminal in Espírito Santo, reached total production of shareholder) in the 1970s, in association with Japanese, Italian 4.6 million metric tons, mostly shipped to foreign markets. At the and Spanish investors, respectively. end of that year, however, given the slowdown in the global pellet Until 1979, the pelletizing affiliates’ operations presented modest market that followed the second crisis, CVRD decided to shut down operational performance and negative financial results. This was one of its plants, which was capable of producing 2 million metric due to the difficulties often experienced when consolidating any tons per year. As of October 1981, its second plant – with production new project. Even natural disasters played a part in harming capacity of 3 million metric tons per year – also began to operate production. In 1979, for example, the heavy rains that fell in Minas irregularly, with periodic suspension of its activities.18 Gerais in the first months of the year hindered the transportation As the crisis dragged on, CVRD’s pelletizing units only returned of ore from Itabira to Tubarão, resulting in a significant fall in the to their normal rhythm at the end of 1983. The following year, they production of CVRD’s pelletizing companies. 196 achieved production of 4.3 million metric tons, and after this they After a brief recovery in 1980 and 1981, the affiliates’ pellet 197 maintained average annual output of 4.5 million metric tons. production fell once more for the next two years, affected by a decline in international demand. As of 1984, however, Itabrasco, Nibrasco and Hispanobras presented growing production volumes, 18 - The data was taken from the Board of Directors’ Reports, 1979-1990, and Fernandes, as shown in Table 5. Francisco do Rego (org.), op. cit., vol. 1, pp. 76, 84 and 86-88.

TABLE 5 OUTPUT OF PELLETIZING AFFILIATES, 1979-1990 (MILLION METRIC TONS)

YEAR ITABRASCO NIBRASCO HISPANOBRAS TOTAL

1979 1.9 4.7 2.5 9.1

1980 2.5 5.5 2.7 10.7

1981 2.6 4.9 2.8 10.3

1982 2.4 4.5 2.3 9.2

1983 2.0 4.0 1.8 7.8

1984 2.9 5.4 2.8 11.1

1985 2.9 5.3 3.0 11.2

1986 2.9 6.0 3.0 11.9

1987 2.5 6.2 3.2 11.9

1988 3.0 6.3 3.3 12.6

1989 3.2 6.4 3.3 12.9

1990 3.0 6.5 3.0 12.5 Two Nibrasco pelletizing plants and (in the background) ore stockyards and two quays at Sources: Board of Directors’ Reports, 1979-1990. Tubarão Maritime Terminal in Vitória, Espírito Santo, in 1978.

Vale Our History Vale Our History Conveyor belts at Ponta da Madeira Maritime Terminal in São Luís, Maranhão, in 1986.

Around 80% of the pellets produced by the three affiliates small share was reserved for the Brazilian market (Usiminas, CSN were halted for many days due to damage to mining facilities and between 1979 and 1990 were exported, mainly sold to their foreign and Usiba).19 stretches of the EFVM caused by heavy floods in Minas Gerais and shareholders, and shipped out from CVRD’s maritime terminals. Table 6 shows the commercial performance of the pelletizing Espírito Santo – CVRD’s full-year results showed major growth in Accordingly, almost all of Itabrasco’s exports were absorbed by affiliates from 1979 to 1990, breaking down the volumes bought by production and sales. Italian group Finsider, the bulk of Nibrasco’s exports went to its CVRD and the volumes allocated for external markets, as well as Favored by the expansion in steelmaking activities in the main Japanese partners, and almost all of Hispanobras’ exports were the export revenues of the three companies. industrialized countries, exports of iron ore and pellets produced sold to Ensidesa, a company in the Principality of Asturias, an by the company rose 14% from their 1978 level, reaching a total autonomous community in Spain. The remaining 20% was acquired of 47.8 million metric tons. Japan and Germany continued to be 19 - The shares of pellets acquired by CVRD from its pelletizing affiliates were sold together by CVRD and mainly sold on the external market (to customers in with the output of its own mines, and so are included in the company’s commercial results the biggest customers, absorbing practically half of all exports (35% Argentina, Qatar, Iraq, the United States, England, etc.), although a in the iron ore and pellets sector. and 13%, respectively), followed by France (7%), Poland (5%), the United States (5%), Italy (4%) and the Philippines (3%). The increase in both the quantities exported and the price of iron ore on the TABLE 6 international market (rising to US$15.77 per metric ton on an FOB basis) provided CVRD with export revenue of US$753.6 million, up SALES OF PELLETIZING AFFILIATES, 1979-1990 (MILLION METRIC TONS) 198 20% from 1978. 199 Also in 1979, continuing its policy of retaining captive markets AFFILIATES 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 and winning new customers in developing countries (which were seeking to build or expand steel mills), CVRD signed a number of ITABRASCO important long-term iron ore sales contracts: in Romania, for 34 CVRD 0.4 0.6 0.5 - - 0.4 0.5 0.2 0.1 0.1 0.2 0.5 million metric tons; in Czechoslovakia, for around 15 million metric tons between 1980 and 1990; with Pohang Steel in South Korea, to External market 1.6 1.8 2.1 2.4 2.0 2.4 2.6 2.8 2.5 2.8 3.1 2.6 deliver 20.6 million metric tons by 1983; and with Kawasaki Steel Export revenues in Japan, to supply its plant in the Philippines. Contracts were 40.3 53.0 61.0 74.0 53.1 55.1 59.7 62.6 * 68.9 89.5 82.8 (million US dollars) also signed to supply 2.5 million metric tons of pellets to Kaiser Steel in the USA over a 10-year period, and 480,000 metric tons of NIBRASCO concentrates to Tubos de Acero de México (Tamsa). CVRD 0.7 0.2 0.8 - - 1.1 1.3 2.6 2.3 2.0 1.8 1.8 Nevertheless, expectations of growth in the global economy reversed in 1980. As a result of the second oil crisis and the External market 3.8 5.2 4.1 4.4 3.9 4.3 4.1 3.7 3.9 4.4 4.7 5.1 recession in the US economy that followed, there was another Export revenues slowdown in steelmaking, leading the main steel producers to 110.2 167.0 146.0 152.0 115.4 109.0 96.3 84.9 * 100.9 134.7 167.6 (million US dollars) significantly reduce their purchases of iron ore and pellets. The sudden increase in the oil price further raised shipping’s shares HISPANOBRAS of final ore costs. Prices on the international market, however, CVRD 1.3 0.9 0.9 0.5 0.4 0.5 0.7 1.2 1.4 1.5 0.2 0.8 remained the same. As a result of this situation, CVRD’s export volumes fell by 7% in External market 0.9 1.9 1.9 2.1 1.3 2.4 2.4 1.8 1.8 1.9 3.0 2.5 1980. Favored, however, by the devaluation of the cruzeiro (decreed by the federal government in December 1979), the company’s export Export revenues 23.8 54.0 53.0 63.0 34.7 54.5 54.3 40.5 * 49.5 88.4 80.0 revenue was 5% higher than in 1979, reaching US$792 million. (million US dollars) In 1981, despite unfavorable market conditions, CVRD’s exports of iron ore and pellets amounted to 45.9 million metric tons, up * Data not available. Sources: Board of Directors’ Reports, 1979-1990. 3% from 1980, generating around US$844 million. Accounting for 15.6% of seaborne trade in these raw materials, against 14.6% in 1980, CVRD was strengthening its position as the world’s biggest Sales continued to be exported. The company’s commercial performance iron ore exporter. During the 1980s, despite significant growth in the internal in this segment was heavily influenced by the behavior of the In the two following years, as the crisis in the steel industry market,20 most of the iron ore and pellets produced by CVRD international steel industry. As seen earlier, after the serious deepened, there was a sharp fall in CVRD’s export volumes, crisis of 1977, global steelmaking recovered slightly in 1978, declining to 38.2 million metric tons in 1982 and 37.9 million in improving the company’s prospects for the 1980s. In 1979, despite 1983. The Asian market, led by Japan, remained the company’s main customer. However, its relative share, which had been growing 20 - This text was based on the Board of Directors’ Report, 1979-1990. problems experienced in the first few months – when activities

Vale Our History Vale Our History Inside the Hispanobras pelletizing plant in Vitória, Espírito Santo, in May 1979.

for some years, reaching 54% in 1982, fell back to 48% in 1983, and The exports of iron ore and pellets produced by CVRD and a remained at this level until the end of the decade. During these breakdown of sales by consuming market are presented in Tables 200 years, there was also a rise in sales to the United States as the 7 and 8. 201 country’s steel industry recovered. In 1984, driven by resumed growth in the North American economy, the main industrialized countries performed much better, TABLE 7 with positive effects for global steel production and the seaborne EXPORTS OF IRON ORE AND PELLETS PRODUCED BY CVRD iron ore trade. These new market conditions enabled CVRD to (SOUTH AND NORTH SYSTEMS), 1979-1990 export 49 million metric tons of its iron ore and pellet production (MILLION METRIC TONS) that year. Of this total, 48% was sold in Asia, 43% in Europe, 7% in the Americas (including the United States, Canada and Latin IRON ORE PELLETS* TOTAL America) and 2% in the Middle East and Africa. Despite a reduction in the average price of a metric ton of iron ore (from US$19.17 in 1979 42.3 5.5 47.8 1983 to US$16.91 in 1984), the 29% rise in volume shipped gave the 1980 41.4 3.1 44.5 company export revenues of US$828.8 million, up from US$721 million in 1983. 1981 43.2 2.7 45.9 Nevertheless, contrary to optimistic predictions, the world 1982 36.5 1.7 38.2 economy’s performance in the second half of the decade was weaker than expected. Global steel production stabilized at around 1983 34.9 3.0 37.9 750 million metric tons per year, growing slowly over the period. Although it was still operating in adverse conditions, in the last 1984 34.8 5.2 40.0 five years of the decade CVRD grew its iron ore and pellet exports 1985 46.1 5.8 51.9 slowly but steadily and further expanded its markets.21 Despite successive reductions in international iron ore prices, the company’s 1986** 44.6 7.1 51.7 financial results improved. Efforts to cut the cost of shipping by 1987 50.1 8.1 58.2 intensifying the practice of combined cargo transportation in its ships were fundamental. 1988 56.5 6.2 62.7 As of 1986, the ore exported by CVRD also included output from 1989 62.2 5.1 67.3 Carajás (11.4 million metric tons out of the total of 51.7 million metric tons exported that year), shipped out from Ponta da Madeira 1990 61.5 5.3 66.8 Maritime Terminal. From that point onward, the North System accounted for a rising share of the company’s exports, while the Sources: Board of Directors’ Reports, 1979-1990. reserves of Itabira in the South System were allocated preferably to * Includes the share of pellets acquired by CVRD from pelletizing affiliates. the expanding Brazilian steel industry. ** As of 1986, the company’s iron ore exports also included output from Carajás. Of the total exported in 1986, the North System contributed 11.5 million metric tons. Its contribution rose to 23.4 million in 1987, 29.7 million in 1988, 31.3 million in 1989 and 21 - According to Brasil Mineral, January 1987, p. 8, CVRD signed a contract that month to 31.5 million in 1990. sell 1.2 million metric tons of pellets to a new steel mill in Saudi Arabia.

Vale Our History Vale Our History In 1987, CVRD was meeting 100% of the needs of Usiminas and Companhia Siderúrgica de Tubarão (CST), and was supplying the bulk of the iron ore used by Açominas, Cosipa and the other companies in the Siderbras group

202 TABLE 8 203 BREAKDOWN OF CVRD’S IRON ORE AND PELLET EXPORTS BY MARKET, 1979-1987* (%)

1979 1980 1981 1982 1983 1984 1985 1986 1987

Asia 42 46 47.3 54.2 48 48 46 48 48

Europe 50 50 48.4 42.9 46 43 46 42 42

Americas 8 4 4.3 2.9 5 7 6 8 8

Middle East and Africa - - - - 1 2 2 2 2

TOTAL 100 100 100 100 100 100 100 100 100

* The reports for 1988, 1989 and 1990 do not state the percentage shares of the different markets. Sources: Board of Directors’ Reports, 1979-1987.

In addition to its own production, CVRD, via the EFVM and its port for by sales of pellet feed to its pelletizing affiliates. As of 1985, facilities in Espírito Santo, continued to transport iron ore extracted however, this proportion declined, due to rising sales to Brazilian by Samitri and Ferteco, as well as the output of its pelletizing steel and pig iron companies, which were then experiencing affiliates allocated to foreign markets. The company’s products significant expansion. were sold in Europe, Asia and North America by its subsidiaries In 1987, CVRD was meeting 100% of the needs of Usiminas and Rio Doce America and Rio Doce International S.A. Exports to the Companhia Siderúrgica de Tubarão (CST), and was supplying the bulk Middle East, Africa and Latin America were handled directly by the of the iron ore used by Açominas, Cosipa and the other companies Above: Praia Mole Maritime company’s Commercial Superintendent’s Office, which was also in the Siderbras group. In addition, the company’s ore was supplying Terminal, part of Tubarão responsible for domestic sales. private steel mills Acesita, Usiba and Aços Finos Piratini, as well as Complex, Espírito Santo, on January 9, 1984. Below: Over the course of the 1980s, CVRD considerably expanded the various pig iron mills in Minas Gerais and along the EFC. a train leaving the loading domestic market for its iron ore and pellets. Until the middle of the The volumes of iron ore and pellets sold by CVRD on the terminal in Carajás, decade, around two-thirds of its goods sold in Brazil were accounted domestic market from 1979 to 1990 are shown in Table 9. Pará, in March 1986.

Vale Our History Vale Our History TABLE 9 and, unavoidably, social and environmental challenges to be faced. SALES ON THE DOMESTIC MARKET OF IRON ORE AND PELLETS As a result, as established in its bylaws, Vale do Rio Doce has always PRODUCED BY CVRD, 1979-1990 allocated a part of its annual net income to investments aimed at the (MILLION METRIC TONS) socioeconomic development of the areas where it operates. Between 1979 and 1990 – using the Doce River Zone Development Reserve Fund (RDZRD), made up of resources granted annually at YEAR IRON ORE* PELLETS TOTAL CVRD’s shareholders’ meetings – the company acted as a catalyst 1979 13.4 1.6 15.0 for the funding of projects and programs concerning social and urban infrastructure (education, health, basic sanitation, welfare, 204 205 1980 15.4 2.4 17.8 sport and leisure) and economic infrastructure (agriculture, 1981 14.1 1.3 15.4 industry, services and transport), as well as studies and research. A major change relating to the use of these resources was 1982 15.1 0.5 15.6 brought about by Brazil’s 1988 Constitution. According to the new 1983 14.7 0.6 15.3 Constitution, CVRD’s budget for social investment in its areas of influence began to be defined by the National Congress. From that 1984 21.4 1.0 22.4 point on, the priorities would be set by mayors and leaders in the municipalities benefiting from the investment, at the request of 1985 22.3 1.2 23.5 Congress’ Budget Commission.23 1986 23.8 1.4 25.2 Another new fact to be considered was the beginning of CVRD’s participation in social projects in the Carajás Iron Project’s region, 1987 25.0 1.8 26.8 providing resources to support the local public sector’s actions 1988 27.4 2.2 29.6 and entering into agreements with workforce capacity-building and training entities. Besides these initiatives, the company 1989 27.5 2.2 29.7 started to collaborate with health, education, infrastructure and 1990 25.6 1.1 26.7 assistance programs for indigenous communities. Between 1982 and 1999, as the result of these activities, there was a reversal in * Includes sales of pellet feed to pelletizing affiliates. the downward trend for the Xikrin community’s population. The Sources: Board of Directors’ Reports, 1979-1990. number of Indians in the area more than quadrupled, rising from 150 in 1982 to 660 in 1999.24 The result of an agreement signed in 1987 between CVRD, the Presidential Planning Secretariat and the Greater Carajás 6.4 Looking within: Program, the EFC Corridor Master Plan was created to discipline CVRD and regional development the disordered occupation of the region, above all in the railroad’s direct area of influence. In 1988, those responsible for producing the Master Plan selected industry as the top-priority economic CVRD’s relations with the communities where it operates began activity for promoting the region’s integrated development. The to strengthen in the 1980s.22 The company knows that partnership following industrial sectors were chosen to be developed first: with citizens is fundamental to the success of any undertaking, heavy metallurgy (ferrous metals), non-ferrous metal mining and considering the impacts that mining can have on communities’ lives. metallurgy, timber, food, and construction. Everything in mining has large dimensions. Mining involves many tons of ore, millions of dollars of investment, thousands of workers

Vista aérea do núcleo 22 - The information on CVRD’s regional development initiatives was taken from the Board 23 - See Brasil Mineral, January 1990, pp. 8-9. urbano de Carajás, em of Directors’ Report, 1979-1990. 24 - See the 1999 Annual Report. Parauapebas (PA), 1993.

Vale Our History Vale Our History 6.5 CVRD’s environmental strategy Environmental Study and Advisory Group (Geamam),27 which would be responsible during the 1980s for producing and implementing CVRD’s concern for environmental issues expressed itself for CVRD’s environmental policy. the first time in 1956, when it bought properties covered by dense At the same time, Vale do Rio Doce established Internal Atlantic Forest in Linhares, Espírito Santo. Acquired as a logging Environment Commissions (CIMAs). Organized in various sectors reserve to produce crossties, these properties were progressively of the company and staffed by technicians and executives from 28 206 expanded until they encompassed 13,700 hectares of old-growth operational areas, the commissions were led by ecologists and their 207 forest. Later, another 8,000 hectares of forest were acquired, making core function was to execute CVRD’s environmental control actions. a total of 21,700 hectares. The main objectives of the CIMAs were to identify critical issues, In the 1970s, the first work was conducted to stabilize slopes establish measures and standards, promote integration, estimate and control pollution along the Vitória-Minas Railroad. In 1972, physical and financial resources, and adopt administrative measures when implementing an itabirite processing project at Cauê Mine in related to the development of environmental protection tasks.29 Minas Gerais, the company signed an agreement with the Biological While in the South System, the CIMAs’ actions were more corrective, Sciences Institute of the Federal University of Minas Gerais. This in the North System the commissions acted more preventively, partnership provided for 10 years of extensive monitoring work seeking to avoid unnecessary deforestation, recover degraded areas and basic sanitation studies in the Pontal Basins – tailings dams by restoring vegetation, and prevent rivers from being polluted by destined to receive waste products generated in the itabirite fines mine waste. They also worked on environmental education for adults concentration plant at Cauê.25 and children, ecological zoning, scientific studies and experiments Care for environmental control and preservation strengthened on forest management, the demarcation of indigenous reserves, and with the start of the Carajás Iron Project. This was spurred by the the production of fauna and flora inventories. strong reaction of international environmental organizations and Due to growing attention paid to the environment, CVRD created competing multinationals, which alleged that implementing the an Environmental Superintendent’s Office (Sumei) in February project would irreparably change the ecosystem of the Amazon 1987. Its purpose was to establish guidelines and provide technical region. Until that time, this ecosystem had remained almost support to operational entities. In 1990, Sumei merged with the unaffected by human actions, other than extraction of plant Timber and Pulp Superintendent’s Office to form the Environment products and subsistence activities. At that moment, only the and Forest Products Superintendent’s Office (Sumaf).30 construction of the Trans-Amazonian Highway and the Tucuruí Between 1980 and 1989, various measures were taken in the Hydroelectric Plant had interfered significantly in the region. environmental area. In all, US$314 million was spent on projects In 1980, an Ecology Technical Council was created, composed of and work in this area, as shown in Table 10.31 scientists from various Brazilian universities, to guide the company in dealing with ecological issues related to the implementation of the Carajás Iron Project and its operations in Minas Gerais 27 - The following people were part of this group: professors José Cândido de Melo Carvalho and Espírito Santo. This council gave rise, also in 1980,26 to the and Aziz Nacib Ab’Saber, and scientists Mário Epstein, Warwick Kerr, Italo Falesi, José Galizia Tundisi, João Murça Pires and Herbert Schubart. See O Globo, March 9, 1986, p. 16. 28 - The CIMAs were created by CVRD Internal Ordinance no. 39, of October 1, 1981, based on a decision taken at Geamam’s second meeting, held between April 27 and March 2, 1981. See Companhia Vale do Rio Doce, Meio ambiente e desenvolvimento econômico, op. cit., p. 18. 29 - Idem, p. 19. 25 - See Brasil Mineral, October 1989 (special edition about the environment), p. 14. 30 - See Companhia Vale do Rio Doce, Suman. Organogramas. 26 - Geamam was created by CVRD Internal Ordinance no. 54-80. The first meeting of the 31 - See Freitas, Maria de Lourdes Davies de, A propósito de meio ambiente: a estratégia Vale Natural Reserve in group took place on January 14, 1981. Concerning this subject, see Companhia Vale do Rio ambiental da CVRD (conference organized for the Brazil-Germany Chamber of Commerce Linhares, Espírito Santo. Doce, Meio ambiente e desenvolvimento econômico, p. 17. on March 3, 1990), p. 11.

Vale Our History Vale Our History TABLE 10 Planting seeds in the South System of existing equipment. New operating routines were adopted in order ENVIRONMENTAL COSTS AND INVESTMENTS IN THE CVRD SYSTEM, ACCUMULATED UP TO 1989* At a time when sustainability was not yet on the agendas of to reduce impacts on urban zones influenced by the terminal. companies, some of CVRD’s initiatives in the 1980s were like small Two contracts involving technology transfer were signed by seeds planted that would bear fruit years later. The company’s policy CVRD: one with Nippon Steel, aimed at environmental control; ACCUMULATED AMOUNT AS OF 1989 US$1,000 for handling and containing mining waste was reinforced through and the other with the State Basic Sanitation and Environmental 32 OPERATING COSTS INVESTMENT TOTAL the construction of new tailings dams and the reconfiguration of Defense Technology Company (Cetesb), concerning environmental storage areas. The areas around CVRD’s operations gradually took on monitoring. These initiatives created the foundations for CVRD’s Sumin** 13,000.00 124,800.00 137,800.00 a new appearance, through the practice of seeding mined areas and environmental maturity, achieved in the 1990s, through reforestation, “hydroseeding” (using jets of water mixed with fertilizer and seeds) the planting of green belts, and strict particulate emission controls. Suest** 643.00 643.00 slopes and hilly areas. In addition, fruit trees and vegetables were planted to benefit workers, environmental education campaigns Supel** 3,230.00 14,981.00 18,211.00 Planting seeds in the North System were conducted, and research in related areas was promoted. At the time the Carajás Iron Project was being implemented in the SOUTH SYSTEM Supot** In 1986, CVRD created an Environmental Master Plan for Itabira. north of Brazil, little was known about the region’s ecosystems and 208 In practice, this plan proposed a veritable operating policy for there was little scientific interest in the project’s areas. Concerned 209 Sutec** 117.00 117.00 environmental control and the restoration of degraded areas. about the environmental repercussions that the start of mineral Based on this plan and proposals made by the CIMAs, CVRD began exploitation could cause in the region, CVRD carried out studies Sutan** to dedicate itself to subjects related to water use, by identifying and alongside the work of implementing the Carajás Iron Project, correcting erosion processes, restructuring drainage systems at mines, such as ecological zoning of the 412,000-hectare Carajás Mineral Sumen** 60.00 4,933.00 4,993.00 and dredging sediment basins, as well as reusing process water. Province to create an environmental station. Sumic** 32,800.00 32,800.00 Landscaping work was carried out in squares and around offices Continuing with this work, in 1983 Geamam and the CIMAs and industrial buildings, and maintenance and control efforts selected three areas close to the mines, covering a total of 39,000 NORTH SYSTEM Sufec** 28,417.00 28,417.00 were made in forested parts of mining areas. Inside and outside hectares, to preserve endangered species. The creation of the the company, the first discussions on neutralizing particulate Carajás Zoo and Botanical Park to study the region’s flora and Supoc** 4,700.00 4,700.00 emissions in furnaces and chimneys and improving air quality fauna contributed to this work, producing seeds and conducting gained force. research into the reproduction, growth and nutrition of monkeys, GENERAL Sumei** 1,403.00 3,629.00 5,032.00 felines and birds. Docenave Tubarão and iron particles From the start of the 1980s, CVRD monitored the air and water SUBSIDIARIES With respect to Tubarão Maritime Terminal, which is located on a quality throughout Carajás Complex. The company was always FRDSA 6,897.00 28,420.00 35,317.00 20 km² site, 10 kilometers to the northeast of the Island of Vitória, aware of the risks and consequences of mining. The use of “collection the handling and storage of minerals cause particles to be emitted, boxes,” functioning as dams to prevent metals coming into contact Albras mainly settleable dust. The pelletizing plants’ chimneys were with the waters that surround the complex of mines, was the first Valesul 6,897.00 28,420.00 35,317.00 another source of suspended dust emissions, while the burning step to avoid contaminating the region’s water basin, which includes AFFILIATES of fuel oil produces sulfur dioxide (SO2). Both in the pelletizing the Itajucu and Parauapebas rivers (tributaries of the Itacaiunas Cenibra 813.10 13,862.80 14,675.00 process and in the drainage of stockyards, liquid effluents carrying River, which in turn flows into the Tocantins River).33 quantities of solid particles were generated. Various agreements with research institutions in the region MRN At first, the company sought to control its most critical were made. The most important was with the Emílio Goeldi emissions by paving, resurfacing and asphalting roads. The areas Museum of Belém, Pará, which had the aims of preserving the SUBTOTAL 25,403.10 268,202.80 293,605.90 surrounding the industrial plants were also paved, the plants were area’s archeological heritage, producing a zoological inventory of SPENT cleaned with water, and native forest coverage was reestablished land vertebrates, identifying forest-dwelling insects, and fish, as 10,838.20 9,906.30 20,744.50 IN 1989 to create a botanical garden. In addition, there was tight control of well as producing a botanical inventory. To conduct research into the areas allocated for construction, plant dust filtering systems tropical diseases, an agreement was signed with the Evandro Chagas TOTAL 36,241.30 278,109.10 314,350.40 were revised, and the process of sprinkling conveyor belts in pellet plants was intensified. 32 - Now the São Paulo State Environment Company. Cetesb is the São Paulo state * Approximate figures. These measures had satisfactory effects, considerably reducing government agency responsible for controlling, inspecting, monitoring and licensing ** Sumin = Mines / South System Superintendent’s Office; Suest = Roads / South System Superintendent’s Office; Supel = Pelletizing Superintendent’s Office; Sutec = Technology pollution in the terminal area. But they were not sufficient. Over the activities that generate water, air and soil pollution. Superintendent’s Office; Supot = Port / South System Superintendent’s Office; Sutan = Titanium Project Superintendent’s Office; Sumen = Noble Metals Superintendent’s Office; Sumic = Mines / North System Superintendent’s Office; Sufec = Roads / North System Superintendent’s Office; Supoc = Port / North System Superintendent’s Office; and Sumei = Environmental medium and long terms, the company worked to establish standards 33 - A study of slopes influenced by pollution was conducted. Dams were built on these Superintendent’s Office. and procedures to diminish potential ecological harm by installing slopes to prevent any water from leaving the mining area without any solid matter first settling and the water’s quality being tested. The water is used to supply all the Source: Coordinators of CIMAs and managers of operational areas, April 1990 – partial information (ATME). control equipment and to cut pollution and improve the functioning infrastructure in Carajás. See Brasil Mineral, June 1989, p. 24.

Vale Our History Vale Our History Previous page: green belt around the stockyard at Tubarão Complex, Espírito Santo. Left: tree nursery greenhouse in Carajás, Pará, part of the company’s reforestation policy.

210 Institute, a World Health Organization (WHO) center of reference in By 1989, the company was maintaining three environmental of devastated areas, and the maintenance of a reserve of native mechanisms to guarantee the demarcation of the Indians’ lands, 211 Latin America.34 conservation units in Carajás – Igarapé Gelado (22,000 hectares), forest surrounding an industrial site within an occupied area of which were constantly threatened, and to include in its policies Also in the field of environmental research, in 1985 CVRD Tapirapé Biological Reserve (103,000 hectares) and Tapirapé National 3,500 hectares.36 investment in health, education and productive activities aimed entered into two international agreements: the first with the Forest (190,000 hectares) – and it continued with its project to create Florestas Rio Doce S.A. possessed and administered more than at indigenous peoples. This investment needed to be made for five International Waterfowl Research Bureau, to research birds in the a green belt around Ponta da Madeira Maritime Terminal by planting 500,000 hectares of land suitable for the implementation of forestry years or until the resources ran out, and the plan was to reach 6,050 Amazon Forest and Atlantic Forest; and the second with the United 60,000 trees. In the environmental engineering area, coordination, projects. Of this total, around 170,000 hectares were reforested and Indians in 14 communities spread over a 22,530-km2 area in the Nations Environment Program (UNEP), to develop projects and technical support and monitoring activities began for the Salobo 30,000 hectares received native forest cover.37 state of Pará.40 environmental policy.35 In 1986, the company held a seminar on copper project. In 1990, CVRD developed a proposal to preserve and In 1989, when the first agreement ended, CVRD signed a new economic development and the environment, in conjunction with restore devastated areas of the Amazon region, specifically in the deal, this time specifically to support the Xikrin people of the Cateté the International Waterfowl Research Bureau. The event took place in EFC’s area of influence in the states of Pará, Maranhão and Tocantins. Indigenous Land. The resources were managed by the National Belém, from September 29 to October 1. Environmental engineering The proposal called for the implementation of reforestation clusters 6.6 Relations with indigenous communities Indian Foundation (Funai), and were allocated to conduct actions – especially regarding the reuse of environmental resources – started of commercial forestry plantations. The necessary investment of spanning health, education, productive activities, surveillance of to gain ground at the company at the end of the 1980s. around US$1 billion would partly be raised abroad, and partly in Since the first waves of professionals – geologists, engineers and the indigenous land, and administration. The following year, the In 1988, CVRD planted 15,000 trees along the EFC and 20,000 Brazil, using the resources of a fund to be created by the federal manual workers – arrived in Carajás, the issue of CVRD’s relations company entered into a new agreement, this time with the Gavião trees at Ponta da Madeira Maritime Terminal. In the same year, the government, following approval by Congress, and managed by an with indigenous peoples has been a priority. The presence of the people of the Mãe Maria Indigenous Land, with the same scope company invested in the analysis of sources of pollution in mining organization such as the national development bank, BNDES. Kayapó and especially the Xikrin gave the region an identity that as the program for the Xikrin people. Years later, the company regions and in ore processing plants. An upflow filter was installed This and other projects gave rise to CVRD’s Environmental would have to be respected, preserved and cultivated over the established a cooperation agreement with the indigenous peoples to treat water in the Carajás urban center, and an analysis was made Management System and actions such as Vale Florestar, which, as years. The Xikrin, like all the Kayapó, call themselves mebengokré, of Maranhão – in 2003, the Guajajara, Guajá and Urubu Ka’apor of mercury levels in the rivers that border Carajás Mine (following will be seen later, is one of the biggest reforestation funds in Brazil. which means “people of the water hole” or “people of the large indigenous peoples, inhabiting the Caru, Rio Pindaré, Awá and Alto the plan to construct collection dams in the region, as seen earlier). The fund operates in parts of the Amazon region where expanding water” in the Jê language. And it was there, in the vast territory Turiaçu indigenous lands, received support through projects aimed Monitoring and analysis of liquid effluents from the titanium pilot human activities have already caused large areas of forest to between the waters of the Tocantins and Araguaia rivers, that they at productive activities.41 plant and crosstie treatment plants became standard practice. be cleared. The aim is to promote long-term forest enterprises. were to be found. CVRD’s efforts in the environmental field in the 1980s were well An agreement with the state government of Maranhão enabled a Through a multiplier effect, these enterprises will spread a culture In January 1982, when CVRD was still looking for funding for the received by the World Bank. In the 1990s, the Indians themselves study of the environmental consequences of growing industrialization of sustainable development, thereby helping to minimize damage Carajás Iron Project, the World Bank imposed a loan condition for created sustainable options for harvesting the forest products of in São Luís. In Pará, Vale do Rio Doce sought to regularize its to native forest. the company to invest to support the indigenous people who lived their reserves. This type of support inhibited predatory logging, environmental license to develop iron and manganese projects by Environmental control initiatives were also implemented by the in the vicinity of the project, including along the EFC.38 Despite the such as mahogany extraction, while stimulating income generation conducting an environmental impact study. CVRD group’s subsidiaries and affiliates. For example, at each of its many accolades received by the company in the 1980s and 1990s through practices such as the production of handicrafts and CVRD also began longer term research, including an initiative to four lines of cells and its two anode plants, Albras installed a state- due to its recently implemented environmental policies, especially farming. CVRD put itself at the service of indigenous professionals study the cost-benefit relationship and ecological impact of economic of-the-art system featuring French and Norwegian technology to with regard to relations with indigenous communities,39 the World such as teachers, vets, agricultural specialists and doctors, to assist projects implemented in the Brazilian Amazon. The objective was to collect and treat gases containing fluorine (the aluminum industry’s Bank explicitly imposed contract clauses requiring CVRD to create in the execution of their work.42 evaluate the living conditions of people living in the areas around main pollutant, emitted through chimneys). The company’s plant projects, based on quantitative and qualitative criteria. installation guidelines were fully complied with, and environmental 36 - See Brasil Mineral, no. 94, November 1991, p. 23. controls accounted for 10% of its total construction costs. Resources 37 - See Companhia Vale do Rio Doce, Meio ambiente e desenvolvimento econômico, op. cit., pp. 36-37. 40 - Idem. were also spent on the treatment of liquid effluents and solid waste 34 - See Brasil Mineral (special edition about the environment), October 1989, p. 9. 38 - Information taken from CVRD’s Relations with Traditional Peoples Unit. 41 - Information provided by Antonio Carlos Venâncio in an interview with the company. when installing four pollutant-monitoring units, the reforestation 35 - See CVRD, Board of Directors’ Report, 1985. 39 - CVRD: 50 anos de história, CVRD, p. 284. 42 - CVRD: 50 anos de história, CVRD, p. 284.

Vale Our History Vale Our History 212 In 1999, the Federal Public Prosecution Ministry ruled that who are able to earn high incomes from livestock farming (with 213 CVRD must transfer resources directly to the indigenous people, herds of more than 1,000 cattle) in areas previously deforested by who formed associations representing each village to administer invading settlers.46 the funds. The Parkatêjê do Gavião people created the first such In addition to its actions in the Carajás region, CVRD also association, followed by the Xikrin people. The Indians’ argument, ran community integration programs with the Krenak people in accepted by the Federal Public Prosecution Ministry, was that Resplendor, Minas Gerais, the Gavião Parkatêjê, Kyikatêjê and the funds would be passed on more quickly to conduct actions Akrãtikatêjê people in Bom Jesus do Tocantins, Pará, the Guajá, by cutting out Funai’s bureaucratic procedures. This measure, Guajajara and Urubu Ka’apor people of Maranhão, and the according to analysis by CVRD’s Corporate Social Responsibility quilombola communities in the Jambuaçu territory in Pará and Department,43 led to a considerable reduction in control over the Maranhão. These programs provided for investment in projects allocation of the money invested. Agreements were formalized spanning farming, environmental and territorial protection, every year, but at each negotiation round it was not uncommon for health, education and social-cultural heritage preservation. One there to be indigenous pressure to raise the amount of resources of the most important projects for reaffirming the culture of transferred. This situation continued until 2006, when Carajás indigenous peoples was an initiative to reclaim the history of the Mine was invaded by the Xikrin and its activities were shut down Parkatêjê people, told by their leader, Topramre Krohokrenhum. for two days.44 The project resulted in a book and video produced by the Indians This event led the company to activate a clause in its agreement themselves, with the support of linguistic and video production that provided for its cancelation if the operations were shut down specialists. Through workshops in their village, the Indians due to interference by the Indians. After this, CVRD stopped learned how to conduct and transcribe interviews, and how to transferring resources.45 Given this fact, the Public Prosecution search for images to edit videos. At the launch event for the book Ministry and Funai brought a public civil action to court, to resume and video, children sang songs in their original language to greet the transfer of resources, and they obtained a favorable judgment Krohokrenhum and CVRD representative, Antonio Venâncio. from the Federal Court, which imposed an injunction in December Other projects supported by the company to contribute to 2006, requiring the company to continue the transfers. This strengthening indigenous culture involved building a cultural injunction also called on Funai to produce a management plan for center for the Gavião Kyikatêjê and another five cultural centers the resources – with the participation of all stakeholders – with the for the Krenak people. overall purpose of promoting the ethno-development of the Xikrin people. This judicial action led the Xikrin to better administer the resources provided by CVRD. According to Antônio Carlos de Lima Venâncio, of CVRD’s Community Relations Department in Belém, the policy yielded good results, and now there are groups of Xikrin

43 - Information taken from CVRD’s Relations with Traditional Peoples Unit. Aerial view of the Xikrin people’s village 44 - Idem. in Carajás, Pará. 45 - Idem. 46 - Information provided by Antonio Carlos Venâncio in an interview with the company.

Vale Our History Vale Our History