Vale considers shorter CEO term for Bartolomeo

Vale CEO Eduardo Bartolomeo (Credit: Vale)

Vale is considering reappointing Eduardo Bartolomeo for a second term as CEO with a shorter duration.

According to Valor Econômico, this is one of the alternatives being considered in ongoing discussions regarding the succession at the mining giant, involving shareholders and the government of President Luiz Inácio Lula da Silva.

As the Brazilian newspaper reported, the federal government is attempting to place former Brazilian Minister of Finance Guido Mantega as a Vale executive director.

The current term of Bartolomeo is three years, and there is a possibility of renewal for a shorter period.

The federal government is said to have agreed to the “abbreviated” extension of the current term, with the “counterpart” being Mantega taking the seat at Previ, the pension fund for Banco do Brasil employees and a Vale shareholder, on the company’s board of directors.

A board meeting at Vale is scheduled for January 31.

According to the company’s governance rules, Bartolomeo must be informed whether he will remain in the position four months before the contract expires at the end of May.

This means that the board needs to make the announcement by the end of January.

Executive Luis Henrique Guimarães from the producer of bioethanol, sugar, and energy Cosan Group is also among those considered to take over leadership of the mining company.

His name is supported by Rubens Ometto, owner of Cosan, which acquired a stake of around 5% in Vale in 2022.

Still, according to Valor Econômico, Mantega’s name continues to carry weight among federal government leaders.

In addition to Cosan, Vale has shareholders such as Black Rock and Capital, and Previ. Mitsui and Bradespar, the investment arm of the Brazilian bank Bradesco, are also shareholders.

According to Valor Econômico, the federal government seeks to approach large companies that have a decarbonization agenda, as is the case with Vale.

Vale has been discussing potential green hydrogen projects with Petrobras and is also in talks with the National Bank for Economic and Social Development (BNDES) to create an investment fund to finance critical mineral projects.

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