New Vale CEO Pimenta 'Will Build Bridges with Stakeholders'

Brazilian mining giant Vale has unveiled its Chief Financial Officer Gustavo Pimenta as the company's new CEO.

Vale’s board appointed Pimenta after analysing a list of 15 names prepared by consultancy Russell Reynolds. Pimenta will be officially presented to investors at Vale’s annual investors day, on December 3. 

"The board understood that the earlier the choice was made the better it would be," Vale Chairman Daniel Stieler told Reuters.

He added that the choice of Pimenta had removed "some of the noise around candidates that were never evaluated by the board”.

Vale operates extensively across South America, extracting iron ore, nickel, copper, gold, silver and manganese in its South American operations, which span Brazil and neighbouring countries. 

The announcement brought to an end what has been a tumultuous selection process, that has seen government interference attempts, information leaks and quarrels among board members, two of whom resigned. 

Pimenta will take over on January 1 2025, according to a regulatory filing. Markets responded positively to the news, with shares of Vale gaining 3% this week.

He succeeds Eduardo Bartolomeo, who was CEO for five years. It is said that Bartolomeo wanted to keep the CEO role, but that he failed to garner sufficient support. He took up the role in January 2019, to help salvage Vale’s reputation following Brazil’s deadliest mining disaster.

Bartolomeo handled Fundão tailings collapse fallout 

The collapse of the Fundão iron-ore tailings dam in the south-east of the country caused a giant mudslide that killed 19 people and spread pollutants along 668 kilometres of major watercourses. It also displaced 700 people and is considered to be one of the country's worst environmental disasters. 

Brazil’s President, Luiz Inacio Lula da Silva has been critical of Vale’s response to the tailings-dam collapse, pointing to how Vale has rewarded investors with dividends while selling assets, yet had failed to compensate victims of its mining disasters. 

In June, Vale, BHP and their joint venture, Samarco, made an offer totaling $25.18bn to settle reparations over the collapse.

Vale’s Stieler says that Brazilian government officials "really welcomed" the choice of Pimenta as CEO, and that the new appointee’s communication skills “will help better convey the company's value to Brazil”.

Pimenta has said he wants to “promote dialogue with all stakeholders”, and that the company will be “focusing on creating and sharing value, taking Vale to even higher levels”.

He has 20 years experience in the financial, energy and mining sectors. Pimenta joined Vale as Chief Financial Officer in 2021, before which he spent 10 years at US power company, AES Corp. Previously he was VP, Mergers & Acquisitions Strategy at Citibank in New York.

Vale says that Bartolomeo will remain as a company adviser until December 2025 and "support the CEO transition process".

About Vale SA

Vale SA is based in Rio de Janeiro, Brazil, and is a multinational mining company. It was founded in 1942 and operates in 30 countries, employing approximately 124,000 people worldwide.

The firm focuses on iron ore and nickel production, with significant operations in Brazil, Canada, and Indonesia. Vale's iron ore mines in Brazil's Carajas region are among the largest in the world, producing high-grade ore. It also extracts copper, coal, manganese, and ferroalloys.

Vale operates an extensive logistics network, including railways and ports, to transport its minerals.

The company's financial performance is closely tied to global commodity prices, especially iron ore. It has been expanding its presence in the electric vehicle battery supply chain through its nickel operations.