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Vale mining has juxtaposed itself as a leader in the metal fabrication and mining business and the third largest mining company in the world. Based in Brazil and with several subsidiaries in Africa, Asia, America, and Europe, it has stood the test of time. Under the stewardship of the company CEO Murilo Ferreira, an accomplished professional in Mining, the company is geared toward achieving its objectives. The company is governed by its vision: commitment to generating prosperity with respect for the environment and people

Vale handles its own logistics and transport to cut down on the overall costs and risks. To meet the ever-changing economic environment, Vale Mining has invested in modern technology to reduce on logistical mishaps and increase its carbon credits. Including the invention of modern techniques through the hydro-phorbic processing of high-grade ferrous ore at its star Amazon forest plant. In this light, Vale fast-tracked energy saving solutions including the production of and use of green energy.

Strategic alliances 

With the increase in global demand for steel, Vale sought to fill this niche in the market by establishing a steel mill in Northeast Brazil in conjunction with top South Korean steel companies, Dongkuk Steel Mill Co. and Posco. To increase efficiency and ensure a robust value chain the steel mill will encompass four value chains: Bulk Material, Base metals, Fertilizers, and Other services. The bulk materials involve the extraction of ores and minerals, Base metals segment deals with the extraction of non-ferrous minerals. Phosphate, potash, and nitrogen produced from the fertilizer sector. The Other services section includes highly skilled sales for other products and services plus joint ventures held in trust in partnerships with other companies. The expansion of the market for their products to include the ore-hungry Chinese market has ensured the company of consistent demand for its ores hence growth in investment. The EU and Mercosur trade talks and agreement will guarantee a broader market outreach for Vale ore, steel, and fertilizer products. The flexible Mercosur laws would ensure a large base for prospecting of the mineral-rich soils for ore.

Like every successful franchise, Vale mining company success has been with controversy.  Only recently the collapse of a tailings dam in Brumadinho, owned by Vale on Jan. 25, 2019, was reported as the worst disaster in decades (Reuters). More than 300 people were reported dead in this incident. This comes after the collapse of another dam from which waste material submerged Mariana town leaving a toll of nineteen people and wanton destruction including contamination. In the wake of all this, the company risks stern fines, compensation claims from victims and respective regulatory bodies, and license cancellations to operate in the affected region.

To avoid future catastrophic incidents, Vale Mining commissioned a huge plant in the north of Brazil that will become Vale’s base of production. The new facility employs dry processing technology void of the perennial disaster tailings dam Vale company management transformed the company from a nonviable business venture to the result-based market leader with a global market share of up to 14% hence its feting by peers such as Rio Tinto and BHP.

With the current management, the future is still bright for the mining giant. With waste management at the core of its problem, due to the depletion of underground deposits, miners are forced to go deeper hence the risk of tailings. This has been addressed through the establishment of the flagship project in the amazon rainforest. This increases the total cost of production of the metals. Vale mining has taken deliberate steps to ensure reduction of production costs including strengthening internal oversight practices, ensuring standards compliance, and sourcing for alternative sources of ore.

Works Cited

Reuters. 01 30 2019. Reuters International. <       disaster-accidents-factbox/factbox-vale-tailings-dam-collapse-adds-to-long-list-of- mining-disasters-idUSKCN1PO0VI>.