Vale -from Wiki Diversification Vale's diversi
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Posted On: 02/17/2015 11:39:36 AM
Vale -from Wiki
Diversification
Vale's diversification program sought to increase the participation of non-ferrous metals on total revenues reducing, in the process, Vale's dependence on the price of the iron ore for both net income and revenues. Business diversification has been achieved mainly with the acquisition of Inco and to a lesser extent with the acquisition of Caemi and managed to increase the participation of non-ferrous metals on total revenues from 7% in 2000 to around 34% in 2006.[20][30]
Vale branched into copper mining in 2001 when it bought for $48.5 million the Sossego Mine located in the Carajás complex.[25] The Sossego Mine, inaugurated in 2004, was the first Brazilian copper mine. The company expects to extract around 650 thousand tonnes of copper a year from that mine by 2010.[14]
The acquisition of Caemi in 2006 also helped Vale's diversification strategy by making the company a kaolin producer through former Caemi subsidiaries CADAM S.A. and PPSA. With that acquisition Vale now owns 61.48% and 85.57% of those subsidiaries respectively.[31][32]
In 2005, Vale bought Canico Resources, a Canadian nickel mining company, for $800 million.[33][34] This acquisition increased Vale's business diversifiction by bringing non-ferrous metals to its product line up.[35]
Also in accordance with its diversification strategy, Vale has entered the coal mining business. In 2007 the company purchased the Australian coal mining company AMCI Holdings for $656 million.[33][36] Vale has coal operations in Australia and China, as well as coal mining projects in the Tete province of Mozambique.
Diversification
Vale's diversification program sought to increase the participation of non-ferrous metals on total revenues reducing, in the process, Vale's dependence on the price of the iron ore for both net income and revenues. Business diversification has been achieved mainly with the acquisition of Inco and to a lesser extent with the acquisition of Caemi and managed to increase the participation of non-ferrous metals on total revenues from 7% in 2000 to around 34% in 2006.[20][30]
Vale branched into copper mining in 2001 when it bought for $48.5 million the Sossego Mine located in the Carajás complex.[25] The Sossego Mine, inaugurated in 2004, was the first Brazilian copper mine. The company expects to extract around 650 thousand tonnes of copper a year from that mine by 2010.[14]
The acquisition of Caemi in 2006 also helped Vale's diversification strategy by making the company a kaolin producer through former Caemi subsidiaries CADAM S.A. and PPSA. With that acquisition Vale now owns 61.48% and 85.57% of those subsidiaries respectively.[31][32]
In 2005, Vale bought Canico Resources, a Canadian nickel mining company, for $800 million.[33][34] This acquisition increased Vale's business diversifiction by bringing non-ferrous metals to its product line up.[35]
Also in accordance with its diversification strategy, Vale has entered the coal mining business. In 2007 the company purchased the Australian coal mining company AMCI Holdings for $656 million.[33][36] Vale has coal operations in Australia and China, as well as coal mining projects in the Tete province of Mozambique.
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