[miningmx.com] — Vale director Tito Botelho Martins will be named the company’s new chief executive, a local newspaper reported on Wednesday, the latest chapter in an ongoing tussle over the leadership of the world’s largest producer of iron ore.
Newspaper Folha de S.Paulo reported that Vale shareholder Bradesco backed Martins to replace current CEO Roger Agnelli.
Martins is director of the company’s base metals operations and chief of the Inco nickel subsidiary in Canada. Folha, which did not say where it got the information, said Bradesco would announce its decision by Friday.
The government of President Dilma Rousseff has pressed heavily for Agnelli’s removal following years of accusations that the company was not doing enough to help Brazil’s economic development.
Investors will likely be heartened by the news, since many worried that the government could designate an inexperienced politician who could derail the company’s success over the last decade.
Calls to Vale were not immediately returned. A Bradesco spokesperson said the company would not comment on the story.
Vale is a former state-run company that was privatized in the 1990s, although the government retains a majority of Vale’s controlling shareholder Valepar through the state development bank and state-linked pension funds.
Brazilian officials have complained that the company ought to do more to invest in industries such as steelmaking and infrastructure.
The government holds golden shares that allow it to veto some decisions, including those involving the company’s corporate purpose or the location of its headquarters.
