New Vale Heartland Has Jilted Lawmakers Plotting Against CEO
- Northern Brazil push is upsetting home-state politicians
- Same strategy is helping Vale outperform peers in stock market
Murilo Ferreira.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
Building the world’s next major iron-ore hub has Vale SA investors applauding the prospect of higher earnings and a group of scorned politicians plotting to oust the company’s leader.
Chief Executive Officer Murilo Ferreira is overseeing the Brazilian mining giant’s shift away from its home state of Minas Gerais and toward new deposits in the north. The change has culminated in a $14 billion mining complex in an area where ore quality is higher and costs will be lower. It’s also left behind a region that’s seen spending and job opportunities steadily decline over the last four years, spurring bitter feelings along the way.