Global Mining: Vale names Fabio Schvartsman as new CEO

Vale (NYSE:VALE) confirms the appointment of Fabio Schvartsman as its new CEO to replace Murilo Ferreira in late May. Schvartsman, who has been the CEO of Klabin (OTCPK:KLBAY), Brazil’s largest paper and cardboard producer, for the past six years, had not figured in media reports as a potential replacement for Ferreira until very recently.

Vale (NYSE:VALE) recovered from a hefty loss to a modest gain (+0.4%) during the final hour of trading following a report that current Klabin (OTCPK:KLBAY) CEO Fabio Schvartsman would replace Murilo Ferreira as CEO starting May.

The news appeared in a column by Sonia Racy on the website of the O Estado de S. Paulo newspaper.

Schvartsman “is one of the pillars of Klabin’s growth strategy” over the years, highly experienced and market-oriented, says Vitor Suzaki, an analyst at Lerosa Investments.

Vale also says it has wrapped up the sale of 15% of its 95% stake in Mozambique’s Moatize coal project to Mitsui (OTCPK:MITSY) and received an initial $733M payment.

Mitsui also is buying 50% of Vale’s 70% stake in the Nacala logistics corridor, a railway system connecting production at the mine to the Nacala port in Mozambique.