In 2020, Vale S.A. was by far the largest company in the mining and metallurgical sector in Brazil, based on net revenue. The company, one of the largest iron ore producers worldwide, reported a revenue of approximately billion Brazilian reals that year. Gerdau, which operates in steel processing, trailed in second, with billion reals of net revenue.
Vale - a Brazilian mining giant
Originally named Companhia Vale do Rio Doce (CVRD), Vale was established in 1942, with the purpose of supporting the supply of iron ore during World War II. Nearly a century later, the company’s prominence still expands beyond Brazilian borders. In recent years, Vale was the undisputed leading mining company in Latin America, in terms of revenue and ranked as one of the most valuable brands in the global mining industry. In Brazil, Vale is the sole proprietor of the world's largest iron-ore mine, Carajás, in the state of Pará (the nation's largest iron-producing state).
From iron extraction to processing
Iron ore is the main raw material used in the production of steel. Going hand-in-hand with Brazil's notoriety in iron ore production, the South American country has also established itself as a leading steel exporter. In fact – aside from Vale, which specializes in iron ore extraction – four out of the five top mining and metallurgical companies in Brazil in 2020 were steel manufacturers. Nevertheless, that year, Gerdau, ArcelorMittal Brasil, CSN, and Usiminas generated combined billion Brazilian reals in revenue. This represents less than percent of Vale's revenue, another testament to the relevance of the sector's leader.