6 while that of ferrous metals was positive of 46

The Vale will become one true mining group diversified with a large diversification of products in the image of its direct competitors BHP Billiton, Rio Tinto, Xstrata and other Anglo American wanes. Undisputed leader of the iron ore, the Brazilian Colossus has here and there real difficulty climbing power in other mineral resources.

Its nickel division, ValeInco, is in a conflict long and hard to deal with the powerful Union of Canadian miners in the Sudbury Basin. The new complex mining and metallurgical Goro in New Caledonia, suffers further delay due to technical problems. For aluminum, its third source of income, Vale comes to transfer all of its interests to Norwegian Norsk Hydro in exchange for 1.1 billion dollars and 22 in its capital.

The South American mining company said the transaction by the fact that its "participation in the primary aluminum industry is reduced and has no potential for growth due to the lack of access to low-cost energy sources". Points out, however the company, "energy is a key competitive factor in this activity."

A 2.5 billion acquisition

In 2009, the adjusted operating margin (Ebit) of the non-ferrous was negative 3.6, while that of ferrous metals was positive of 46.6. Well aware of this reality, the Brazilian has acquired of BSG Resources (BSGR) 51 of the BSG Resources (Guinea) Limited, an entity which holds rights to mining of one half of the giant Simandou iron ore deposit. Transaction amount: $ 2.5 billion, of which 500 million paid immediately and the remaining 2 billion instalments based on predefined objectives.

To ensure the exploitation of deposits of the site, the richest non-operated around the world, Vale and BSGR established a joint venture of the name of Vale-BSGR. The other half of Simandou mining concession has been granted to Rio Tinto, which has recently decided to share it with his Chinese ally Chinalco.

Devastating setback for Rio Tinto

The entry in the dance of a heavy weight of the size of Vale is a devastating setback for Rio Tinto, which claims the right to exploit Simandou in its entirety. Some preliminary studies conducted by BSGR in 2008, year of obtaining the mining concession, the production capacity of the site amounts to 50 million tons of iron per year that can be worn after subsequent developments, 75-90 million by 2015-2020. BSGR is committed to start operations in 2012 with a first objective up to 10 million tonnes of iron ore delivered. Difficult objective to achieve in these times, however comments on Goldman Sachs.

Vale received the small Israeli magnate Benny Steinmetz society manage the mining complex and have exclusivity in the marketing of all of its product. The amount placed on the table by Vale, incorporating a significant haircut according to several analysts, takes into account the geopolitical problems associated with this region. Guinea and Liberia, where transit is the Simandou iron ore transported by rail, are countries perfectible stability. "The structure of the payment with an immediate payment of just $ 500 million is also likely to mitigate risks," says an expert. Analysts have supported the operation.