Caemi

The company owned iron ore mines in the so-called Iron Quadrangle region of the state of Minas Gerais, and kaolin mines in the northern states of Amapá and Pará. The company also owned a stake in MRS Logística, which owns a railway network in southeastern Brazil. Caemi's stock was traded on Bovespa.

Caemi started MBR in a partnership with M. A. Hanna Company in 1965.[3] MBR since 1971 had been the second biggest iron ore producer in Brazil,[4] mining in 2005 over 50 million tonnes of iron ore[5] or around 25% of Brazilian production.[6]

MBR until Vale acquired 100% of Caemi's capital in 2006 was owned by two companies: Caemi and EBM (Empreendimentos Brasileiros de Mineração S.A.). Caemi had a 49% stake at MBR while EBM owned the other 51% of the company. The problem is that Caemi also owned 70.1% of EBM, this fact brings Caemi's total stake at MBR to 84.75%. Caemi's 84.75% participation at MBR is recognized at the company's 2005 Annual Report, which was Caemi's last.[7]

EBM, besides Caemi had two other investors:

• Vale owned 9.9% of EBM since 2001, participation which was purchased from Bethlehem Steel[8]
• Japanese investors owned the remaining 20% of EBM[9] and in this group were included the following companies: Mitsui,[10] Nisshin Steel, Nippon Steel, Mitsubishi Corporation, JFE Steel, Itochu, Sumitomo Group, Marubeni and Kobe Steel.[9][11]

The mining company Vale bought between 2001 and 2006 100% of Caemi's capital for a total cost of $3.2 billion.

Back in 2001 Vale bought for $278.7 million 16.82% of Caemi's capital[12] then in 2003 Vale purchased Mitsui's participation on Caemi for $426.4 million,[13] raising Vale's participation to 60.2% of Caemi's total capital.

Finally on 31 March 2006 Vale purchased the remaining 39.8% of Caemi's capital in a stock swap deal worth $2.5 billion.[14] In May the company's shares stopped being negotiated at Bovespa[1] and then in December Caemi was merged into Vale and ceased to exist.[14]