Lula tries to get Mantega on the board of Vale, which pays R$100,000 a month

President Luiz Inácio Lula da Silva (PT) is working to nominate former minister Guido Mantega to Vale’s board of directors, a strategic maneuver on the eve of the decision on succession at the company, according to a behind-the-scenes investigation published this Tuesday ( 16) fur Estadão.

The current president of the former state-owned company, Eduardo Bartolomeo, is seeking a reappointment in the position, and the government proposes to keep him until 2025. Mantega would be accommodated on the board through Previ, the pension fund for Banco do Brasil employees that is part of the board of shareholders.

Vale told People’s Gazette who will not comment, and the Presidency of the Republic did not respond to the report’s question.

Mantega was nominated by Lula last year to preside over Vale, but he faced obstacles and led the government to look for another way to include him in the company, aiming for an agreement that meets the interests of the company’s partners. Despite not being Previ’s preference, the government is trying to negotiate a consensus around Bartolomeo.

Lula’s relationship with Mantega dates back to the 2022 campaign, where the former minister worked informally and was part of the transition team for a week. Even with the previous disqualification by the TCU due to tax “pedaling”, this decision was suspended in 2023 by the Federal Regional Court of the 1st Region (TRF-1), paving the way for the new onslaught.

Mantega’s possible inclusion on Vale’s board provides for a monthly remuneration of approximately R$100,000, with an ordinary monthly meeting and participation in two internal committees. Lula’s aides see Vale as an opportunity for investment at a time of the Union’s cash constraints, as well as support for ecological initiatives led by the Minister of Finance, Fernando Haddad.

However, negotiations depend on the approval of other shareholders, as Vale no longer maintains the governmental influence of the past. As a “corporation” since 2020, the company has its capital diluted in the market, with no individual shareholder holding more than 10%.

Previ, Mitsui, Blackrock and Cosan are the main shareholders, reflecting a different scenario from Lula’s first mandates, when the government had more control over Vale.

The privatization of Vale – previously called Companhia Vale do Rio Doce – completed 26 years in 2023 after being sold for R$3.3 billion and a premium of 20%. The sale was marked by a tough legal battle that led to the auction being contested.

However, in the end, the privatization continued and, in less than ten years, profits grew 46% and today positions the company among the largest on the continent.