Brazillian mining giant Vale has appointed Fabio Schvartsman, a veteran of the commodities industry, as its new chief executive.
Schvartsman has worked as the boss of Klabin, Brazil's largest paper and cardboard producer, since 2011, and his appointment came as a surprise to investors.
Murilo Ferreira, the current chief executive of Vale, the world's largest iron ore producer, is set to leave the firm in May. Ferreira has been at the helm of the company since 2011.
Although he doesn't have experience in the mining sector, Schvartsman has held top jobs at companies like fuel distribution giant Ultrapar Participacoes, phone carrier Telemar Participacoes and US oil driller San Antonio International. He was appointed by Vale’s board from a list prepared by recruitment firm Spencer Stuart.
Schvartsman will have the tough job of implementing a plan to phase out a 20-year controlling shareholder pact and merging the company's two classes of stock into a single one.