Vale shareholders will vote on removing chair Daniel Stieler next month after the board rejected a proposal from pension fund Previ, the miner's largest Brazilian investor with a 7% stake. The retirement scheme nominated Stieler in 2023 but now seeks to replace him with lead independent director Manuel Oliveira to strengthen governance practices.

Nine of 13 board members opposed Previ's proposal, with only one supporting it. Stieler suggested the move could constitute a possible abuse of power. Critics question the timing given Brazil's general elections this year and concerns about political interference at the world's largest iron ore producer, which was privatized in 1997.

Brazil's mines and energy ministry requested an urgent meeting with the board, fueling speculation about government influence. Previ's Adriana Chagastelles denied political meddling, stating the fund wants an independent chair before ending its nomination rights next year to ensure board independence.

Vale shares have rallied over 50% in the past year as the company recovers from deadly dam collapses in 2015 and 2019. The vote on July 22 tests whether dispersed ownership can withstand pressure from major shareholders linked to state-controlled banks.