Mantega urges Vale to invest more in Brazil-report

SAO PAULO, Sept 16 (Reuters) - Brazilian Finance Minister Guido Mantega told Valor Economico in an interview published on Wednesday that mining company Vale has to invest more in steel and other domestic industrial projects and rely less on imports for supplies to reaffirm its commitment to the country.

Mantega's remarks come as Vale, a former state company, became a target of harsh government criticism in recent months following efforts by Chief Executive Roger Agnelli to cushion the company from the impact of the global economic slump.

Mantega told Valor that President Luiz Inacio Lula da Silva "lashed out" at Vale's decision to fire 100 workers in Brazil as well as decisions to postpone investments and purchase about $2 billion worth of Chinese cargo ships and other capital goods.

"Vale has been proposing a series of projects to add value (in Brazil). It is an exporter, therefore it pays little in taxes," Mantega told the newspaper. "The president's discomfort came from their decision to delay the projects."

The government, through state pension funds and state development bank BNDES, has a 51 percent stake in Vale, plus a golden share that allows it to veto or sponsor a change in control. But it has no power to interfere in Vale's strategic decisions, the newspaper said.

"Vale will have to focus more on the national interests, making steel investments, using some of the iron ore here, creating jobs here," Valor quoted Mantega as saying.

Lula and Agnelli met last week to discuss future investments that Vale would be willing to make in Brazil, Valor said. Local media had reported previous to the meeting that Agnelli sought the meeting to appease Lula and explain to government officials that Vale is the Brazilian private company that invests most in the country.

Mantega didn't say whether Eike Batista, Brazil's richest man, briefed government officials about a possible plan to become one of Vale's controlling shareholders, Valor said. (Reporting by Guillermo Parra-Bernal, editing by Dave Zimmerman)