Brazil’s Mining Giant CVRD Spending US$ 5 Bi. Blame It on the Chinese

    Brazilian Mining company Vale do Rio Doce (CVRD) should invest 11.8 billion reais (US$ 5.3 billion) in Brazil and abroad this year, according to a company statement.

    The money will be invested in expansion and modernization projects, including transport infrastructure, electric energy and expansion of productive capacity.

    The expansion should increase group production to 264.4 million tons of iron ore up to the end of the year. Next year, production should exceed 300 million tons.

    According to the company president, Roger Agnelli, the Chinese growth has caused an increase in the demand for iron ore, and is fueling company investment.

    Vale has significantly increased its investment in recent years. In 2001, the company invested 3.7 billion reais (US$ 1.7 billion). Last year, the volume reached 10.1 billion reais (US$ 4.6 billion). Apart from growing in the company main foreign markets, Asia, the United States and Europe, consumption of iron ore should also grow in Brazil.

    There are at least two projects that should make the Brazilian demand for the product grow: Ceará Steel, a company that will produce 1.5 million tons of sheet steel a year and ironworks Companhia Siderúrgica do Atlântico, which will produce 4.1 million tons of sheet steel a year.

    The expansion of Vale also brings benefits to the Brazilian community. The company intends to generate 137,000 new job opportunities this year, of which 92,900 in Vale and 43,700 in outsourced companies that supply services to the company.

    The good performance is also reflected in the income generated to investors. Vale shares have generated return of 41.7% to shareholders between 2001 and 2005.

    This year, the state of Pará, in northern Brazil, will be the main destination for investment by Vale do Rio Doce. The company is going to spend 4.3 billion reais (US$ 1.9 billion) in expansion of their Carajás unit, where they have the largest ore vein in the world. Carajás has been in operation for 21 years. Vale wants to increase production in Carajás from 70 million to 85 million tons.

    Other states to receive investment will be Minas Gerais (Southeast), with 3.6 billion reais (US$ 1.6 billion), Maranhão (Northeast), with 1.3 billion reais (US$ 588 million), Espí­rito Santo (Southeast), with 1 billion reais (US$ 452 million), and Rio de Janeiro (Southeast), with 557 million reais (US$ 252 million).

    Vale is also going to invest in other operations in the state of Pará, among them bauxite mine Paragominas, which may start operating in 2007.

    Anba

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazil’s Walter Salles Meets Kerouac On the Road

    Jack Kerouac’s On the Road, symbol of a generation and a fundamental key to ...

    Brazil and China Want to Drop Dollar in Oil Trading

    The International Energy Agency (IEA) is forecasting that oil production in 2010 should total ...

    Sound Excursions

    Close to 19 million adult Brazilians have become tired of waiting for government help ...

    Brazilian bishops

    After the Generals the Catholic Bishops Wage War Against Lula

    After apparently overcoming military intransigence Brazilian president Luiz Inácio Lula da Silva and his ...

    Brazil Ready to Produce the All National Braillewriter

    The prototype of the first braillewriter produced entirely in Brazil was unveiled Wednesday, August ...

    US ambassador to Brazil Thomas Shannon

    US Ambassador to Brazil Held Hostage to Republican Senator’s Intransigence

    Nine months after President Barack Obama took office, Washington still lacks two of its ...

    Brazil's Veja magazine shows Renan Calheiros on cover story

    Brazilian Congress Inquiry on Veja Magazine Believed to Be Reprisal

    The Inter American Press Association (IAPA) announced that it plans to keep a close ...

    Beyond the Bananas

    The emergence of Carmen Miranda acted as an official link between the samba tradition ...

    State-controlled Brazilian Petrobras an expert in deep-water oil exploration

    Awash in Cash, Brazil’s Petrobras Dreams of Becoming an OPEC Member

    Petrobras, Brazil’s state-owned oil company, has plans to spend US$ 12.1 billion in projects ...

    Brazil First in LatAm to End Chagas’s Disease Gotten by Barber Bug

    Brazil is the first Latin American country to eliminate transmission of Chagas’ disease by ...