• Categories
  • Archives

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

Lower Interests and Higher Surplus Fuel Brazilian Market Rebound

Brazilian stocks bounded higher, recovering from a bout of heavy profit taking in recent ...

China Obscuring Brazil’s Lula Charm

As the economic importance of the countries situated around the Pacific Rim has grown, ...

It’s Our Chance to Become the Planet’s Breadbasket, Says Brazil’s Lula

The President of Brazil, Luiz Inácio Lula da Silva, launched in Curitiba, capital of ...

A Brazuca in Sweden

We can start a new friendship in five minutes. Of course, we Brazilians have ...

Brazil Presents Its Bid to Host the 2016 Olympic Games

The Brazilian Candidacy Committee interested in hosting the 2016 Olympic Games in Rio de ...

Violent Start

It is too early to rule out a purely political motive in the death ...

Giant French Lab Creates Cheaper Drugs for Brazil and South

In his address to the closing plenary session of BioVision – the World Life ...

Brazil: IMF Praises Fallen Palocci and Welcomes Incoming Mantega

Rodrigo de Rato, Managing Director of the International Monetary Fund (IMF), issued the following ...

Brazil Gives Australia a Hand on Biofuel Prospects

The Australian government will create a study group to examine the impacts of ethanol ...