Chinese group partners Vale do Rio Doce to invest in Brazil

19 January 2006

Beijing, China, 19 Jan – China’s ambassador to Brazil, Jiang Yuande, has told the governor of the Brazilian state of Pará, Simão Jatene, that a Chinese group plans to invest in producing aluminum oxide in the state, Chinese daily newspaper China Daily reported Thursday.

According to the paper, the investment totaling around US$1 billion will be focused on the Alumina Brazil-China Refinery (ABC) by the Aluminum Corporation of China Limited (Chalco), in partnership with Companhia Vale do Rio Doce (CVRD).

The refinery, which according to the paper will be located in the capital of Pará, Belém, from 2007 will produce aluminum oxide (the raw material needed to produce aluminum), extracted from bauxite mined in CVRD’s mine in Paragominas.

Ambassador Jiang Yuande also told Jatene that the viability and environmental impact studies for the project would be presented in the first quarter of this year, the paper reported.

The agreement between CVRD and Chalco – the largest Chinese manufacturer of aluminum – was signed in Beijing during a visit by Brazilian President Luiz Inácio Lula da Silva to China, in May 2005.

CVRD, which is currently Latin America’s largest private enterprise, has also become one of the three largest mining companies in the world by diversity of products.

The Brazilian company also plans to build a steelworks in partnership with Chinese group Baosteel in the Northeast of Brazil, with a total investment of 2.05 billion euros.

CVRD has exported iron ore to Chinese factories since the 1970s, which led the company to open an office in Shanghai in 1998. (macauhub)