Sao Paulo, Brazil, 10 Feb – Brazilian mining company Companhia Vale do Rio Doce (CVRD) said Wednesday it had sold its stake in Nova Era Silicon (NES), an iron silicate producer, to Japanese group JFE Steel Corporation for US$14 million.
The of 49 percent of NES, a company located in the Brazilian state of Minas Gerais, in southwest Brazil, is part of CVRD’s strategy to focus its efforts on ore production and manganese alloys in operations in which it has a majority stake, CVRD said in a statement.
In the first nine months of 2005, NES sold 25,000 tons of iron silicate and had turnover of US$31.36 million.
The JFE Steel Corporation, the second largest metal working company in Japan, partners CVRD in other projects.
CVRD, which is the world’s largest producer of iron ore, aims to reach annual production of around 270 million tons in 2006, a higher figure than the 233.8 million tons produced in 2005.
The forecast for 2007 is that the company will produce 300 million tons of iron ore, particularly to meet demand from the Chinese market, the company’s largest foreign customer.
CVRD plans to invest around US$4.6 billion in 2006 on boosting production and setting up new projects, it has said. (macauhub)