Sao Paulo, Brazil, 08 March – Profits at Brazilian company Vale do Rio Doce (CVRD) increased by 61.7 percent to US$10.44 billion real in 2005 against 2004, the world’s largest producer of iron ore said Tuesday.
It is the biggest ever profit for a private company in Latin America, according to a report from Brazilian consultants Economática.
China was the company’s largest foreign customer as it bought 56.5 million tons of iron ore, which accounted for a 22.4 percent increase on overall sales, the company said in a statement.
Other large foreign buyers included Japan (10 percent), Germany (9.7 percent), France (4.7 percent), South Korea (4.2 percent) and Italy (3.9 percent).
Vale do Rio Doce’s overall exports totaled US$7 billion, which accounted for 14.1 percent of Brazil’s entire trade surplus in 2005.
Record rises in the price of iron ore on the international market – a high of 86 percent – and increas4e in the company’s exports contributed to CVRD’s results.
Last year, the mining company sold 252.2 million tons of iron ore, which accounted for 70.3 percent of total income of 13.88 million euros, a 21.8 percent increase on 2004.
Last year, CVRD invested US$4.2 billion in new projects, existing operations and acquisitions, the statement said.
CVRD aims to produce around 270 million tons of iron ore in 2006 and 300 million tons in 2007.(macauhub)