Brazil’s Vale do Rio Doce expects 40 pct rise in sales to China in 2006

14 December 2006

Sao Paulo, Brazil, 14 Dec – The sale of iron ore by Brazilian mining giant Companhia do Vale do Rio Doce (CVRD) to China are expected to end 2006 with a 40 percent rise, the company’s chairman Roger Agnelli said in a year-end press conference.

“We are growing on average 40 percent in exports [of iron ore] to China as compared to last year, beating records every month,” Agnelli told journalists Wednesday.

In 2005, CVRD’s sales of iron ore totaled 213.3 million tons, which generated gross revenues of 16.7 billion reals. China bought 26.4 percent of the total, or around 56.5 million tons.

Taking into account all products, gross revenues from exports last year totaled 35.3 billion reals, with 14.5 percent going to China.

Until September of 2006, iron ore and pellet sales reached 202.5 million tons. China bought 58.4 million tons, or 28.8 percent of the total exported by the Brazilian company in the period.

For 2007, the company’s chairman projected annual iron ore production of 300 million tons.

“I pray every day for China to continue growing, and continue buying. And for the productive wave that China has brought to the entire world, not only in the area of iron ore, but in all areas,” Agnelli said.

The growth of exports is expected to remain high, according to Agnelli, and the challenge, “will be to maintain the rate of growth that the market,” demands.

“We are growing by 14 percent every year, [which is the equivalent of] a new gigantic mine per year,” CVRD’s chairman said. (macauhub)

MACAUHUB FRENCH