Brazil’s CVRD ups investment for 2007

30 April 2007

Sao Paulo, Brazil, 30 April – Brazil’s Companhia Vale do Rio Doce (CVRD), the world’s biggest iron ore producer, has announced it is increasing its planned investment by US$ 1 billion this year.

CVRD plans to invest US$ 7.35 billion this year in coalmining, iron ore, nickel and other ventures, the company said.

CEO Roger Agnelli said the boosted spending was sue to devaluation of the US dollar in relation to Brazil’s national currency, which has led to an increase in costs of projects.

CVRD’s increased investment plans include the speeding up of a nickel mine venture in New Caledonia, considered to be the biggest of its type in the world.

CVRD announced in February that it had acquired AMCI HA for 835 million Australian dollars in a bid to strengthen its presence in the coalmining sector. It currently has minority shareholdings in two Chinese coalmining firms, Shandong Yankuang International Coking and Henan Longyu Energy Resources.

The Brazilian mining giant is also concluding a viability study on a coalmining venture at Moatize in Mozambique. (macauhub)