RIO DE JANEIRO, Brazil, April 26 /CNW/ -- Companhia Vale do Rio Doce
(CVRD) hereby announces that its Board of Directors approved the revision of
its investment budget for 2007 to US$ 7.351 billion(1), an increase of US$
1.017 billion compared to the US$ 6.334 billion budget announced in January
26, 2006. This review basically reflects changes in the average price of
currencies in which our expected disbursement are denominated (US$ 383
million) and additional investments in the nickel operations (US$ 500
The increase in the investments is consistent with the evolution of the
Company's cash flow and its financial policy guidelines, which aim to preserve
a healthy balance sheet and, more specifically, a level of leverage indicative
of a low-risk debt profile.
According to the revised capex budget, US$ 5.356 billion is to be
invested in organic growth, of which US$ 4.904 billion on projects and US$ 452
million on research & development (R&D). The maintenance of existing
operations has been estimated at US$ 1.995 billion.
US $3.125 billion will be spent on non-ferrous minerals, representing
42.5% of the total capex budget for 2007, given the development of various
large projects such as Goro and Onca Puma, which are extremely important to
the consolidation of CVRD as a global leader in the nickel industry.
Investment of US$ 1.869 billion has been earmarked for the ferrous minerals
business. US$ 885 million will be allocated to the aluminum division, while
US$ 784 million has been allocated to the Company's logistics business.
(1) The budget considers investments on a cash basis, consolidated
according to generally accepted accounting principles in the United
States (US GAAP). The main subsidiaries of CVRD according to US GAAP
are: CVRD Inco, MBR, RDM, RDME, RDMN, Urucum Mineracao, Alunorte,
Albras, Valesul, Cadam, PPSA, Docenave and Ferrovia Centro Atlantica.
For further information:
For further information: Roberto Castello Branco, +011-55-21-3814-4540,
or firstname.lastname@example.org, Alessandra Gadelha,
+011-55-21-3814-4053, or email@example.com, or Daniela Tinoco,
+011-55-21-3814-4946, or firstname.lastname@example.org, or Fabio Lima,
+011-55-21-3814-4271, or email@example.com, or Marcelo Silva Braga,
+011-55-21-3814-4353, or firstname.lastname@example.org, all of Companhia
Vale do Rio Doce Web Site: http://www.cvrd.com.br