Vale Settles 2008 Benchmark Iron Ore Fines Prices with China Steel Corporation



    RIO DE JANEIRO, Brazil, Feb. 25 /CNW/ -- Companhia Vale do Rio Doce
(Vale), the world's largest iron ore producer, concluded the iron ore fines
price negotiations for 2008 with China Steel Corporation, the largest
Taiwanese steelmaker.
    As an outcome of these negotiations, the iron ore prices for Southern
System fines (SSF), FOB Tubarao, increased by 65% relatively to 2007. At the
same time, due to its recognized superior quality, it was agreed that the
price for Carajas iron ore fines (SFCJ) will have a premium of US$ 0.0619 per
dry metric ton Fe unit over the 2008 price for SSF.
    Therefore, the new reference prices per dry metric ton Fe unit for 2008
are US$ 1.1898 for SSF and US$ 1.2517 for SFCJ.
    The magnitude of the price increase for 2008 reflects the continuity of
very tight conditions still prevailing in the global iron ore market.
    The iron ore price settlement with large high-quality companies and
traditional customers such as China Steel Corporation is an evidence of our
commitment to the benchmark pricing system, respecting the weight of the long-
term relationship and trust involved in these negotiations.
    Vale reinforces its commitment with customers, investing a substantial
amount of resources in increasing production capacity. Despite the sharp rise
of investment and operational costs, the Company has managed to expand iron
ore production at an average annual rate of 14.1%, between 2001 and 2007.
Currently, we are developing projects to add new capacity of high quality iron
ore to meet our client needs, aiming to reach a production capacity of 450
million metric tons per year by the end of 2012, which will require
substantial investment in new mines and the enlargement of our railroad and
port infrastructure.




For further information:

For further information: Roberto Castello Branco,
roberto.castello.branco@vale.com, or Alessandra Gadelha,
alessandra.gadelha@vale.com, or Patricia Calazans, patricia.calazans@vale.com,
or Theo Penedo, theo.penedo@vale.com, or Marcus Thieme,
marcus.thieme@vale.com, or Tacio Neto, tacio.neto@vale.com, all of Vale,
+011-55-21-3814-4540; Web Site: http://www.vale.com

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COMPANHIA VALE DO RIO DOCE

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CHINA STEEL CORPORATION

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