CVRD Revises 2007 Capex Budget to US$ 7.4 Billion

    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, Alessandra Gadelha, 
+011-55-21-3814-4053, or, or Daniela Tinoco, 
+011-55-21-3814-4946, or, or Fabio Lima, 
+011-55-21-3814-4271, or, or Marcelo Silva Braga, 
+011-55-21-3814-4353, or, all of Companhia 
Vale do Rio Doce Web Site:

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