Vale signs leasing contract with Itabrasco
Rio de Janeiro September 30, 2008 - Companhia Vale do Rio Doce (Vale) hereby announces that it has signed a leasing contract involving a pelletizing plant located in Tubar�o complex, in Vit�ria, in the Brazilian state of Esp�rito Santo, with its affiliated company Companhia �talo Brasileira de Pelotiza��o - Itabrasco, for a period of 10 years, as from October 1, 2008.
Itabrasco, which main activity is the production and sale of iron ore pellets, is a joint venture between Vale and Ilva International S.p.A. (Ilva) - the largest steel producer in Italy and one of our largest clients for pellets - each with a 50.9% and 49.1% stake, respectively. In 2007, Itabrasco produced 4.0 million metric tons of iron ore pellets and had net earnings of US$ 35 million.
As an outcome of negotiations, Vale has agreed to pay for the leasing an annual payment in order to guarantee Ilva the same level of profitability. Consequently, Vale will consolidate 100% of Itabrasco's pelletizing operations in its financial statements, simplifying its financial report.
The leasing of Itabrasco follows the announcement made in April 30, 2008 and May 9, 2008 related to the leasing of Nibrasco and Kobrasco. These transactions are consistent with Vale's continuous search for opportunities to maximizing shareholder value creation. In these cases we are increasing our exposure to the iron ore business and capturing synergies in the port of Tubar�o, which includes the resulting improvement of efficiency of operational assets and processes.
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Companhia Vale Do Rio Doce
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CODE : RIO |
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ISIN : US7672041008 |
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Vale do Rio is a copper producing company based in . Vale do Rio produces copper, aluminum, bauxite, iron, manganese, nickel and silica in Brazil, develops coal and copper in Australia and in Brazil, and holds various exploration projects in Brazil and in Peru. Its main assets in production are ALUNORTE, URUCUM MINE, MILTONIA 3, MORRO DA MINA, TAQUARI - VASSOURAS, SOSSEGO MINE, CAPAO XAVIER, CARAJAS, ANDRADE, SAMARCO, CONCEIÇÃO, MINAS DO MIEO, AGUA LIMPIA / CURURU, GONGO SOCO, BRUCUTU, BAU, FABRICA NOVA, FAZENDAO, TIMBOPEDA, CORREGO DO FEIJAO, SEGREDO/JOAO PEREIRA, PICO/SAPECADO/GALINHEIRO, VARGEM GRANDE COMPLEX TAMANDUA, CAPITAO DO MATO, ABOBORAS, PARAOPEBA COMPLEX JANGADA, SERRA NORTE - N4W, SERRA NORTE - N4E, SERRA NORTE - N5-W, SERRA NORTE - N5E, SERRA NORTE - N5E-N, SERRA NORTE - N5S, SERRA LESTE, MILTONIA 5 and MRN (BAUXITE MINING) in Brazil, its main assets in development are BELVEDERE in Australia and SALOBO PROJECT in Brazil and its main exploration properties are SALOBO, MAR AZUL MINE, ONÇA PUMA, PROJECT 118 and VERMELHO in Brazil and CORDILLERA DE LAS MINAS in Peru. |