CVRD Expands Brazilian Steel Industry Partnering with ThyssenKrupp

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Brazil’s metals and mining company Vale do Rio Doce (CVRD) announces that it has signed a new long-term contract with ThyssenKrupp Steel AG (ThyssenKrupp) to supply iron ore and pellets to ThyssenKrupp CSA Companhia Siderúrgica (CSA).

CSA, a joint venture between ThyssenKrupp and CVRD, is constructing a steel slab plant in the state of Rio de Janeiro, Brazil, with a nominal capacity of five million tons per year. The start-up of its operation is expected to happen in the first half of 2009.

Under this 15-year contract, the Company, through its subsidiary MBR, will supply 2.7 million tons of pellets and 5.9 million tons of iron ore per year to CSA. MBR will be the exclusive supplier of iron ore and pellets to CSA.

This agreement is aligned with CVRD’s strategy to promote the expansion of the Brazilian steel industry, through minority and temporary stakes in projects in Brazil.

CVRD is the largest metals and mining company in the Americas and one of the largest in the global metals and mining industry. It is the largest global producer of iron ore and pellets, the world’s second largest producer of nickel, manganese and ferroalloys, one of the world’s lowest cost producers of aluminum products (bauxite, alumina and primary aluminum) and a producer of copper, potash and kaolin.

With sales of US$ 55 billion and 184,000 employees in over 70 countries, ThyssenKrupp is one of the world’s major technology groups. The three main business areas of steel, capital goods and services, organized in five segments – Steel, Stainless, Technologies, Elevator and Services – mark out the Group’s areas of competence.

With sales of US$ 12.6 billion and 30,000 employees ThyssenKrupp Steel is a global player holding leading positions worldwide. The segment is organized into the business units Steelmaking, Industry, Auto and Processing.

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