Brazil’s CVRD to Invest US$ 400 Million in R&D

Company Vale do Rio Doce, Brazil's mining giant, announced last week a US$ 6.334 billion investment budget for 2007. According to CVRD, the budget includes the highest amount ever spent in organic growth in the history of the company.

The budget also includes investments on Inco, a Canadian mining company acquired by Vale do Rio Doce last year.

Total investments in 2006 were higher, at US$ 26 billion, but that was due to the purchases made by Vale. The company paid US$ 19 billion for Inco, US$ 2.4 billion for Caemi, US$ 47 million for Rio Verde Mineração, and US$ 27.5 million to own all shares of Valesul.

Purchases not included, US$ 4.5 million were effectively invested last year, that is, US$ 1.8 million less than the value forecasted for this year.

The company plans on spending US$ 1.698 billion to maintain its existing operations, US$ 4.230 billion in projects, and US$ 406 million in research and development.

The company will invest US$ 1.635 billion in flagship sector, which is iron minerals; US$ 811 million in the aluminum sector; US$ 720 million in logistics services; US$ 2.55 billion in non-iron minerals; US$ 209 million in coal, US$ 101 million in electric energy, US$ 114 million in the steel sector; and US$ 197 million in other sectors.

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