## Companhia Vale do Rio Doce

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CVRD and Baosteel agreement on 2005 iron ore prices

2/28/2005 Companhia Vale do Rio Doce (CVRD), the world's largest iron ore producer, concluded the iron ore price negotiations for 2005 with Shangai Baosteel Group Corporation (Baosteel), the largest Chinese steel maker. As an outcome of these negotiations, iron ore prices for Carajas (SFCJ) and Southern System (SSF) fines, FOB Ponta da Madeira and Tubarao, respectively, increased by 71.5% relatively to 2004. Baosteel negotiates representing the Chinese Iron and Steel Association, composed by 13 Chinese steel producers. Agreements between CVRD and those companies involves an amount of iron ore fines of approximately 35,4 million tons for the 2005 Japanese fiscal year (from April 05 to March 06). The magnitude of the price increase for 2005 reflects an unprecedented situation characterized by the disequilibria in the global metals and maritime freight markets, which led to substantial prices increases for these products and services during the last couple of years. CVRD reinforces its long-term commitment with clients, investing a significant amount of resources, despite of rising investment costs, in the production and logistics of iron ore. For 2005, CVRD capex budget allocated US$ 1.7 billion for investments in ferrous minerals. Currently, CVRD is developing six projects for iron ore production capacity expansion, which will come on stream between 2005 and 2007.

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7/20/2005 CVRD starts to invest in mineral exploration in Australia 7/8/2005 m CVRD receives the investment grade rating 7/5/2005 w CVRD will start the development of the Vermelho Nickel Mine 6/15/2005 m CVRD and Government of Mozambique sign agreement for social projects 6/14/2005 e Companhia Vale do Rio Doce announces the inception of tests with biodiesel in the Vitoria - Minas Railway 6/8/2005 m CVRD signed Memorandum of Understanding for study of coal deposit in Mongolia

Best visualization in 800x600 I R 2005 - Companhia Vale do Rio Doce I All rights reserved.



# http://www.cvrd.com.br/saladeimprensa/en/releases/release.asp?id=13772 8/8/2005 CornpanhiaValedoRioDace Page 1of1

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Home> Press Office 

## RELEASES

eVRD and Baosteel agreement on 

### 2005 iron ore prices



### 2/28/2005 Companhia Vale do Rio Doce (CVRD), the world's largest iron ore producer, concluded the iron ore price negotiationsfor 2005 with Shangai Baosteel Group Corporation (Baosteel), the largest Chinese steel maker. As an outcome ofthese negotiations, iron ore prices for Carajas (SFCJ) and Southern System (SSF) fines, FOB Ponta da Madeira and Tubarao, respectively, increased by 71.5% relatively to 2004. Baosteel negotiates representing the Chinese Iron and Steel Association, composed by 13 Chinese steel producers. Agreements between CVRD and those companies involves an amount of iron ore fines ofapproximately 35,4 million tons forthe 2005Japanesefiscal year (from April 05 to March 06). The magnitude ofthe price increasefor 2005 reflects an unprecedented situation characterized by the disequilibria in the global metals and maritimefreight markets, which led to substantial prices increases for these products and services during the last couple ofyears. CVRD reinforces its long-term commitment with clients, investing a significant amount of resources, despite of rising investment costs, in the production and logistics of iron ore. For 2005, CVRD capex budget allocated US$ 1.7 billion for investments in ferrous minerals. Currently, CVRD is developing six projects for iron ore production capacity expansion, which will come on stream between 2005 and 2007.

In, Press Office 7/20/2005 CVRD starts to invest in mineral exploration in Australia 7/8/2005

CVRD receives the investment grade rating 7/5/2005

CVRD will start the development ofthe Vermelho Nickel Mine 6/15/2005

CVRD and Government of Mozambique sign agreementfor social projects 6/14/2005

Companhia Vale do Rio Doce announces the inception oftests with biodiesel in the Vitoria
- Minas Railway 6/8/2005

CVRD signed Memorandum of Understanding for study ofcoal deposit in Mongolia

Best visualization in 800x600 

### I @ 2005 Companhia Vale do Rio Doce 

### I All rights reserved.



## http://www.cvrd.com.br/saladeirnprensa/enlreleases/release.asp?id=13772 8/8/2005