Brazil's Vale to Invest $11 Billion in 2008 to Increase Production

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Researched by Industrial Info Resources (Sugar Land, Texas)-- Brazilian mining giant Vale (NYSE: RIO) (Rio de Janeiro, Brazil), formerly known as CVRD, will invest $11 billion in 2008 as part of a plan that involves $59 billion in investments in the next five years to increase the company's production to meet market demand. The investment is Vale's largest annual investment. According to Vale, the strength of globalization and emerging market economies are prompting a structural change in the demand for metals and minerals.

Vale intends to more than double its production through investments in the development of world-class assets of iron ore, pellets, coal, nickel, copper, bauxite and alumina. The company will develop a portfolio of more than 30 projects in Brazil, Peru, Chile, Canada, Australia, Indonesia, New Caledonia, Mozambique and Oman by developing new mines, constructing plants and expanding logistics infrastructure.

Investments in 2008

•Ferrous minerals: $3.25 billion
•Non-ferrous minerals: $3.62 billion
•Aluminum: $755 million
•Coal: $390 million
•Steel: $81 million
•Logistics (railways and ports): $1.87 billion
•Electrical energy: $470 million

Brazil will receive 73% of the 2008 budget, worth about $8 billion. More than $7 billion will be invested in projects, while research and development will account for $884 Million. Investments to support existing operations are estimated at $2.56 billion.

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