RIO DE JANEIRO – The COMPANHIA VALE DO RIO DOCE (CVRD) board of directors has approved a revised capital investment budget to US$7.4 billion for 2007, an increase of US$1.1 billion compared with the US$6.3-billion budget announced in January 2007. This change basically reflects changes in currency exchange rates (US$383 million) and additional investments in nickel operations (US$500 million).
According to the revised capex budget, US$5.4 billion is to be invested in organic growth, of which US$4.9 billion will be spent on projects and US$452 million on research and development. The maintenance of existing operations has been estimated at US$2.0 billion.
By sector, spending will be divided thusly: In the non-ferrous minerals sector spending will be US$3.1 billion (42.5% of the total), including large projects such as Goro and Onca Puma. An investment of US$1.9 billion has been earmarked for the ferrous minerals business, US$885 million will be allocated to the aluminum division, and US$784 million has been allocated to CVRDs logistics business. (www.CVRD.com.br)