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[July 2002]
ALUVALE Acquires Mineracao Vera Cruz
Companhia Vale do Rio Doce, CVRD (Rio de Janeiro, Brazil) has announced that its subsidiary ALUVALE has acquired 64% of the total capital of its affiliated company Mineracao Vera Cruz SA (MVC), which was previously held by the Paranapanema Group, for a consideration of R$ 6.404 billion. With this acquisition, ALUVALE will hold 100% of MVC.MVC holds 18 active mining rights in the Paragominas region, in the state of Para, with total metallurgical bauxite resources estimated at 878 million tons. These reserves are located near to CVRD's mineral resources and, when combined, will constitute one of the world's largest bauxite reserves.
The strategic location of these resources, located approximately 250km from Alumina do Norte do Brasil SA (ALUNORTE), will increase flexibility in the utilisation of CVRD's existing logistics infrastructure. Furthermore, says the company, the Paragominas bauxite has a world class quality. CVRD added that these characteristics make the acquisition very important as the development of these reserves will support ALUNORTE's forthcoming expansions.
This transaction is part of the implementation of CVRD's strategy for its aluminium business, which is focussed on the exploration of profitable growth opportunities in bauxite and alumina.
ENDS