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[June 2002]
CVRD Continues to Invest Heavily in Exploration
Companhia Vale do Rio Doce, or CVRD, (Rio de Janeiro, Brazil) invested a total of US$1.537 billion in 2001 and has a capital expenditure budget for 2002 that provides for total investment of US$956.3 million. This latter amount does not include provisions for acquisition opportunities that may arise.In 2001, the company's mineral exploration programme, carried out by its subsidiary Docego, involved US$45.2 million from which US$29.8 million was made by National Social and Economic Development Bank (BNDES) under the Mineral Risk Contract drawn up in 1997. In 2001, the focus was on copper, nickel, gold, platinum group metals, diamonds and industrial minerals (kaolin, potash and limestone) exploration.
Prospecting for kaolin, carried out in the region of the Capim River in the state of Para, has identified fresh mineral deposits.
CVRD's expenditure on mineral exploration in 2002 will be 35% higher than realised in 2001, reaching US$40.2 million. This amount, added to the US$21.2 million to be spent by BNDES under the Mineral Risk Contract, will result in US$61.4 million being budgeted for mineral exploration in 2002. Exploration for kaolin will again form part of the programme. Overall, expenditure on non-ferrous minerals will account for 20% of the investment budget.
ENDS