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[June 2004]
CVRD and Chalco in Framework Agreement for Alumina JV
CVRD - Companhia Vale do Rio Doce of Rio de Janeiro, Brazil - and Chalco - the Aluminium Corporation of China Ltd - have signed a framework agreement for a joint investment in an alumina refinery in Brazil.
The companies agreed to develop a joint study for the construction of a greenfield refinery in Barcarena, state of Para, near the existing facilities of Alunorte, to produce alumina. The 'ABC Refinery' should be established as a first class alumina refinery with the highest level of global competitiveness and its alumina capacity in the initial phase will be 1.8 million tons per year (tpy) and is planned to reach a final capacity of 7.2 million tpy in gradual expansions.
The development of the plant will form part of a series of related operations involving mining, transportation, shipping and port development in Brazil. The initial phase of the project is preliminarily estimated to have a capital expenditure cost of around US$1 billion. The project is expected to be completed and start operation in 2007.
Cooperation between the two parties has closely combined the alumina market in China and the bauxite reserves in Brazil, which can help satisfy China's increasing demand for alumina and further upgrade the cooperation level between China and Brazil.
ENDS