CVRD and Baosteel to Build a Steel Slab Plant

Companhia Vale do Rio Doce (CVRD) announces that it has signed a Memorandum of Understanding with Baosteel Group Corporation, the largest Chinese steelmaker to build a steel slab plant with an initial production capacity of 5.0 million tons per year.

The plant will be located in the industrial district of Anchieta, state of Espirito Santo, Brazil, and it is expected to generate 3 thousand direct jobs when it starts operating. In the beginning of the plant construction, CVRD will hold a participation of 20% and Baosteel will hold up to 80%.

This initiative is consistent with CVRD´s strategy of attracting new investments in the steel industry in Brazil, thereby increasing iron ore consumption and promoting job generation and income growth in the country. This support may take place via long-term contracts to supply high-quality iron ore and/or minority equity stakes.