CVRD Concludes Negotiation with Baosteel

10/19/2001

CVRD Concludes Negotiation with Baosteel

Rio de Janeiro, October 19, 2001 - Companhia Vale do Rio Doce (CVRD) reports that, having fulfilled all terms and conditions established in the contracts signed on August 21of this year with Shanghai Baosteel Group Corporation (BAOSTEEL), both companies formalized proceedings on October 18, 2001, for implementing a business partnership. This includes the creation and co-management of a company in Brazil, BAOVALE MINERACAO S.A., as well as a long-term iron ore supply contract between CVRD and BAOSTEEL, the largest steel mill in the People's Republic of China.

As previously announced in the August 21, 2001 press release, CVRD is expected to earn a total revenue of US$ 2 billion over the next twenty years as a result of this business deal.

CVRD'S role in the Asian market has become stronger and more significant through this transaction, considered by both corporations to be a historic benchmark in business relations between Brazil and the People's Republic of China.

 

For further information, please contact:
+55-21-3814-4540

Rogério Nogueira: rogerio.nogueira@vale.com
André Figueiredo: andre.figueiredo@vale.com
Carla Albano Miller: carla.albano@vale.com
Fernando Mascarenhas: fernando.mascarenhas@vale.com
Andrea Gutman: andrea.gutman@vale.com
Bruno Siqueira: bruno.siqueira@vale.com
Claudia Rodrigues: claudia.rodrigues@vale.com
Marcio Loures Penna: marcio.penna@vale.com
Mariano Szachtman: mariano.szachtman@vale.com
Renata Capanema: renata.capanema@vale.com
Denise Caruncho: denise.caruncho@vale.com

This press release may include statements that present Vale’s expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and The Stock Exchange of Hong Kong Limited, and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

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CVRD Concludes Negotiation with Baosteel