CVRD will invest US$ 11 billion in 2008
On October 15, 2007 the CVRD announced in New York the biggest investment in its history, considered also the world‘s biggest for a mining company, an amount of US$ 11 billion in 2008. This amount is part of the conduction of the strategic plan that will distribute US$ 59 billion over the next five years. This represents a significant increase in the investments portfolio in organic growth, relatively to the performance achieved in the period 2003-2007, estimated in US$ 18 billions.
The decision of investing amounts of this magnitude is supported by the confidence in the global economy long-term basis and by the perception of structural change in the behavior of the demand for ores and metals. CVRD will focus its efforts on the organic growth, by developing a wide portfolio of projects derived from its world-class assets.
To provide sustainability to its activities expansion, the Company will invest extensive resources in logistics and power generation infrastructure. The investment process is backed by the discipline in allocating the capital, the excellence in research, project and operations development and corporate social responsibility. The company’s cash flow destination priority is the financing of its of growth initiatives, subject to the preservation of a solid balance with a low risk indebtedness profile.
This should lead to an expressive production expansion of the Company’s main products. For iron ore, the production in 2012 will reach 422 million metric tons; however, the operation pace at the end of this year will be of 450 millions metric tons.
By implementing its strategic plan, the Company aims on keeping to enjoy sound and growing cash generation, on producing substantial value to the shareholders and creating thousands of new jobs, in a process supported by its basic values, which include ethics, transparency, emphasis on corporate social responsibility, respect for life and diversity, entrepreneuring spirit and continuous search for operational excellence.
