From the Newsroom
São Paulo – On Monday (24), in Chinese capital Peking, mining giant Companhia Vale do Rio Doce (CVRD) signed an accord with Aluminium Corporation of China Limited (Chalco) for the construction of an alumina refinery in Brazil. Representatives from Vale were included in the presidential party accompanying Luiz Inácio Lula da Silva on his visit to the Asian country.
According to information on the Brazilian company web site, the accord forecasts initial joint investment of US$ 1 billion for the construction of a plant in Barcarena, in the northern state of Pará, to produce an annual 1.8 million tonnes of alumina per year. The productive capacity may later be increased to 7.2 million tonnes per year. The refinery should go into operation in 2007.
According to information supplied by CVRD, the project is going to join the Brazilian bauxite reserves with the "rising Chinese demand" for alumina, used to produce aluminium.
CVRD has also signed other contracts with Chinese companies. One of the accords, signed with Shanghai Baoesteel Group Corporation and Yongcheng Coal & Electricity Group, forecasts the creation of a joint venture for coal production in China. The idea is to sell the product on the Brazilian market.
Another accord closed by the Brazilian company with Yankuang Group forecasts the production of coke in China. According to the contract, starting in 2006 an association between both companies is going to produce 2 million tonnes of coke and 200,000 tonnes of methanol per year. Coke is a by-product of coal used in the production of steel. The forecast is for 25% of the production to be sold in Brazil.
