CVRD capex to be around US$2bn in 2004

Brazil mining and logistics giant CVRD (NYSE:RIO) is working on a capex budget for 2004 that should total about US$2bn, company executives told journalists on Friday. Company officials did not want to provide details of the budget since the company's board has not yet approved it. CVRD is investing heavily to expand infrastructure and output to take advantage of strong demand for iron ore. "We are bringing up projects," said Gabriel Stoliar, the company's vice-president of planning. The company forecasts iron ore production to rise 6Mt in 2003 to a total of 170Mt. And next year it expects to boost output at its Carajas mining complex in Para state to 70Mt per year from 56Mt at present. "In fact, we have reached the 70Mt capacity," Stoliar said. Executives said Friday they expect production at Carajas to reach 85Mt/y by early 2006. Rio de Janeiro-based CVRD is the world's largest iron ore producer and exporter.