May 22, 2006 — Companhia Vale do Rio Doce (CVRD) has concluded iron ore price negotiations for 2006 with Mittal Steel Group.

As an outcome of these negotiations, iron ore prices for Carajas (SFCJ) and Southern System (SSF) fines increased by 19.0% relative to 2005.

CVRD notes that it reinforces its long-term commitment with clients, investing a significant amount of resources, despite rising investment costs, in iron ore production and logistics. For 2006, CVRD capex budget allocated US$ 2.1 billion for investments in ferrous minerals. Currently, CVRD is developing seven projects for iron ore and pellet production capacity expansion, which will come on stream between 2006 and 2008.