June 8, 2006 — Companhia Vale do Rio Doce has concluded negotiations for the 2006 direct reduction (DR) pellets price with Acindar–Industria Argentina de Aceros SA, a subsidiary of Arcelor, and NU-Iron Unlimited, a subsidiary of Nucor Corp.

CVRD and Acindar agreed on a 3% price reduction for Tubarao DR pellets, relative to the 2005 price. CVRD and NU-Iron have also agreed on a 3% price decrease for Tubarao and Sao Luis DR pellets.

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.

Companhia Vale do Rio Doce is the world's largest iron ore and pellet producer.