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FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For APRIL 5, 2002
Companhia Vale do Rio Doce
(Exact name of Registrant as specified in its charter)
Valley of the Doce River Company
(Translation of Registrant's name into English)
Federative Republic of Brazil
(Jurisdiction of incorporation or organization)
Avenida Graca Aranha, No. 26
20005-900 Rio de Janeiro, RJ, Brazil
(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:]
FORM 20-F X FORM 40-F
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[Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
+Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of
1934.]
YES NO X
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[If "Yes " is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):] Not applicable
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Companhia Vale do Rio Doce
TABLE OF CONTENTS
This Form 6-K contains the following:
Sequential
Page
Item Number
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1. 2001 Capex and Capex Budget for 2002............................. 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMPANHIA VALE DO RIO DOCE
By: /s/ Roberto Castello Branco
-------------------------------
Name: Roberto Castello Branco
Title: Head of Investor Relations
Dated: April 5, 2002
[LOGO] Companhia
Vale do Rio Doce Press Release
2001 Capex and Capex Budget for 2002
Rio de Janeiro, April 4, 2002 - Companhia Vale do Rio Doce invested US$ 1.537
billion in 2001, almost the same amount reached in the previous year, of US$
1.602 billion, the highest in the Company's history. Capital allocation
decision making is based on rigorous analysis, with the essential goal of
creating shareholder value.
Total investments in mining and metals amounted to US$ 1.361 billion,
representing 88.5% of capital expenditure in 2001.
In 2001, 60% of total investment, US$ 911.7 million, was dedicated to
acquisitions. The main acquisitions were: Ferteco for US$ 566 million, 50% of
Caemi's common share capital for US$ 278.7 million and 50% of Mineracao Sossego
for US$ 42.5 million.
Project investments amounted to US$ 264.4 million. US$ 84.1 million was spent
on construction of the Sao Luis pelletizing plant and US$ 55.1 million on the
infrastructure needed for its installation. US$ 3.8 million was also spent on
the initial investments to increase the capacity of the pelletizing plants in
Tubarao, from 25 to 28.2 million tpy.
On iron ore logistics, US$ 20.6 million was invested in the purchase of wagons
and locomotives, US$ 6.3 million, in the construction of a stock yard in the
Northern System and was begun the construction of Pier III in the port of Ponta
da Madeira in Sao Luis, with US$ 4.1 million spent in 2001. The capex budget
for this project is US$ 29.7 million and it is due for completion in 2003.
The main investments in logistics were: purchase of locomotives and wagons for
general cargo transportion, for US$ 9 million; the expansion of the Praia Mole
maritime terminal, US$ 2.9 million; expansion of the pig-iron stock yard , US$
2.6 million; and equipment for the Vila Velha terminal - TVV, US$ 2.3 million.
A capital injection of US$ 12.6 million was made into the Mineracao Sossego,
responsible for the implementation of the Sossego project.
Investment in the construction of hydroelectric power plants amounted to US$
50.3 million. A large part of these funds, US$ 21.2 million, was spent on the
construction of the Aimores plant, where we have a 51% stake and start up is
due to December 2003 with a capacity of 300 MW.
Expenditure on maintenance and environmental protection measures amounted to
US$ 231.9 million, mainly in the Southern System in order to bring it into line
with the already excellent standards in the Northern System.
Mineral Exploration
The Company's mineral exploration program, carried out by its subsidiary
Docegeo, envolved US$ 45.2 million, from which US$ 29.8 million was made by
National Social and Economic Development Bank - BNDES under the Mineral Risk
Contract drawn up in 1997. In 2001, the focus was on copper, nickel, gold,
platinum group metals (PGM), diamonds, and industrial minerals (kaolin, potash
and limestone) exploration. Most of the effort was concentrated in the mineral
province of Carajas, which allows it to be conducted at very low cost.
[LOGO] Companhia
Vale do Rio Doce Press Release
CVRD's mineral exploration program has four important competitive advantages:
the technical knowledge and focus of Docegeo, similar to a good junior
exploration; financial and technical capability of a large minning company; the
extraordinary mineral potential of Carajas, where the Company has substantial
mineral rights and geological data base; and the availability of railroad and
electrical infrastructure. This exploration strategy has produced very good
results, with the discovery of world-class copper and gold deposits between
1996 and 1998. At the same time it implies in very low development costs
The mineral exploration program also includes prospecting in the states of
Minas Gerais and Alagoas, where efforts have located promising deposits of zinc
and copper with gold, respectively. Prospecting for kaolin, carried out in the
region of the Capim river, in the state of Para, has identified fresh mineral
deposits.
Initial prospecting work was also carried out in Chile, Peru and Equator,
examining the geological potential for copper mining.
INVESTMENTS - 2001
By business area US$ million % By category US$ million %
Ferrous Minerals 1.256.5 81.7% Capital Injections 75.5 4.9%
Transportation 86.6 5.6% Maintenance 231.9 15.0%
Non Ferrous Minerals 104.5 6.8% Projects 264.4 17.2%
Energy 52.1 3.4% Mineral Exploration 29.8 1.9%
Others 37.7 2.5% Information Technology 17.5 1.1%
Technological Research 6.6 0.4%
Acquisitions 911.7 59.4%
Total 1,537.4 100.0% Total 1,537.4 100.0%
[GRAPHIC OMITTED]
(line graph showing the capital expenditures for the years 1997-2001)
Capital Expenditure
US$ million
1997 468
1998 466
1999 343
2000 1,602
2001 1,537
Total 4,416
[LOGO] Companhia
Vale do Rio Doce Press Release
CAPEX BUDGET FOR 2002
Exploiting profitable organic growth opportunities
The capital expenditure budget for 2002 provides for total investment of US$
956.3 million. This amount does not include provisions for acquisition
opportunities that may arise.
In line with strategic guidelines, US$ 602.6 million is allocated to mining,
63% of the total budget - US$ 411.2 million for ferrous minerals and US$ 191.4
million for non-ferrous minerals. US$ 112.5 million is budgeted for investment
in logistics and US$ 138.7 million in electricity generation.
Most of the budget, US$ 400.6 million, is allocated for projects in the areas
of iron ore, pellets and electricity generation.
CVRD is finalizing the works on the new pelletizing plant at Sao Luis in the
Northern System, which will require investments of US$ 90.8 million in 2002 -
US$ 50 million on the plant itself and US$ 40.8 million on supporting
infra-structure.
CVRD is expected to invest US$ 82 million to increase the capacity for the
production and transportation of iron ore.
For the electricity generation area, capex budget for 2002 is US$ 138.7
million. Most of it will be spent on six hydro-electric projects which are in
different phases of construction or environmental licensing procedures
(Aimores, Candonga, Funil, Capim Branco I & II and Foz do Chapeco).
Continuing the focus on increasing freight carried for third parties, in 2002
CVRD is to invest US$ 25 million in a series of projects to increase port
capacity.
In the non-ferrous area, the Company is investing US$ 17 million to expand the
production capacity of potash from 600,000 to 800,000 tpy by 2005.
Most of the capital injections will be allocated to non-ferrous minerals. US$
111.3 million will be spent on the development of the Sossego copper project,
due to come on stream in mid-2004, and US$ 4.6 million on pre-feasibility
studies for the Salobo copper project.
Maintenance and environmental protection expenses are estimated at US$ 202.9
million. Most of this will be spent on the Southern System - US$ 115.4 million
- mainly for the replacement of parts and equipment and a series of other
improvements to cut costs and improve ore quality. In the Northern System,
maintenance expenses are linked to increasing production capacity.
CVRD's expenditure on mineral exploration will be 35% higher than realized in
2001, representing 4% of total investment - US$ 40.2 million. This ammount,
added with the US$ 21.2 million to be spent by BNDES under the Mineral Risk
Contract, will result in US$ 61.4 million budgeted for mineral exploration in
2002. It will be spent on exploration of ferrous minerals, copper, gold,
diamonds, platinum, nickel and kaolin.
[LOGO] Companhia
Vale do Rio Doce Press Release
INVESTMENT BUDGET FOR 2002
By business area US$ million % By category US$ million %
Ferrous Minerals 411.2 43.0% Capital Injections 254.8 26.6%
Transportation 112.5 11.8% Maintenance 202.9 21.2%
Non-Ferrous Minerals 191.4 20.0% Projects 400.6 41.9%
Energy 138.7 14.5% Mineral Exploration 40.2 4.2%
Others 102.4 10.7% Information Technology 43.0 4.5%
Technological Research 14.8 1.5%
Total 956.3 100.0% Total 956.3 100.0%
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For further information, please contact:
Roberto Castello Branco: castello@cvrd.com.br +55-21-3814-4540
Andreia Reis: andreia.reis@cvrd.com.br +55-21-3814-4643
Barbara Geluda: barbara.geluda@cvrd.com.br +55-21-3814-4557
Daniela Tinoco: daniela.tinco@cvrd.com.br +55-21-3814-4946
Rafael Azevedo: rafael.azevedo@cvrd.com.br +55-21-3814-4700
This release includes "forward-looking statements" that express expectations of
future events or results. All statements based on future expectations rather
than on historical facts are forward-looking statements that involve a number
of risks and uncertainties, and the company cannot give assurance that such
statements will prove to be correct.