Brazil’s mining and metals company CVRD has announced a new US$11bn investment plan for 2008. It is the largest annual investment programme ever undertaken by CVRD or any mining company in the world.
The company intends to use US$8.47bn for organic growth projects, of which US$7.552bn will go towards project execution and US$884mn towards R&D. Investments to support existing operations are estimated at US$2.563bn. This marks an increase of US$568mn over the amount budgeted for 2007.
In the ferrous minerals sector, CVRD is investing in three large-scale projects in Brazil: Carajas, Carajas Serra Sul and Maquine-Bau. It aims to increase its iron ore capacity to 450mn tonnes per year via these three projects, and Carajas Serra Sul is set to be the largest greenfield site in the history of the company, and the largest iron ore project in the world.
CVRD is also intending to increase its nickel production, and has four projects in development.
It is also intending to invest US$755mn in bauxite and alumina projects, which is around 10% of the total amount of investments scheduled for projects in 2008.
Funds have also been set aside for coal production, logistics relating to iron ore expansion and electrical energy generation.