CVRD to increase pellet production

CVRD to increase pellet production

Brazilian mining giant Companhia Vale do Rio Doce (CVRD) is planning to increase its pellet production capacity from the current 36 million tons to 46-47 million tons by 2007. The expansion project covers establishment of a pellet plant in Southern System and expansion of the existing pellet plants. The company expects the production at its seven pellet plants to increase by 4-5 million tons by 2006. The project is subject to the approval of the company's board. CVRD officials forecast the investment for the expansion project to reach around $1 billion by 2008.