CVRD inaugurates Fábrica Nova iron ore mine

CVRD inaugurates Fábrica Nova iron ore mine

Brazilian mining giant Companhia Vale do Rio Doce (CVRD) recently got its Fábrica Nova iron ore mine project in Brazil's Minas Gerais state underway. A total investment of Real 380 million ($148 million) was made in the mine, which will have an annual capacity of 15 million tons of iron ore. Japan's JFE Steel, which paid 20% of the total investment, will take two-thirds of the annual production for a ten-year period. The mine is among five major projects CVRD that is undertaking at the Mariana mining complex. Iron ore production at the complex will be increased by 61 million tons once the five projects are completed in 2007. The other projects include expansions of the Brucutu, Fábrica and Itabira mines. CVRD plans to invest Real 3.6 billion ($1.4 billion) in Minas Gerais this year, with total investment reaching Real 13.6 billion ($5.3 billion) by 2010.