CVRD sells stake in Siderar to Ternium

Brazilian iron ore miner Companhia Vale do Rio Doce SA (CVRD) announced Thursday it will sell its 4.85 percent stake in Argentinian flat rolled steelmaker Siderar SA to Techint Group-controlled Ternium SA for US$108 million. CVRD said in a statement that the deal will help reallocate resources for its overseas mining expansion. The company recently acquired Canadian nickel miner Inco Ltd. Proceeds from the sale of its Siderar stake will help pay off the debts incurred in the purchase of Inco Ltd., the company said. CVRD also announced Thursday that it has secured its first iron ore price agreement for 2007 with an Italian client at a 9.5 percent increase over last year.