CVRD signs MoU to explore Andrade mine

CVRD signs MoU to explore Andrade mine

According to the statement released by Brazil's iron ore giant Companhia Vale do Rio Doce (CVRD), the company has recently signed a memorandum of understanding with Brazilian steel producer Companhia Siderurgica Belgo-Mineria (Belgo) to explore Andrade mine in Minas Gerais. After the exploration studies, CVRD will determine whether the mine has effective mineral reserves. Accordingly, CVRD will propose a capacity expansion plan for the mine. It is stated that following the completion of exploration studies, partial rights of Andrade mine may be transferred to CVRD. The commencement of the exploration of the mine is subject to the signing of the leasing contract, which involves payment of $10 million by CVRD to Belgo.