Rio, April 25, 2003 (Agência Brasil - ABr) - The Rio Doce Valley Company (CVRD) and the Nucor Corporation (Nucor), the largest steel manufacturer and steel recycling company in the United States, announced yesterday (24) the signing of a contract to build and operate a pig iron plant in the north of Brazil. The plant will use two conventional mini-furnaces to produce about 380,000 metric tons of pig iron annually during its initial phase, using iron one extracted by the Valley Company from its Carajás mineral site, in Pará.

The charcoal that will be used will be produced exclusively from eucalyptus trees planted in a 30,000 hectare renewable forest, included in the approximately 80,000 hectares that make up the project. The CVRD, with 78% of the capital, and Nucor, with 22%, will form a joint venture to operate the plant. All of the production should be purchased by Nucor, which will invest US$ 10 million in the project. The CVRD will capitalize the lands and forest assets of its wholly-owned Celmar, S.A., subsidiary. The total value of the investment will amount to US$ 80 million. (DAS)