Rio, May 14, 2004 (Agência Brasil) - The Vale do Rio Doce Company (CVRD) will invest US$ 1.8 billion this year. Most of these resources will be used to increase iron ore production capacity, to fill clients' orders, according to the CVRD's director of Investor Relations, Roberto Castelo Branco.

This week, Castelo Branco recalled, the CVRD concluded arrangements with foreign banks for a credit line totaling US$ 500 million, which can be withdrawn even if the reason is to cover a lack of liquidity. The CVRD is the first Brazilian company to obtain this type of committed credit abroad.

The aim is to make cash flow management more efficient and reduce debt refinance risks during periods of financial instability. Of the total, the company can withdraw US$ 400 million in the next 12 months, with a year to pay. The remaining US$ 100 million will be available for two years, with a three-year repayment period.

Translator: David Silberstein