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04.01.08
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BNDES approves R$7,3 billion financing for Vale to invest in Brazil up to 2012
· The operation is part of the Bank´s credit limit program
· Iron ore production capacity expansion and upgrading will be given greater focus
BNDES approved a credit limit that may reach R$ 7,3 billion to the mining company Vale. BNDES' and Vale's CEOs, Luciano Coutinho and Roger Agnelli signed the loan agreement last Tuesday, April 1st, at the Bank headquarters in Rio. The funds may be used in the company's investment program from 2008 to 2012. Such investments must be made solely in Brazil, chiefly on mining and logistics activities. A portion of the funds is also intended to support the company's corporate social responsibility programs, including social and environmental projects.
Production capacity expansion and upgrading is the main target according to Vale's investment plan, with special focus on the production of iron ore. The investment program, included in the company's strategic planning, also covers the implementation of production infrastructure or new plants.
Vale's investment plan for 2008/2012 amounts to US$ 59 billion. Out of this amount, about US$ 44 billion will be invested in Brazil. Vale also plans to increase job positions deriving from its projects. The company currently employs around 152 thousand people, including staff employees and outsourced personnel. Vale aims to provide 62 thousand additional jobs through these new investments.
The purpose of the credit limit is to speed up investment projects financing process for long-established clients of BNDES. Vale is entitled to use the credit limit for a term of five years (60 months).
Vale is currently the second largest mining company in the world. In terms of iron ore and pellets, its core business, Vale is the greatest producer and exporter in the world, with a share of 33% in the foreign market.
In 2007, Vale's iron ore production reached a record of 296 million tons and production of pellets, also an outstanding accomplishment, achieved 36 million tons.
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