CVRD to Supply 103 Million Tons of Iron Ore to Posco Over the Next 10 Years

Companhia Vale do Rio Doce, the world’s largest producer of iron ore, and POSCO, one of the major steel makers in the world, signed a ten-year contract for the supply of up to 103 million tons of iron ore fines from April 2005 to March 2015.

Since the first iron ore sale contract in 1979, CVRD and POSCO have maintained close relationship. The partnership was enhanced by the development of Kobrasco, a pelletizing joint venture between the two companies, in 1995. The supply of pellets to POSCO is covered by an independent contract between POSCO and Kobrasco.

This new iron ore supply contract consolidates the long-term relationship between CVRD and POSCO.

Long-term contracts support CVRD investment in the expansion of production capacity of iron ore and eliminate risks of raw material shortages for the steel industry.

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