Rebecca Lawson -MINING NEWS Friday, 12 October 2007
CVRD has approved the world's largest annual mining budget of $US11 billion ($A12.2 billion) for next year, leading to an increase in iron ore production to 450 million tonnes by 2012 and substantial output increases for its suite of projects.
The 2008 budget underpins a five-year investment plan of $US59 million, following on from the 2003-2007 investment strategy where an estimated $18 billion was spent.
"The decision to invest on such a huge scale is firmly based on our confidence in the long-term fundamentals of the global economy and on the belief in a structural change in the demand for minerals and metals," CVRD said in a statement.
Nearly 77% of the 2008 budget will be invested in organic growth, with the Brazilian mining giant investing heavily in logistics infrastructure and energy generation.
Around $3.25 billion is to be invested in its ferrous division, and the company's iron ore production target is 422Mt in 2012 and 450Mt by the end of that year.
CVRD has flagged the Carajas, Carajas Serra Sul and Maquine-Bau iron projects to support the increased iron output. The company has estimated some 300Mt of iron ore will be produced this year.
The company also plans to almost double nickel production by 2012 from 260Mt to 507Mt, with the nickel division to receive $1.02 billion.
The Goro and Onco Puma nickel projects are expected to come online next year and construction of the Vermelho and Totten nickel projects will also start in 2008.
Copper production is aimed to be increased from 290Mt to 592Mt.
Just over $3.6 billion, or 32.9% of the budget, has been set aside for non-ferrous minerals.
Next year CVRD will invest $475 million in protecting and conserving the environment, a 26.7% increase over the 2007 budget.
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