Apresenta

1
CVRD, a global leader
www.cvrd.com.br rio_at_cvrd.com.br
2
We just delivered a new platform of value
creation Brucutu, the 16th project concluded
since 2002
São Luís
Capão Xavier
Mo I Rana
Taquari-Vassouras
Brucutu
Trombetas
Pier III PDM
Fábrica Nova
Capim Branco I
Alunorte 3
Sossego
Aimorés
Funil
Carajás70 Mtpy
Candonga
Alunorte 45
3
CVRD will broaden its global leadership

• 1 in iron ore pellets
• 2 in nickel with a clear path to 1
• Future 2 in bauxite and 3 in alumina1
• 2 in manganese ferroalloys

¹ Growth provided by our organic pipeline
Paragominas I, II and III, Alunorte 6 7 and ABC
4
Work safety is a strategic priority
Focus on minimizing frequency of injury frequency
rate accidents per 200,000 work hours
5
Corporate social responsibility is fully
integrated in our battle for value creation

• CVRD sees social and economic goals as integrally
  connected
• Being a good corporate citizen improves the
  business environment, enhancing shareholder value
  creation

6
In four years CVRD developed exploration programs
in five continents and in more than fifteen
countries

• 2006

• 2005

• 2004

• 2003

• Chile
• Peru
• Mozambique
• Angola
• Gabon
• Argentina
• Mongolia
• Australia
• China
• India
• Kazakhstan
• Guinea
• Colombia
• Canada
• South Africa
• Russia...

• Chile
• Peru
• Mozambique
• Angola
• Gabon
• Argentina
• Mongolia

• Chile
• Peru

• Chile
• Peru
• Mozambique
• Angola
• Gabon
• Argentina
• Mongolia
• Australia
• China
• India

Budget/2006 US 180 million1
1 RD expenditures budgeted for 2006 are equal to
US 491 million. They include US 180 million for
mineral exploration and US 311 million for
feasibility studies and technological development
7
We invested US 1.1 billion to put in place the
worlds largest iron ore mine in initial capacity
Production evolution million tons
8
Brucutu is the largest iron ore mine of the
Southern System, with a nominal capacity of 30
Mtpy
Cauê
ITABIRA
Minas do Meio
Conceição
Nova Era
Córrego do Meio
BELO HORIZONTE
Gralhos
Dois
Irmãos
Tubarão
Brucutu
Gongo
Vitória
Sabará
Soco
Água Limpa
(ES)
Piacó
Costa Lacerda
Baú
Fazendão
Alegria
Feijão
Fábrica Nova
Timbopeba
MARIANA
LEGEND
Jaceaba
Patrag
EFVM railroad
N
FCA railroad
/
Fábrica
MRS railroad

1 mines of Southern System complex Itabira,
Centrais, Mariana and Oeste.
9
Brucutu mine
Brucutu starts as the biggest Southern System
mine operations 30 Mtpy.
New Brucutu Iron Ore Complex

• CAPEX US 1,1 billion
• Total production 30Mtpy

10
The largest nickel reserves in the world
Reserves1 million tons of contained nickel
1 PP reserves Source AME Mineral Economics
11
supporting the largest pipeline of projects in
the nickel industry
Pomalaa
Sorowako HPAL
Goro
Kelly Lake
Goro expansion
Voiseys Bay
Totten
Committed greenfield development
Pomalaa
Bahadopi
Potential development
Source Inco
12
Diversification away of steel. Inco is the world
leader in specialty nickel products and is more
focused on non-steel uses of nickel
Global nickel consumption
Inco sales
2
¹ includes superalloys and high nickel alloys
used by the aerospace industry and energy
exploration, production and storage 2 powders,
foams, flakes, oxides and nickel-coated graphite.
These products are used for consumer electronics,
powder metallurgy, rechargeable batteries, fuel
cells, auto parts, computers, cellular telephones
and hard metal binders Sources CRU and Inco
13
The combination of iron ore and nickel will allow
CVRD to benefit from growth across the country
income spectrum
Demand from low to middle income countries
Demand from middle to high income countries
Drivers
Drivers

• Aeroespace
• Computers
• Hybrid electric vehicles
• Cellular phones
• Cars
• Energy
• Housing

• Infrastructure
• Housing
• Energy
• Metal furniture
• Home appliances
• Cars

14
Future steel dynamics
World steel production growth should be
concentrated in regions with competitive
advantages.
Steel consumption
28
population
slow growth
fast growth
population
72
4.7 billion
1.8 billion
72
GDP (US)
GDP (US)
28
12 trillion
32 trillion
steel prod (t)
steel prod (t)
70
29
794 million
312 million
steel consumption (t)
steel consumption (t)
39
61
potential growth for steel production
608 million
390 million
existing growth in steel production
Sources World Bank, ONU, IISI and IBS
15
Diversity by products and geography addresses
main CVRD structural weakness
2005 pro forma revenue composition

• CVRD Post - US17.9 billion

• CVRD Pre - US13.4 billion

diversified geographic asset base¹

• CVRD Post - US 22.6 billion

• CVRD Pre - US 14.2 billion

¹ Combined PPE by region, as of December 31, 2005
16
Copper and nickel projects under development
Onça-Puma
118
V1
V2
Vermelho
17
Onça Puma project ferronickel

• Success Story
• Acquired by CVRD in early 2006
• Construction started in July, 2006
• Main contracts awarded, including all furnaces,
  kilns and dryers
• 850 workers on site
• Site access road completed

Onça Puma Site
Ourilândia Road
18
Vermelho project nickel and cobalt cathodes

• Vermelho Project
• Previous License granted in July, 2006
• Long lead items (autoclaves) under fabrication
• EPCM contract started
• Detailed engineering in progress
• Additional studies being developed to capture
  synergies between Onça Puma and Vermelho projects

Vermelho Autoclave

• Main commercial highlights (nickel and
  ferronickel)
• Target market mapped (mainly stainless steel
  nickel alloys)
• Visits to potential customers located at target
  markets (US, Europe, China, Japan and Brazil)

19
Sossego copper concentrate

• Main commercial indicators for 2006
• 1,000,000 metric tons of copper concentrate
  produced and shipped
• 100 of 2006 production secured by medium and
  long term sales agreements
• Delivery to solid customers assured through Long
  Term Freight contracts with first class owners

Sossego Plant

• Initial investment paid in record time.
• More than 25 million tons of ore already mined
  and processed
• Benchmarking in copper recovery (94)

to early October 2006
20
CVRD Built to lead and last

• CVRDs has the largest reserve base among its
  peers, thus guaranteeing sustainable supply in
  quantity and quality for years to come.

Reserves Base X Production
Production Capacity (Mtpy) 2005 base
Lifetime (years- 2005 production base)
21
Financial strengths for growth
CVRDs response to strong market demand growth
has been promoted thru acquisitions, brownfield
and greenfield expansions.
2005 TOTAL 255 Mt Domestic
36 Mt Exports
219 Mt
Mt
First Concentration Plants and Tubarão expansion
Pelletizing Joint Ventures

• ITALY
• JAPAN
• SPAIN

Pelletizing Plants
CAEMI

• BAOVALE

FERTECO
Tubarão start-up
Incorporation of Socoimex, Samitri and
participation in GIIC
Railroad double-tracked
Kobrasco
Carajás start-up
CVRD Privatization
CVRD 50 Samarco Pelletizing JVs
(Nibrasco, Itabrasco, Kobrasco, Hispanobras)
Urucum MBR since 2003.