Zeev's Turnips Patch-No Politics (ZEEV)

[Fred Langford]

Not a Jr. but I like CVRD (NYSE RIO), a Brazilian company.
Here is latest news release:

World iron ore mkt seen firm through 2006-CVRD
By Peter Blackburn

MARIANA, Brazil, April 20 (Reuters) - RIO (NYSE) The world iron ore market will remain firm in 2005 and 2006 because of strong demand, the president of Brazil's CVRD said on Wednesday.

"We dont see any sign of a decrease in demand for Brazilian iron ore this year or next," Roger Agnelli told reporters after opening a new iron ore mine in Minas Gerais state, southeastern Brazil.

Some analysts said that a 71.5 percent increase it won from steelmakers this year would dampen demand.

CVRD invested 380 million reais ($147 million) on the Fabrica Nova mine in the district of Mariana, part of Brazil's so-called iron triangle, which will produce 10 million tonnes of iron ore in 2005 and 15 million t/yr from 2006.

"We are bringing forward projects, such as Mariana, to meet strong Chinese demand," said Agnelli, who runs the world's biggest iron ore miner, Companhia Vale do Rio Doce (CVRD) <VALE5.SA><RIO.N>.

Agnelli added that CVRD had extra orders from steelmakers for one billion tonnes of iron ore which it couldn't meet.

The market is extremely tight. Spot prices are very high," he said, adding that stocks of other metals such as copper, nickel and aluminum were also low.

In addition to Fabrica Nova, CVRD has four other iron ore projects in Minas Gerais state which will raise its total output by 61 million tonnes by 2007 when its overall output should reach 300 million tonnes, Agnelli said.

CVRD produced a record 218 million tonnes of iron ore in 2004, of which nearly half was mined in Minas Gerais state.

Another mine, Fazendao, in Catas Altas, is due to start producing iron ore in 2006. Production capacity will also be increased at the Itabira, Brucutu and Fabrica mines next year.

Masayuki Hammyo, chairman of Japanese steelmaker JFE Steel, which has a 20 percent stake in the Fabrica Nova mine, said that it was essential to keep the world steel industry supplied with iron ore...


Fred