May 24, 2006 — Companhia Vale do Rio Doce (CVRD) has concluded the iron ore price negotiations for 2006 with China Steel Corp.

As an outcome of these negotiations, iron ore prices for Carajas (SFCJ) and Southern System (SSF) fines increased by 19.0% relative to 2005. Blast furnace pellet price from Tubarao plants will be reduced by 3.0% compared to 2005.

During the last few days CVRD has settled prices for iron ore fines and blast furnace pellets with the world's major steel makers in all regions — Americas, Europe, Asia and Africa — consolidating the new global prices for 2006.

CVRD notes that it reinforces its long-term commitment with clients, investing a significant amount of resources, despite rising investment costs, in iron ore production and logistics. For 2006, CVRD capex budget allocated US$ 2.1 billion for investments in ferrous minerals. Currently, CVRD is developing seven projects for iron ore and pellet production capacity expansion, which will come on stream between 2006 and 2008.

Companhia Vale do Rio Doce is the world's largest iron ore producer. China Steel Corp. is one of the largest steelmakers in Asia.