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VALE Clarifies Status of Investment Negotiations

01/22/2008 - Companhia Vale do Rio Doce has been maintaining a dialogue with Xstrata Plc management, and continues to analyze several other potential investment options.

Against the growing trend toward global consolidation in the mining industry, Companhia Vale do Rio Doce (VALE) has been maintaining a dialogue with Xstrata Plc management. At the moment, however, VALE said that these discussions have not yet produced any material result.
 
The company said that it is also continuing to analyze several other options involving different mining assets. Similarly, these negotiations have not yet generated any concrete results.
 
These potential investments are part of the company’s ongoing, continual analysis of options for organic growth and/or acquisitions of assets and companies as part of its continuous search for shareholder value creation. In the event it decides to effectively pursue any of these options, VALE also has been exploring with banks several ways to support its growth initiatives. The company believes that the conditions currently prevailing in the global financial markets may constrain the realization of a major strategic move.
 
VALE said that it would continue to maintain the prudential posture that has been one of the hallmarks of its management over the years. The company also noted that any acquisition decisions, which would require the approval of its corporate governance bodies, would be publicly announced.