Vale Comments on Negotiations with Iron Ore Clients
09/10/2008 - Companhia Vale do Rio Doce reports that it is negotiating with Asian clients on the convergence of reference prices for iron ore to the same level as those charged to European clients.
Companhia Vale do Rio Doce (Vale), in compliance with a determination of Brazil's Comissao de Valores Mobiliarios (CVM), reports that it is negotiating with Asian clients on the convergence of reference prices for iron ore to the same level as those charged to European clients.
Reference prices for Asian clients are currently 11.0 to 11.5% lower than prices for Europe, depending on the type of iron ore.
Vale noted that this negotiation is not concluded, and that there can be no guarantee that it will be successfully concluded.
Vale also noted that if the price convergence is implemented, it will entail an estimated revenue increase of approximately US$ 35.5 billion, which is less than 3.0% of Vale's total revenue for the twelve-month period ended June 30, 2008.
