January 1, 2006
Cia. Vale do Rio Doce (CVRD) is transforming itself from an iron ore producer operating mainly at home in Brazil into a global multi-product mining giant. Fuelled by robust cashflow, prudent debt management and a well-planned acquisition strategy, CVRD's market capitalization has surged to $41.2 billion at the end of 2005 from $8.7 billion in 2000. CVRD now ranks as the world's third-largest mining company, behind first-ranked BHP Billiton in Australia and No.2 Rio Tinto, based in London. CVRD became the first Brazilian company to win an investment grade rating from Moody's last July and from Standard & Poor's in October.
CVRD's assured and generally very successful approach to the ca
Brazil's CVRD may be one of the world's biggest mining companies, but its cost of capital is higher
than its rivals.