Vale Concludes Colombian Coal Operation Deal

The Brazilian mining company, Vale do Rio Doce (RIO), confirmed its coal purchase from the Colombian company Cementos Argos. The deal, which was closed in the fourth quarter of 2008 concluded today with Vale purchasing 100% of the company's coal operations for US$305.8 million.

Vale acquired two coal mining operations in the El Hatillo mines, with a combined production capacity of up to 4.5 million metric tons per year, and another in Cerro Largo which is currently in the exploration stage. Together, the new assets have a potential production capacity of 500 million tons.

In addition to this acquisition, the Brazilian mining company also runs coal operations in Australia and China. Also, the company is developing additional projects in Mozambique, Australia and Mongolia.

You can review Vale do Rio Doce's financial position on our financial reports page.

Comments

[castlegard05:]

Any stock from Brazil right now is a Buy Buy Buy.

Apr 03 12:54 AM

[Gravity404:]

I love RIO. Even this far off its highs of $44, I still have huge gains. Im holding this baby and adding to my positions down in the mid teens.

These guys are doing it right. They can set their prices even in a global metldown. HIGHLY RECOMMENED!

And the periodic dividends are a nice surprise too.

Apr 03 10:29 AM

[old folkdancer:]

Vale has great management. Intelligent,ambitious, hard working, persistent. True they had a bit of luck deciding to walk away from buying Xstrata because Xstrata wanted to maintain marketing rights but no matter. I think they are among the best and the brightest with a sense of resposibility to employees and communities where they operate.

Apr 03 03:42 PM