The program involves more than 30 projects located in Brazil, Peru, Chile, Canada, Australia, Indonesia, New Caledonia, Mozambique and Oman. Investments in Brazil will account for 73% of budgeted resources for 2008, totaling $8 billion. Of the 2008 budget, $8.436 billion will be invested in organic growth, corresponding to 76.7% of total spending, with $7.552 billion going to project execution and $884 million for R&D, including $349 million for mineral exploration.

Spending to support existing operations is pegged at $2.563 billion, an increase of $568 million over 2007’s budgeted $1.995 billion. The company noted that the increase was necessary due to growth in its asset base plus the need to significantly increase capital spending at its Canadian nickel properties. In 2008, $1.019 billion will be earmarked for these nickel operations.

Another $3.618 billion will be invested on non-ferrous minerals, representing 32.9% of total capex for 2008, involving the final phases of the Goro and Onça Puma nickel projects, and the start of development at Vermelho (nickel), Totten (nickel), Salobo I (copper), Papomono (copper) and Bayovar (phosphate).

The company said its goal of increasing iron-ore production capacity to 450 million mt/y will require heavy spending for development of new mines, plant construction and increased logistics infrastructure. Consequently, it plans to spend $3.251 billion on its ferrous minerals businesses in 2008, with another $1.870 billion for logistics. Of the total logistics budget, $1.152 billion will go to supporting growth in iron-ore production capacity, $755 million for aluminum, $470 million for energy generation and $390 million for coal.

In terms of individual financial disbursements in 2008, main projects include: Carajás–130MTPY, $1.165 billion; Goro, $723 million; Onça Puma, $581 million; Salobo I, $387 million; Alunorte 6 and 7, $382 million; Itabiritos, $341 million; and Serra Sul, $145 million. Specific logistics projects include the Southern Corridor ($379 million) and Northern Corridor ($334 million), while energy generation projects include Barcarena ($188 million) and Estreito ($165 million).

The increase in iron-ore production capacity will come mainly from three large projects: Carajás–130MTPY, Carajás Serra Sul and Maquiné-Baú.

The Carajás–130MTPY project in North Carajás, in the state of Pará, Brazil, is designed to add 30 million mt/y to its present capacity of 100 million mt/y. This includes construction of a plant with primary crusher, beneficiation and classification units and significant investments in logistics (car dumpers, stockyards and terminals). It is scheduled to be ready at the end of 2009, with an estimated cost of $2.478 billion.

In 2008, CVRD will begin work on what it describes as the largest greenfield site in the history of the company and the largest iron-ore project in the world: Carajás Serra Sul, in South Carajás in the state of Para, which will add 90 million mt/y of production capacity requiring total investment of $10.094 billion. In parallel with the capital funding for the mine, a beneficiation plant will be built comprising three 30-million-mt/y modules; as well as a 104-km-long railroad branch connecting Carajás Railroad (EFC) to Serra Sul; the fourth pier of Ponta da Madeira Maritime Terminal, with new car dumpers, ship loaders and loading line; and doubletracking over 546 km of the EFC. The project is due for completion by 1H 2012 with planned expenses for 2008 of $145 million.

Maquiné-Baú will have production capacity of 24 million mt/y and will require capex of $2.207 billion for mine, plant and railroad, with completion date set for 2011. Its 2008 budget is set at $11 million.

CVRD also has huge growth potential because of the extent of its proven and probable nickel reserves. Four projects are under way, with Goro and Onça Puma to come on line in 2008 followed by Vermelho and Totten.

Goro, in New Caledonia in the South Pacific, will have nominal production capacity of 60,000 mt/y of refined nickel and 4,600 mt/y of cobalt. Total estimated capex is $3.212 billion, with $723 million allocated for 2008. Operations at Goro are scheduled to begin at year end. In order to mitigate any operational risks, Goro’s ramp-up is staggered over a three-year period.

Onça Puma, in the state of Pará, will mine nickel laterite (saprolite) deposits and should reach a nominal capacity of 58,000 mt/y of nickel contained in ferronickel, its final product. Investment for this project is estimated at $1.395 billion, with $581 million allocated for 2008. Civil engineering work is well advanced, erection of the metal superstructure began in April 2007 and major equipment is already being built and delivered to the site. Commissioning is scheduled for the end of 2008 and operations should begin in January 2009.

The Vermelho project will mine a limonite deposit in the province of Carajás, state of Pará, with a nominal production capacity estimated at 46,000 mt/y of metallic nickel and 2.800 mt/y of cobalt. Anticipated cost of this project is $1.908 billion, with expenses budgeted at $91 million for 2008. The project is scheduled for completion in first quarter 2012.

CVRD is allocating $66 million for the development of the Totten mine, a new nickel mine in Sudbury, Ontario, Canada; $110 million for construction of a nickel refinery in Voisey’s Bay, Canada, to produce 50,000 tpy of nickel; and $897 million, including $387 million in 2008, for Salobo I, the first phase of development of the Salobo copper deposit in Carajás, Pará.

Investments in bauxite and alumina projects are budgeted at $755 million, about 10% of the total amount budgeted for projects in 2008.