August 30, 2008

Vale concludes pellet price negotiation with ArcelorMittal

Companhia Vale do Rio Doce , the world's largest iron ore and pellets producer has concluded the blast furnace and direct reduction pellets price negotiations for 2008 with ArcelorMittal.

As an outcome of these negotiations, the blast furnace and direct reduction pellet price, FOB Tubarão, increased by 86.67% relatively to 2007. Therefore, the reference price per dry metric ton Fe unit for blast furnace pellets for 2008 is USD 2.2020 and the reference price per dry metric ton Fe unit for direct reduction pellets is USD 2.4222.

VALE reinforces its commitment with customers, investing a substantial amount of resources to add new capacity of high quality pellets to meet their increasing demand, aiming to enhance our long-term relationship.