Leveraging the competitive advantages: the 2006 capex budget January 27, 2006 Companhia Vale do Rio Doce

Disclaimer ”This presentation may contain statements that express management’s expectations about future events or results rather than historical facts. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements, and CVRD cannot give assurance that such statements will prove correct. These risks and uncertainties include factors: relating to the Brazilian economy and securities markets, which exhibit volatility and can be adversely affected by developments in other countries; relating to the iron ore business and its dependence on the global steel industry, which is cyclical in nature; and relating to the highly competitive industries in which CVRD operates. For additional information on factors that could cause CVRD’s actual results to differ from expectations reflected in forward-looking statements, please see CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários and the U.S. Securities and Exchange Commission.”

Capex of US$ 4.6 billion in line with strategic plan Organic growth is the main driver of shareholder value creation World-class assets and synergies with an efficient logistics infrastructure provide opportunities for high rates of return on projects

CVRD has an excellent track record of delivering: 14 major projects over the last four years São Luís Mo I Rana Capão Xavier Taquari-Vassouras Trombetas Pier III PDM Fábrica Nova Alunorte 3 Sossego Aimorés Funil Carajás 70 Mtpa Candonga Alunorte 4 Average ROIC 2002-2005: 33.7%

CVRD, a global leader of shareholder value creation Large Cap1 Top Ten, 2000-2004 Source: The Boston Consulting Group 1 n=119 global companies with a market valuation greater than US$ 25 billion

The highest TSR among large mining companies Annual average

Capex continues to be growth-focused: 77% of budget dedicated to growth US$ 4.6 billion

Capex will increase US$ 1. 3 billion relatively to the US$ 3 Capex will increase US$ 1.3 billion relatively to the US$ 3.3 billion spent in 2005 US$ million 227 (558) 201 504 4,626  SIB 891  R&D¹  Old projects Cost increase 3,361 New projects Capex 2005 Capex 2006 1 US$ 100 million is due to Onça Puma

We are developing six very attractive iron ore projects Total Capacity Start-up investment increase US$ million Mtpy Carajás 85 Mtpy 296 15 2006 Carajás 100 Mtpy 366 15 2007 Brucutu 856 24¹ 2006/07 Itabira 75 3 2007 Fazendão 100 14² 2007 Fábrica 144 5 2007 1 Can be expanded to 30 Mtpy ² ROM

Iron ore production Mtpy CVRD iron ore production grew at 15% per annum from 2001 to 2005. It is expected to reach almost 300 Mtpy in 2007 Iron ore production Mtpy

Exploring the long-term upward trend of pellets consumption 3 new highly competitive plants Total Capacity Start-up investment increase US$ million Mtpy Itabiritos 759 7.0 2008 Tubarão VIII 516 7.0 2008 Samarco¹ 1,183 7.6 2008 1 Samarco is a JV. Its project is not included in CVRD capex program.

Exploring our strong competitive advantages in the aluminum business Paragominas, a new big bauxite mine Capex US$ 548 million Capacity 2007: 5.4 Mtpy 2008: 9.9 Mtpy Alunorte, the world’s lowest expansion cost Capex US$ 1.4 billion Capacity 2006: 4.5 Mtpy 2008: 6.4 Mtpy

Alumina production Mtpy CVRD alumina production grew at 13% per year from 2001 to 2005 and it is expected to reach 6.4 Mtpy in 2009 Alumina production Mtpy

CVRD will emerge as a fairly large global player in nickel Total Capacity Start-up investment increase US$ billion Ktpy Vermelho¹ 1.2 46 2008 Onça Puma² 1.1 57 2008 1 Final product: nickel cathodes and cobalt (2.8 Mtpy). ² To be approved. Final product: ferronickel.

CVRD is investing in the logistics infrastructure to support the mining business Ports PDM - capacity to load 100 Mtpy of iron ore US$ 196 million Tubarão – higher speed of ship loading US$ 65 million Guaíba Island –  capacity to 49 mtpy from 43 Mtpy US$ 41 million Sepetiba –  capacity to 21 Mtpy from 16 Mtpy US$ 28 million Railroads 1,426 railcars & 22 locos US$ 200 million EFC expansion US$ 153 million Capex

Fostering iron ore consumption in Brazil - attracting steelmaking projects - taking advantage of the trend towards geographical reallocation of global steel capacity Ceará Steel Capacity: 1.5 Mtpy CVRD Capex: US$ 25 million DR pellets consumption: 2.5 Mtpy Estimated start-up: 2009 CSA Capacity: 4.1 Mtpy CVRD Capex: US$ 200 million Iron ore & pellets consumption: 7.1 Mtpy Estimated start-up: 2008

CVRD – A global leader www.cvrd.com.br e-mail: rio@cvrd.com.br