Edgar Filing: Companhia Vale do Rio Doce

FORM 6-K

United States Securities and Exchange Commission

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934

For the month of November 2005

Companhia Vale do Rio Doce

Avenida Graça Aranha, No. 26
20005-900 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

(Check One) Form 20-F þ Form 40-F o

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))

(Check One) Yes o No þ

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))

(Check One) Yes o No þ

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

(Check One) Yes o No þ

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82-___.)

Table of Contents




BRGAAP Press Release

BRGAAP Financial Pages

Equity Investee Information 09/30/2005

Signature Page

BR GAAP

BOVESPA: VALE3, VALE5
NYSE: RIO, RIOPR
LATIBEX: XVALO, XVALP

www.cvrd.com.br
rio@cvrd.com.br

Investor Relations
Department

Roberto Castello Branco
Alessandra Gadelha
Barbara Geluda
Daniela Tinoco
Eduardo Mello Franco
Fabio Lima
Tel: (5521) 3814-4540

SUSTAINING PROFITABLE GROWTH
CVRD’s performance in the third quarter of 2005 (3Q05)

Rio de Janeiro, November 9, 2005 – Companhia Vale do Rio Doce (CVRD) has been showing excellent financial and operational performance, reaching and exceeding several existing records in the last few quarters. Past investment, together with significant gains in productivity, have resulted in record sales, with new records being set in this quarter for the shipment of iron ore, pellets and potash, as well as in the general cargo transported and port operations.

CVRD is operating at full capacity in most of its units and every ton produced is being shipped to its clients.

Despite the cost pressures provoked by the economic cycle and the significant appreciation in the Brazilian Real, profit margins continue significantly higher than the historic average, while cash generation has been sufficient to finance a huge investment program, as well as providing a considerable return on capital for the shareholders. At the same time, the Company has reported strong growth in its balance sheet.

§		Iron ore and pellet shipments of 63.977 million tons, with shipments amounting to 184.578 million tons in the first nine months of the year.

§		Record potash sales of 197,000 tons, with sales of 464,000 tons accumulated in the period to the end of September.

§		General cargo carried for clients by CVRD railroads, of 8.242 billion net ton kilometres (ntk), exceeding the previous record of 7.952 billion ntk. CVRD’s railroads transported 22.006 billion ntk of general cargo in 9M05.

§		Record levels of cargo handled for clients at the Company’s ports, of 8.315 million tons, corresponding to 22.908 million tons for the first nine months of 2005.

The financial and operational information contained in this press release, except where otherwise indicated, was consolidated in accordance with Brazilian generally accepted accounting principles (Brazilian GAAP). According to the criteria of Brazilian GAAP, those companies in which CVRD has effective control, or shared control as defined by shareholders agreement, are included in the consolidated figures. In the instances where CVRD has effective control, the consolidation is carried out on a 100% basis and the difference between this amount and the percentage of CVRD’s equity stake in the subsidiary is discounted at the minority shareholding line. CVRD’s main subsidiaries are Caemi, Alunorte, Albras, RDM, RDME, RDMN, Urucum Mineração, Docenave, Ferrovia Centro-Atlântica (FCA), Rio Doce Europa, Itaco, CVRD Overseas and Rio Doce International Finance. For companies in which control is shared, the consolidated figures are proportional to the equity stake held by CVRD in each company. The main companies in which CVRD has shared control are MRN, Valesul, Kobrasco, Nibrasco, Hispanobras, Itabrasco, GIIC, Samarco and CSI.

BR GAAP

§		Gross revenues of R$ 9.042 billion, up 14.0% on 3Q04. From the period January to September 2005, gross revenues totalled R$ 26.146 billion, up 23.1% on the same period a year earlier.

§		Consolidated exports for the period January to September 2005, of US$ 5.010 billion, up 20.1% compared to the same period in 2004. CVRD’s sales to external markets in 2005 reinforced the Company’s position as Brazil’s largest private sector exporter.

§		Net exports (exports less imports) in the first nine months of 2005, of US$ 4.501 billion, up 28.4% on the figure reported in 9M04. CVRD’s contribution to Brazil’s trade balance continues to be extremely significant, accounting for 13.8% of the national trade surplus of US$ 32.664 billion recorded in this period.

§		Operating profit, as measured by EBIT (earnings before interest and tax), of R$ 3.765 billion, up 24.4% on 3Q04, totalling R$ 10.897 billion for the first nine months of this year.

§		EBIT margin of 42.8%, 260 basis points higher than EBIT margin in 3Q04.

§		Cash generation, as measured by EBITDA (earnings before interest, tax, depreciation and amortization) of R$ 4.318 billion, 26.0% up on 3Q04.

§		EBITDA for the 12-month period ending on September 30, 2005, amounted to R$ 15.503 billion, 26.6% higher than reported for the year 2004, of R$ 12.249 billion.

§		Net earnings of R$ 2.711 billion, corresponding to R$ 2.35 per share, up 18.1% when compared to 3Q04. In the first nine months of the year, net earnings amounted to R$ 7.806 billion, R$ 6.78 per share, up 58.2% compared to the earnings in the same period last year of R$ 4.933 billion.

§		Return on equity (ROE) in 3Q05 of 35.9%, compared to 38.3% in 2Q05.

§		Investments¹ in 3Q05 of US$ 917 million, and US$ 2.309 billion for the period January to September 2005.

SELECTED FINANCIAL INDICATORS


													R$ million
	3Q04			2Q05			3Q05			9M04			9M05
Gross operating revenues		7,932			10,051			9,042			21,236			26,146
Exports (US$ million)		1,484			1,951			1,723			4,170			5,010
EBIT		3,026			4,756			3,765			7,773			10,896
EBIT margin (%)		40.2	%		49.8	%		42.8	%		37.4	%		43.5	%
EBITDA		3,427			5,334			4,318			9,246			12,500
Net earnings		2,296			3,479			2,711			4,933			7,805
Net earnings per share (R$)		1.99			3.02			2.35			4.29			6.78
Capex (US$ million)		424.0			821.3			917.0			1,270.3			2,308.6


¹		according to the generally accepted accounting principles in the United States (US GAAP)

OUTLOOK FOR THE BUSINESS

Global economic growth remains on track, in spite of the continuing high prices of crude oil and refined oil products that contribute to increases in production costs bringing some uncertainty over the future.

World economic expansion has undergone some variations since 2003, but these were not enough to deflect it from a path of expansion higher than the long-term trend. After a surge in the end of 2003 and the beginning of 2004, global growth slowed down somewhat, converging to levels below than the 6% posted during that period. Expansion picked up again in 1Q05, before another soft patch driven by the global inventories cycle.

BR GAAP

Nevertheless, in 3Q05 industrial production and international trade again expanded firmly. Also, leading indicators for manufacturing industry – important for the demand for ores and metals – showed significant strength.

The global Purchasing Managers’ Index (PMI) for manufacturing industry, computed by JP Morgan, reached a 13-month peak in October, consistent with a manufacturing output growth rate of 6% p.a. The figures indicate balanced growth across the regions, with increases in the Euro Zone, principally in Germany, its leading economy, and Japan, where the manufacturing PMI is the highest since September 2004 and 2005, respectively. In the US there was a slight decrease in October, but after a very high level in the previous months.

Long-term interest rates, in spite of some recent volatility, continue to be very low, and stock markets have been strong, stimulated by companies’ increasing profits and more solid balance sheets. Credit spreads, as well as premiums demanded on long-term debt securities, are now tight in comparison with historic averages.

Oil prices, after a peak in nominal terms in August reflecting market nervousness on the impact of hurricanes in the US, have fallen during the last two months.

In 3Q05, the US economy grew at an annual rate of more than 3% for the tenth quarter running, in spite of the effects of Hurricane Katrina.

Increased oil prices led to US monthly inflation in September being the highest since 1980, with the 12-month inflation reaching 4.7%. However, core inflation is at 2% p.a. We expect the US Federal Reserve to take monetary policy on a less expansionary course, continuing to increase short-term interest rates to attempt to avoid secondary pass-through effects on domestic prices from the high prices of oil and oil products. The short-term real interest rate in the US is still close to zero even after the increases of 300 basis points in the nominal rate between June 2004 and October 2005.

The Chinese economy posted annualized GDP growth above 9% for the ninth consecutive quarter. Industrial production growth stabilized at 16% p.a. since 2Q05, while fixed assets investments, an important leading indicator for steel consumption, show an annual growth rate of 27%.

Since urbanization is still low in China, similar to Brazil’s level of 45 years ago, and since its manufacturing industry has not yet reached the capital-intensive production stage, there is significant potential for expansion of demand for ore and metals over the next 10 to 15 years.

China’s economic development, intensive in metals consumption – a long-term phenomenon – is a key difference between the current expansion cycle and those of the 1980s and ’90s, when the demand for mineral products depended basically upon fluctuations in mature economies, which were more exposed to cyclical fluctuations and where the importance of manufacturing industry output is naturally declining.

On the other hand, the investment cycle in the ores and metals industry, which began a pickup in 2003 after the contraction that followed the South East Asian crisis, that caused significant increase in costs of equipment and engineering services and in the time taken to conclude new projects. This has two important consequences: the first is the lengthen of the cycle, as supply responds more slowly to the context of higher prices; and the second is that the attractiveness of new projects requires higher long term prices.

BR GAAP

Forecasts of an excess in supply of metals in the second half of 2005 did not materialize. On the contrary, inventories of aluminum and copper diminished in September and October. Copper prices have tested the barrier of US$ 4,000/ton, unprecedented in the last 20 years, and aluminum prices are again varying around US$ 2,000/ton, level reached in the March of this year, and highest since January 1995.

With firm indications of industrial production growth worldwide in the coming quarters, low inventory levels, and the absence of any projects adding significant increment in the supply of copper concentrate, this situation is very likely to continue.

In aluminum, China’s increased production has called for higher imports of alumina and this has been a determining factor in the current excess global demand, reflected in a significant raise in spot prices, now above US$ 500/ton, more than double their levels of 2001-2. We do not expect this imbalance to be corrected in the next 24 months.

World steel production was 6.3% up year-on-year in 9M05, led strongly by China, where production rose 27.4%. Chinese production is now more than 31% of world production, and exceeds the aggregate production of Europe of the 25 and the NAFTA countries.

China’s iron ore imports in 9M05 were 198.9 million tons, 31.7% more than in 9M04. In the context of the stability of demand in the rest of the world, the increase of almost 50 million tons in Chinese imports is a good indicator of the substantial pressure of the global demand.

The existence of a spot iron ore market provides short-term signals on the degree of balance between supply and demand. The change in estimated spot transactions from 4% of seaborne trade in 2003 to 9%, and the persistence of prices higher than those in the long-term contract market gives us a good indication of continuation of the excess demand for iron ore. This information is even more important if we consider that this is happening in an environment in which inventories continue to be low, without any signal of increase, and in which the iron ore industry has been working at full capacity since the second half of 2003.

Among the products for which global demand benefits most strongly from China’s economic growth are those, such as iron ore, alumina (bauxite), copper concentrate and nickel, in which reserves are limited in volume and/or quality – precisely the markets in which CVRD either has an excellent existing position (iron ore and alumina) or is investing to become one of the largest global players (copper and nickel).

RELEVANT EVENTS

•

Consolidation of the investment grade rating

After the upgrade by Moody’s Investor Service of CVRD’s credit risk from Ba1 to Baa3, corresponding to investment grade, this rating was confirmed by two other important rating agencies, Standard & Poor’s Rating Services with a BBB rating, and Dominion Bond Rating Services, with a rating of BBB low.

As a result, besides being the first Brazilian company to receive an investment grade rating, CVRD is the only Brazilian company classified as investment grade by three of the world’s most important rating agencies.

BR GAAP

These decisions consolidate market perception on CVRD’s high quality credit risk.

•

New tranche of CVRD 2034 issued

In October, CVRD issued US$ 300 million in bonds due 2034 – making up a single series with its US$ 500 million 2034 issued on January 15, 2004.

Purchase offers from investors were more than twice supply. The placement, which provides an yield to investor of 7.65% per year, will lead to magnifying the market liquidity of CVRD 2034 and lengthening the average maturity of the Company’s debt. This issuance is in line with the strategic aim of minimizing the Company refinancing risk while at the same time strengthening the positive perception of CVRD’s credit quality by the global capital markets.

•

Acquisition offer for Canico

In September, CVRD made an offer for the acquisition of all the common stock of the Canadian mining exploration company Canico Resource Corp (Canico) for CAN$17.50 (Canadian dollars) per common share, to be paid in cash.

Canico focuses on the development of the Onça Puma lateritic nickel project in the Brazilian state of Pará. Due to the location of Canico’s sole asset and existing efficient infrastructure in Carajás, also in the state of Pará, Brazil, there are significant synergies to be exploited.

•

Investment in new pelletizing plants

A US$ 759 million investment by CVRD’s subsidiary Caemi in its Itabiritos project was approved.

The project consists of construction of a pelletizing plant (US$ 462 million) at Vargem Grande, in the state of Minas Gerais, Brazil, with nominal production capacity of 7 Mtpy, an iron ore concentration plant at the Pico mine (US$ 282 million) and a 4-km iron ore pipeline (US$ 15 million), to carry the ore between these two operational units. Operational start-up is scheduled for 2008.

At the same time CVRD approved the development of the third pelletizing plant of Samarco, at Ponta Ubu, in the state of Espírito Santo, for an estimated investment of US$ 1.183 billion, to increase its current pellet production capacity by 7.6 Mtpy to 21.6 Mtpy.

Of this total, US$ 518 million will be invested in the pelletizing plant, US$ 240 million in an iron ore concentration plant at the Alegria mine, and US$ 300 million in an iron ore pipeline parallel to the existing one, linking these two units – the remainder being invested in the mine and in expansion of the shipment and storage capacity. This operation is scheduled to start-up in the first half of 2008.

CVRD holds 50% of Samarco, which represents an integral part of its business strategy in pellets.

•

Development of the 118 project approved

In October, CVRD’s Board of Directors approved the investment to develop the 118 oxide copper project. The estimated cost is US$ 232 million, with start-up planned for first half 2008. Estimated average production capacity is 36,000 tpy of copper cathode, with forecast useful life of 11 years.

BR GAAP

The project has synergies with the Sossego mine, through the utilization of this mine’s deposit of oxide ore in its processing plant, and with the Vermelho nickel project, through the use of the sulfuric acid plants.

•

Further expansions of bauxite and alumina output capacity

In line with the strategic focus on upstream in the aluminum production chain, in which CVRD has strong competitive advantages, the Board of Directors approved expansion of the Paragominas bauxite mine and Alunorte’s alumina refinery – both in the state of Pará, Brazil.

US$ 196 million will be invested in the second phase of Paragominas, which will add 4.5 Mtpy of bauxite to the 5.4 Mtpy capacity of the first phase, currently under development. Conclusion of the first phase is set for 1Q07, and of the second phase for 2Q08.

The construction of stages 6 and 7 of Alunorte, each with production capacity of 925,000 tpy of alumina, will require investment of US$ 846 million. This project is expected to be concluded in 2Q08, when the refinery will reach nominal capacity of 6.26 Mtpy.

•

Dividends

The priorities for use of the Company’s cash flow are: financing of the growth opportunities that generate value, appropriate management of the balance sheet, and return to shareholders. A total of US$ 1.3 billion was distributed to shareholders this year, and of US$ 3.4 billion in the last four years.

On October 31, 2005, CVRD paid dividends to its shareholders consisted of R$ 1.8 billion, equivalent to R$ 1.57 per common or preferred outstanding share. This amount corresponds to the second portion of the minimum dividend announced in January of R$ 1.1 billion together with the additional dividend proposed in September of R$ 678 million.

In 2005 CVRD has paid R$ 3.09 billion to its shareholders, or R$ 2.68 per common or preferred outstanding share, an increase of 36% over the amount paid in 2004 and representing average annual growth of 39% since 2002.

GROSS REVENUES OF R$ 9.042 BILLION

CVRD’s gross revenue in 3Q05 amounted to R$ 9.042 billion, 14.0% higher than that reported in 3Q04, of R$ 7.932 billion, being the second-highest in the Company’s history. The increase in the prices of products sold by CVRD contributed R$ 2.885 billion to this revenue growth. On the other hand, the appreciation of the Brazilian Real against the US dollar during these quarters, of 21.3%, had a negative impact on the Company’s gross revenue of R$ 1.676 billion, considering that 86% of revenues are denominated in US dollars.

The retroactive effect of the iron ore and pellet price increases on revenues in 3Q05 amounted to R$ 52 million, while in 2Q05 the effect was R$ 779 million. Disregarding these effects, gross revenues in 2Q05 and 3Q05 would have been, respectively, R$ 9.272 billion and R$ 8.990 billion.

Sales of iron ore accounted for 70.6% of CVRD’s total revenue in 3Q05, while non-ferrous minerals accounted for 4.7%. The aluminum chain accounted for 10.6% of the Company’s gross revenues, logistics services 10.4%, and steel products, 3.8%.

BR GAAP

Brazil accounted for the largest slice of CVRD’s sales in 3Q05, amounting to 23.6% of gross revenue. Shipments to Europe accounted for 27.1% of revenues in the quarter, of which Germany received the most, accounting for 8.1% of total sales. Sales to Asia accounted for 30.8%, China accounting for 15.8% of Company’s total sales.

In the first nine months of 2005, gross revenues generated by CVRD amounted to R$ 26.146 billion, 23.1% higher than the R$ 21.236 billion reported for the same period in 2004.

•

Ferrous minerals – record sales of iron ore

Sales of iron ore and pelets in 3Q05 amounted to a record 63.977 million tons, composed by 55.203 million tons of iron ore and e 8.774 million tons of pellets.

In the first nine months of 2005, CVRD sold 157.331 million tons of iron ore, up 17.845 million tons compared to the same period last year and 3.159 million tons more than the whole of 2003.

As demand for iron ore continues extremely tight, a large proportion of the shipment growth was due to gains in productivity achieved in the production complexes of the Southern System. As well as a good operational performance, the start-up of operations at the Fábrica Nova mine was fundamental in providing the additional capacity for the Company to expand its sales.

In 3Q05, CVRD purchased 4.613 million tons of iron ore from third parties — mining companies located in the Iron Quadrangle, in the state of Minas Gerais, Brazil — to supplement its production and meet the demands of its clients. In this same quarter, CVRD’s iron ore production set a new record of 63.168 million tons. In the first nine months of the year, purchases from third parties totalled 13.109 million tons, up 11.9% on the amount purchased in the same period in 2004, of 11.710 million tons of iron ore.

A temporary occurrence – problems with the port terminal of a US client caused by Hurricane Katrina – caused a reduction in pellet sales in 3Q05, to 8.774 million tons, compared to pellet sales of 10.160 million tons in 3Q04. Pellet sales in 9M05 totalled 27.247 million tons, compared to 30.013 million in the same period in 2004.

19.375 million tons of iron ore and pellets were shipped to Europe, 30.3% of the total. 6.293 million tons were sold to Germany, 3.028 million tons to France and 3.089 million tons to Italy. China, CVRD’s largest buyer, accounted for 14.852 million tons, 23.2% of the total and Japan for 6.240 million tons, 9.8% of the total.

Sales to Brazil amounted to 11.568 million tons, which represented 18.1% of the overall sales total. Of this amount, 8.722 million tons were sold to the steel industry and pig iron producers, while 2.846 million tons were sold to the pellet joint ventures, which after being transformed into pellets, were then exported.

Gross revenues generated by iron ore shipments amounted to R$ 4.463 billion, while pellet shipments generated R$ 1.625 billion. Together, the revenues obtained from the sales of these two products represented 67.3% of the Company’s total revenue in 3Q05. The retroactive effect of the iron ore and pellet price increase in 3Q05 amounted to R$ 52 million, while in 2Q05 a difference of R$ 779 million was accounted for as a result of the increase.

BR GAAP

Revenues obtained from the operation of pelletizing joint ventures in Tubarão amounted to R$ 19 million.

Manganese sales in 3Q05, amounted to 271,000 tons, 13.4% less than in 3Q04. Comparing manganese sales in 3Q05 with those in 2Q05, there was an increase of 77,000 tons.

Sales of ferro-alloys, of 136,000 tons, were in line with the volume sold in the same quarter in 2004, but 9.9% lower than in 2Q05. The drop in volume sold had been already expected, due to the temporary shutdown of the equivalent of one third of CVRD’s total ferro-alloy production capacity from August this year, which resulted in a 15% drop in production in 3Q05, compared to the previous quarter.

Revenues from the sale of manganese in 3Q05 amounted to R$ 49 million, while sales of ferro alloys generated revenues of R$ 226 million.

Ferro-alloy prices have already started to show signs of stabilization, it being possible to observe some recovery from September, due to the market’s reaction to the shrinkage in global production.

In 3Q05, ferrous minerals – iron ore, pellets, manganese ore and ferro-alloys – were responsible for 70.6% of the Company’s total revenues, of R$ 6.381 billion.

•

Bauxite, alumina and primary aluminum

Given the stabilization of the production capacity in the short term, there were no remarkable changes in the quarterly sales volumes of bauxite, alumina and aluminum.

In 3Q05, bauxite sales amounted to 1.422 million tons, down 7.0% compared to 3Q04, but practically in line with the sales in the previous quarter. The drought in the Amazon region harmed the navigation through Trombetas river, negatively affecting bauxite shipments. Since the raining season starts in the last quarter of the year, this problem was already eliminated.

Alumina sales amounted to 504,000 tons in 3Q05, almost the same as the volume in 3Q04, but 37.3% higher than that sold in 2Q05. With the Alunorte refinery operating at full capacity and producing at a rate of 2.5 million tons a year, the fluctuation in the volume sold in each quarter was basically caused by the use of swaps with other producers, with the aim of maximizing sales profitability.

The quantity of primary aluminum sold, 122,000 tons in 3Q05, was 6.1% higher than the sales recorded in 3Q04, but the same as that sold in 2Q05.

In 3Q05, gross revenue generated by the sale of products in the aluminum chain amounted to R$ 955 million, 10.6% of the Company’s total gross revenue.

•

Copper

In 3Q05, sales of copper concentrate amounted to 96,000 tons, 9,000 tons less than the amount sold in 2Q05, but the same as that sold in 3Q04. Sales accumulated in the first nine months of 2005 amounted to 286,000 tons.

Copper production from the Sossego mine continues to be below nominal capacity, due to the delay in the delivery of drilling machines: of the four ordered, only one

BR GAAP

is in service. Once the new equipment comes into operation, being more suited to the type of rock found at Sossego, we expect the rate of production, and consequently sales, to increase from 1Q06.

The higher prices compensated for the effect of the lower volume sold in 3Q05 on revenues. In this quarter, total revenue from the shipment of copper concentrate amounted to R$ 214 million, bringing the total for 9M05 to R$ 643 million.

•

Industrial minerals

In 3Q05, kaolin sales amounted to 280,000 tons, compared to 303,000 tons in the previous quarter and 318,000 tons in 3Q04. The drop in volume was partially due to the postponement of a shipment of 18,000 tons to Japan, from the end of September to October, due to problems with the vessel involved. Sales of this product generated gross revenues of R$ 99 million.

Sales of potash, of 197,000 tons, were 52.7% higher than the sales reported in 2Q05, and 22.4% higher than in 3Q04. The seasonal effect as a result of the harvest planting was responsible for the increase in demand, which was partly met by the use of stock that had been accumulated at the beginning of this year. Production capacity at the Taquari-Vassouras potash mine has been increased from 600,000 tons to 850,000 tons a year, and from 2006 the mine should be operating at full capacity. Gross revenue from the potash sales in 3Q05 amounted to R$ 111 million.

Gross revenue obtained from the sales of potash and kaolin in the first nine months of 2005, amounted to R$ 581 million.

•

Logistics services

In 3Q05, logistics services generated gross revenue of R$ 938 million – 10.4% of the Company’s total revenue, up 10.6% on 2Q05, and up 17.4% compared to 3Q04. In the first nine months of this year, gross revenues from logistics services amounted to R$ 2.510 billion, an increase of 12.3% when compared to revenues in the same period a year earlier, of R$ 2.236 billion.

General cargo carried by CVRD railroads contributed with revenues of R$ 694 million, while port services produced R$ 142 million, and coastal shipping and port support services R$ 102 million.

In 3Q05 CVRD’s railroad network transported 8.242 billion ntk of general cargo, a new record and up 3.7% on 3Q04, during which period the network recorded 7.952 billion ntks. The main cargo transported consisted of agricultural products, 39.1% of the total, steel industry inputs and products, 37.0%, and building materials and forestry products, 6.9%. For the first time, the transport of agricultural products exceeded that of products in the steel production chain, as a consequence of the movement of goods from the harvest and CVRD’s exploitation of its growth potential.

The Company’s ports and maritime terminals handled 8.315 million tons of general cargo, compared to 7.454 million tons in 3Q04.

BR GAAP

SALES VOLUME – IRON ORE AND PELLETS


															thousand tons
	3Q04		%		2Q05		%		3Q05		%		9M05		%
Iron ore		50,872		83		52,969		86		55,203		86		157,331		85
Pellets		10,160		17		8,748		14		8,774		14		27,247		15
Total		61,032		100		61,717		100		63,977		100		184,578		100

SALES VOLUME – ORES AND METALS


									thousand tons
	3Q04		2Q05		3Q05		9M04		9M05
Manganese		313		194		271		679		663
Ferro alloys		133		151		136		430		423
Copper concentrate		96		105		96		130		286
Potash		161		129		197		465		464
Kaolin		318		303		280		896		863
Bauxite		1,530		1,401		1,422		3,900		4,056
Alumina		508		367		504		1,312		1,335
Aluminum		115		123		122		358		367

LOGISTICS SERVICES


	3Q04		2Q05		3Q05		9M04		9M05
Railroads (million ntk)		7,952		7,755		8,242		21,408		22,006
Ports (thousand tons)		7,454		8,280		8,315		21,787		22,908

VOLUME SOLD BY DESTINATION – IRON ORE AND PELLETS


															million tons
	3Q04		%		2Q05		%		3Q05		%		9M05		%
Asia		22.8		37.4		22.5		36.5		26.0		40.6		71.2		38.6
China		12.1		19.8		12.3		19.9		14.9		23.3		38.7		21.0
Japan		5.4		8.9		6.6		10.7		6.2		9.7		18.6		10.1
South Korea		3.2		5.2		1.3		2.1		2.9		4.5		6.7		3.6
Emerging Asia (ex-China)		2.1		3.4		2.3		3.7		2.0		3.1		7.2		3.9
Europe		19.6		32.1		20.6		33.4		19.4		30.3		58.0		31.4
Germany		6.8		11.1		6.5		10.5		6.3		9.8		18.7		10.1
France		3.2		5.2		3.0		4.9		3.0		4.7		8.6		4.7
Italy		2.3		3.8		3.4		5.5		3.1		4.8		8.7		4.7
Others		7.3		12.0		7.7		12.5		7.0		10.9		22.0		11.9
Brazil		11.2		18.4		11.4		18.5		11.6		18.1		34.2		18.5
USA		1.1		1.8		1.1		1.8		0.9		1.4		3.3		1.8
RoW		6.3		10.3		6.1		9.9		6.1		9.5		17.9		9.7
Total		61.0		100.0		61.7		100.0		64.0		100.0		184.6		100.0

BR GAAP

GROSS REVENUES – BY PRODUCT

R$ million

3Q04

2Q05

3Q05

9M05

Iron ore and pellets

4,331

54.6

7,015

69.8

6,087

67.3

17,023

65.1

Iron ore

3,133

39.5

5,072

50.5

4,463

49.4

12,288

47.0

Pellets

1,199

15.1

1,943

19.3

1,625

18.0

4,735

18.1

Pelletizing plants operation services

0.2

0.1

0.2

Manganese and ferro-alloys

594

7.5

443

4.4

275

3.0

1,216

4.7

Copper concentrate

196

2.5

229

2.3

215

2.4

643

2.5

Potash

103

1.3

0.8

111

1.2

267

1.0

Kaolin

126

1.6

111

1.1

314

1.2

Aluminum

1,081

13.6

928

9.2

955

10.6

2,923

11.2

Logistics

799

10.1

848

8.4

938

10.4

2,510

9.6

Railroads

566

7.1

631

6.3

694

7.7

1,831

7.0

Ports

117

1.5

123

1.2

142

1.6

379

1.4

Shipping

117

1.5

0.9

102

1.1

301

1.2

Steel products

670

8.4

379

3.8

340

3.8

1,171

4.5

Others

0.2

0.1

0.0

0.1

Total

7,932

100.0

10,051

100.0

9,042

100.0

26,145

100.0

GROSS REVENUES – BY DESTINATION


															R$ million
	3Q04		%		2Q05		%		3Q05		%		9M05		%
Brazil		1,779		22.4		2,323		23.1		2,132		23.6		6,220		23.8
USA		986		12.4		715		7.1		560		6.2		2,019		7.7
Europe		2,287		28.8		3,027		30.1		2,452		27.1		7,306		27.9
Japan		635		8.0		841		8.4		795		8.8		2,233		8.5
China		960		12.1		1,129		11.2		1,430		15.8		3,395		13.0
Emerging Asia (ex-China)		490		6.2		548		5.4		560		6.2		1,536		5.9
Rest of the World		795		10.0		1,470		14.6		1,114		12.3		3,438		13.1
Total		7,932		100.0		10,051		100.0		9,042		100.0		26,146		100.0

GOOD OPERATIONAL PERFORMANCE

CVRD’s operating profit (EBIT) in 3Q05 amounted to R$ 3.765 billion, 20.9% less than that obtained in the previous quarter, but 24.4% higher than the EBIT reported in 3Q04. EBIT margin in 3Q05 amounted to 42.8%, 260 basis points higher than the EBIT margin in 3Q04, of 40.2%.

In the first nine months of 2005, the Company’s total EBIT amounted to R$ 10.897 billion, 5.7% higher than the whole 2004, for which EBIT amounted to R$ 10.306 billion.

The drop of R$ 992 million in EBIT seen between 3Q05 and 2Q05 is basically explained by the reduction of R$ 746 million in the Company’s net revenues. 97.5% of this reduction is explained when the retroactive effect of the iron ore and pellet price increases is deducted from revenues. In addition, the appreciation of 5.5% in the Brazilian Real had an adverse effect on revenues.

The Company’s cost of goods sold (COGS) rose by R$ 97 million, while operational expenses increased by R$ 148 million.

BR GAAP

The increase of R$ 738 million seen in the Company’s EBIT, comparing 3Q04 with 3Q05, is explained by the increase in net revenue of R$ 1.275 billion – the result of higher sales volume and higher average prices – partially offset by the increase of R$ 385 million in COGS.

Expenditure on contract services increased by R$ 232 million, which was due mainly to higher freight expenses (up R$ 81 million) and the waste removal from the mines (an increase of R$ 98 million). The cost of material increased by R$ 235 million, due to higher expenditure on conveyor belts, replacement parts and tyres, as a result of a larger number bought, as well as an increase in their respective prices.

Expenditure on electric power, fuel oil and gas increased by R$ 63 million, due to the price increases in these inputs, as well as the renewal of the electricity supply contract for Albras, in June 2004, whose price per MWh is sensitive to inflation and the price of aluminum on the LME (London Metals Exchange).

As a consequence of the expansion in CVRD’s asset base, which has grown from R$ 15.7 billion at the end of 2002, to R$ 29.3 billion at the end of September 2005, as a result of substantial investment in the last few years, the cost of depreciation and exhaustion increased by R$ 85 million, compared to 3Q04, amounting to R$ 366 million.

On the other hand, expenditure on product purchases was down by R$ 272 million, mainly due to the sale of CST, concluded at the end of last year. It should also be pointed out that the effect of the appreciation of the Brazilian Real against the US Dollar on purchases carried out by companies located outside Brazil, was favourable, because the purchase amounts in terms of Brazilian Reais were reduced.

Demurrage expenses amounted to R$ 42 million, totalling R$ 138 million for the first nine months of 2005. This total, when annualised, is equivalent to R$ 184 million, 24.9% less than that in 2004. This improvement was the result of efforts being made by the Company to optimise the shipment logistics of its products and enlarge the capacity of its ports. Nevertheless, a more significant drop will be achieved over time.

EBIT was negatively affected by the increase of R$ 151 million in operational expenses. Administrative expenses increased by R$ 87 million, basically as a result of a salary increase for the Company’s employees, a raise of 6.5% being agreed for Company employees for the period from July 2005 to June 2006, as well as the payment of a one-off bonus in August. Personnel expenses increased by R$ 48 million. At the same time, expenses on technical consulting, maintenance, infrastructure and support services at the Company’s installations, increased by R$ 17 million.

Expenditure on research and development increased by 103.6%, rising from R$ 108 million in 3Q04, to R$ 220 million in 3Q05. The Company continues to intensify its efforts of the mineral exploration front, with the aim of ensuring a base of projects ready for development. Of the total invested in 3Q05, 41.3% was spent on projects in other countries in Latin America, Africa and Asia.

Other operational expenses were down R$ 48 million, mainly due to lower provisions for ICMS losses. In 3Q05, provisions were made for contingencies generated to a large degree by FCA as well as provisions for losses, due to the write-down in the Company’s inventories of ferro-alloys.

BR GAAP

COGS BREAKDOWN


															R$ million
	3Q04		%		2Q05		%		3Q05		%		9M05		%
Personnel		365		9.8		340		8.5		377		9.2		1,032		8.7
Material		586		15.7		792		19.7		821		20.0		2,328		19.6
Fuel oil and gases		409		11.0		446		11.1		458		11.1		1,311		11.0
Outsourced services		630		16.9		795		19.8		862		21.0		2,415		20.3
Electric energy		346		9.3		371		9.3		361		8.8		1,050		8.8
Acquisition of products		754		20.2		570		14.2		482		11.7		1,645		13.8
Depreciation and exhaustion		282		7.6		362		9.0		366		8.9		1,075		9.0
Goodwill amortization		96		2.6		96		2.4		95		2.3		287		2.4
Others		256		6.9		238		5.9		286		7.0		763		6.4
Total		3,723		100.0		4,011		100.0		4,108		100.0		11,904		100.0

CASH GENERATION CONTINUES TO EXPAND

CVRD’s cash generation in 3Q05, as measured by EBITDA, amounted to R$ 4.318 billion, 19.1% less than the record obtained in the previous quarter, but up 26.0% on the amount generated in 3Q04. In the first nine months of 2005, CVRD’s EBITDA totalled R$ 12.500 billion, 35.2% higher than that obtained in the same period in 2004.

In the nine months to the end of September 2005, CVRD’s EBITDA amounted to R$ 15.504 billion, 26.6% more than the EBITDA reported for the whole year of 2004, of R$ 12.249 billion.

The rise in EBITDA seen between 3Q04 and 3Q05 was the result of an increase of R$ 738 million in EBIT and R$ 94 million in depreciation. In 3Q05, CVRD received R$ 59 million in dividends from companies not consolidated in its financial statements, while in 3Q04 it received no dividends at all from this source.

Ferrous mineral operations (iron ore, pellets, manganese ore and ferro-alloys) were responsible for 85.0% of EBITDA in 3Q05, logistics services accounting for 7.9%, products of the aluminum chain, 7.1%, non-ferrous minerals (copper, kaolin and potash), 1.9% and others – representing spending on research and development, (3.5)%.

QUARTERLY EBITDA


													R$ million
	3Q04			2Q05			3Q05			9M04			9M05
Net operating revenues		7,531			9,551			8,805			20,160			25,077
COGS		(3,723	)		(4,011	)		(4,108	)		(10,286	)		(11,904	)
SG&A		(336	)		(403	)		(423	)		(1,078	)		(1,185	)
Research and development		(108	)		(161	)		(220	)		(256	)		(463	)
Other operational expenses		(337	)		(220	)		(289	)		(767	)		(629	)
EBIT		3,026			4,756			3,765			7,773			10,896

Adjustment for non-cash items		—			—			—			183			—
Depreciation, amortization & exhaustion		401			488			495			1,254			1,456
Dividends received		—			89			59			36			148
EBITDA		3,427			5,334			4,318			9,246			12,500

BR GAAP

EBITDA BY BUSINESS AREA


											R$ million
	3Q04		2Q05			3Q05			9M04		9M05
Ferrous minerals		2,147		4,445			3,671			5,885		10,053
Non- ferrous minerals		56		83			84			227		270
Logistics		339		364			340			957		996
Aluminum		594		348			305			1,445		1,107
Steel		291		120			68			731		252
Others		—		(27	)		(151	)		—		(178	)
Total		3,427		5,334			4,318			9,246		12,500

NET EARNINGS OF R$ 7.8 BILLION TO SEPTEMBER 30

In 3Q05, CVRD’s net earnings amounted to R$ 2.711 billion, 22.0% down on 2Q05, but 18.1% higher than net earnings reported in 3Q04.

The Company’s net earnings totalled R$ 7.806 billion for the first nine months of 2005, 20.8% higher than that obtained for the whole of 2004, of R$ 6.460 billion.

The increase of R$ 738 million in operating profit between 3Q04 and 3Q05 was the main reason behind the net earnings performance.

The result from shareholdings amounted to R$ 13 million, R$ 22 million less than in 3Q04, basically due to the effect of exchange rate variation on investments outside Brazil. The equity income result of R$ 70 million, was to a large part offset by the goodwill on consolidated companies, of R$ 57 million.

The financial result suffered a negative impact of approximately R$ 319 million. Even so, this was still R$ 9 million less than the negative figure reported in 3Q04, of R$ 328 million.

In 3Q05, financial expenses totalled R$ 509 million, while financial revenues amounted to R$ 65 million. Monetary variation increased by 71.2%, up from R$ 73 million in 3Q04, to R$ 125 million in 3Q05.

In this quarter, a profit of R$ 298 million was booked from the sale of Quebec Cartier Mining Company (QCM) shares, a Canadian producer of iron ore and pellets, while in 3Q04, there was a gain of R$ 466 million booked from the sale of the Company’s stake in CST.

Provisions for the payment of income tax and social contribution were R$ 177 million higher than those in 3Q04.

DEBT: EXCELLENCE IN CREDIT QUALITY

After achieving investment grade status on July 8, 2005, with the rating by Moody’s Investor Service, CVRD obtained the same recognition from two of the other principal rating agencies in the world: Standard & Poor’s Ratings Services and Dominion Bond Ratings Service. In our view, this represents the consolidation of market’s perception on CVRD’s high credit quality.

BR GAAP

CVRD’s total debt on September 30, 2005 was US$ 3.942 billion, which compares with US$ 4.168 billion at the end of June 2005, and US$ 4.088 billion at the end of 2004. Net debt at the end of September 2005 was US$ 2.707 billion, a reduction of US$ 505 million from the net debt position of US$ 3.212 billion at the end of June 2005.

The average maturity of CVRD’s debt on September 30, 2005 was 6.89 years, of which 47% was at fixed rates and 53% at floating rates.

The Company’s leverage and interest coverage indicators continued to improve, reflecting the strength of its balance sheet: total debt/adjusted EBITDA declined from 0.83x on June 30, 2005 to 0.68x on September 30, 2005; and interest coverage, measured as LTM Adjusted EBITDA / interest paid, increased from 17.73x to 21.03x over the same period.

In October 2005 CVRD raised US$ 300 million from the issue of a further tranche of the CVRD 2034 bond, with an yield to investors of 7.65% p.a. This represents a spread of 286 bp over US Treasury securities of equal duration, and 50 bp less than the US$ 500 million issue of January 2004 – and with a yield to investors 70 bp lower.

The transaction, which was placed amidst an environment of fears of inflation acceleration in the US and expectations of higher long-term interest rates, was very successful, given the excess demand to buy the bond and the spread reduction compared to the January 2004 issue.

The main effects of an additional issue of the 2034 bond were: liquidity increase, a marginal lengthening of the average maturity of CVRD’s debt, and, consequently, reduction in its refinancing risks.

FINANCIAL EXPENSES


							US$ million
Financial expenses on:	3Q04			2Q05			3Q05
Debt with third parties		(61	)		(57	)		(69	)
Debt with related parties		(3	)		(4	)		2
Total debt-related financial expenses		(64	)		(61	)		(67	)


Gross interest on:	3Q04			2Q05			3Q05
Tax and labour contingencies		(11	)		(13	)		(27	)
Tax on financial transactions (CPMF)		(9	)		(16	)		(15	)
Derivatives		(36	)		56			(64	)
Others		(45	)		(17	)		(43	)
Total gross interest		(101	)		10			(149	)

Total		(165	)		(51	)		(216	)

DEBT INDICATORS


					US$ million
	3Q04		2Q05		3Q05
Gross debt		4,418		4,168		3,942
Net debt		2,479		3,212		2,707
Gross debt / adjusted LTM EBITDA (x)		1.34		0.83		0.68
Adjusted LTM EBITDA / LTM interest expenses (x)		13.00		17.73		21.03
Gross debt / EV(x)		0.16		0.11		0.08

Enterprise Value = market capitalization + net debt

BR GAAP

THE SEEDS OF FUTURE GROWTH

CVRD’s total capital expenditure in 3Q05 was US$ 917.0 million, 11.7% more than in 2Q05 at US$ 821.3 million and 60.8% higher than in 1Q05 at US$ 570.3 million.

Capex in 9M05 was US$ 2.309 billion, 69.3% of the US$ 3.332 billion budgeted for the year. In the 12 months to the end of September 2005 CVRD’s capex was US$ 2.995 billion, an all-time record in the Company’s history.

Of the total 3Q05 capex, US$ 700.2 million was allocated to organic growth – R&D and projects – and US$ 216.8 million to “stay-in-business capex”. In the first nine months of the year US$ 1.608 billion was invested in projects, US$ 181 million in R&D and US$ 519 million in maintenance.

Three important projects have been completed this year: the Fábrica Nova iron ore mine, the increase in capacity at the Taquari-Vassouras potash mine from 600,000 to 850,000 tons/year and the construction of the Aimorés hydroelectric power plant.

In the quarter, CVRD invested US$ 110.1 million in R&D, which compares with US$ 42.7 million in 2Q05. Mineral exploration efforts were concentrated mainly in looking for new deposits of copper, coal, nickel, gold and manganese and in project studies (conceptual, pre-feasibility and feasibility studies).

CVRD Board of Directors approved projects totaling US$ 2.033 billion, involving capacity expansion of pellets, copper, bauxite and alumina. These projects, submitted to rigorous approval criteria, will be new sources of cash generation and shareholder value from 2008, when operations are scheduled to begin.

CVRD subsidiary Caemi will invest US$ 759 million in the Itabiritos project, to be completed in 2008. This involves construction of a pelletizing plant with nominal capacity of 7 Mtpy (US$ 462 million), an iron ore concentration plant at the Pico mine (US$ 282 million) and an iron ore pipeline for the transportation of ore between these two units (US$ 15 million).

The investment in the second phase of the Paragominas bauxite mine, in Brazil, state of Pará, was also approved. It will add 4.5 Mtpy to the nominal capacity of the first phase currently being developed, of 5.4 Mtpy. The project, budgeted to cost US$ 196 million, is planned for completion in the second quarter of 2008, when Paragominas will have capacity to produce 9.9 Mtpy of bauxite.

Construction of stages 6 and 7 of the Barcarena alumina refinery each with annual capacity of 935,000 tons, has also been approved. The cost of this project is estimated at US$ 846 million, extremely competitive even with the appreciation of the Brazilian Real and the strong rise in prices of equipments and contractors’ services.

The start-up is also programmed for the second quarter of 2008. The two new stages will increase the capacity of the refinery to 6.26 Mtpy, consolidating its position as the world’s largest and most up-to-date plant.

In October CVRD’s Board approved investment in developing the 118 oxide copper project, with average production capacity estimated at 36,000 tons of

BR GAAP

cooper cathode/year. The 118 project is in the Southern part of Carajás, in the Brazilian state of Pará. The estimated investment is US$ 232 million, for start-up in the first half of 2008.

•

Main CVRD projects underway: progress report


Area	Project	Budgeted 2005		Status
	Expansion of the Carajás iron ore mines to 85 Mtpy – Northern System		140	This project will add 15 Mtpy to CVRD’s production capacity and is scheduled for conclusion in 3Q06. The second ship loader of Pier III started operating in August.

	Brucutu iron ore mine – Southern System		205	Phase I of the project is expected to be complete in 3Q06, bringing nominal production capacity to 12 Mtpy. Conclusion of Phase II is planned for 2007, bringing capacity to 24 Mtpy. Studies are in progress for expansion to 30 Mtpy.

	Expansion of the Itabira iron ore mines – Southern System		16	Modernization of operations and expansion of production capacity of the Itabira mines to 46 Mtpy. Conclusion and start-up scheduled for 2H07.

	Fazendão iron ore mine – Southern System		52	Project for 14 million tpy of run-of-mine (ROM) iron ore. Works are planned to start in 1H06, for completion and start-up in 2H07.

Ferrous minerals	Fábrica iron ore mine – Southern System		38	Project to expand capacity by 5 million tons from 12 to 17 Mtpy, with start-up in 3Q07.

	Timbopeba iron ore mine – Southern System		25	Small-scale equipments for this project are now operating. Access road to the mine is under construction, to be ready in December 2005. Output is in line with estimates (2.7 million tons).

	Tubarão Port expansion – Southern System		22	Project to expand conveyor belt systems and cargo handling area machinery, and build new cargo handling areas. The project will increase the port’s handling capacity by 10 million tons. Conclusion scheduled for December 2006.

	Expansion of the São Luis pelletizing plant		18	Expansion of capacity from 6 to 7 Mtpy – will be finalized by January 2006. 85% of the project has been completed. Estimated production this year is 6.25 million tons.

	Anthracite		86	The process of acquisition of 25% of the Chinese anthracite producer Henan Longyu Energy Resources Ltd., in partnership with Yoncheng and Baosteel, has been completed. The mine is expected to produce 1.7 million tons of high quality anthracite in 2005, of which CVRD’s take is equal to its percentage holding in the company.

Coal	Metallurgical coke		16	Acquisition of a 25% stake, in association with the Chinese coal producer Yankuang, in Shandong Yankuang International Coking Ltd, to produce metallurgical coke. The project has estimated production capacity of 2 Mtpy of coke and 200,000 tons/year of methanol. Start-up scheduled for 2006.

Non-ferrous minerals	Expansion of the Taquari-Vassouras potash mine		9	The works to expand nominal potash production capacity from 600,000 to 850,000 tpy have been completed.

BR GAAP


Area	Project	Budgeted 2005		Status
	118 copper mine		32	This project was approved in October 2005 and the mine is scheduled to start producing in 1H08. The project will have production capacity of 36,000 tons of copper cathode/year, and estimated total investment of US$ 232 million. The principal equipment has been ordered.

	Vermelho nickel mine		34	This project was approved in July 2005, for scheduled start-up of the mine in 4Q08, with estimated production capacity of 46,000 tons of metallic nickel and 2,800 tons of cobalt per year. Estimated total investment is US$ 1.2 billion. The main equipment has been ordered and work on the site should start in 2006 after the rainy season. Work on obtaining the environmental license is in progress.

	Alumina: Alunorte stages 4 and 5		306	The project to built stages 4 and 5 will increase alumina refinery capacity to 4.2 Mtpy, with start-up planned for stage 4 in 1Q06, and stage 5 planned for completion in 2Q06. 95% of the physical works have been completed.

Aluminum	Paragominas Bauxite mine Phase 11		154	The first module of this mine will produce 5.4 Mtpy of bauxite, starting in 1Q07. The 244-km ore pipeline, which will carry bauxite from the mine to the alumina refinery in Barcarena, in the Brazilian state of Pará, is under construction with completion expected to March 2006.

Logistics	Acquisition of locomotives and wagons –EFVM, EFC and FCA		559	Up to the end of September 2005, 3,953 wagons and 68 locomotives had been purchased.
	Aimorés hydroelectric plant		12	This power plant, on the Rio Doce, in the Brazilian state of Minas Gerais, will have generation capacity of 330MW. The three rotors are already in partial operation. CVRD’s stake is 51.0%.

Electricity	Capim Branco I and II hydro plants		73	These two power plants on the Araguari river in the state of Minas Gerais will have generation capacity of 240MW and 210MW respectively. Both are planned to start operating in 2006.

CAPEX BY BUSINESS AREA


							US$ million
Business area	3Q05				realized 2005
Ferrous minerals		353.7	38.6	%		893.9		38.7	%
Non ferrous minerals		71.3	7.8	%		160.1		6.9	%
Logistcs		231.6	25.3	%		514.1		22.3	%
Aluminum		170.8	18.6	%		448.5		19.4	%
Coal		5.9	0.6	%		99.9		4.3	%
Electric energy		33.6	3.7	%		93.1		4.0	%
Others		50.1	5.5	%		99.1		4.3	%
Total		917.0	100.0	%		2,308.7		100.0	%

CONFERENCE CALL AND WEBCAST

CVRD will hold its conference call and webcast on Friday, November 11, at 12:00 pm Rio de Janeiro time, 9:00 am Eastern Standard Time and 2:00 pm UK time. Instructions for participation are on the website www.cvrd.com.br, Investor Relations section. A recording of the call and webcast will be available on the website for 90 days following November 11.

BR GAAP

SELECTED FINANCIAL INDICATORS FOR THE MAIN NON-CONSOLIDATED COMPANIES

Selected financial indicators for the principal non-consolidated companies are available in CVRD’s quarterly financial statements, on its website www.cvrd.com.br, in the Investor Relations section.

FINANCIAL STATEMENTS


							R$ million
	3Q04			2Q05			3Q05
Gross operating revenues		7,932			10,051			9,042
Taxes		(402	)		(500	)		(237	)
Net operating revenues		7,531			9,551			8,805
Cost of goods sold		(3,723	)		(4,011	)		(4,108	)
Gross profit		3,808			5,541			4,697
Gross margin (%)		50.6	%		58.0	%		53.3	%
Operational expenses		(782	)		(784	)		(932	)
Sales		(91	)		(96	)		(91	)
Administrative		(246	)		(308	)		(333	)
Research and development		(108	)		(161	)		(220	)
Other operational expenses		(337	)		(220	)		(289	)
Operating profit before financial result and result from shareholders		3,026			4,756			3,765
Result from shareholdings		36			77			13
Equity income		99			147			85
Goodwill amortization		(57	)		(57	)		(57	)
Others		(6	)		(13	)		(14	)
Financial result		(329	)		82			(319	)
Financial expenses		(476	)		(247	)		(510	)
Financial revenues		74			58			65
Monetary variation		73			271			125
Operating profit		2,733			4,915			3,458
Result of discontinued operations		466			—			298
Earnings before income tax and social contribution		3,199			4,915			3,756
Income tax and social contribution		(587	)		(1,061	)		(764	)
Minority interest		(316	)		(375	)		(281	)
Net earnings		2,296			3,479			2,711
Earnings per share		1.99			3.02			2.35

BALANCE SHEET


			R$ million
	06/30/05		09/30/05
Asset
Current		12,387		12,172
Long term		4,106		4,279
Fixed		30,462		32,285
Total		46,954		48,736
Liabilities
Current		8,195		7,248
Long term		12,918		12,730
Others		2,579		2,784
Shareholders’ equity		23,262		25,974
Paid up capital		14,000		14,000
Reserves		9,262		11,974
Total		46,954		48,736

BR GAAP

CASH FLOW


							R$ million
	3Q04			2Q05			3Q05
Cash flows from operating activities:
Net income		2,296			3,479			2,711
Adjustments to reconcile net income with cash provided by operating activities:
Result from shareholdings		(36	)		(77	)		(13	)
Result from sale of investment		(466	)		—			(298	)
Depreciation, depletion and amortization		362			384			400
Deferred income tax and social contribution		(240	)		53			(283	)
Financial expenses and foreign exchange and monetary net variation		(868	)		(982	)		(420	)
Minority interest		316			375			281
Impairment of property, plant and equipment		62			60			1
Goodwill amortization in the COGS		96			96			95
Net unrealized derivative losses		116			(10	)		169
Dividends/interest attributed to stockholders received		—			89			59
Others		(143	)		58			37
Decrease (increase) in assets:
Accounts receivable		(30	)		(1,026	)		735
Inventories		(161	)		(67	)		(69	)
Others		247			(593	)		(870	)
Increase (decrease) in liabilities:
Suppliers and contractors		101			278			(291	)
Payroll and related charges		49			30			55
Taxes and Contributions		577			885			1,265
Others		629			288			(348	)
Net cash provided by operating activities		2,907			3,323			3,214
Cash Flow from investing activities:
Loans and advances receivable		35			(43	)		89
Guarantees and deposits		(53	)		(37	)		(84	)
Additions to investments		—			(208	)		(31	)
Additions to property, plant and equipment		(1,302	)		(1,926	)		(2,464	)
Proceeds from disposals of investments/property, plant and equipment		1,261			4			301
Net cash used I investing activities		(60	)		(2,212	)		(2,190	)
Cash flows from financing activities:
Short-term debt, net issuances (repayments)		71			470			(435	)
Long-term debt		142			342			26
Financial institutions		(691	)		(1,138	)		(370	)
Interest attributed to stockholders		—			(1,280	)		—
Net cash used in financing activities		(478	)		(1,606	)		(779	)
Increase (decrease) in cash and cash equivalents		2,369			(496	)		245
Cash and equivalents, beginning of period		3,792			3,240			2,744
Cash and equivalents, end of period		6,161			2,744			2,989
Cash paid during the period for:
Interest on short-term debt		(12	)		(20	)		(10	)
Interest on long-term debt		(284	)		(128	)		(196	)
Paid income tax and social contribution		(12	)		(378	)		(469	)
Non cash transactions:
Additions to property, plant and equipment-interest capitalization		210			402			120
Income tax and social contribution paid with credits		(67	)		(56	)		(64	)

BR GAAP

“This communication may include declarations which represent the expectations of the Company’s Management about future results or events. All such declarations, when based on future expectations and not on historical facts, involve various risks and uncertainties. The Company cannot guarantee that such declarations turn out to be correct. Such risks and uncertainties include factors relative to the Brazilian economy and capital markets, which are volatile and may be affected by developments in other countries; factors relative to the iron ore business and its dependence on the steel industry, which is cyclical in nature; and factors relative to the high degree of competitiveness in industries in which CVRD operates. To obtain additional information on factors which could cause results to be different from those estimated by the Company, please consult the reports filed with the Comissão de Valores Mobiliários (CVM — Brazilian stock exchange regulatory authority) and the U.S. Securities and Exchange Commission — SEC, including the most recent Annual Report — CVRD Form 20F.”

Contents


Part I			2

1 - Management’s Discussion and Analysis of the Operating Results for the nine months ended September 30, 2005 Compared With September 30, 2004			2

1.1 - General Aspects			2

1.2 - Comments on the Consolidated Results			5
1.2.1 - Gross Revenue			5
1.2.2 - Cost of Products and Services			6
1.2.3 - Operating Expenses			7
1.2.4 - Net Financial Results			7
1.2.5 - Income Tax and Social Contribution			7
1.2.6 - Cash Generation Consolidated			7

1.3 - Comments on the Parent Company Results			8
1.3.1 - Gross Revenue			8
1.3.2 - Cost of Products and Services			8
1.3.3 - Gross Margin			8
1.3.4 - Results of Shareholdings by Business Area			8
1.3.5 - Operating Expenses			9
1.3.6 - Net Financial Results			9
1.3.7 - Income Tax and Social Contribution			9

Part II			10

Quarterly Information and Notes to the Quarterly Information			10

2 - Balance Sheet			10

3 - Statement of Income			11

4 - Statement of Changes in Stockholders’ Equity (Additional Information)			12

5 - Statement of Cash Flows (Additional Information)			13

6 - Notes to the Quarterly Information at September 30, 2005 and 2004			14

6.1 - Operations			14

6.2 - Presentation of Quarterly Information			14

6.3 - Significant Practices Accounting Policies			14

6.4 - Principles and Practices of Consolidation			14

6.5 - Cash and Cash Equivalents			15

6.6 - Accounts Receivable from Customers			15

6.7 - Inventories			15

6.8 - Related Parties			16

6.9 - Taxes to Recover or Offset			16

6.10 - Deferred Income Tax and Social Contribution			16

6.11 - Consolidated investments			17

6.12 - Property, Plant and Equipment			18

6.13 - Loans and Financing			19

6.14 - Contingent Liabilities			20

6.15 - Environmental and Site Reclamation and Restoration Costs			21

6.16 - Paid-up Capital			21

6.17 - Treasury Stock			22

6.18 - Remuneration of Shareholders			22

6.19 - Financial Results			22

6.20 - Financial Instruments – Derivatives			23

6.21 - Administrative and Other Operating Expenses			25

6.22 - Sale of Assets			25

6.23 - Subsequent Events			25

Part III			26

7 - Attachment I — Statement of Investments in Subsidiaries			26

8 - Other Information the Company Deems Relevant			27

8.1 - Consolidated Iron Ore and Pellet Sales (Main Markets — Not Reviewed)			27

9 - Report of the Independent Accountants			28

10 - Board of Directors, Advisory Committees, Fiscal Council, Executive Officers and Technical Responsibles			29


		CVRD		1

Part I

Expressed In thousands of reais


1 -		Management’s Discussion and Analysis of the Operating Results for the nine months ended September 30, 2005 Compared With September 30, 2004

1.1 — General Aspects

(a)

Companhia Vale do Rio Doce group’s segments of business are as follows:

	•		Ferrous minerals: iron ore and pellets as well as manganese and ferroalloys;

	•		Non-ferrous minerals: potash, kaolin and copper;

	•		Logistics: railroads, ports and maritime terminals and shipping; and

	•		Holdings: equity holdings in producers of aluminum, steel and electric power generation.

Ferrous Minerals

Iron Ore and Pellets

Operating through two world-class integrated systems for ore production and distribution. The Northern System, based in the states of Pará and Maranhão and the Southern System, based in the states of Minas Gerais and Espírito Santo, each consisting of mines, railroads and maritime terminals. Besides those, there is a third system that consists of mines and port facilities from our subsidiary Caemi Mineração Metalurgia S. A. (Caemi).

Currently CVRD operates nine pelletizing plants in Brazil, five of them in joint ventures with international partners. The Company also has an interest in Samarco Mineração S. A. (Samarco), which owns and operates two pelletizing plants in Espírito Santo, and an interest in Gulf Industrial Investment Company (GIIC), a pelletizing plant in Bahrein.

Iron ore and pellets sales are generally made pursuant to long-term supply contracts which provide for annual price negotiations. Cyclical changes in the world demand for steel products affect sales prices and volumes in the world iron ore market. Different factors, such as the iron content of specific ore deposits, the various beneficiation processes required to produce the final product, granulometric, moisture content, and the type and concentration of contaminants (such as phosphorus, alumina and manganese) in the ore, influence contract prices for iron ore. Contract prices also depend on transportation costs.

Annual price negotiations generally occur from November to February, with separate prices established for the Asian and European iron ore markets. In the Asian market, the renegotiated prices are effective as of April of each period up to March of the next period. In the European market, the renegotiated prices are effective from January to December.

Manganese and Ferroalloys

This activity is carried out through the subsidiaries Rio Doce Manganês (RDM) located in the state of Bahia, Pará and Minas Gerais, Urucum located in the state of Mato Grosso do Sul, Rio Doce Manganèse Europe in France and Rio Doce Manganese Norway in Norway.

Non-Ferrous Minerals

Potash

The Company through a leasing contract with Petróleo Brasileiro S.A. – PETROBRAS, has a potash leased mine since 1995 from Operational Unit Taquari-Vassouras (UOTV), located in the state of Sergipe. It is the only producer of potash chloride in activity in Brazil, The potash explored by the Company is raw material for fertilizers producers.

Copper

CVRD’s copper activities started in June, 2004 with the operation of the Sossego mine in Pará. Sossego is the first copper mine of CVRD.

Kaolin

Kaolin is a fine white aluminum silicate clay, used in the paper, ceramic and pharmaceutical industries as a coating and filler. Kaolin commercial activities are conducted through Caemi, controller of Pará Pigmentos S.A. and Cadam.


		CVRD		2

Logistics

The logistics system includes the Vitória to Minas Railroad and the Tubarão port complex in the Southern System, and the Carajás Railroad and Ponta da Madeira Marine Terminal in the Northern System. In addition, CVRD controls the railroad Ferrovia Centro-Atlântica S.A. – FCA, Terminal de Vila Velha S.A — TVV and Cia. Portuária Baia de Sepetiba — CPBS, the Maritime terminal Guaiba Island and has a holding in MRS Logística.

The principal cargo of CVRD’s railroad is the Company’s own iron ore, along with steel, coal, pig iron, limestone, agricultural products and fuel. The Company charges market rates for third-party cargo, which vary based upon the distance traveled and the density of the freight in question.

Energy

The Company participates in nine hydroelectric plants, five of which are in operation. CVRD’s investments in the sector seek to optimize the Group’s supply of electric power.

Holdings

Aluminum Operations

The Company sells aluminum, alumina and bauxite to an active world market in which prices are determined based on prices for the primary aluminum quoted on the London Metals Exchange (LME).

Bauxite extraction operates through our jointly-controlled company Mineração Rio do Norte S.A. – MRN.

Alumina refine operates through ALUNORTE – Alumina do Norte do Brasil S.A. and the smelts of aluminum through ALBRAS – Aluminio Brasileiro S.A. and the jointly-controlled company Valesul Alumínio S.A.

Steel

Commercial activities in the steel industry are conducted through the jointly-controlled company California Steel Industries Inc., located in the United States and through the affiliated company Usinas Siderúrgicas de Minas Gerais S.A. – Usiminas.

(b)

The variations of the main currencies and indices in relation to the real, which impacted the results of the Company and its subsidiaries, jointly-controlled companies and affiliates, were as follows:


	D%								Parity US$ x R $ in the period
Currencies / Indices	U.S.
Period	DOLLAR			IGP-M			TJLP		End		Average
From 01/01/05 to 09/30/05		(16.3	)		(0.2	)		7.2		2.2222		2.4938
From 07/01/05 to 09/30/05		(5.5	)		(1.5	)		2.4		2.2222		2.3434
From 04/01/05 to 06/30/05		(11.8	)		0.2			2.4		2.3504		2.4792
From 01/01/04 to 09/30/04		(1.1	)		10.3			7.3		2.8586		2.9735
From 07/01/04 to 09/30/04		(8.2	)		3.3			2.4		2.8586		2.9783

About 86% of the consolidated gross revenue on 09/30/05 is linked to the U.S. dollar. About 31% of total consolidated costs are linked to the U.S. dollar. Consequently, fluctuations in the exchange rate between the two currencies have a significant impact on the operating cash flows.

Approximately 88% of the short-term and long-term loans of the consolidated on 09/30/05 are denominated in U.S. dollars. As a result, exchange rate fluctuations have a significant impact on the financial expenses (Notes 6.13 and 6.19).

(c)

On 09/30/05, the consolidated trade balance of US$ 4,501 million was generated as follows:


	Consolidated (in US$ million)
	Quarter									Accumulated
	3Q/05			2Q/05			3Q/04			09/30/05			09/30/04
Exports		1,723			1,951			1,484			5,010			4,170
Imports		(134	)		(134	)		(225	)		(509	)		(664	)

		1,589			1,817			1,259			4,501			3,506


		CVRD		3

(d) Approval of new copper investment

On October 2005, the Company announced that its Board of Directors approved the investment for the development of the 118 copper project. 118 is located in the Carajás mineral province, in the state of Pará, Brazil, 6.5 km from the Sossego copper mine. Its estimated production capacity is 36,000 tons/year (tpy) of copper cathodes, with an expected mine life of 11 years. The estimated capex is US$ 232 million, with startup scheduled for the first half of 2008.

(e) Approval of increase in pellet production capacity

In October, 2005 the Company approved projects to increase its pellet production capacity by 14.6 million tons per year. The expansion will take place in Samarco and Caemi. CVRD approved a project of its wholly owned subsidiary Caemi, for the construction of a pelletizing plant with production capacity of 7 million tons per year, and startup scheduled for 2008. The estimated investment, which also includes a beneficiation plant and a 4-km pipeline to carry its output, is estimated at US$759 million.

The Board of Directors of Samarco, approved investment of US$1.183 billion in the construction of its third pelletizing plant. The new pelletizing plant will add 7.6 million tons per year of capacity to Samarco. The new plant is scheduled for startup in the first half of 2008. The project also includes construction of a new beneficiation plant, a new 400-kilometer pipeline, and increased capacity for storage of products and outflow through the port.

(f) Capacity expansions in bauxite and alumina

CVRD’s Board of Directors has approved the investment for the development of phase II of the Paragominas bauxite mine and stages 6 and 7 of its alumina refinery (Alunorte), both located in the state of Pará, Brazil.

The construction of stages 6 and 7 of CVRD refinery, each one of them with annual production capacity of 935,000 tons of alumina, will result in an increase of the Alunorte production capacity to 6.26 million tons per year (Mtpy).

The total estimated investment in the project is US$ 846 million. The start up of stages 6 and 7 is expected for the second quarter of 2008. Currently, the alumina refinery is developing stages 4 and 5, which will increase of its production capacity to 4.4 Mtpy from 2.5 Mtpy. The start up of stages 4 and 5 is scheduled for the first quarter of 2006, and the ramp-up conclusion is expected for the third quarter of 2006.

The total estimated investment in the development of phase II of the Paragominas bauxite mine, is US$ 196.1 million. The project will allow Paragominas to achieve a capacity to produce 9.9 Mtpy. Phase II is scheduled to come on stream on the second quarter of 2008.

Paragominas phase I – production capacity of 5.4 Mtpy — is being developed simultaneously with the construction of a 244 km pipeline to transport the bauxite from the mine to the alumina refinery in Barcarena, in the state of Pará. This pipeline, the first in the world to transport bauxite , is designed for a nominal capacity of 14.4 Mtpy, which will be achieved at Paragominas phase III. Paragominas phase I is scheduled to start up in the first quarter of 2007.


		CVRD		4

1.2 — Comments on the Consolidated Results

The net income of the Company as at 09/30/05 was R$ 7,805,936 compared with net income of R$ 4,933,077 as at 09/30/04 (the earnings per share corresponds to R$ 6.78 at 09/30/05 versus R$ 4.28 at 09/30/04). The result is consequence of the positive operational performance and the new prices of iron ore and pellets used beginning in the second quarter, partially offset by the 16% appreciation of the real against the U.S. Dollar.

1.2.1 — Gross Revenue

Sales volume and revenues by products and services:


	In thousands of metric tons
	(except railroad transportation)													In thousands of *reais*
	Quarter						Accumulated							Quarter						Accumulated
	3Q/05		2Q/05		3Q/04		09/30/05		06/30/04		D%			3Q/05		2Q/05		3Q/04		09/30/05		06/30/04		D%
Iron ore		55,203		52,969		50,872		157,331		139,486		13			4,462,634		5,072,201		3,132,531		12,288,242		8,076,336		52
Pellets (*)		8,774		8,748		10,160		27,247		30,013		(9	)		1,643,421		1,955,682		1,215,372		4,787,234		3,418,546		40

		63,977		61,717		61,032		184,578		169,499		9			6,106,055		7,027,883		4,347,903		17,075,476		11,494,882		49

Manganese		271		194		313		663		679		(2	)		48,920		62,013		67,269		174,288		131,187		33
Ferroalloys		136		151		133		423		430		(2	)		225,891		380,969		526,566		1,041,744		1,358,017		(23	)

															274,811		442,982		593,835		1,216,032		1,489,204		(18	)


Copper		96		105		96		286		130		120			214,632		228,570		195,538		643,182		267,888		140
Potash		197		129		161		464		465		—			111,296		75,506		103,410		267,175		264,858		1
Kaolin		280		303		318		863		896		(4	)		98,681		110,955		126,346		314,212		354,900		(11	)

															424,609		415,031		425,294		1,224,569		887,646		38


Railroad transportation (millions of TKU)(**)		10,468		10,019		10,560		28,820		28,900		—			694,261		630,946		565,535		1,830,719		1,574,949		16
Port services		8,315		8,280		7,454		22,908		21,787		5			141,752		122,875		117,064		379,002		332,325		14
Maritime transportation		—		—		—		—		—		—			101,943		94,146		116,571		300,665		328,980		(9	)

															937,956		847,967		799,170		2,510,386		2,236,254		12


Aluminum		122		123		115		367		358		3			536,302		582,268		607,578		1,729,792		1,833,310		(6	)
Alumina		504		367		508		1,335		1,312		2			332,974		237,726		382,809		929,403		904,338		3
Bauxite		1,422		1,401		1,530		4,056		3,900		4			86,039		108,176		91,053		264,258		227,828		16

															955,315		928,170		1,081,440		2,923,453		2,965,476		(1	)


Steel		—		—		—		—		—		—			339,851		378,697		669,867		1,170,701		2,108,243		(44	)
Other products and services		—		—		—		—		—		—			3,350		10,718		14,843		25,141		54,101		(54	)

															9,041,947		10,051,448		7,932,352		26,145,758		21,235,806		23


(*)		Includes revenues derived from services provided to pelletizing join ventures in the amounts of R$ 18,772, R$ 12,689, R$ 16,541, R$ 52,674 and R$ 57,307 referring to the 3Q/05, 2Q/05, 3Q/04, 09/30/05 and 09/30/04, respectively.

(**)		The company carried through its railroad system 8,242, 7,755, 7,952, 22,006 and 21,408 million of TKUs of general cargo and 2,226, 2,264, 2,608, 6,814 and 7,492 million of TKUs of iron ore for third parties in 3Q/05, 2Q/05, 3Q/04, 09/30/05 and 09/30/04, respectively.

Revenues of all traded products in the first nine months of 2005 are negatively impacted by the 16% average appreciation of the Real against the U.S. Dollar, this the selling currency of the majority of the revenues, compared with the same period of 2004.

Besides this impact it is worth pointing out:

Revenues from iron ore and pellets increased by 49% (R$ 17,075,476 on 09/30/05 against R$ 11,494,882 on 09/30/04) due to higher prices in the second quarter and the 9% increase in quantities sold.

Revenues from manganese and ferroalloys decreased by 18% (R$ 1,216,032 on 09/30/05 against R$ 1,489,204 on 09/30/04) due mainly to the fall of average selling prices.

Revenues from copper increased by 140% (R$ 643,182 on 09/30/05 against R$ 267,888 on 09/30/04) due to the 120% increase of volume sold once the trading of copper began in June, 2004, as well as higher international market prices.

Revenues from potash increased by 1% (R$ 267,175 on 09/30/05 against R$ 264,858 on 09/30/04). This effect was due to the cycled stability of the fertilizers market in consequence of the plantation period.

Revenues from kaolin decreased by 11% (R$ 314,212 on 09/30/05 against R$ 354,900 on 09/30/04). Besides the reduction of volumes sold due to the delay of shipment, the exchange rate variation more than offset the increase in sales price.

Revenues from transportation rose 12% (R$ 2,510,386 an 09/30/05 against R$ 2,236,254 on 09/30/04), due mainly to higher railway and port freight rates partially offset by the decrease in maritime transportation freight rates.

Revenues in the aluminum area remained stable (R$ 2,923,453 on 09/30/05 versus R$ 2,965,476 on 09/30/04).


		CVRD		5

Revenues from steel products decreased by 44% (R$ 1,170,701 on 09/30/05 compared with R$ 2,108,243 on 09/30/04). This reflects the sale of CST in December 2004.

Gross Revenue on 09/30/05 — R$ 26,145,758


BY PRODUCT		BY CURRENCY

Gross Revenue by Geographic Area


							Holdings								Quarter								Total
	Ferrous		Ferrous
	Minerals		Minerals		Logistics		Aluminum		Steel		3Q/05		%		2Q/05		%		3Q/04		%		09/30/05		%		09/30/04		%
External market
Americas, except United States		388,752		185		14,913		114,079		—		517,929		6		748,101		7		426,824		5		1,784,288		7		1,352,560		6
United States		143,524		6,723		—		70,036		339,851		560,134		6		715,247		7		985,943		12		2,018,770		8		2,382,054		11
Germany		686,729		47,702		—		—		—		734,431		8		876,238		9		650,887		8		2,090,776		8		1,593,664		8
France		263,182		13,460		—		—		—		276,642		3		373,614		4		425,426		5		856,044		3		889,004		4
England		121,044		431		—		2,963		—		124,438		1		162,813		2		99,216		1		435,257		2		190,191		1
Europe, except for Germany, France and England		923,356		64,218		16,530		311,944		—		1,316,048		15		1,613,854		16		1,111,879		14		3,924,127		15		3,424,201		16
Middle East/Africa/Oceania		561,476		602		—		33,947		—		596,025		7		721,516		7		368,321		5		1,653,215		6		946,858		4
China		1,370,700		31,085		—		28,122		—		1,429,907		16		1,128,828		11		959,814		12		3,394,959		13		2,236,896		11
South Korea		285,886		35,836		—		—		—		321,722		4		189,524		2		235,446		3		698,952		3		599,252		3
Japan		536,163		31,884		—		226,589		—		794,636		9		841,129		8		634,911		8		2,232,962		9		1,877,649		9
Ásia, other than China, South Korea and Japan		212,381		25,758		—		—		—		238,139		3		358,044		4		254,531		3		836,911		3		639,571		3

		5,493,193		257,884		31,443		787,680		339,851		6,910,051		78		7,728,908		77		6,153,198		76		19,926,261		77		16,131,900		76
Brazil		926,434		166,725		869,400		169,337		—		2,131,896		22		2,322,540		23		1,779,154		24		6,219,497		23		5,103,906		24

Total operating revenues		6,419,627		424,609		900,843		957,017		339,851		9,041,947		100		10,051,448		100		7,932,352		100		26,145,758		100		21,235,806		100

1.2.2 — Cost of Products and Services

By Nature


	Denominated in						Quarter												Accumulated
	R$			US$			3Q/05		%		2Q/05		%		3Q/04		%		09/30/05		%		09/30/04		%		D%
Personnel		345,536			31,961			377,497		9		340,120		8		364,674		10		1,031,788		9		1,037,846		10		(1	)
Material		655,757			165,454			821,211		20		791,828		21		586,028		15		2,328,060		20		1,651,001		16		41
Oil and gas		372,525			85,194			457,719		11		446,398		11		409,235		11		1,310,626		11		1,155,970		11		13
Outsourced services		617,923			243,714			861,637		21		794,865		20		629,775		17		2,414,664		20		1,736,343		17		39
Energy		336,810			24,223			361,033		9		371,472		9		346,172		9		1,050,050		9		872,491		8		20
Raw Material		12,193			469,654			481,847		12		569,851		14		753,516		20		1,644,702		14		1,961,676		19		(16	)
Depreciation and depletion		355,624			10,611			366,235		9		361,793		9		281,726		8		1,074,761		9		884,935		9		21
Amortization of goodwill		94,726			—			94,726		2		96,095		2		96,096		3		286,916		2		288,288		3		—
Others		156,824			129,542			286,366		7		238,238		6		255,647		7		762,343		6		697,296		7		9

Total		2,947,918			1,160,353			4,108,271		100		4,010,660		100		3,722,869		100		11,903,910		100		10,285,846		100		16

		72	%		28	%

The 16% increase (R$ 1,618,064) in the cost of products and services (R$ 11,903,910 on 09/30/05 against R$ 10,285,846 on 09/30/04) is due to increase in sales volumes and changes in the prices of materials, oil, energy and services which comprise production cost during the period.


		CVRD		6

1.2.3 — Operating Expenses

The operating expenses, except for non-recurring item, increased R$ 358,704 (R$ 2,276,486 on 09/30/05 compared to R$ 1,917,782 on 09/30/04), basically due to the increase in Research and development costs.

1.2.4 — Net Financial Results

The net financial result on 09/30/05 had an impact of R$ 1,217,633 (expense of R$ 511,841 on 09/30/05 compared to expense of R$ 1,729,474 on 09/30/04) due to exchange rate variation effect of the Real against the dollar over the foreign debt.

1.2.5 — Income Tax and Social Contribution

Income tax and social contribution reflect an expense of R$ 2,215,492 on 09/30/05 compared with an expense of R$ 1,048,874 on 09/30/04, mainly caused by increase of taxable income. (Note 6.10)

1.2.6 — Cash Generation Consolidated

The operating cash generation consolidated measured by EBITDA (earnings before financial results, results of equity investments, interest, income tax and depreciation, amortization and depletion plus dividends received) was R$ 12,500,812 on 09/30/05, against R$ 9,245,832 on 09/30/04, an increase of 35%.

EBITDA


	Quarter									Accumulated
	3Q/05			2Q/05			3Q/04			09/30/05			09/30/04
Net operating revenue		8,805,288			9,551,455			7,530,617			25,077,316			20,159,608
Cost of products and services		(4,108,271	)		(4,010,660	)		(3,722,869	)		(11,903,910	)		(10,285,846	)
Operating expenses		(932,469	)		(784,322	)		(781,684	)		(2,276,486	)		(2,100,578	)

Operating profit		3,764,548			4,756,473			3,026,064			10,896,920			7,773,184
Depreciation / amortization of goodwill		494,585			488,208			400,556			1,456,288			1,253,789

		4,259,133			5,244,681			3,426,620			12,353,208			9,026,973
Dividends received		58,682			88,922			—			147,604			36,063
Amortization of Goodwill Samitri		—			—			—			—			182,796

EBITDA		4,317,815			5,333,603			3,426,620			12,500,812			9,245,832


Current liabilities
Current portion of long-term debt — unrelated parties		1,627,663			1,966,679			2,796,928			1,627,663			2,796,928
Short-term debt		708,488			1,165,071			817,693			708,488			817,693
Related parties		69,097			84,038			163,155			69,097			163,155

		2,405,248			3,215,788			3,777,776			2,405,248			3,777,776

Long-term liabilities
Long-term debt — unrelated parties		7,145,652			7,667,145			10,442,980			7,145,652			10,442,980
Related parties		2,935			33,973			4,320			2,935			4,320

		7,148,587			7,701,118			10,447,300			7,148,587			10,447,300

Gross debt		9,553,835			10,916,906			14,225,076			9,553,835			14,225,076

Interest paid		206,576			148,068			296,490			582,312			752,520
Stockholders’ equity		25,973,882			23,262,421			18,620,809			25,973,882			18,620,809

EBITDA (LTM) / Interest paid (LTM)		19.51			16.52			12.29			19.51			12.29
EBITDA Margin (LTM)		47	%		47	%		46	%		47	%		46	%
EBIT Margin (LTM)		43	%		42	%		45	%		43	%		45	%
Gross debt / EBITDA		0.62			0.75			1.15			0.62			1.15
Gross debt / Equity Capitalization		27			32			43			27			43

Consolidated EBITDA by Segment


	3Q/05						2Q/05						3Q/04					09/30/05						09/30/04
	EBITDA						EBITDA						EBITDA					EBITDA						EBITDA
	Segments			% of total			Segments			% of total			Segments		% of total			Segments			% of total			Segments		% of total
Ferrous minerals		3,642,422			83	%		4,445,461			83	%		2,147,370		63	%		10,023,849			79	%		5,885,082		64	%
Non — ferrous minerals		37,221			1	%		82,527			1	%		55,527		2	%		223,487			2	%		227,311		2	%
Logistics		340,060			7	%		364,264			7	%		338,886		10	%		996,357			8	%		957,354		10	%
Holdings
Aluminum		287,958			7	%		348,276			7	%		594,070		17	%		1,090,218			9	%		1,445,139		16	%
Steel		65,309			2	%		119,974			2	%		290,767		8	%		248,955			2	%		730,946		8	%
Others		(55,155	)		—			(26,899	)		—			—		—			(82,054	)		—			—		—

		4,317,815			100	%		5,333,603			100	%		3,426,620		100	%		12,500,812			100	%		9,245,832		100	%


		CVRD		7

1.3 — Comments on the Parent Company Results

1.3.1 — Gross Revenue

The 32% increase in gross revenue (R$ 13,277,033 on 09/30/05 against R$ 10,051,438 on 09/30/04) is the result of the 9% higher volume sold of iron ore and pellets and the increase of 6% in the volume of port services and also for the increase of prices of both items. The revenues of the period include the sale of copper and alumina that began in June 2004 and in December 2004 respectively. This effect was compensated in part by the average appreciation of the real against the United States Dollar by 16%, incident on 89% of the revenue of the Company.

1.3.2 — Cost of Products and Services

Cost of products and services sold was R$ 7,032,494 on 09/30/05 against R$ 5,106,516 on 09/30/04 representing a 37.7% increase. The main factors are the start of the trading of copper and alumina, higher volumes sold of products in general, contracts readjustments and the increase of assets reflecting higher expenses related to depreciation.

1.3.3 — Gross Margin

The gross margin was reduced by 2.7% (43.7% on 09/30/05 against 46.4% on 09/30/04) manly due to the exchange variation loss from revenues, as described above and the increase of unit cost for production of iron ore, copper and potash during 2005.

1.3.4 — Results of Shareholdings by Business Area

The numbers below do not necessarily reflect the individual results of each company, but rather the amounts effectively applicable to the business area.


	Accumulated
Business Area	09/30/2005			09/30/2004			D%
Ferrous Minerals
. Iron ore		3,183,737			804,719			296
. Pellets		771,926			349,319			121
. Manganese and ferroalloys		105,241			434,170			(76	)

Non-Ferrous Minerals		(29,957	)		19,504			(254	)

Logistics		171,108			169,234			1

Holdings
. Steel		373,802			551,604			(32	)
. Aluminum		538,971			552,100			(2	)
. Research and development of coal		(58,993	)		—			—

Others		(4,448	)		(2,541	)		(75	)

Gain on investments accounted for by the equity method		5,051,387			2,878,109			76


Provision for losses		(97,528	)		(68,590	)		(42	)

Amortization of goodwill		(171,810	)		(194,553	)		12

Exchange variation in Stockholders’ Equity of companies abroad		(1,063,126	)		(66,334	)		1,503


Results of equity investments		3,718,923			2,548,632			46

Results of equity investments are strongly affected by the exchange rate variation over debt, which had a positive impact due to the 16.3% appreciation of the Real against the Dollar in the first semester of 2005 in comparison with an 1.1% depreciation of the Real in the first nine months of 2004. This effect is partially offset by the negative exchange rate variation from investments abroad.

Operationally, volumes and average selling prices increased in all businesses areas, except for ferroalloys, for which quantities and average sales price services were reduced. The decrease in steel is mainly due to the sale of CST.

In 2005 the negative result of non-ferrous equity refers basically to mineral research expenses incurred in subsidiaries situated in South America and Africa.

The negative result of equity in research and development of coal refers to expenses with subsidiaries of mineral extraction in Africa and Oceania.


		CVRD		8

1.3.5 — Operating Expenses

The operating expenses, except for non recurring item, decreased R$ 7,159 (R$ 1,022,106 on 09/30/05 compared to R$ 1,029,268 on 09/30/04) as a consequence of the increase of research and development costs.

1.3.6 — Net Financial Results

The net financial results on 09/30/05 had an impact of R$ 1,672,255 (revenue of R$ 710,315 on 09/30/05 compared to expense of R$ 961,940 on 09/30/04) due to the exchange rate variation effect of Real against the dollar over debt.

1.3.7 — Income Tax and Social Contribution

Income tax and social contribution reflect an expense of R$ 1,070,072 on 09/30/05 compared with an expense of R$ 324,957 on 09/30/04, mainly caused by increase of taxable income. (Note 6.10)


		CVRD		9

Part II

Quarterly Information and Notes to the Quarterly Information
(A free translation of the original in Portuguese relating to the Quarterly Information prepared in accordance with the requirements of Accounting Practices Generally Accepted in Brazil)

2 — Balance Sheet


September 30							In thousands of reais
			Consolidated				Parent Company
	Notes		09/30/05		06/30/05		09/30/05		06/30/05
Assets

Current assets

Cash and cash equivalents		6.5		2,989,269		2,743,828		256,006		240,334
Accounts receivable from customers		6.6		3,806,588		4,439,511		1,679,101		2,191,521
Related parties		6.8		126,023		125,378		879,338		814,403
Inventories		6.7		3,129,710		3,038,371		1,160,283		1,074,457
Taxes to recover or offset		6.9		702,390		725,139		270,404		307,261
Deferred income tax and social contribution		6.10		548,878		474,282		445,462		364,883
Other		—		868,862		840,034		339,880		480,411

				12,171,720		12,386,543		5,030,474		5,473,270


Long-term receivables

Related parties		6.8		—		90,721		435,280		486,640
Loans and financing		—		140,226		135,575		105,308		100,663
Deferred income tax and social contribution		6.10		1,078,340		1,077,555		550,145		540,898
Judicial deposits		6.14		1,853,418		1,768,954		1,242,117		1,172,507
Prepaid expenses		—		91,373		111,429		—		—
Accounts receivable — sale of assets		—		32,752		26,404		—		—
Assets for sale		—		73,980		59,212		—		—
Advances to energy suppliers		—		584,748		445,280		—		—
Other		—		424,455		390,508		195,537		175,166

				4,279,292		4,105,638		2,528,387		2,475,874

Perm anent assets

Investments		6.11		2,795,886		2,900,157		16,048,036		15,081,773
Property, plant and equipment		6.12		29,312,304		27,369,703		18,670,666		17,265,235
Deferred charges		—		176,434		192,400		—		—

				32,284,624		30,462,260		34,718,702		32,347,008

				48,735,636		46,954,441		42,277,563		40,296,152


Liabilities and stockholders’ equity

Current liabilities

Short-term debt		6.13		708,488		1,165,071		—		407,258
Current portion of long-term debt		6.13		1,627,663		1,966,679		750,203		742,611
Payable to suppliers and contractors		—		2,142,799		2,299,147		1,873,179		1,915,656
Related parties		6.8		69,097		84,038		2,827,124		3,434,537
Payroll and related charges		—		390,358		335,601		257,298		225,454
Pension Plan — Valia		—		66,947		102,407		66,947		102,407
Proposed dividends and interest on stockholders’ equity		—		44,917		39,142		—		—
Taxes and contributions		—		1,168,607		1,067,655		277,391		218,210
Provision for operating expenses		—		289,637		368,874		289,638		368,874
Other		—		739,441		766,044		211,693		235,447

				7,247,954		8,194,658		6,553,473		7,650,454

Long-term liabilities

Long-term debt		6.13		7,145,652		7,667,145		1,883,659		2,235,844
Related parties		6.8		2,935		33,973		3,619,493		2,994,039
Provisions for contingencies		6.14		3,301,569		3,266,629		2,674,150		2,611,990
Pension Plan — Valia		—		568,284		536,239		568,297		536,239
Provision for environmental liabilities		—		292,273		260,648		261,755		260,648
Provisions for derivatives		—		382,544		265,081		47,710		39,503
Other		—		1,036,807		888,509		695,144		705,014

				12,730,064		12,918,224		9,750,208		9,383,277

Deferred income		—		14,229		7,948		—		-

Minority interest		—		2,769,507		2,571,190		—		-

Stockholders’ equity

Paid-up capital		6.16		14,000,000		14,000,000		14,000,000		14,000,000
Revenue reserves		6.16		11,973,882		9,262,421		11,973,882		9,262,421

				25,973,882		23,262,421		25,973,882		23,262,421

				48,735,636		46,954,441		42,277,563		40,296,152

The additional information, notes and attachment I are an integral part of the quarterly information.

(A free translation of the original in Portuguese relating to the Quarterly Information prepared in accordance with the requirements of Accounting Practices Generally Accepted in Brazil)


		CVRD		10

3 — Statement of Income


Periods ended September 30		In thousands of reais


	Consolidated																	Parent Company
			Quarter									Accumulated						Accumulated
	Notes		3Q/05			2Q/05			3Q/04			09/30/05			09/30/04			09/30/05			09/30/04
Operating revenues		1.2.1 /
Sales of ore and metals		1.3.2
Iron ore and pellets				6,106,055			7,027,883			4,347,903			17,075,476			11,494,882			10,907,459			8,324,679
Manganese and ferroalloys				274,811			442,982			593,835			1,216,032			1,489,204			—			—
Copper				214,632			228,570			195,538			643,182			267,888			563,007			267,888
Potash				111,296			75,506			103,410			267,175			264,858			267,175			264,858
Kaolin				98,681			110,955			126,346			314,212			354,900			—			—

				6,805,475			7,885,896			5,367,032			19,516,077			13,871,732			11,737,641			8,857,425
Transport services				937,956			847,967			799,170			2,510,386			2,236,254			1,359,334			1,164,284
Sales of aluminum-related products				955,315			928,170			1,081,440			2,923,453			2,965,476			145,564			—
Sales of steel products				339,851			378,697			669,867			1,170,701			2,108,243			—			—
Other products and services				3,350			10,718			14,843			25,141			54,101			34,494			29,729

				9,041,947			10,051,448			7,932,352			26,145,758			21,235,806			13,277,033			10,051,438
Value Added taxes				(236,659	)		(499,993	)		(401,735	)		(1,068,442	)		(1,076,198	)		(775,663	)		(524,641	)

Net operating revenues				8,805,288			9,551,455			7,530,617			25,077,316			20,159,608			12,501,370			9,526,797


Cost of products and services		1.2.2 /
Ores and metals		1.3.3		(2,616,131	)		(2,619,094	)		(2,268,750	)		(7,640,637	)		(6,177,989	)		(6,473,941	)		(4,762,148	)
Transport services				(510,926	)		(489,874	)		(470,886	)		(1,441,595	)		(1,306,513	)		(463,261	)		(332,316	)
Aluminum-related products				(641,939	)		(543,775	)		(528,016	)		(1,735,006	)		(1,442,044	)		(75,918	)		—
Steel products				(333,430	)		(352,156	)		(443,717	)		(1,069,246	)		(1,327,135	)		—			—
Other products and services				(5,845	)		(5,761	)		(11,500	)		(17,426	)		(32,165	)		(19,374	)		(12,052	)

				(4,108,271	)		(4,010,660	)		(3,722,869	)		(11,903,910	)		(10,285,846	)		(7,032,494	)		(5,106,516	)


Gross profit				4,697,017			5,540,795			3,807,748			13,173,406			9,873,762			5,468,876			4,420,281

Gross margin				53.3	%		58.0	%		50.6	%		52.5	%		49.0	%		43.7	%		46.4	%

Operating expenses
Selling				(90,782	)		(95,514	)		(90,531	)		(286,445	)		(314,638	)		(1,185	)		(20,026	)
Administrative		6.21		(332,660	)		(307,592	)		(245,754	)		(897,801	)		(763,645	)		(460,060	)		(361,365	)
Research and development				(220,439	)		(161,446	)		(108,272	)		(463,014	)		(255,626	)		(306,154	)		(237,678	)
Other operating expenses		6.21		(288,588	)		(219,770	)		(337,127	)		(629,226	)		(583,873	)		(254,707	)		(410,196	)
Non recurring item — Samitri’s Goodwill amortization				—			—			—			—			(182,796	)		—			(182,796	)

				(932,469	)		(784,322	)		(781,684	)		(2,276,486	)		(2,100,578	)		(1,022,106	)		(1,212,061	)

Operating profit before financial results and results of equity investments				3,764,548			4,756,473			3,026,064			10,896,920			7,773,184			4,446,770			3,208,220

Results of equity investments		6.11		13,166			76,889			35,523			163,574			20,122			3,718,923			2,548,632
Gain on investments accounted for by the equity method				84,526			146,831			99,013			361,716			215,666			5,051,387			2,878,109
Amortization of goodwill				(57,270	)		(57,270	)		(57,270	)		(171,810	)		(194,553	)		(171,810	)		(194,553	)
Provision for losses				—			—			—			—			—			(97,528	)		(68,590	)
Exchange variation in stockholders’ equity of companies				(14,090	)		(12,672	)		(6,220	)		(26,332	)		(991	)		(1,063,126	)		(66,334	)

Financial results		6.19		(319,265	)		81,871			(328,525	)		(511,841	)		(1,729,474	)		710,315			(961,940	)
Sale of assets				297,700			—			466,248			297,700			466,248			—			463,122

Income before income tax and social contribution				3,756,149			4,915,233			3,199,310			10,846,353			6,530,080			8,876,008			5,258,034
Income tax and social contribution		6.10		(764,069	)		(1,060,879	)		(586,675	)		(2,215,492	)		(1,048,874	)		(1,070,072	)		(324,957	)

Income before minority interests				2,992,080			3,854,354			2,612,635			8,630,861			5,481,206			7,805,936			4,933,077
Minority interests				(280,619	)		(375,069	)		(316,413	)		(824,925	)		(548,129	)		—			—

Net income for the period				2,711,461			3,479,285			2,296,222			7,805,936			4,933,077			7,805,936			4,933,077


Number of shares outstanding at the end of the period (in thousands)				1,151,520			1,151,520			1,151,520			1,151,520			1,151,520			1,151,520			1,151,520


Net earnings per share outstanding at the end of the period (R$)				2.35			3.02			1.99			6.78			4.28			6.78			4.28

The additional information, notes and attachment I are an integral part of the quarterly information.


		CVRD		11

(A free translation of the original in Portuguese relating to the Quarterly Information prepared in accordance with the requirements of Accounting Practices Generally Accepted in Brazil)

4 — Statement of Changes in Stockholders’ Equity (Additional Information)


Periods ended September 30		In thousands of reais


					Revenue reserves
			Paid-up		Expansion/						Unrealized						Fiscal			Treasury			Retained
	Notes		capital		Investments			Depletion			income			Legal			incentives			stock			earnings			Total
December 31, 2003				6,300,000		6,039,326			1,004,166			557,266			1,080,141			89,993			(131,318	)		—			14,939,574


Capitalization of reserves				1,000,000		(910,007	)		—			—			—			(89,993	)		—			—			—
Realization of reserve				—		—			—			(211,538	)		—			—			—			211,538			—

Net income for the year				—		—			—			—			—			—			—			6,459,519			6,459,519
Interim interest on stockholders’ equity				—		—			—			—			—			—			—			(1,671,484	)		(1,671,484	)
Interim dividends				—		—			—			—			—			—			—			(279,763	)		(279,763	)
Additional remuneration proposed				—		—			—			—			—			—			—			(1,278,513	)		(1,278,513	)
Apropriation to revenue reserves				—		3,077,659			—			—			322,976			40,662			—			(3,441,297	)		—


December 31, 2004				7,300,000		8,206,978			1,004,166			345,728			1,403,117			40,662			(131,318	)		—			18,169,333


Net income for the period				—		—			—			—			—			—			—			5,094,475			5,094,475
Interim interest on stockholders’ equity		6.16		6,700,000		(5,129,319	)		(1,004,166	)		—			(525,853	)		(40,662	)		—			—			—
Provision for interest on stockholders’ equity		6.18		—		—			—			—			—			—			—			(1,387	)		(1,387	)


June 30, 2005				14,000,000		3,077,659			—			345,728			877,264			—			(131,318	)		5,093,088			23,262,421


Net income for the period				—		—			—			—			—			—			—			2,711,461			2,711,461


September 30, 2005				14,000,000		3,077,659			—			345,728			877,264			—			(131,318	)		7,804,549			25,973,882

The additional information, notes and attachment I are an integral part of the quarterly information.



		CVRD		12

(A free translation of the original in Portuguese relating to the Quarterly Information prepared in accordance with the requirements of Accounting, Practices Generally Accepted in Brazil)

5 — Statement of Cash Flows (Additional Information)


Periods ended September 30		In thousands of reais


	Consolidated															Parent Company
	Quarter									Accumulated						Accumulated
	3Q/05			2Q/05			3Q/04			09/30/05			09/30/04			30/09/05			30/09/04
Cash flows from operating activities:
Net income for the period		2,711,461			3,479,285			2,296,222			7,805,936			4,933,077			7,805,936			4,933,077
Adjustments to reconcile net income for the period with cash provided by operating activities:
Results of equity investments		(13,166	)		(76,889	)		(35,523	)		(163,574	)		(20,122	)		(3,718,923	)		(2,548,632	)
Sale of assets		(297,700	)		—			(466,248	)		(297,700	)		(466,248	)		—			(463,122	)
Depreciation, amortization and depletion		399,859			384,488			362,024			1,169,372			1,050,161			638,634			518,978
Deferred income tax and social contribution		(283,442	)		52,590			(239,684	)		(344,161	)		(267,651	)		(126,283	)		(413,033	)
Financial expenses and monetary and exchange rate variations on assets and liabilities, net		(419,936	)		(981,548	)		(868,089	)		(1,355,193	)		198,331			(967,354	)		174,663
Minority interest		280,619			375,069			316,413			824,925			548,129			—			—
Disposal of property, plant and equipment		1,066			60,382			61,913			76,695			193,064			3,693			18,894
Amortization of goodwill in the cost of products sold		94,726			96,095			96,096			286,916			288,286			286,916			288,288
Non recurring item — goodwill of Samitri		—			—			—			—			182,796			—			182,796
Net losses on derivatives		169,460			(10,321	)		115,674			163,734			194,152			11,918			12,000
Dividends/interest on stockholders’ equity		58,682			88,922			—			147,604			36,063			885,691			470,854
Others		37,366			57,532			(142,986	)		13,571			(84,283	)		57,427			(117	)

		2,738,995			3,525,605			1,495,812			8,328,125			6,785,755			4,877,655			3,174,646

Decrease (increase) in assets:

Accounts receivable		734,537			(1,025,615	)		(30,294	)		(628,914	)		(619,180	)		170,853			(1,706,289	)
Inventories		(69,137	)		(67,305	)		(160,930	)		(206,341	)		(535,362	)		(267,050	)		(193,510	)
Others		(870,320	)		(592,634	)		246,715			(1,585,281	)		(460,168	)		(304,250	)		93,628

		(204,920	)		(1,685,554	)		55,491			(2,420,536	)		(1,614,710	)		(400,447	)		(1,806,171	)

Increase (decrease) in liabilities:
Suppliers and contractors		(291,233	)		278,468			101,151			35,852			(153,513	)		357,278			19,211
Payroll and related charges and others		54,757			30,438			48,884			(9,070	)		81,824			(31,154	)		29,945
Taxes and contributions		1,264,561			885,434			576,691			1,571,119			1,099,849			452,592			751,972
Others		(348,009	)		288,291			629,065			(316,472	)		1,248,304			104,274			757,446

		680,076			1,482,631			1,355,791			1,281,429			2,276,464			882,990			1,558,574

Net cash provided by operating activities		3,214,151			3,322,682			2,907,094			7,189,018			7,447,509			5,360,198			2,927,049

Cash flows from investing activities:
Loans and advances receivable		88,501			(43,441	)		34,642			57,090			97,787			(79,912	)		160,132
Guarantees and deposits		(84,464	)		(37,493	)		(52,722	)		(173,517	)		(189,875	)		(94,684	)		(121,298	)
Additions to investments		(30,662	)		(208,400	)		—			(249,244	)		(105,188	)		(645,685	)		(545,311	)
Additions to property, plant and equipment		(2,464,450	)		(1,926,388	)		(1,302,298	)		(6,146,102	)		(3,758,361	)		(4,283,310	)		(2,352,390	)
Proceeds from disposal of property, plant and equipment/investments		301,284			3,584			1,260,668			311,345			1,263,628			13,645			836,907

Net cash used in investing activities		(2,189,791	)		(2,212,138	)		(59,710	)		(6,200,428	)		(2,692,009	)		(5,089,946	)		(2,021,960	)

Cash flows from financing activities:
Short-term debt		(435,280	)		469,987			70,929			255,559			59,527			121,115			(379,148	)
Long-term debt		26,292			341,618			141,942			1,093,729			3,062,730			2,003,668			2,368,156
Repayments:
Related parties		—			—			—			—			—			(280,279	)		(367,542	)
Financial institutions		(369,931	)		(1,138,189	)		(690,814	)		(1,985,467	)		(3,054,474	)		(884,777	)		(1,784,297	)
Interest on stockholders’ equity payed to stockholders		—			(1,279,900	)		—			(1,279,900	)		(790,710	)		(1,279,900	)		(790,710	)

Net cash used in financing activities		(778,919	)		(1,606,484	)		(477,943	)		(1,916,079	)		(722,927	)		(320,173	)		(953,541	)

Increase (decrease) in cash and cash equivalents		245,441			(495,940	)		2,369,441			(927,489	)		4,032,573			(49,921	)		(48,452	)
Cash and cash equivalents, beginning of the period		2,743,828			3,239,768			3,791,676			3,916,758			2,128,544			305,927			342,008

Cash and cash equivalents, end of the period		2,989,269			2,743,828			6,161,117			2,989,269			6,161,117			256,006			293,556

Cash paid during the period for:
Short-term interest		(10,367	)		(19,680	)		(12,333	)		(31,591	)		(38,057	)		(6,109	)		(4,016	)
Long-term interest		(196,209	)		(128,388	)		(284,157	)		(550,721	)		(714,463	)		(239,586	)		(272,024	)
Income tax and social contribution paid		(468,890	)		(378,297	)		(12,000	)		(1,057,958	)		(146,996	)		(778,068	)		—
Non-cash transactions:

Additions to property, plant and equipment — interest capitalization		119,684			402,249			209,806			495,141			(15,766	)		179,648			(42,720	)
Transfer of advance for future capital increase to investments		—			—			—			—			—			(510,500	)		—
Compensated income tax and social contribution		(63,724	)		(56,159	)		(67,148	)		(168,564	)		(311,058	)		(24,815	)		—

The additional information, notes and attachment I are an integral part of the quarterly information.


		CVRD		13

(A free translation of the original in Portuguese relating to the Quarterly Information prepared in accordance with the requirements of Accounting, Practices Generally Accepted in Brazil)

6 — Notes to the Quarterly Information at September 30, 2005 and 2004

Expressed in thousands of reais

6.1 — Operations

Companhia Vale do Rio Doce is a publicly traded corporation whose predominant activities are mining, processing and sale of iron ore, pellets, copper and potash, as well as logistic services, power generation and mineral research and development. In addition, through its direct and indirect subsidiaries and jointly-controlled companies, CVRD operates in iron ore and pellets, manganese and ferroalloys, kaolin, steel, aluminum-related products and logistics.

6.2 — Presentation of Quarterly Information

The quarterly information have been prepared in conformity with accounting practices followed in Brazil, based on corporate legislation, as well as the rules and guidelines issued by the Comissão de Valores Mobiliários — CVM (Brazilian Securities Commission) and Instituto dos Auditores Independentes do Brasil — IBRACON (Brazilian Independent Auditors Institute).

In order to provide better information to the market, the Company is presenting as additional information the Statement of Cash Flows – based on the criteria of NPC 20 of IBRACON.

6.3 — Significant Practices Accounting Policies

(a)		The Company adopts the accrual basis of accounting;

(b)		Assets and liabilities that are realizable or due more than twelve months after the quarterly information date are classified as long-term;

(c)		Marketable securities, classified as cash and cash equivalents, are stated at cost plus accrued income earned to the Quarterly Information date;

(d)		Inventories are stated at average purchase or production cost, and imports in transit at the cost of each item, not exceeding market or realizable value;

(e)		Assets and liabilities in foreign currencies are translated at exchange rates in effect at the quarterly information date, and those in local currency, when applicable, are restated based on contractual indices;

(f)		Investments in subsidiaries, jointly-controlled companies and affiliated companies are accounted for by the equity method, based on the stockholders’ equity of the investees, and when applicable increased/decreased by goodwill and negative goodwill to be amortized and provision for losses. Other investments are recorded at cost, less provision for losses when applicable;

(g)		Property, plant and equipment, including interest and financial charges incurred during the construction period of large-scale projects, are recorded at historical cost (increased by monetary restatement up to 1995) and depreciated on the straight-line method, based on the useful lives of the assets. Depletion of mineral reserves is based on the ratio between production and estimated capacity;

(h)		Research and development costs are recorded as operational expenses until the proof of its economical feasibility to commercially exploit the mine. After this proof, the costs are capitalized as part of the costs of the mine operation;

(i)		During the development of a mine, stripping costs registered are capitalized as part of the depreciable cost of building and constructing the mine. Post-production stripping costs are recorded as cost of production when incurred; and

(j)		Pre-operating costs except for financial charges capitalized as mentioned in (g) above, are deferred and amortized over a period of 10 years. The deferred charges (consolidated) refer basically to copper projects and expansion of Alunorte and Albras.

6.4 — Principles and Practices of Consolidation

(a)

The consolidated quarterly information shows the balances of assets and liabilities as of September 30, 2005 and on June 30, 2005 and the operations of the Parent Company to September 30, 2005, June 30, 2005 and September 30, 2004, its direct and indirect subsidiaries and its jointly-controlled companies for the periods then ended;

(b)		Intercompany balances and the Parent Company’s investments in its direct and indirect subsidiaries and jointly-controlled companies were eliminated in the consolidation. Minority interest is shown separately on the balance sheet and statement of income;


		CVRD		14

(c)

In the case of investments in companies in which the control is shared with other stockholders, the components of assets and liabilities and revenues and expenses are included in the consolidated quarterly information in proportion to the participation of the Parent Company in the capital of each investee;

(d)

The principal figures of the subsidiaries and jointly-controlled companies included in the consolidation are presented in Attachment I.

6.5 — Cash and Cash Equivalents


	Consolidated				Parent Company
	09/30/05		06/30/05		09/30/05		06/30/05
Cash and bank accounts		426,177		377,694		48,680		25,443
Marketable securities linked to the interbank deposit certificate rate		901,474		1,005,946		207,326		214,891
Time deposits / overnight investments		1,406,763		1,003,010		—		—
Others		254,855		357,178		—		—

		2,989,269		2,743,828		256,006		240,334

6.6 — Accounts Receivable from Customers


	Consolidated						Parent Company
	09/30/05			06/30/05			09/30/05			06/30/05
Domestic		786,246			751,144			788,276			846,773
Export		3,149,995			3,838,422			983,836			1,437,679

		3,936,241			4,589,566			1,772,112			2,284,452
Allowance for doubtful accounts		(92,432	)		(102,031	)		(46,948	)		(46,948	)

Allowance for ore weight credits		(37,221	)		(48,024	)		(46,063	)		(45,983	)


		3,806,588			4,439,511			1,679,101			2,191,521

6.7 — Inventories


	Consolidated				Parent Company
	09/30/05		06/30/05		09/30/05		06/30/05
Finished products
. Iron ore and pellets		900,784		660,018		478,601		379,882
. Manganese and ferroalloys		334,161		409,551		—		—
. Aluminum		194,099		216,259		—		—
. Steel products		68,972		81,266		—		—
. Copper		39,786		28,545		39,786		28,545
. Others		62,436		67,039		38,005		20,799

		1,600,238		1,462,678		556,392		429,226
Spare parts and maintenance supplies		1,529,472		1,575,693		603,891		645,231

		3,129,710		3,038,371		1,160,283		1,074,457


		CVRD		15

6.8 — Related Parties


	Consolidated
	Assets								Liabilities
	09/30/05				06/30/05				09/30/05				06/30/05
			Related party				Related party				Related party				Related party
	Customers		- assets		Customers		- assets		Suppliers		- liabilities		Suppliers		- liabilities
Nibrasco		64,491		18,303		74,052		26,457		63,538		15,526		94,455		—
Hispanobras		34,791		5,584		67,655		130		47,498		—		87,170		7,117
Itabrasco		30,366		—		64,753		367		30,334		1,333		39,306		2,336
Kobrasco		36,950		26,140		38,316		26,782		21,291		14,667		17,307		15,820
Gulf industrial investment Co. — GIIC		18,329		—		5,687		—		704		—		88		—
Usiminas		49,286		—		46,470		—		13		—		—		—
Valesul		13,971		316		5,264		309		41		—		41		—
Samarco Mineração S.A		2,201		12,357		2,443		13,410		—		—		—		—
MRS Logistica		165		40,273		249		18,031		5,527		14,645		1,404		26,418
Baovale Mineração S.A		12		—		264		85		19,386		—		14,072		—
Ferroban		—		—		526		106,401		—		—		—		30,907
Mineração Rio do Norte		326		278		291		281		19,459		—		30,653		—
Nova Era Silicon		297		3,722		81		4,368		—		—		—		—
Others		8,975		19,050		29,384		19,478		16,038		25,861		9,983		35,413

Total		260,160		126,023		335,435		216,099		223,829		72,032		294,479		118,011


Registered as:
Short-term		260,160		126,023		335,435		125,378		223,829		69,097		294,479		84,038
Long-term		—		—		—		90,721		—		2,935		—		33,973

		260,160		126,023		335,435		216,099		223,829		72,032		294,479		118,011

6.9 — Taxes to Recover or Offset


	Consolidated				Parent Company
	09/30/05		06/30/05		09/30/05		06/30/05
Witholding income tax on marketable securities and stockholders’ equity received		70,175		47,177		19,354		15,987
Value-addedd tax		287,519		313,812		205,726		212,850
PIS and COFINS		191,444		172,359		12,355		48,213
IR anticipated		94,881		86,194		—		—
Others		58,371		105,597		32,969		30,211

		702,390		725,139		270,404		307,261

6.10 — Deferred Income Tax and Social Contribution

Income of the Company is subject to the normal tax system. The balances of deferred assets and liabilities are presented as follows:


	Net Deferred
	Consolidated				Parent Company
	09/30/05		06/30/05		09/30/05			06/30/05
Tax loss carryforward		612,837		557,724		115,863			35,749


Temporary differences:
. Pension Plan		215,983		224,171		215,983			224,171
. Contingent liabilities		652,783		626,875		569,012			564,312
. Provision for losses on assets		136,705		136,782		136,705			136,782
. Others		8,910		6,285		(41,956	)		(55,233	)

		1,014,381		994,113		879,744			870,032


Total		1,627,218		1,551,837		995,607			905,781


Short-term		548,878		474,282		445,462			364,883
Long-term		1,078,340		1,077,555		550,145			540,898

		1,627,218		1,551,837		995,607			905,781


		CVRD		16

The amounts reported as income tax and social contribution, which affected the results for the period, are as follows:


	Consolidated															Parent Company
	3Q/05			2Q/05			3Q/04			09/30/05			09/30/04			09/30/05			09/30/04
Income before income tax and social contribution		3,756,149			4,915,233			3,199,310			10,846,353			6,530,080			8,876,008			5,258,034
Equity in results of subsidiaries and affiliated companies		(84,526	)		(146,831	)		(99,013	)		(361,716	)		(215,666	)		(5,051,387	)		(2,878,109	)
Exchange rate variation on equity		14,090			12,672			6,220			26,332			991			1,063,126			66,334
Non-deductable goodwill and provision for losses		54,909			54,909			54,909			164,727			164,729			262,255			164,729
Results on sale of assets		(297,700	)		—			(463,122	)		(297,700	)		(466,248	)		—			(463,122	)

		3,442,922			4,835,983			2,698,304			10,377,996			6,013,886			5,150,002			2,147,866

Income tax and social contribution at combined tax rates		34	%		34	%		34	%		34	%		34	%		34	%		34	%

Federal income tax and social contribution at statutory rates		(1,170,593	)		(1,644,234	)		(917,423	)		(3,528,519	)		(2,044,721	)		(1,751,001	)		(730,274	)
Adjustments to net income which modify the effect on the results for the period:
• Income tax benefit from interest on stockholders’ equity		115,863			290,166			119,455			551,029			425,625			551,029			425,625
• Fiscal incentives		133,608			52,764			91,150			244,853			127,160			109,567			51,652
• Results of overseas companies		105,282			178,790			9,348			506,895			289,078			—			—
• Tax rate incentive		37,627			29,335			39,210			87,708			69,360			—			—
• Others		14,144			32,300			71,585			(77,458	)		84,624			20,333			(71,960	)

Income tax and social contribution		(764,069	)		(1,060,879	)		(586,675	)		(2,215,492	)		(1,048,874	)		(1,070,072	)		(324,957	)

6.11 — Consolidated investments


	Investments				Results of investment participations
	09/30/05		06/30/05		3Q/05			2Q/05			3Q/04			09/30/05			06/30/04
Usinas Siderúrgicas de Minas Gerais SA — USIMINAS (a) and (b)		928,775		911,319		74,379			127,999			76,594			313,884			160,594
Yankuang		24,989		24,989		—			(3,358	)		—			(3,233	)		—
SIDERAR (cost $15) (a)		33,330		35,256		(1,926	)		(4,737	)		(3,734	)		(6,486	)		(459	)
Rio Doce Argentina		—		1,034		—			(661	)		—			(659	)		—
Quadrem		10,363		10,962		(599	)		(1,473	)		(1,512	)		(2,017	)		(326	)
Larco		6,666		7,051		(385	)		(948	)		(747	)		(1,297	)		(108	)
Longyu		191,779		202,863		(11,084	)		—			—			(11,084	)		—
Goodwill in consolidated companies		1,561,751		1,688,062		(57,270	)		(57,270	)		(57,270	)		(171,810	)		(194,553	)
Others		38,233		18,621		10,051			17,337			22,192			46,276			54,974

		2,795,886		2,900,157		13,166			76,889			35,523			163,574			20,122


(a)		Interest at market price — Usiminas R$ 1,210,523 and Siderar R$ 397,629;

(b)		Dividends received from Usiminas in the third quarter/2005, R$ 56,923.


		CVRD		17

6.12 — Property, Plant and Equipment

(a)

By type of asset:


				Consolidated									Parent Company
				09/30/05							06/30/05		09/30/05							06/30/05
	Average
	deprecia-					Accumulated									Accumulated
	tion rates			Cost		depreciation			Net		Net		Cost		depreciation			Net		Net
Buildings		3.00	%		3,537,846		(1,527,949	)		2,009,897		2,026,430		1,873,890		(745,261	)		1,128,629		1,126,771
Installations		3.42	%		12,909,760		(5,322,516	)		7,587,244		7,097,684		7,271,184		(2,954,172	)		4,317,012		3,909,998
Equipment		9.32	%		5,827,097		(2,595,106	)		3,231,991		2,928,103		2,209,113		(888,850	)		1,320,263		1,078,671
Railroads		3.85	%		7,245,045		(3,189,721	)		4,055,324		3,594,022		7,048,837		(3,123,124	)		3,925,713		3,473,437
Mineral rights (*)		1.87	%		1,422,261		(350,956	)		1,071,305		1,022,788		1,149,399		(168,432	)		980,967		945,744
Others		8.85	%		3,917,216		(1,777,643	)		2,139,573		1,980,136		2,155,757		(993,569	)		1,162,188		1,059,886

					34,859,225		(14,763,891	)		20,095,334		18,649,163		21,708,180		(8,873,408	)		12,834,772		11,594,507
Construction in progress		—			9,216,970		—			9,216,970		8,720,540		5,835,894		—			5,835,894		5,670,728

Total					44,076,195		(14,763,891	)		29,312,304		27,369,703		27,544,074		(8,873,408	)		18,670,666		17,265,235


(*)		Calculation based on the volume of ore extracted in relation to the proven and probable reserves.

(b)

By business area:


	Consolidated
	09/30/05							06/30/05
			Accumulated
	Cost		depreciation			Net		Net
Ferrous
In operation		22,009,986		(10,388,290	)		11,621,696		10,867,301
Construction in progress		4,224,440		—			4,224,440		4,007,348

		26,234,426		(10,388,290	)		15,846,136		14,874,649


Non-Ferrous
In operation		2,823,773		(689,104	)		2,134,669		1,986,386
Construction in progress		1,298,148		—			1,298,148		1,384,883

		4,121,921		(689,104	)		3,432,817		3,371,269


Logistics
In operation		2,622,030		(718,180	)		1,903,850		1,613,277
Construction in progress		215,529		—			215,529		255,169

		2,837,559		(718,180	)		2,119,379		1,868,446


Holdings
In operation		6,010,952		(2,669,014	)		3,341,938		3,371,022
Construction in progress		2,079,944		—			2,079,944		1,664,650

		8,090,896		(2,669,014	)		5,421,882		5,035,672


Energy
In operation		823,425		(62,464	)		760,961		520,610
Construction in progress		422,080		—			422,080		590,886

		1,245,505		(62,464	)		1,183,041		1,111,496


Corporate
In operation		569,061		(236,839	)		332,222		290,567
Construction in progress		976,827		—			976,827		817,604

		1,545,888		(236,839	)		1,309,049		1,108,171

Total		44,076,195		(14,763,891	)		29,312,304		27,369,703


		CVRD		18

6.13 — Loans and Financing

Short-term


	Consolidated				Parent Company
	09/30/05		06/30/05		09/30/05		06/30/05
Trade finance		523,634		830,152		—		407,258
Working capital		184,854		334,919		—		—

		708,488		1,165,071		—		407,258

Long-term


	Consolidated								Parent Company
	Current liabilities				Long-term liabilities				Current liabilities				Long-term liabilities
	09/30/05		06/30/05		09/30/05		06/30/05		09/30/05		06/30/05		09/30/05		06/30/05
Foreign operations
Loans and financing in:
U.S. dollars		894,793		908,057		2,810,233		2,816,000		702,753		673,260		1,824,179		2,171,642
Other currencies		7,559		9,168		42,714		45,537		7,014		8,158		38,439		40,984
Notes in U.S. dollars		27,311		225,698		2,025,138		2,322,205		—		—		—		—
Export securitization		178,863		169,114		810,820		905,804		—		—		—		—
Perpetual notes		—		—		167,634		164,354		—		—		—		—
Accrued charges		37,497		155,190		—		—		18,714		38,895		—		—

		1,146,023		1,467,227		5,856,539		6,253,900		728,481		720,313		1,862,618		2,212,626

Local operations
Indexed by TJLP, TR and IGP-M		179,567		175,120		337,933		312,604		18,421		19,257		20,166		21,774
Basket of currencies		3,393		3,531		21,096		23,173		199		153		452		537
Loans in U.S. dollars		246,356		261,626		607,562		742,635		1,694		1,791		412		895
Non-convertible debentures		667		705		318,253		327,979		667		705		11		12
Accrued charges		51,657		58,470		4,269		6,854		741		392		—		—

		481,640		499,452		1,289,113		1,413,245		21,722		22,298		21,041		23,218

		1,627,663		1,966,679		7,145,652		7,667,145		750,203		742,611		1,883,659		2,235,844

(a)		Foreign currency loans and financing were converted into reais at exchange rates effective on the quarterly information date, being US$ 1.00 = R$ 2.2222 on 09/30/05 (R$ 2.3504 in 06/30/05);

(b)		At 09/30/05, our consolidated debt was secured as follows:

	•		Loans guaranteed by the Federal Government of R$310, to which we gave counter-guarantees;

	•		Securitization program of R$1,000;

	•		Property, plant and equipment of R$321;

	•		Others assets R$483.

(c)

Amortization of principal and financing charges incurred on long-term loans and financing obtained abroad and domestically mature as follows, as of 09/30/05:


	Consolidated				Parent Company
2006		334,972	5	%		74,666	4	%
2007		973,151	14	%		388,015	21	%
2008		1,209,702	17	%		388,248	21	%
2009 onward		4,141,955	57	%		1,032,730	54	%
No due date (perpetual notes and debentures)		485,872	7	%		—	—

		7,145,652	100	%		1,883,659	100	%

		The estimated market values of long-term loans and financing calculated at present value based on available interest rates as of 09/30/05 approximate their book values.


		CVRD		19

(d)		On March, 2002, the Company, through its subsidiary Vale Overseas Limited issued US$ 300 million of Notes bearing interest at 8.625% p.a and maturing on March 8, 2007 (which may be extended to September 2008). In December, 2004, by public offering, CVRD bought back US$ 186,996 thousands of the principal outstanding notes for US$ 1,117.34 per each US$ 1,000.00. This transaction is guaranteed by the Company with political risk protection and is registered with the U.S. Securities and Exchange Commission (SEC). The Notes are listed on the Luxembourg Stock Exchange.

(e)		In August, 2003 Vale Overseas Limited launched a US$ 300 million bonds issue maturing in 10 years. The bonds carry a coupon of 9.00% p.a with half-yearning payment of interest. The bonds are unsecured and non-subordinated obligations of Vale Overseas Limited and have the full and unconditional guarantee of CVRD.

(f)		In January, 2004 Vale Overseas Limited launched a US$ 500 millions of bonus maturing in 2034. The securities have coupons of 8.25% per period with half-yearning installment. The obligations are non-guaranteed and non-subordinated of Vale Overseas Limited and have full and unconditional guarantee by CVRD.

6.14 — Contingent Liabilities

At the quarterly information dates the contingent liabilities of the Company were:

(a)

Provisions for contingencies and judicial deposits (booked under long-term liabilities and long-term assets, respectively), considered by management and its legal counsel as sufficient to cover losses from any type of lawsuit, were as follows:


	Consolidated								Parent Company
					Provisions for								Provisions for
	Judicial deposits				contingencies				Judicial deposits				contingencies
	09/30/05		06/30/05		09/30/05		06/30/05		09/30/05		06/30/05		09/30/05		06/30/05
Tax contingencies		1,258,365		1,186,589		2,101,426		2,035,662		803,921		731,196		1,739,001		1,650,033
Labor and social security claims		335,519		312,872		597,149		613,755		242,286		236,166		497,342		504,636
Civil claims		251,209		245,321		543,215		498,829		187,794		180,207		418,595		420,053
Other		8,325		24,172		59,779		118,383		8,116		24,938		19,212		37,268

Total		1,853,418		1,768,954		3,301,569		3,266,629		1,242,117		1,172,507		2,674,150		2,611,990

		The Company is party to labor, civil, tax and other suits and has been contesting these matters both administratively and in court. When applicable, these are backed by judicial deposits. Provisions for losses are estimated and restated monetarily by management based on the opinions of the legal department and outside counsel.

		Tax contingencies relate principally to a legal action claiming unconstitutionality of CPMF (tax on bank transactions) income tax with credits and other actions relating to value-added tax (ICMS).

		Labor-related actions principally comprise employee claims in connection with disputes about the amount of indemnities paid upon dismissal and the one-third extra holidays pay.

		Civil actions principally relate to claims made against the Company by contractors in connection with losses alleged to have been incurred as a result of various past government economic plans.

		In addition to the contingencies for which we have made provisions we have possible losses totaling R$ 1,020,762 (R$ 1,690,808 consolidated) as of 30/09/05. Based on the advice of our legal counsel, no provision is maintained.

(b)		Guarantees given to jointly-controlled companies are as follows:

Amount of

guarantee

Denominated

Final

Counter

Affiliate or Joint Venture

09/30/05

currency

Purpose

maturity

guarantees

SAMARCO

5,416

US$

Debt guarantee IFC

2008

None

VALESUL

345

Debt guarantee BNDES

2007

None

		The Company does not expect such guarantees to be executed and therefore no provisions for losses have been made. CVRD does not charge Valesul for granting these guarantees.


		CVRD		20

(c)		Upon privatization of the Company in 1997, the Brazilian government stipulated the issuance of non-convertible debentures (Debentures) to the stockholders of record, including the federal government. The maturity dates of these Debentures were established to guarantee that pre-privatization stockholders, including the federal government, would share any future benefits from mineral resources held by the Company and its subsidiary and affiliated companies that were not valuated at the time of setting the minimum price of CVRD shares at the privatization auction.

		A total of 388,559,056 debentures were issued at a par value of R$ 0.01 (one centavo), whose value is to be restated in accordance with the variation in the General Market Price Index (IGP-M), as set forth in the Issue Deed.

		On October 4, 2002, Comissão de Valores Mobiliários — CVM (Brazilian Securities Commission) approved the Company’s registration request, filed on June 28, 2002, for public trading of the Debentures. As from October 28, 2002, the Debentures can be traded on the secondary market.

		The debenture holders are entitled to receive semi-annual payments equivalent to a percentage of the net revenue deriving from certain mineral resources owned in May 1997 and included in the Issue Deed.

		According to the Debenture Issue Deed, the amount of the premium must include interest up to the month prior to that of effective payment, plus 1% in the month in which the funds are made available to the debenture holder. Pursuant to this Deed, the payment date shall take place each semester in March and September.

		Based on estimates of the operational start-up of the copper projects, CVRD began calculating the premium referring to these mineral rights. Considering the iron ore sale, the Company estimates that the threshold for payment will be reached in approximately 2030 and 2020 for the Southern and Northern systems, respectively. Regarding other minerals, such as bauxite and nickel, the forecast for exploitation is for the second half of the decade, and according to the criteria established in the Deed, payment will be due on the net sales revenue in the fourth period after the date of first commercialization. The obligation to make payments to the debenture holders will cease when the pertinent mineral resources are exhausted.

		Since October 3, 2005 the payment the debenture remuneration the non-convertible debentures of R$ 4,840 is available.

6.15 — Environmental and Site Reclamation and Restoration Costs

Expenditures relating to ongoing compliance with environmental regulations are charged to production costs or capitalized as incurred. The Company manages its environmental policies according to the specifications of ISO 14,001 and maintains ongoing programs to minimize the environmental impact of its mining operations as well as to reduce the costs that will be incurred upon termination of activities at each mine. On 09/30/05, the provision for environmental liabilities amounted to R$ 292,273 (R$ 260,648 on 06/30/05), which was accounted for in “Provision for environmental liabilities” in long-term liabilities. The Company adopts the concepts of the Accounting for Asset Retirement Obligations, as follows:

•		Costs for mine closure are recorded as part of the cost of these assets and a corresponding provision is made for such future expenditure;

•		The estimated costs are accounted for at the present value of the obligations, discounted using a risk free rate; and

•		The estimated costs are reviewed annually and changes in the present value are adjusted in the recorded values of the assets and liabilities.

6.16 — Paid-up Capital

The capital is R$ 14 billion, corresponding to 1,165,677,168, of which 749,949,429 common shares and 415,727,739 class “A” preferred shares.

Preferred shares have the same rights as common shares, except for the right to elect the members of the Board of Directors. They have priority to a minimum annual dividend of 6% on the portion of capital represented by this class of share or 3% of the book net equity value of the share, whichever is greater.


		CVRD		21

6.17 — Treasury Stock

The Board of Directors, under the terms of subparagraph XV of Article 13 of the Bylaws and based on Article 30 of Law 6404/76 and CVM Instructions 10 of 02/14/80 and 268 of 11/13/97, approved the acquisition by the Company of its own shares to be held in treasury for later sale or cancellation.

On 09/30/05, the Company had acquired 14,145,510 common shares and 11,803 preferred shares, which are held in treasury in the amount of R$ 131,318. The 14,145,510 common shares guarantee a loan of the subsidiary Alunorte.


Shares
											Average
Class	Quantity				Unit acquisition cost						quoted market price
	09/30/05		06/30/05		Average		Low		High		09/30/05		06/30/05
Preferred		11,803		11,803		17.12		4.67		17.47		47.93		47.93
Common		14,145,510		14,145,510		9.27		6.69		17.36		56.13		56.13

		14,157,313		14,157,313

6.18 — Remuneration of Shareholders

On 04/29/05 the Company paid the minimum dividend in the total amount of R$ 1,279,000 equivalent to R$ 1.11 per outstanding preferred share or common share as interest on stockholders’ equity, R$ 1,278,513 related to the additional remuneration proposed for the fiscal year 2004 and R$ 1,387 related to the fiscal year 2005.

6.19 — Financial Results

Parent Company


	9M/05									9M/04
				Monetary and									Monetary and
				exchange rate									exchange rate
	Financial			variation on						Financial			variation on
	expenses			liabilities			Total			expenses			liabilities			Total
Foreign debt		(49,463	)		289,425			239,962			(92,518	)		(2,070	)		(94,588	)
Local debt		(16,550	)		68,284			51,734			(16,911	)		6,281			(10,630	)
Related parties		(205,406	)		659,117			453,711			(151,439	)		54,756			(96,683	)

		(271,419	)		1,016,826			745,407			(260,868	)		58,967			(201,901	)

Labor, tax and civil contingencies		(118,325	)		(9,354	)		(127,679	)		(82,492	)		(91,786	)		(174,278	)
Derivatives, net of gain/losses (interest and currencies)		(3,264	)		(546	)		(3,810	)		(6,986	)		(2,005	)		(8,991	)
Derivatives, net of gain/losses (gold)		(8,662	)		7,198			(1,464	)		(4,642	)		846			(3,796	)

CPMF		(61,293	)		—			(61,293	)		(55,000	)		—			(55,000	)
Other		(72,067	)		371,571			299,504			(185,025	)		(282,287	)		(467,312	)

		(535,030	)		1,385,695			850,665			(595,013	)		(316,265	)		(911,278	)


				Monetary and									Monetary and
				exchange rate									exchange rate
				variation on									variation on
	Financial income			assets			Total			Financial income			assets			Total
Related parties		42,981			(225,571	)		(182,590	)		47,087			(170,815	)		(123,728	)
Marketable securities		40,466			9,782			50,248			11,884			49,693			61,577
Other		31,904			(39,912	)		(8,008	)		15,054			(3,565	)		11,489

		115,351			(255,701	)		(140,350	)		74,025			(124,687	)		(50,662	)

Financial income (expenses), net		(419,679	)		1,129,994			710,315			(520,988	)		(440,952	)		(961,940	)


		CVRD		22

Consolidated


	3Q/05									2Q/05									3Q/04
				Monetary and									Monetary and									Monetary and
				exchange rate									exchange rate									exchange rate
	Financial			variation on						Financial			variation on						Financial			variation on
	expenses			liabilities			Total			expenses			liabilities			Total			expenses			liabilities			Total
Foreign debt		(152,781	)		388,288			235,507			(101,289	)		780,104			678,815			(132,515	)		683,696			551,181
Local debt		(18,959	)		129,667			110,708			(54,481	)		235,822			181,341			(53,640	)		172,097			118,457
Related parties		(5,500	)		758			(4,742	)		16,459			4,124			20,583			(10,392	)		139,389			128,997

		(177,240	)		518,713			341,473			(139,311	)		1,020,050			880,739			(196,547	)		995,182			798,635
Labor, tax and civil contingencies		(65,724	)		30,752			(34,972	)		(31,575	)		(18,697	)		(50,272	)		(38,618	)		(33,910	)		(72,528	)
Derivatives, net of gain/losses (interest and currencies)		3,106			741			3,847			(5,878	)		2,637			(3,241	)		(11,701	)		7,383			(4,318	)
Derivatives, net of gain/losses (gold, aluminum and alumina)		(172,567	)		13,380			(159,187	)		16,198			41,964			58,162			(60,936	)		6,570			(54,366	)
CPMF		(34,536	)		—			(34,536	)		(46,111	)		—			(46,111	)		(21,754	)		—			(21,754	)
Other		(62,542	)		(94,612	)		(157,154	)		(40,815	)		(85,525	)		(126,340	)		(145,950	)		(210,471	)		(356,421	)

		(509,503	)		468,974			(40,529	)		(247,492	)		960,429			712,937			(475,506	)		764,754			289,248


				Monetary and									Monetary and									Monetary and
				exchange rate									exchange rate									exchange rate
	Financial			variation on						Financial			variation on						Financial			variation on
	income			assets			Total			income			assets			Total			income			assets			Total
Related parties		800			(13,174	)		(12,374	)		(14,186	)		(5,169	)		(19,355	)		21,105			(414,921	)		(393,816	)
Marketable securities		60,473			(104,074	)		(43,601	)		51,507			(230,392	)		(178,885	)		30,868			(165,349	)		(134,481	)
Other		4,067			(226,828	)		(222,761	)		20,816			(453,642	)		(432,826	)		21,527			(111,003	)		(89,476	)

		65,340			(344,076	)		(278,736	)		58,137			(689,203	)		(631,066	)		73,500			(691,273	)		(617,773	)

Financial income (expenses), net		(444,163	)		124,898			(319,265	)		(189,355	)		271,226			81,871			(402,006	)		73,481			(328,525	)


	9M/05									9M/04
				Monetary and									Monetary and
				exchange rate									exchange rate
	Financial			variation on						Financial			variation on
	expenses			liabilities			Total			expenses			liabilities			Total
Foreign debt		(334,780	)		1,158,793			824,013			(484,462	)		(23,508	)		(507,970	)
Local debt		(138,010	)		354,061			216,051			(172,778	)		(8,508	)		(181,286	)
Related parties		(16,414	)		771			(15,643	)		(52,273	)		93,773			41,500

		(489,204	)		1,513,625			1,024,421			(709,513	)		61,757			(647,756	)

Labor, tax and civil contingencies		(128,310	)		(11,660	)		(139,970	)		(82,832	)		(91,787	)		(174,619	)

Derivatives, net of gain/losses (interest and currencies)		1,816			3,307			5,123			(7,357	)		(2,004	)		(9,361	)
Derivatives, net of gain/losses (gold, aluminum and alumina)		(165,552	)		52,161			(113,391	)		(185,663	)		846			(184,817	)
CPMF		(104,231	)		—			(104,231	)		(82,874	)		—			(82,874	)
Other		(166,521	)		(255,308	)		(421,829	)		(234,449	)		(442,313	)		(676,762	)

		(1,052,002	)		1,302,125			250,123			(1,302,688	)		(473,501	)		(1,776,189	)


				Monetary and									Monetary and
				exchange rate									exchange rate
	Financial			variation on						Financial			variation on
	income			assets			Total			income			assets			Total
Related parties		15,607			(5,236	)		10,371			43,988			(246,176	)		(202,188	)
Marketable securities		155,081			(320,207	)		(165,126	)		88,781			5,638			94,419
Other		65,629			(672,838	)		(607,209	)		55,593			98,891			154,484

		236,317			(998,281	)		(761,964	)		188,362			(141,647	)		46,715

Financial income (expenses), net		(815,685	)		303,844			(511,841	)		(1,114,326	)		(615,148	)		(1,729,474	)

6.20 — Financial Instruments – Derivatives

The main market risks the Company faces are related to interest rates, exchange rates and commodities prices. CVRD has a policy of managing risks through the use of derivative instruments.

The Company’s risk management follows policies and guidelines reviewed and approved by the Board of Directors and Executive Board. These policies and guidelines prohibit speculative trading and short selling and require diversification of transactions and counterparties. The policy of the Company is to settle all contracts financially without physical delivery of the products. The credit limits and creditworthiness of counterparties are also reviewed periodically and are defined according to the rules approved by the Company’s management. The results of hedging are recognized monthly in the financial results.


		CVRD		23

The following table shows the movement of gains/loss on derivatives:


	Consolidated
	3Q/05
	Interest
	rates (libor)			Currencies			Gold			Aluminum			Alumina			Total
Gains / (losses) unrealized on 06/30/05		(21,173	)		3,719			(69,555	)		(127,240	)		(50,832	)		(265,081	)
Financial settlement		1,453			(884	)		6,122			15,387			16,072			38,150
Financial expenses, net		3,397			(292	)		(21,382	)		(116,147	)		(35,036	)		(169,460	)
Monetary variations, net		938			(195	)		3,668			6,940			2,772			14,123

Gains / (losses) unrealized on 09/30/05		(15,385	)		2,348			(81,147	)		(221,060	)		(67,024	)		(382,268	)


																	2Q/05


	2Q/05
	Interest
	rates (libor)			Currencies			Gold			Aluminum			Alumina			Total
Gains / (losses) unrealized on 03/31/05		(30,577	)		7,192			(83,661	)		(138,303	)		(134,046	)		(379,395	)
Financial settlement		10,162			(991	)		5,629			22,936			21,657			59,393
Financial expenses, net		(4,239	)		(1,638	)		(1,228	)		(28,254	)		45,680			10,321
Monetary variations, net		3,481			(844	)		9,705			16,381			15,877			44,600

Gains / (losses) unrealized on 06/30/05		(21,173	)		3,719			(69,555	)		(127,240	)		(50,832	)		(265,081	)


																	3Q/04


	3Q/04
	Interest
	rates (libor)			Currencies			Gold			Aluminum			Alumina			Total
Gains/ (losses) unrealized on 06/30/04		(92,449	)		3,485			(78,436	)		(115,659	)		(91,820	)		(374,879	)
Financial settlement		7,613			331			634			—			—			8,578
Financial expenses, net		(12,038	)		708			(20,246	)		(70,150	)		(13,948	)		(115,674	)
Monetary variations, net		7,585			(252	)		6,572			—			—			13,905

Gains / (losses) unrealized on 09/30/04		(89,289	)		4,272			(91,476	)		(185,809	)		(105,768	)		(468,070	)


	Parent Company
	9M/05
	Interest rates
	(libor)			Currencies			Gold			Total
Gains / (losses) unrealized on 12/31/04		(9,268	)		9,405			(55,406	)		(55,269	)
Financial settlement		7,354			(2,081	)		9,775			15,048
Financial expenses, net		698			(3,953	)		(8,663	)		(11,918	)
Monetary variations, net		480			(1,023	)		7,198			6,655

Gains / (losses) unrealized on 09/30/05		(736	)		2,348			(47,096	)		(45,484	)


	9M/04
	Interest rates
	(libor)			Currencies			Gold			Total
Gains / (losses) unrealized on 12/31/03		(135,977	)		15,856			(91,980	)		(212,101	)
Financial settlement		51,879			(7,413	)		4,301			48,767
Financial expenses, net		(3,206	)		(4,151	)		(4,643	)		(12,000	)
Monetary variations, net		(1,985	)		(20	)		846			(1,159	)

Gains / (losses) unrealized on 09/30/04		(89,289	)		4,272			(91,476	)		(176,493	)

Maturity dates of the instruments above are as follows:


Gold		December 2008
Interest (LIBOR)		October 2007
Currencies		December 2011
Alumina		December 2008
Aluminum		December 2008


		CVRD		24

6.21 — Administrative and Other Operating Expenses


	Consolidated										Parent Company
	3Q/05		2Q/05		3Q/04		09/30/05		09/30/04		09/30/05		09/30/04
Administrative
Personnel		138,272		102,856		90,757		344,878		298,698		181,687		143,016
Services of technical consulting, groundwork and stand-by		89,146		85,066		72,633		236,116		194,925		86,366		67,524
Advertising and publicity		24,422		29,739		14,476		68,761		35,817		67,552		32,273
Depreciation		32,572		29,487		27,462		91,866		85,294		41,331		30,636
Travel expenses		10,116		15,041		6,466		34,161		20,207		29,198		16,191
Rents and taxes		6,255		21,014		12,901		39,569		34,531		21,718		13,961
Community aborigine		3,470		5,042		9,315		13,395		16,453		13,395		16,453
Others		28,407		19,347		11,744		69,055		77,719		18,813		41,311

		332,660		307,592		245,754		897,801		763,644		460,060		361,365


	Consolidated										Parent Company
	3Q/05		2Q/05		3Q/04		09/30/05		09/30/04		09/30/05			09/30/04
Other operating expenses (income)
Provisions for contingencies		118,333		34,490		76,270		178,461		152,936		81,000			139,471
Provision for loss on ICMS credits		15,515		8,709		93,945		24,224		103,927		—			64,000
Provision for profit sharing		52,966		59,992		48,304		159,647		154,985		135,000			140,000
Donations		9,642		26,588		8,518		42,120		26,626		41,770			—
Pension plan		—		17,000		—		17,000		—		17,000			—
Others		92,132		72,991		110,090		207,774		145,399		(20,063	)		66,725

		288,588		219,770		337,127		629,226		583,873		254,707			410,196

6.22 — Sale of Assets

Caemi sold its participation in Quebec Cartier Mining Company (QCM) to Dofasto Inc. for R$ 297,700 in July, 2005.

6.23 — Subsequent Events

Issue of US$ 300 million Notes

On October 26, 2005, the Company issued US$ 300 million notes due 2034, priced with yied to maturity (YTM) 7.65% per year. The notes form a single series with the US$ 500 million principal amount of 8.25% guaranteed notes issued on January 15, 2004. (See note 6.13 (f))

Remuneration of Shareholder’s

In October, 2005 CVRD approved the payment of the second installment of the 2005 minimum dividend to shareholders, US$ 500 million, as well as the proposed additional dividend of US$ 300 million. The total payment of US$ 800 million, equivalent to US$ 0.69 per outstanding share was made to CVRD shareholders from October 31, 2005.

The payment of the second installment referring to the minimum remuneration in the amount of US$ 500 millions was made since 10/31/05, as follows:

- R$ 782,000 in the form of interest on shareholders equity, equivalent to R$ 0.67 per common or preferred share outstanding. This value corresponds to US$ 346 million — US$ 0.30 per common or preferred share outstanding.

- R$ 349,350 in the form of dividends, equivalent to R$ 0.30 per common or preferred share outstanding. This amount corresponds to US$ 154 million US$ 0.13 per common or preferred share outstanding.

The additional dividend for this year in the amount of US$ 300 million, equivalent to R$ 678,810 was also paid on October 31, in the form of dividends. This amount corresponds to R$ 0.58 per common or preferred shares outstanding.

Therefore, on October 31, 2005, an amount of R$ 1,810,160 was distributed to CVRD shareholders, corresponding to R$ 1.57 per common or preferred share outstanding.

The total dividend distribution for 2005, of US$ 1,300 million, represents an increase of 65% over the distribution made in 2004 and implies an annual average growth rate of 39% since 2002.


		CVRD		25

Part III

7 — Attachment I — Statement of Investments in Subsidiaries


Period ended September 30,2005	In thousands of reals
					Accounting information
	Participation (%)				Assets						Liabilities							Statement of income
																													Income			Adjusted
															Adjusted					Cost of			Operating			Non-			tax and			net
															stockholders’			Net		products			income			operating			social			income
	Total		Voting		Current		Long-term		Permanent		Current		Long-term		equity			revenues		and services			(expenses)			result			contribution			(loss)
Subsidiaries (a)
Amazon Iron Ore Overseas Co. Ltd.		100.00		100.00		258,633		6,973		2,465,701		241		986,566		1,744,500			—		—			951,028			—			—			—
ALBRAS — Alumínio Brasileiro S.A.		51.00		51.00		544,498		859,211		1,068,576		793,228		390,854		1,288,203			1,473,784		(1,033,218	)		(141,111	)		64			(87,689	)		211,830
ALUNORTE — Alumina do Norte do Brasil S.A.		57.03		61.74		452,194		161,752		3,014,988		403,183		1,129,343		2,096,408			1,114,680		(743,989	)		74,649			(9	)		(76,099	)		369,232
Brasilux S.A.		100.00		100.00		3,266		32,902		563		14,123		—		22,608			—		—			(3,822	)		—			—			(3,822	)
Caemi Mineração e Metalurgia S.A.(b)		60.23		100.00		2,148,415		91,001		1,724,384		842,172		754,831		2,366,797			3,301,542		(1,324,876	)		(384,380	)		186,294			(540,675	)		1,237,905
Companhia Paulista de Ferro Ligas		100.00		100.00		185,644		36,829		3,182		147,468		78,243		(56	)		—		—			(27,187	)		(1,926	)		(5,448	)		(34,561	)
Companhia Portuária Baia de Sepetiba		100.00		100.00		177,661		5,950		150,035		103,787		—		229,859			134,688		(47,161	)		8,818			(274	)		(32,261	)		63,810
CVRD Overseas Ltd.		100.00		100.00		734,486		810,818		722,762		1,503,433		44,600		720,033			2,127,899		(1,581,766	)		(79,182	)		—			—			466,951
Docepar S.A.		100.00		100.00		21,639		308,660		147		18,761		271,967		39,718			—		—			1,359			—			(439	)		920
Ferrovia Centro — Atlântica S.A.		100.00		100.00		301,928		122,445		1,241,941		341,984		1,360,897		(36,567	)		517,011		(515,833	)		(76,633	)		—			46			(75,409	)
Florestas Rio Doce S.A.		100.00		100.00		55,579		43,220		3,729		28,286		14,038		60,204			—		—			692			—			(5,794	)		(5,102	)
Itabira Rio Doce Company Limited — ITACO		100.00		100.00		4,977,822		2,537,668		4,131,038		3,122,403		3,072,838		5,451,287			9,794,624		(7,615,844	)		479,598			1,253			1,556			2,661,187
Mineração Tacumã Ltda.		100.00		100.00		154		—		995,935		15,690		1,031,000		(50,601	)		—		—			(75,961	)		—			—			(75,961	)
Navegação Vale do Rio Doce S.A. — DOCENAVE		100.00		100.00		257,417		38,330		693,339		100,986		604,358		283,742			68,645		(28,489	)		29,642			97			(22,296	)		47,599
Rio Doce Limited		100.00		100.00		159,300		324,951		353,561		147,425		26,807		663,580			348,078		(372,675	)		82,535			—			(1,277	)		56,661
Rio Doce International Finance Ltd.		100.00		100.00		1,608,866		2,145,171		5,738		372,317		425,538		2,961,920			—		(16,838	)		74,913			—			—			58,075
Rio Doce Manganèse Europe — RDME		100.00		100.00		240,406		—		70,250		92,586		6,418		211,652			394,956		(359,990	)		(50,170	)		(2,578	)		(5,820	)		(23,602	)
Rio Doce Manganése Norway AS		100.00		100.00		84,563		—		59,018		34,505		12,646		96,430			67,311		(58,316	)		(40,605	)		—			—			(31,610	)
Rio Doce Manganês S.A.		100.00		100.00		851,394		179,671		357,563		584,498		99,168		704,962			770,325		(482,591	)		(131,033	)		(4,996	)		(38,178	)		113,527
Salobo Metais S.A.		100.00		100.00		399		—		822,999		616		561,072		261,710			—		—			—			—			—			—
TVV — Terminal de Vila Velha S.A.		100.00		99.89		47,927		4,841		54,431		25,053		3,052		79,094			80,396		(52,995	)		1,861			—			(10,306	)		18,956
Urucum Mineração S.A.		100.00		100.00		97,091		13,270		59,779		48,591		61,595		59,954			133,646		(53,999	)		(37,540	)		(715	)		(15,888	)		25,504
Valeoverseas Ltd.		100.00		100.00		33,376		2,051,781		—		33,368		2,051,759		30			—		—			20			—			—			20

Jointly-controlled companies (a)
California Steel Industries, Inc.		50.00		50.00		813,656		5,573		527,448		330,474		333,330		682,873			2,341,402		(2,145,053	)		(72,331	)		—			(55,835	)		68,183
Companhia Coreano-Brasileira de Pelotização — KOBRASCO		50.00		50.00		167,600		56,298		218,398		190,973		87,722		163,601			568,790		(393,013	)		(13,554	)		91			(65,981	)		96,333
Companhia Hispano-Brasileira de Pelotização — HISPANOBRÁS		50.89		51.00		230,537		45,657		68,675		146,040		52,257		146,572			556,747		(365,668	)		(20,483	)		604			(59,296	)		111,904
Companhia ítalo-Brasileira de Pelotização — ITABRASCO		50.90		51.00		218,050		58,289		68,615		160,649		51,269		133,036			517,299		(351,503	)		(24,425	)		364			(52,311	)		89,424
Companhia Nipo-Brasileira de Pelotização — NIBRASCO		51.00		51.11		332,548		64,609		118,096		278,107		33,197		203,949			824,417		(603,787	)		(37,003	)		—			(67,855	)		115,772
Gulf Industrial Investment Co.-GIIC		50.00		50.00		268,653		—		109,823		84,875		11,111		282,490			707,434		(390,168	)		(99,378	)		—			—			217,888
Minas da Serra Geral S.A. — MSG		50.00		50.00		21,166		12,590		96,403		1,965		30,162		98,032			12,651		(8,436	)		(15,101	)		994			(202	)		(10,094	)
Mineração Rio do Norte S.A.		40.00		40.00		167,094		404,852		970,476		543,590		93,674		905,158			724,388		(355,728	)		14,584			(7,846	)		(37,445	)		337,953
MRS Logística S.A.		29.35		28.75		713,907		275,730		1,016,665		723,897		563,721		718,684			1,252,594		(686,232	)		(89,388	)		(25,728	)		(146,395	)		304,851
Samarco Mineração S.A.		50.00		50.00		552,035		97,708		1,015,884		489,783		215,566		960,278			1,719,139		(552,624	)		(127,011	)		(127	)		(171,760	)		867,617
Valesul Alumínio S.A.		54.51		54.51		183,476		60,262		124,796		73,003		29,439		266,092			360,056		(333,737	)		452			1,498			(16,464	)		11,805
Baovale Mineração		50.00		100.00		36,297		—		54,704		1,127		—		89,874			21,694		(3,680	)		(17,254	)		—			(2,432	)		(1,672	)
Nova Era Silicon S.A.		49.00		49.00		24,617		12,293		45,111		22,162		30,415		29,444			68,179		(55,225	)		(14,971	)		(7	)		(128	)		(2,152	)

Observation:


(a)		The amounts above refer to figures presented in financial statements of the companies on 09/30/05 and not only the part consolidated.

(b)		Caemi financial statements are consolidated and include $ 112,092 of minority interest and R$ 297,700 refers to the sale of investment on QCM, registered as non-operating result.


		CVRD		26

8 — Other Information the Company Deems Relevant

8.1 — Consolidated Iron Ore and Pellet Sales (Main Markets — Not Reviewed)


	Millions of tons
	Quarter												Accumulated
	3Q/05		%		2Q/05		%		3Q/04		%		09/30/05		%		09/30/04		%
FOREIGN MARKET
ASIA
CHINA		14.9		23		12.3		20		12.1		20		38.7		21		30.5		18
CORÉIA		2.9		5		1.3		2		3.2		5		6.7		4		8.1		5
PHILIPPINES		0.7		1		1.1		2		0.9		1		2.8		2		2.7		2
JAPAN		6.2		10		6.6		11		5.4		9		18.6		10		17.0		10
TAIWAN		1.0		2		0.9		1		1.1		2		3.1		2		3.2		2
OTHERS		0.3		—		0.3		—		0.1		—		1.3		1		1.2		1

		26.0		41		22.5		36		22.8		37		71.2		40		62.7		38

EUROPE
GERMANY		6.3		10		6.5		11		6.8		11		18.7		10		18.4		11
SPAIN		0.9		1		1.1		2		0.9		1		2.9		2		3.1		2
FRANCE		3.0		5		3.0		5		3.2		5		8.6		5		9.0		5
ITALY		1.2		2		1.5		2		0.9		1		4.0		2		1.8		1
ENGLAND		3.1		5		3.4		6		2.3		4		8.7		5		7.2		4
OTHERS		4.9		8		5.1		8		5.5		9		15.1		8		14.7		9

		19.4		31		20.6		34		19.6		31		58.0		32		54.2		32

AMERICAS
ARGENTINA		1.2		2		1.1		2		1.3		2		3.5		2		3.5		2
UNITED STATES		0.9		1		1.1		2		1.1		2		3.3		2		3.6		2
OTHERS		1.3		2		1.8		3		1.6		3		4.9		3		4.7		3

		3.4		5		4.0		7		4.0		7		11.7		7		11.8		7

AFRICA/MID. EAST/AUSTRALIA
BAHRAIN		1.0		2		1.0		2		1.2		2		2.8		2		2.8		2
OTHERS		2.6		4		2.2		4		2.2		4		6.7		4		6.1		4

		3.6		6		3.2		6		3.4		6		9.5		6		8.9		6


		52.4		83		50.3		83		49.8		81		150.4		85		137.6		83


BRAZIL		11.6		17		11.4		17		11.2		19		34.2		15		31.9		17


TOTAL		64.0		100		61.7		100		61.0		100		184.6		100		169.5		100


CVRD			27

(A free translation of the original opinion in Portuguese expressed on Quarterly
Information prepared in accordance with the accounting principles prescribed by
Brazilian Corporate Law)

9 — Report of the Independent Accountants

To the Stockholders and Board of Directors of
Companhia Vale do Rio Doce
Rio de Janeiro — RJ

We have carried out a limited review of the Quarterly Financial Information (ITR) of Companhia Vale do Rio Doce, holding company and consolidated, in respect of the quarter ended September 30, 2005, prepared in accordance with the accounting practices adopted in Brazil and under the responsibility of the Company’s management, comprising the balance sheets, the statements of income and the comments on the Company’s performance.

Except as mentioned in paragraph 3, our limited review was carried out in accordance with the specific procedures established by the Institute of Independent Auditors of Brazil (IBRACON), in conjunction with the Federal Accounting Board, and consisted mainly of: (a) inquires and discussion with the officers responsible for the Company’s and its investees’ accounting, financial and operational areas about the procedures adopted for preparing the Quarterly Financial Information (ITR), and (b) review of the information and subsequent events which have, or may have, relevant effects on the Company’s and its investees’ financial positions and operations.

The financial statements as of September 30, 2005, of certain subsidiaries, jointly-owned and associated companies, in which there are relevant investments, have not been reviewed by independent auditors. Accordingly, the conclusions resulting from our review do not cover the amounts of R$7,682,593 thousand of these investments and R$1,055,479 thousand of the income generated by them for the quarter then ended.

Based on our limited review, except for the effects of the adjustments, if any, which might have been required if the financial statements of the subsidiaries, jointly-owned and associated companies mentioned in paragraph 3 had been reviewed by independent auditors, we are not aware of any relevant adjustment which should be made to the Quarterly Financial Information (ITR), referred to in paragraph 1, for it to be in accordance with the rules issued by the Brazilian Securities Commission (CVM) specifically applicable to the preparation of the obligatory Quarterly Financial Information (ITR).

Our limited review was conducted for the purpose of issuing our report on the Quarterly Financial Information (ITR) referred to in paragraph 1, taken as a whole. The statements of cash flows, holding company and consolidated, are presented as additional information, and are not a required part of the Quarterly Financial Information. Such statements have been subjected to the review procedures described in paragraph 2 and we are not aware of any material adjustment that should be made to such statements for them to be adequately presented in relation to the Quarterly Financial Information.

We have previously reviewed the balance sheets, holding company and consolidated, as of June 30, 2005 and the statements of income for the quarter and period of six months ended September 30, 2004, presented for comparison purposes, as an integral part of the Company’s result for the period of nine months ended September 30, 2004, and issued our reports dated August 10, 2005 and November 10, 2004, respectively, including a qualification regarding the financial statements of certain subsidiaries, jointly-owned and associated companies, which have not been reviewed by independent auditors. Additionally, the statement of income for the quarter ended March 31, 2004, presented for comparison purposes, as an integral part of the Company’s result for the nine months period ended September 30, 2004, was reviewed by other independent auditors, whose report, dated May 7, 2004, included a qualification regarding the financial statements of certain subsidiaries, jointly-owned and associated companies, which have not been reviewed by independent auditors.

Rio de Janeiro, November 9, 2005


DELOITTE TOUCHE TOHMATSU		Marcelo Cavalcanti Almeida
Independent Auditors		Accountant


CVRD			28


10 —		Board of Directors, Advisory Committees, Fiscal Council, Executive Officers and Technical Responsibles


Board of Directors	Fiscal Council
Sérgio Ricardo Silva Rosa	José Bernardo de Medeiros Neto
Chairman
	Marcelo Amaral Moraes
Arlindo Magno de Oliveira
	Aníbal Moreira dos Santos
Eduardo Fernando Jardim Pinto
	Joaquim Vieira Ferreira Levy
Erik Persson
	Executive Officers
Francisco Augusto da Costa e Silva
	Roger Agnelli
Jaques Wagner	Chief Executive Officer

Hiroshi Tada	Murilo Pinto de Oliveira Ferreira
	Executive Officer for Equity Holdings and Business Development
Mário da Silveira Teixeira Júnior
	José Carlos Martins
Oscar Augusto de Camargo Filho	Executive Officer for Ferrous Minerals

Renato da Cruz Gomes	Carla Grasso
	Executive Officer for Human Resources and Corporate Services
Jorge Luiz Pacheco
	José Lancaster
Advisory Committees of the Board of Directors
	Fábio de Oliveira Barbosa
Accounting Committee	Chief Financial Officer
Antonio José de Figueiredo Ferreira
Inácio Clemente da Silva	Gabriel Stoliar
Paulo Roberto Ferreira de Medeiros	Executive Officer for Planning

Executive Development Committee	Guilherme Rodolfo Laager
Arlindo Magno de Oliveira	Executive Officer for Logistics
João Moisés de Oliveira
Olga Loffredi
Oscar Augusto de Camargo Filho

Strategic Committee
Roger Agnelli
Gabriel Stoliar
Cézar Manoel de Medeiros
José Roberto Mendonça de Barros
Luciano Coutinho

Finance Committee
Roger Agnelli
Fábio de Oliveira Barbosa
Rômulo de Mello Dias	Marcus Vinícius Dias Severini	Otto de Souza Marques Junior
Wanderlei Viçoso Fagundes	Chief Accountant	Chief Officer of Control Department
Wanderley Rezende de Souza	CRC-RJ 093982/O-3

Governance and Ethics Committee
Renato da Cruz Gomes
Ricardo Simonsen
Ricardo Carvalho Giambroni

CVRD

Equity Investee Information — 09/30/2005

CAEMI (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

IRON ORE
Quantity sold — external market	MT (thousands)		9,560			9,949			10,737				30,246			7,855			7,407			9,311			9,446			34,019
Quantity sold — internal market	MT (thousands)		1,946			2,388			2,673				7,007			1,941			2,851			2,525			2,349			9,666

Quantity sold — total	MT (thousands)		11,506			12,337			13,410				37,253			9,796			10,258			11,836			11,795			43,685


Average sales price — external market	US$		22.49			39.40			38.69				33.80			18.95			22.68			21.63			22.50			21.48
Average sales price — internal market	US$		17.91			32.29			26.63				26.14			14.14			14.62			15.33			17.62			15.44
Average sales price — total	US$		21.71			38.02			36.30				32.36			18.00			20.44			20.28			21.53			20.14

REFRACTORY BAUXITE
Quantity sold — external market	MT (thousands)		—			—			—				—			19			—			—			—			19
Quantity sold — internal market	MT (thousands)		—			—			—				—			1			—			—			—			1

Quantity sold — total	MT (thousands)		—			—			—				—			20			—			—			—			20


Average sales price — external market	US$		—			—			—				—			148.20			—			—			—			148.20
Average sales price — internal market	US$		—			—			—				—			158.00			—			—			—			158.00
Average sales price — total	US$		—			—			—				—			148.67			—			—			—			148.67
KAOLIN
Quantity sold — external market	MT (thousands)		253			267			253				773			169			175			170			156			670
Quantity sold — internal market	MT (thousands)		29			29			32				90			18			18			20			18			74

Quantity sold — total	MT (thousands)		282			296			285				863			187			193			190			174			744


Average sales price — external market	US$		167.32			175.04			175.68				172.72			153.64			161.84			161.44			164.46			160.28
Average sales price — internal market	US$		197.76			202.59			212.12				204.42			210.17			184.56			200.15			235.06			207.29
Average sales price — total	US$		170.45			177.74			178.81				175.71			159.08			163.94			165.51			171.86			164.97
*TRANSPORTATION SERVICES ()**
Quantity sold — internal market	MT (thousands)		25,190			27,196			28,059				80,445			21,819			24,314			25,632			26,333			98,098

Quantity sold — total	MT (thousands)		25,190			27,196			28,059				80,445			21,819			24,314			25,632			26,333			98,098


Average sales price — internal market	US$		6.75			6.93			8.15				7.30			5.29			5.05			5.36			5.65			5.35
Average sales price — total	US$		6.75			6.93			8.15				7.30			5.29			5.05			5.36			5.65			5.35

Long-term indebtedness, gross	US$		302,148			251,929			241,930				241,930			264,849			240,950			253,802			254,404			254,404
Short-term indebtedness, gross	US$		24,289			16,404			5,398				5,398			17,506			12,747			8,704			5,740			5,740

Total indebtedness, gross	US$		326,437			268,333			247,328				247,328			282,355			253,697			262,506			260,144			260,144


Stockholders’ equity	R$		1,462,327			1,941,515			2,366,797				2,366,797			1,093,177			1,264,784			1,440,263			1,299,998			1,299,998


Net operating revenues	R$		791,929			1,443,115			1,272,292				3,507,336			600,043			708,137			791,505			798,288			2,897,973
Cost of products	R$		(425,534	)		(469,499	)		(492,784	)			(1,387,817	)		(329,928	)		(303,719	)		(369,268	)		(355,774	)		(1,358,689	)
Other expenses/revenues	R$		(96,083	)		(97,241	)		(103,935	)			(297,259	)		(58,450	)		(72,877	)		(72,442	)		(134,543	)		(338,312	)
Depreciation, amortization and depletion	R$		79,166			75,302			86,620				241,088			45,016			46,239			47,218			60,051			198,524

EBITDA	R$		349,478			951,677			762,193				2,063,348			256,681			377,780			397,013			368,022			1,399,496
Depreciation, amortization and depletion	R$		(79,166	)		(75,302	)		(86,620	)			(241,088	)		(45,016	)		(46,239	)		(47,218	)		(60,051	)		(198,524	)

EBIT	R$		270,312			876,375			675,573				1,822,260			211,665			331,541			349,795			307,971			1,200,972
Sale of assets	R$		—			—			297,700				297,700			—			—			—			—			—
Result of equity investments	R$		7,401			30,261			(26,769	)			10,893			4,709			1,416			(4,606	)		(9,508	)		(7,989	)
Net financial results	R$		6,735			(99,285	)		(58,028	)			(150,578	)		(19,576	)		(18,750	)		(41,415	)		(42,375	)		(122,116	)

Income before income tax and social contribution	R$		284,448			807,351			888,476				1,980,275			196,798			314,207			303,774			256,088			1,070,867
Income tax and social contribution	R$		(93,354	)		(256,398	)		(231,782	)			(581,534	)		(67,048	)		(108,211	)		(98,650	)		(78,044	)		(351,953	)
Minority interest	R$		(28,764	)		(77,048	)		(55,024	)			(160,836	)		(21,163	)		(34,389	)		(29,645	)		(26,886	)		(112,083	)

Net income	R$		162,330			473,905			601,670				1,237,905			108,587			171,607			175,479			151,158			606,831


(*)		Railroad service 100% MRS

Aluminum Area — Albras (Adjusted and Unaudited)


Information	2005															2004
		1Q			2Q			3Q			4Q		Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousand)		104			106			106					316			94			115			96			108			413
Quantity sold — internal market	MT (thousand)		5			4			6					15			3			4			5			5			17

Quantity sold — total	MT (thousand)		109			110			112			—		331			97			119			101			113			430


Average sales price — external market	US$		1,787.71			1,819.42			1,754.44					1,787.19			1,565.46			1,626.62			1,644.42			1,728.79			1,643.55
Average sales price — internal market	US$		1,860.15			1,874.87			1,588.67					1,755.48			1,618.11			1,660.01			1,700.23			1,787.36			1,701.90
Average sales price — total	US$		1,790.92			1,821.74			1,745.56					1,785.75			1,567.28			1,627.72			1,647.09			1,731.32			1,645.86

Long-term indebtedness, gross	US$		171,996			152,240			132,411					132,411			319,259			263,992			243,995			202,426			202,426
Short-term indebtedness, gross	US$		23,126			142,494			189,705			—		189,705			—			—			—			—			—

Total indebtedness, gross	US$		195,122			294,734			322,116			—		322,116			319,259			263,992			243,995			202,426			202,426

Stockholders’ equity	R$		1,168,783			1,308,065			1,288,203					1,288,203			834,690			1,028,215			1,143,038			1,076,202			1,076,202


Net operating revenues	R$		520,606			495,887			457,291					1,473,784			442,246			587,060			494,300			542,256			2,065,862
Cost of products	R$		(352,950	)		(347,478	)		(332,790	)				(1,033,218	)		(257,968	)		(345,548	)		(288,688	)		(392,178	)		(1,284,382	)
Other expenses/revenues	R$		(28,479	)		(20,104	)		(27,808	)				(76,391	)		(30,335	)		(26,362	)		(16,525	)		(39,212	)		(112,434	)
Depreciation, amortization and depletion	R$		15,497			17,308			17,167					49,972			16,327			16,468			16,902			17,185			66,882

EBITDA	R$		154,674			145,613			113,860			—		414,147			170,270			231,618			205,989			128,051			735,928
Depreciation, amortization and depletion	R$		(15,497	)		(17,308	)		(17,167	)				(49,972	)		(16,327	)		(16,468	)		(16,902	)		(17,185	)		(66,882	)

EBIT	R$		139,177			128,305			96,693			—		364,175			153,943			215,150			189,087			110,866			669,046
Impairment	R$		—			—			—					—			(4,949	)		646			(145	)		(629	)		(5,077	)
Net financial results	R$		(23,676	)		51,258			(92,238	)				(64,656	)		(100,561	)		(49,206	)		(59,007	)		31,420			(177,354	)

Income before income tax and social contribution	R$		115,501			179,563			4,455			—		299,519			48,433			166,590			129,935			141,657			486,615
Income tax and social contribution	R$		(23,012	)		(40,280	)		(24,397	)				(87,689	)		(53,603	)		26,935			(15,111	)		(2,388	)		(44,167	)

Net income (loss)	R$		92,489			139,283			(19,942	)		—		211,830			(5,170	)		193,525			114,824			139,269			442,448

Aluminum Area — Alunorte (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousand)		395			366			404				1,165			439			343			487			414			1,683
Quantity sold — internal market	MT (thousand)		263			249			271				783			231			212			216			218			877

Quantity sold — total	MT (thousand)		658			615			675				1,948			670			555			703			632			2,560


Average sales price — external market	US$		244.47			249.98			239.25				244.39			204.29			234.99			225.85			230.49			223.23
Average sales price — internal market	US$		231.66			234.08			204.17				222.92			207.14			210.68			206.77			221.70			211.52
Average sales price — total	US$		239.35			241.38			225.17				235.76			205.30			225.71			222.76			227.46			219.99

Long-term indebtedness, gross	US$		463,697			454,423			546,318				546,318			360,762			350,874			333,550			402,458			402,458
Short-term indebtedness, gross	US$		33,143			—			33,652				33,652			90,004			64,135			57,680			9,155			9,155

Total indebtedness, gross	US$		496,840			454,423			579,970				579,970			450,766			415,009			391,230			411,613			411,613


Stockholders’ equity	R$		1,727,554			2,042,051			2,096,408				2,096,408			970,319			1,243,699			1,432,074			1,636,985			1,636,985


Net operating revenues	R$		406,704			350,888			357,088				1,114,680			384,835			375,161			448,134			385,819			1,593,949
Cost of products	R$		(237,859	)		(235,776	)		(270,354	)			(743,989	)		(238,121	)		(207,398	)		(279,515	)		(230,991	)		(956,025	)
Other expenses/revenues	R$		(18,903	)		(13,848	)		(1,403	)			(34,154	)		(12,070	)		(10,699	)		(11,736	)		(17,215	)		(51,720	)
Depreciation, amortization and depletion	R$		22,815			22,170			20,885				65,870			19,004			19,878			21,712			22,736			83,330

EBITDA	R$		172,757			123,434			106,216				402,407			153,648			176,942			178,595			160,349			669,534
Depreciation, amortization and depletion	R$		(22,815	)		(22,170	)		(20,885	)			(65,870	)		(19,004	)		(19,878	)		(21,712	)		(22,736	)		(83,330	)

EBIT	R$		149,942			101,264			85,331				336,537			134,644			157,064			156,883			137,613			586,204
Net financial results	R$		(22,152	)		138,235			(7,289	)			108,794			(86,599	)		(80,399	)		34,019			(29,161	)		(162,140	)

Income before income tax and social contribution	R$		127,790			239,499			78,042				445,331			48,045			76,665			190,902			108,452			424,064
Income tax and social contribution	R$		(12,328	)		(40,093	)		(23,678	)			(76,099	)		(11,001	)		51,642			(2,530	)		(34,923	)		3,188

Net income	R$		115,462			199,406			54,364				369,232			37,044			128,307			188,372			73,529			427,252

Aluminum Area — MRN (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousand)		1,426			1,461			1,433				4,320			1,106			1,157			1,699			1,715			5,677
Quantity sold — internal market	MT (thousand)		2,431			2,972			3,165				8,568			2,198			2,834			2,728			3,016			10,776

Quantity sold — total	MT (thousand)		3,857			4,433			4,598				12,888			3,304			3,991			4,427			4,731			16,453


Average sales price — external market	US$		26.01			26.61			27.23				26.62			22.00			22.70			23.89			25.10			23.64
Average sales price — internal market	US$		22.27			22.78			23.31				22.83			18.84			19.43			20.45			21.49			20.14
Average sales price — total	US$		24.14			24.70			25.27				24.74			19.90			20.38			21.77			22.80			21.35

Long-term indebtedness, gross	US$		26,209			17,235			7,149				7,149			39,956			59,606			53,275			40,340			40,340
Short-term indebtedness, gross	US$		189,191			237,756			215,871				215,871			191,833			171,208			148,665			150,263			150,263

Total indebtedness, gross	US$		215,400			254,991			223,020				223,020			231,789			230,814			201,940			190,603			190,603


Stockholders’ equity	R$		849,174			793,951			905,158				905,158			776,584			728,781			879,701			870,021			870,021


Net operating revenues	R$		224,543			239,597			260,248				724,388			178,101			241,884			261,556			265,335			946,876
Cost of products	R$		(97,810	)		(117,745	)		(140,173	)			(355,728	)		(74,584	)		(97,803	)		(105,217	)		(116,379	)		(393,983	)
Other expenses/revenues	R$		(5,638	)		(6,678	)		(4,291	)			(16,607	)		(3,207	)		(2,356	)		(11,330	)		(8,467	)		(25,360	)
Depreciation, amortization and depletion	R$		25,576			25,979			26,543				78,098			25,452			25,521			26,052			26,130			103,155

EBITDA	R$		146,671			141,153			142,327				430,151			125,762			167,246			171,061			166,619			630,688
Depreciation, amortization and depletion	R$		(25,576	)		(25,979	)		(26,543	)			(78,098	)		(25,452	)		(25,521	)		(26,052	)		(26,130	)		(103,155	)

EBIT	R$		121,095			115,174			115,784				352,053			100,310			141,725			145,009			140,489			527,533
Net financial results	R$		(6,192	)		20,883			8,654				23,345			(5,823	)		(23,067	)		18,484			7,515			(2,891	)

Income before income tax and social contribution	R$		114,903			136,057			124,438				375,398			94,487			118,658			163,493			148,004			524,642
Income tax and social contribution	R$		(11,939	)		(12,277	)		(13,229	)			(37,445	)		(10,712	)		(12,030	)		(12,572	)		(12,949	)		(48,263	)

Net income	R$		102,964			123,780			111,209				337,953			83,775			106,628			150,921			135,055			476,379

Aluminum Area — Valesul (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousand)		12			12			8				32			15			15			12			12			54
Quantity sold — internal market	MT (thousand)		11			12			12				35			10			10			12			12			44

Quantity sold — total	MT (thousand)		23			24			20				67			25			25			24			24			98


Average sales price — external market	US$		1,927.69			2,030.87			1,999.47				1,984.33			1,676.30			1,802.97			1,782.17			1,846.29			1,772.79
Average sales price — internal market	US$		2,578.41			2,674.31			2,565.35				2,606.81			2,240.26			2,214.30			2,330.97			2,435.48			2,312.34
Average sales price — total	US$		2,494.08			2,216.68			2,339.00				2,348.42			1,903.80			1,969.71			2,063.19			2,137.55			2,016.89

Long-term indebtedness, gross	US$		287			234			156				156			603			475			434			378			378
Short-term indebtedness, gross	US$		437			456			461				461			748			503			590			490			490

Total indebtedness, gross	US$		724			690			617				617			1,351			978			1,024			868			868


Stockholders’ equity	R$		286,773			273,861			266,092				266,092			272,773			253,713			273,304			272,988			272,988


Net operating revenues	R$		127,649			125,658			106,749				360,056			127,513			146,194			135,217			132,245			541,169
Cost of products	R$		(110,835	)		(115,305	)		(107,597	)			(333,737	)		(101,823	)		(112,509	)		(111,915	)		(103,767	)		(430,014	)
Other expenses/revenues	R$		260			2,958			(3,078	)			140			(3,473	)		(7,424	)		1,013			(5,709	)		(15,593	)
Depreciation, amortization and depletion	R$		3,622			3,673			3,397				10,692			3,923			4,158			3,814			3,656			15,551

EBITDA	R$		20,696			16,984			(529	)			37,151			26,140			30,419			28,129			26,425			111,113
Depreciation, amortization and depletion	R$		(3,622	)		(3,673	)		(3,397	)			(10,692	)		(3,923	)		(4,158	)		(3,814	)		(3,656	)		(15,551	)

EBIT	R$		17,074			13,311			(3,926	)			26,459			22,217			26,261			24,315			22,769			95,562
Net financial results	R$		3,269			(1,886	)		427				1,810			866			1,149			1,575			1,335			4,925

Income before income tax and social contribution	R$		20,343			11,425			(3,499	)			28,269			23,083			27,410			25,890			24,104			100,487
Income tax and social contribution	R$		(6,558	)		(5,638	)		(4,268	)			(16,464	)		(5,659	)		(6,472	)		(6,299	)		(6,465	)		(24,895	)

Net income	R$		13,785			5,787			(7,767	)			11,805			17,424			20,938			19,591			17,639			75,592

Pellets Area — Hispanobras (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousand)		500			459			320				1,279			425			99			246			442			1,212
Quantity sold — internal market	MT (thousand)		620			550			730				1,900			460			790			795			675			2,720

Quantity sold — total	MT (thousand)		1,120			1,009			1,050				3,179			885			889			1,041			1,117			3,932


Average sales price — external market	US$		38.46			69.35			72.19				57.98			32.48			57.40			38.57			39.18			38.20
Average sales price — internal market	US$		38.43			50.85			74.00				55.69			31.18			42.37			37.67			38.62			38.17
Average sales price — total	US$		38.45			59.27			73.45				56.62			31.83			44.04			37.88			38.84			38.18

Stockholders’ equity	R$		125,019			189,084			146,572				146,572			94,698			113,301			119,917			114,501			114,501


Net operating revenues	R$		114,014			264,887			177,846				556,747			81,893			121,437			118,855			120,498			442,683
Cost of products	R$		(93,145	)		(151,833	)		(120,690	)			(365,668	)		(81,144	)		(96,794	)		(96,161	)		(91,135	)		(365,234	)
Other expenses/income	R$		(4,136	)		(2,239	)		(2,100	)			(8,475	)		3,291			5,921			(3,873	)		(7,115	)		(1,776	)
Depreciation, amortization and depletion	R$		1,091			1,123			651				2,865			2,525			1,102			1,092			1,091			5,810

EBITDA	R$		17,824			111,938			55,707				185,469			6,565			31,666			19,913			23,339			81,483
Depreciation, amortization and depletion	R$		(1,091	)		(1,123	)		(651	)			(2,865	)		(2,525	)		(1,102	)		(1,092	)		(1,091	)		(5,810	)

EBIT	R$		16,733			110,815			55,056				182,604			4,040			30,564			18,821			22,248			75,673
Net financial results	R$		394			(9,301	)		(2,497	)			(11,404	)		(593	)		1,253			(5,175	)		(2,571	)		(7,086	)

Income before income tax and social contribution	R$		17,127			101,514			52,559				171,200			3,447			31,817			13,646			19,677			68,587
Income tax and social contribution	R$		(6,607	)		(34,818	)		(17,871	)			(59,296	)		(1,434	)		(10,988	)		(4,857	)		(7,656	)		(24,935	)

Net income	R$		10,520			66,696			34,688				111,904			2,013			20,829			8,789			12,021			43,652

Pellets Area — Itabrasco (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousand)		769			730			670				2,169			762			903			486			674			2,825
Quantity sold — internal market	MT (thousand)		176			230			340				746			—			105			260			407			772

Quantity sold — total	MT (thousand)		945			960			1,010				2,915			762			1,008			746			1,081			3,597


Average sales price — external market	US$		39.14			71.97			73.16				60.70			32.84			43.39			39.02			39.15			38.78
Average sales price — internal market	US$		39.40			73.27			73.78				65.51			—			38.29			39.33			39.28			39.16
Average sales price — total	US$		39.18			72.29			73.37				61.93			32.84			42.86			39.13			39.20			38.86

Short-term indebtedness, gross	US$		3,980			8,658			—				—			557			7,931			567			—			—

Total indebtedness, gross	US$		3,980			8,658			—				—			557			7,931			567			—			—

Stockholders’ equity	R$		93,593			157,459			133,036				133,036			65,673			79,100			83,819			89,407			89,407


Net operating revenues	R$		98,767			246,386			172,146				517,299			72,293			132,327			86,404			117,273			408,297
Cost of products	R$		(83,745	)		(144,813	)		(122,945	)			(351,503	)		(70,203	)		(110,634	)		(71,500	)		(101,464	)		(353,801	)
Other expenses/revenues	R$		(5,513	)		(3,487	)		(6,640	)			(15,640	)		(283	)		3,538			(4,404	)		(7,332	)		(8,481	)
Depreciation, amortization and depletion	R$		107			311			1,503				1,921			498			622			597			491			2,208

EBITDA	R$		9,616			98,397			44,064				152,077			2,305			25,853			11,097			8,968			48,223
Depreciation, amortization and depletion	R$		(107	)		(311	)		(1,503	)			(1,921	)		(498	)		(622	)		(597	)		(491	)		(2,208	)

EBIT	R$		9,509			98,086			42,561				150,156			1,807			25,231			10,500			8,477			46,015
Result of equity investiments	R$		—			—			129				129			—			—			—			170			170
Net financial results	R$		(1,446	)		(909	)		(6,195	)			(8,550	)		(14	)		(1,015	)		(1,805	)		1,258			(1,576	)

Income before income tax and social contribution	R$		8,063			97,177			36,495				141,735			1,793			24,216			8,695			9,905			44,609
Income tax and social contribution	R$		(3,879	)		(33,311	)		(15,121	)			(52,311	)		(679	)		(8,767	)		(3,976	)		(4,317	)		(17,739	)

Net income	R$		4,184			63,866			21,374				89,424			1,114			15,449			4,719			5,588			26,870

Pellets Area — Kobrasco (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousand)		597			980			782				2,359			617			437			852			549			2,455
Quantity sold — internal market	MT (thousand)		662			329			400				1,391			623			460			320			544			1,947

Quantity sold — total	MT (thousand)		1,259			1,309			1,182				3,750			1,240			897			1,172			1,093			4,402


Average sales price — external market	US$		38.08			71.48			75.54				64.37			34.27			38.04			37.94			38.20			37.09
Average sales price — internal market	US$		39.32			73.80			71.98				56.87			33.26			39.59			38.96			39.36			37.40
Average sales price — total	US$		38.73			72.26			74.34				61.66			33.76			38.84			38.22			38.77			37.24

Long-term indebtedness, gross	US$		87,228			69,632			49,241				49,241			96,512			92,206			87,344			83,166			83,166

Total indebtedness, gross	US$		87,228			69,632			49,241				49,241			96,512			92,206			87,344			83,166			83,166


Stockholders’ equity	R$		77,945			144,269			163,601				163,601			14,633			15,341			44,033			67,268			67,268


Net operating revenues	R$		130,246			230,800			207,744				568,790			121,982			105,641			135,138			118,048			480,809
Cost of products	R$		(97,776	)		(152,162	)		(143,075	)			(393,013	)		(106,312	)		(92,233	)		(107,020	)		(95,834	)		(401,399	)
Other expenses/revenues	R$		(9,421	)		(12	)		(27,215	)			(36,648	)		2,210			8,290			(4,827	)		(3,141	)		2,532
Depreciation, amortization and depletion	R$		2,286			2,309			2,428				7,023			2,269			2,279			2,286			2,286			9,120

EBITDA	R$		25,335			80,935			39,882				146,152			20,149			23,977			25,577			21,359			91,062
Depreciation, amortization and depletion	R$		(2,286	)		(2,309	)		(2,428	)			(7,023	)		(2,269	)		(2,279	)		(2,286	)		(2,286	)		(9,120	)

EBIT	R$		23,049			78,626			37,454				139,129			17,880			21,698			23,291			19,073			81,942
Net financial results	R$		(3,412	)		22,858			3,739				23,185			(3,769	)		(20,954	)		21,078			16,936			13,291

Income before income tax and social contribution	R$		19,637			101,484			41,193				162,314			14,111			744			44,369			36,009			95,233
Income tax and social contribution	R$		(8,962	)		(35,160	)		(21,859	)			(65,981	)		(5,555	)		(36	)		(15,678	)		(12,772	)		(34,041	)

Net income	R$		10,675			66,324			19,334				96,333			8,556			708			28,691			23,237			61,192

Pellets Area — Nibrasco (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousand)		675			627			827				2,129			563			803			776			833			2,975
Quantity sold — internal market — CVRD	MT (thousand)		996			1,149			1,000				3,145			1,327			903			899			779			3,908
Quantity sold — internal market — Others	MT (thousand)		35			34			35				104			33			33			31			30			127

Quantity sold — total	MT (thousand)		1,706			1,810			1,827				5,378			1,923			1,739			1,706			1,642			7,010


Average sales price — external market	US$		37.13			64.94			86.42				64.47			31.45			34.49			40.37			36.40			35.98
Average sales price — internal market	US$		37.77			68.70			106.16				70.82			31.51			35.96			37.51			37.40			35.09
Average sales price — total	US$		37.51			67.39			97.22				66.94			31.49			33.23			38.84			36.90			34.98

Long-term indebtedness, gross	US$		3,584			4,067			4,301				4,301			—			—			3,343			3,614			3,614
Short-term indebtedness, gross	US$		—			—			—				—			1,200			—			—			—			—

Total indebtedness, gross	US$		3,584			4,067			4,301				4,301			1,200			—			3,343			3,614			3,614


Stockholders’ equity	R$		174,274			154,264			203,949				203,949			115,823			128,711			143,243			161,421			161,421


Net operating revenues	R$		185,388			326,254			312,775				824,417			188,081			201,815			216,426			186,261			792,583
Cost of products	R$		(156,223	)		(237,686	)		(209,878	)			(603,787	)		(170,722	)		(172,775	)		(183,788	)		(142,879	)		(670,164	)
Other expenses/revenues	R$		(4,148	)		(4,460	)		(16,738	)			(25,346	)		7,031			12,290			(5,527	)		(21,831	)		(8,037	)
Depreciation, amortization and depletion	R$		1,400			1,766			1,998				5,164			2,490			2,250			1,419			1,417			7,576

EBITDA	R$		26,417			85,874			88,157				200,448			26,880			43,580			28,530			22,968			121,958
Depreciation, amortization and depletion	R$		(1,400	)		(1,766	)		(1,998	)			(5,164	)		(2,490	)		(2,250	)		(1,419	)		(1,417	)		(7,576	)

EBIT	R$		25,017			84,108			86,159				195,284			24,390			41,330			27,111			21,551			114,382
Net financial results	R$		(1,193	)		(2,808	)		(7,656	)			(11,657	)		(380	)		(85	)		(3,512	)		7,794			3,817

Income (loss) before income tax and social contribution	R$		23,824			81,300			78,503				183,627			24,010			41,245			23,599			29,345			118,199
Income tax and social contribution	R$		(10,969	)		(28,068	)		(28,818	)			(67,855	)		(9,318	)		(12,803	)		(9,067	)		(11,167	)		(42,355	)

Net income (loss)	R$		12,855			53,232			49,685				115,772			14,692			28,442			14,532			18,178			75,844

Pellets Area — Samarco (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — pellets	MT (thousand)		3,297			3,024			3,666				9,987			3,462			3,177			3,264			3,918			13,821
Quantity sold — iron ore	MT (thousand)		239			431			407				1,077			497			471			688			367			2,023

Average sales price — pellets	US$		43.88			76.50			80.98				67.38			39.31			39.11			38.89			40.62			39.54
Average sales price — iron ore	US$		31.04			32.18			38.68				34.38			16.88			19.66			21.78			21.28			19.99

Long-term indebtedness, gross	US$		51,856			42,249			41,753				41,753			21,400			46,067			42,067			58,300			58,300
Short-term indebtedness, gross	US$		156,449			139,796			155,508				155,508			173,753			152,845			139,007			140,503			140,503

Total indebtedness, gross	US$		208,305			182,045			197,261				197,261			195,153			198,912			181,074			198,803			198,803


Stockholders’ equity	R$		766,718			934,777			960,278				960,278			625,633			557,528			661,925			569,025			569,025


Net operating revenues	R$		410,681			611,776			696,682				1,719,139			372,919			404,208			423,799			479,900			1,680,826
Cost of products	R$		(167,808	)		(175,655	)		(209,161	)			(552,624	)		(165,160	)		(154,345	)		(172,591	)		(217,391	)		(709,487	)
Other expenses	R$		(27,954	)		(74,243	)		(18,806	)			(121,003	)		(30,828	)		(45,910	)		(42,137	)		(54,813	)		(173,688	)
Depreciation, amortization and depletion	R$		11,426			11,726			14,998				38,150			11,373			11,744			12,744			12,008			47,869

*EBITDA ()**	R$		226,345			373,604			483,713				1,083,662			188,304			215,697			221,815			219,704			845,520
Depreciation, amortization and depletion	R$		(11,426	)		(11,726	)		(14,998	)			(38,150	)		(11,373	)		(11,744	)		(12,744	)		(12,008	)		(47,869	)

EBIT	R$		214,919			361,878			468,715				1,045,512			176,931			203,953			209,071			207,696			797,651
Result of equity investments	R$		6,705			8,521			10,455				25,681			11,109			(4,762	)		19,788			(785	)		25,350
Net financial results	R$		13,204			694			(45,714	)			(31,816	)		(4,618	)		(53,845	)		41,281			2,441			(14,741	)

Income before income tax and social contribution	R$		234,828			371,093			433,456				1,039,377			183,422			145,346			270,140			209,352			808,260
Income tax and social contribution	R$		(37,135	)		(60,045	)		(74,580	)			(171,760	)		(31,058	)		(18,267	)		(58,247	)		(396	)		(107,968	)

Net income	R$		197,693			311,048			358,876				867,617			152,364			127,079			211,893			208,956			700,292

Pellets Area — GIIC (Adjusted and Unaudited)


Information		2005													2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market	MT (thousands)		710			1,058			893				2,661			906			683			1,003			1,092			3,684

Average sales price — external market	US$		88.06			118.15			109.34				107.16			52.68			58.27			55.78			54.82			55.19

Long-term indebtedness, gross	US$		10,000			10,000			5,000				5,000			20,000			20,000			25,000			25,000			25,000

Total indebtedness, gross	US$		10,000			10,000			5,000				5,000			20,000			20,000			25,000			25,000			25,000


Stockholders’ equity	R$		302,732			327,589			282,490				282,490			221,358			239,629			245,145			239,453			239,453


Net operating revenues	R$		166,812			320,533			220,089				707,434			138,158			121,300			166,624			185,011			611,093
Cost of products	R$		(101,650	)		(155,898	)		(132,620	)			(390,168	)		(103,595	)		(101,937	)		(131,123	)		(137,183	)		(473,838	)
Other expenses	R$		(3,251	)		(46,137	)		(23,004	)			(72,392	)		(11,268	)		(9,109	)		(9,802	)		(16,058	)		(46,237	)
Depreciation, amortization and depletion	R$		1,756			1,681			1,627				5,064			1,893			2,008			1,992			1,870			7,763

EBITDA	R$		63,667			120,179			66,092				249,938			25,188			12,262			27,691			33,640			98,781
Depreciation, amortization and depletion	R$		(1,756	)		(1,681	)		(1,627	)			(5,064	)		(1,893	)		(2,008	)		(1,992	)		(1,870	)		(7,763	)

EBIT	R$		61,911			118,498			64,465				244,874			23,295			10,254			25,699			31,770			91,018
Gain/loss in translation of currency	R$		(69	)		(15,559	)		3,260				(12,368	)		110			1,779			(3,817	)		(5,515	)		(7,443	)
Net financial results	R$		398			96			(15,112	)			(14,618	)		(229	)		(463	)		42			103			(547	)

Net income	R$		62,240			103,035			52,613				217,888			23,176			11,570			21,924			26,358			83,028

Manganese and Ferrolloys Area — RDM (Adjusted and Unaudited)


Information												2005															2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market — ferroalloys	MT (thousand)		34			57			50				141			37			31			39			38			145
Quantity sold — internal market — ferroalloys	MT (thousand)		36			41			33				110			45			47			40			42			174

Quantity sold — total	MT (thousand)		70			98			83				251			82			78			79			80			319


Quantity sold — external market — manganese	MT (thousand)		355			312			419				1,086			213			350			465			421			1,449
Quantity sold — internal market — manganese	MT (thousand)		69			68			76				213			72			72			61			78			283

Quantity sold — total	MT (thousand)		424			380			495				1,299			285			422			526			499			1,732


Average sales price — external market — ferroalloys	US$		1,477.75			799.63			599.86				892.31			713.01			1,006.84			1,151.05			1,229.41			1,028.98
Average sales price — internal market — ferroalloys	US$		1,010.90			1,385.38			717.24				1,062.38			700.76			1,038.88			1,484.10			1,496.32			1,164.20
Average sales price — total	US$		1,237.52			1,049.97			646.53				966.84			706.34			1,026.72			1,316.89			1,366.98			1,101.56

Average sales price — external market — manganese	US$		71.67			79.40			78.23				76.42			44.98			48.51			56.12			72.01			57.26
Average sales price — internal market — manganese	US$		72.19			72.64			76.16				73.75			45.15			55.80			54.94			53.41			52.25
Average sales price — total	US$		72.10			73.80			77.91				75.98			45.02			49.76			55.98			69.10			56.44

Long-term indebtedness, gross	US$		8,167			47,949			49,634				49,634			12,361			10,705			11,919			11,331			11,331
Short-term indebtedness, gross	US$		33,687			—			—				—			40,135			33,797			33,057			31,402			31,402


Total indebtedness, gross	US$		41,854			47,949			49,634				49,634			52,496			44,502			44,976			42,733			42,733


Stockholders’ equity	R$		684,388			708,553			704,962				704,962			657,722			751,433			879,256			866,779			866,779


Net operating revenues	R$		278,912			274,851			216,562				770,325			178,314			265,252			350,360			355,899			1,149,825
Cost of products	R$		(144,693	)		(182,020	)		(155,878	)			(482,591	)		(110,687	)		(110,988	)		(137,187	)		(166,475	)		(525,337	)
Other expenses/revenues	R$		(13,036	)		(33,637	)		(57,147	)			(103,820	)		(25,763	)		(23,025	)		(38,393	)		(73,153	)		(160,334	)
Depreciation, amortization and depletion	R$		6,187			6,652			6,164				19,003			5,545			5,293			6,745			5,942			23,525

EBITDA	R$		127,370			65,846			9,701				202,917			47,409			136,532			181,525			122,213			487,679
Depreciation, amortization and depletion	R$		(6,187	)		(6,652	)		(6,164	)			(19,003	)		(5,545	)		(5,293	)		(6,745	)		(5,942	)		(23,525	)

EBIT	R$		121,183			59,194			3,537				183,914			41,864			131,239			174,780			116,271			464,154
Impairment	R$		1,984			(1,742	)		—				242			—			—			184			(6,593	)		(6,409	)
Net financial results	R$		1,073			(26,429	)		(7,095	)			(32,451	)		2,741			5,163			(14,834	)		(12,716	)		(19,646	)

Income (loss) before income tax and social contribution	R$		124,240			31,023			(3,558	)			151,705			44,605			136,402			160,130			96,962			438,099
Income tax and social contribution	R$		(31,287	)		(6,857	)		(34	)			(38,178	)		(5,829	)		(42,691	)		(41,643	)		(24,634	)		(114,797	)

Net income (loss)	R$		92,953			24,166			(3,592	)			113,527			38,776			93,711			118,487			72,328			323,302

Manganese and Ferrolloys Area — Urucum (Adjusted and Unaudited)


Information												2005															2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market — iron ore	MT (thousand)		222			263			279				764			127			106			254			172			659
Quantity sold — internal market — iron ore	MT (thousand)		1			—			4				5			—			3			—			46			49

Quantity sold — total	MT (thousand)		223			263			283				769			127			109			254			218			708


Quantity sold — external market — manganese	MT (thousand)		26			50			7				83			22			4			39			56			121
Quantity sold — internal market — manganese	MT (thousand)		64			48			48				160			50			62			52			50			214

Quantity sold — total	MT (thousand)		90			98			55				243			72			66			91			106			335


Quantity sold — external market — ferroalloys	MT (thousand)		5			4			2				11			4			4			4			3			15
Quantity sold — internal market — ferroalloys	MT (thousand)		—			—			2				2			1			—			—			—			1

Quantity sold — total	MT (thousand)		5			4			4				13			5			4			4			3			16


Average sales price — external market — iron ore	US$		17.89			32.72			34.19				28.95			15.05			19.09			19.18			18.45			18.18
Average sales price — internal market — iron ore	US$		2.63			—			23.25				19.13			—			2.28			—			37.13			35.00
Average sales price — total	US$		17.85			32.72			34.04				28.89			15.05			18.63			19.18			22.39			19.34

Average sales price — external market — manganese	US$		115.85			98.34			124.86				106.06			49.84			54.87			45.72			45.33			46.59
Average sales price — internal market — manganese	US$		72.57			114.52			107.81				95.73			44.19			47.69			55.82			68.27			53.66
Average sales price — total	US$		85.16			106.27			109.98				99.29			45.92			48.10			51.53			56.10			51.09

Average sales price — external market — ferroalloys	US$		918.43			775.24			942.00				870.65			564.53			863.73			1,285.47			1,227.89			969.24
Average sales price — internal market — ferroalloys	US$		—			—			210.00				210.00			394.48			—			—			—			394.48
Average sales price — total	US$		918.43			775.24			576.00				769.01			546.44			863.73			1,285.47			1,227.89			938.29

Long-term indebtedness, gross	US$		12,391			16,597			18,773				18,773			—			3,014			807			8,058			8,058

Short-term indebtedness, gross	US$		—			—			—				—			3,577			1,012			1,340			—			—

Total indebtedness, gross	US$		12,391			16,597			18,773				18,773			3,577			4,026			2,147			8,058			8,058


Stockholders’ equity	R$		45,603			53,519			59,954				59,954			60,621			43,735			54,415			45,754			45,754


Net operating revenues	R$		41,203			50,192			42,251				133,646			21,070			23,911			39,832			39,650			124,463
Cost of products	R$		(18,685	)		(18,609	)		(16,705	)			(53,999	)		(11,132	)		(10,784	)		(14,550	)		(19,444	)		(55,910	)
Other expenses/revenues	R$		(4,920	)		(10,970	)		(8,961	)			(24,851	)		(4,285	)		(3,357	)		(7,276	)		(21,914	)		(36,832	)
Depreciation, amortization and depletion	R$		1,238			1,215			1,303				3,756			1,005			992			966			1,017			3,980

EBITDA	R$		18,836			21,828			17,888				58,552			6,658			10,762			18,972			(691	)		35,701
Depreciation, amortization and depletion	R$		(1,238	)		(1,215	)		(1,303	)			(3,756	)		(1,005	)		(992	)		(966	)		(1,017	)		(3,980	)

EBIT	R$		17,598			20,613			16,585				54,796			5,653			9,770			18,006			(1,708	)		31,721
Impairment	R$		215			(934	)		(171	)			(890	)		(562	)		22			(2	)		(1,294	)		(1,836	)
Net financial results	R$		(862	)		(7,028	)		(4,624	)			(12,514	)		(128	)		(145	)		(1,752	)		(1,693	)		(3,718	)

Income before income tax and social contribution	R$		16,951			12,651			11,790				41,392			4,963			9,647			16,252			(4,695	)		26,167
Income tax and social contribution	R$		(5,798	)		(4,734	)		(5,356	)			(15,888	)		(1,867	)		(3,457	)		(5,572	)		130			(10,766	)

Net income	R$		11,153			7,917			6,434				25,504			3,096			6,190			10,680			(4,565	)		15,401

Manganese and Ferrolloys Area – RDME (Adjusted and Unaudited)


Information												2005															2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — external market — Sinter	MT (thousands)		47			27			11				85			66			86			88			38			278
Quantity sold — external market — Manganese	MT (thousands)		45			6			28				79			55			33			68			15			171
Quantity sold — external market — Ferroalloys	MT (thousands)		50			51			38				139			64			41			47			41			193

Average sales price — external market — Sinter	US$		134.00			155.00			157.00				143.65			103.70			108.70			95.68			118.63			104.75
Average sales price — external market — Manganese	US$		122.00			139.00			147.93				132.48			73.22			78.16			100.35			83.18			85.84
Average sales price — external market — Ferroalloys	US$		1,049.00			739.00			571.87				804.82			588.12			954.98			1,213.38			1,295.42			968.57

Long-term indebtedness, gross	US$		2,732			2,367			2,169				2,169			3,000			3,000			3,000			3,000			3,000
Short-term indebtedness, gross	US$		14			881			87				87			4			4			4			4			4

Total indebtedness, gross	US$		2,746			3,248			2,256				2,256			3,004			3,004			3,004			3,004			3,004


Stockholders’ equity	R$		281,403			231,165			211,652				211,652			194,179			206,893			245,746			278,712			278,712


Net operating revenues	R$		181,526			126,629			86,801				394,956			146,972			165,435			208,483			166,802			687,692
Cost of products	R$		(151,958	)		(120,506	)		(87,526	)			(359,990	)		(134,464	)		(155,673	)		(133,591	)		(114,832	)		(538,560	)
Other expenses/revenues	R$		(7,383	)		(7,115	)		(6,475	)			(20,973	)		(3,332	)		(8,631	)		(23,849	)		(3,047	)		(38,859	)
Depreciation, amortization and depletion	R$		3,051			2,653			2,504				8,208			2,918			3,007			5,237			4,847			16,009

EBITDA	R$		25,236			1,661			(4,696	)			22,201			12,094			4,138			56,280			53,770			126,282
Depreciation, amortization and depletion	R$		(3,051	)		(2,653	)		(2,504	)			(8,208	)		(2,918	)		(3,007	)		(5,237	)		(4,847	)		(16,009	)

EBIT	R$		22,185			(992	)		(7,200	)			13,993			9,176			1,131			51,043			48,923			110,273
Gain/loss in translation of currency	R$		8			(844	)		(1,312	)			(2,148	)		(18	)		(657	)		(1,008	)		(4,774	)		(6,457	)
Net financial results	R$		(11	)		35			(29,651	)			(29,627	)		2,318			—			4			69			2,391

Income before income tax and social contribution	R$		22,182			(1,801	)		(38,163	)			(17,782	)		11,479			477			50,042			44,221			106,207
Income tax and social contribution	R$		(7,950	)		(158	)		2,288				(5,820	)		(29	)		(30	)		(23	)		(12,797	)		(12,879	)

Net income	R$		14,232			(1,959	)		(35,875	)			(23,602	)		11,450			447			50,019			31,424			93,328

Steel Area — CSI (Adjusted and Unaudited)


Information												2005															2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — total	MT (thousand)		448			428			459				1,335			566			530			558			452			2,106


Average sales price — total	US$		746.28			709.09			627.27				693.44			419.00			539.53			694.15			748.56			592.97


Stockholders’ equity	R$		776,618			762,004			682,873				682,873			629,306			754,072			785,282			822,210			822,210


Net operating revenues	R$		905,683			756,016			679,703				2,341,402			674,606			879,168			1,157,415			945,371			3,656,560
Cost of products	R$		(776,459	)		(702,942	)		(665,652	)			(2,145,053	)		(654,582	)		(711,791	)		(854,203	)		(769,665	)		(2,990,241	)
Other expenses/revenues	R$		(18,796	)		(7,023	)		(11,076	)			(36,895	)		411			(424	)		(1,638	)		22			(1,629	)
Depreciation, amortization and depletion	R$		18,054			14,958			16,598				49,610			19,709			18,141			18,605			17,352			73,807

EBITDA	R$		128,482			61,009			19,573				209,064			40,144			185,094			320,179			193,080			738,497
Depreciation, amortization and depletion	R$		(18,054	)		(14,958	)		(16,598	)			(49,610	)		(19,709	)		(18,141	)		(18,605	)		(17,352	)		(73,807	)

EBIT	R$		110,428			46,051			2,975				159,454			20,435			166,953			301,574			175,728			664,690
Result of equity investments	R$		—			—			—				—			3,890			3,239			(16,637	)		1,825			(7,683	)
Gain/loss in translation currency	R$		4,975			(12,031	)		(5,549	)			(12,605	)		(374	)		2,341			(12,517	)		(19,655	)		(30,205	)
Net financial results	R$		(9,162	)		(7,077	)		(6,592	)			(22,831	)		(15,399	)		(34,228	)		(51,998	)		(13,837	)		(115,462	)

Income (loss) before income tax and social contribution	R$		106,241			26,943			(9,166	)			124,018			8,552			138,305			220,422			144,061			511,340
Income tax and social contribution	R$		(43,737	)		(14,829	)		2,731				(55,835	)		(3,670	)		(55,801	)		(95,606	)		(66,023	)		(221,100	)

Net income (loss)	R$		62,504			12,114			(6,435	)			68,183			4,882			82,504			124,816			78,038			290,240

Logistics Area — Docenave (Adjusted and Unaudited)


Information												2005															2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Maritime transport — external market
Bulk transportation	MT (thousands)		889			881			777				2,547			1,426			1,430			1,047			1,228			5,131
General cargo (Containers-TEUS)	TEUS		9,888			8,845			8,907				27,640			7,444			8,674			10,194			10,991			37,303
Ports services	Operation		556			804			991				2,351			698			623			617			819			2,757

Maritime transport — internal market
Bulk transportation	MT (thousands)		345			291			330				966			129			495			573			411			1,608
General cargo (Containers-TEUS)	TEUS		13,826			12,964			14,288				41,078			14,532			15,916			15,895			15,064			61,407
Ports services	Operation		1,126			968			899				2,993			912			986			1,135			926			3,959

Average sales price — external market
Bulk transportation	US$		15.55			11.25			14.89				13.86			10.83			11.83			16.47			16.21			13.55
General cargo (Containers-TEUS)	US$		616.40			753.31			713.37				691.46			569.99			585.77			605.55			778.73			644.88
Ports services	US$		3,453.24			3,075.23			3,112.53				3,180.35			3,005.73			3,321.03			3,414.91			3,063.49			3,185.71

Average sales price — internal market
Bulk transportation	US$		9.88			7.56			7.00				8.20			3.81			8.37			7.23			11.68			8.44
General cargo (Containers-TEUS)	US$		817.37			865.17			893.48				858.93			594.62			619.63			681.54			628.98			632.03
Ports services	US$		3,449.38			3,931.46			4,362.93				3,879.70			3,003.29			3,294.12			3,376.21			3,019.44			3,186.41

Long-term indebtedness, gross	US$		387			257			168				168			908			768			639			512			512
Short-term indebtedness, gross	US$		502			502			502				502			502			502			502			502			502

Total indebtedness, gross	US$		889			759			670				670			1,410			1,270			1,141			1,014			1,014


Stockholders’ equity	R$		265,580			267,790			283,742				283,742			258,815			297,633			318,692			242,430			242,430


Net operating revenues	R$		103,619			86,196			90,220				280,035			95,843			118,536			130,790			129,719			474,888
Cost of products	R$		(63,711	)		(53,785	)		(56,898	)			(174,394	)		(77,858	)		(78,900	)		(90,570	)		(96,943	)		(344,271	)
Other expenses/revenues	R$		(4,332	)		(992	)		(4,779	)			(10,103	)		(7,670	)		(5,949	)		(5,223	)		(16,963	)		(35,805	)
Depreciation	R$		2,593			2,359			2,146				7,098			396			2,940			1,711			1,119			6,166

EBITDA	R$		38,169			33,778			30,689				102,636			10,711			36,627			36,708			16,932			100,978
Depreciation	R$		(2,593	)		(2,359	)		(2,146	)			(7,098	)		(396	)		(2,940	)		(1,711	)		(1,119	)		(6,166	)

EBIT	R$		35,576			31,419			28,543				95,538			10,315			33,687			34,997			15,813			94,812
Minority Interests	R$		—			—			—				—			—			—			—			—			—
Write-down of assets	R$		1,164			(32,937	)		(9,552	)			(41,325	)		—			—			—			—			—
Impairment	R$		38			(3	)		62				97			—			(4	)		—			(194	)		(198	)
Net financial results	R$		3,755			11,395			5,688				20,838			13,111			13,976			(6,453	)		(9,211	)		11,423

Income (loss) before income tax and social contribution	R$		40,533			9,874			24,741				75,148			23,426			47,659			28,544			6,408			106,037
Income tax and social contribution	R$		(11,097	)		(7,664	)		(8,788	)			(27,549	)		(3,759	)		(1,121	)		(7,485	)		(1,837	)		(14,202	)

Net income (loss)	R$		29,436			2,210			15,953				47,599			19,667			46,538			21,059			4,571			91,835

Logistics Area — FCA (Adjusted and Unaudited)


Information												2005															2004
		1Q			2Q			3Q			4Q	Total			1Q			2Q			3Q			4Q			Total

Quantity sold — internal market	MT (thousands)		6,103			7,416			7,616				21,135			5,807			6,943			6,931			7,086			26,767

Average sales price — internal market	R$		26.20			30.09			31.18				29.36			22.77			24.95			26.19			24.99			24.81

Long-term indebtedness, gross	US$		126,802			135,643			133,603				133,603			110,691			106,705			108,645			134,044			134,044
Short-term indebtedness, gross	US$		—			—			—				—			17,713			17,849			18,291			—			—

Total indebtedness, gross	US$		126,802			135,643			133,603				133,603			128,404			124,554			126,936			134,044			134,044


Stockholders’ equity	R$		23,610			39,630			(36,567	)			(36,567	)		108,025			81,852			72,660			38,841			38,841


Net operating revenues	R$		131,331			187,382			198,298				517,011			112,859			142,963			151,559			145,436			552,817
Cost of products	R$		(147,696	)		(175,948	)		(192,189	)			(515,833	)		(130,325	)		(132,242	)		(150,482	)		(158,507	)		(571,556	)
Other expenses/revenues	R$		95			(16,502	)		(53,402	)			(69,809	)		3,783			(12,829	)		(13,279	)		(21,628	)		(43,953	)
Depreciation, amortization and depletion	R$		12,832			15,009			17,932				45,773			10,003			9,401			11,797			13,634			44,835

EBITDA	R$		(3,438	)		9,941			(29,361	)			(22,858	)		(3,680	)		7,293			(405	)		(21,065	)		(17,857	)
Depreciation, amortization and depletion	R$		(12,832	)		(15,009	)		(17,932	)			(45,773	)		(10,003	)		(9,401	)		(11,797	)		(13,634	)		(44,835	)

EBIT	R$		(16,270	)		(5,068	)		(47,293	)			(68,631	)		(13,683	)		(2,108	)		(12,202	)		(34,699	)		(62,692	)
Net financial results	R$		1,038			21,043			(28,905	)			(6,824	)		(12,019	)		(24,065	)		3,010			881			(32,193	)

Income before income tax and social contribution	R$		(15,232	)		15,975			(76,198	)			(75,455	)		(25,702	)		(26,173	)		(9,192	)		(33,818	)		(94,885	)
Income tax and social contribution	R$					46			—				46			—			—			—			—

Net income (loss)	R$		(15,232	)		16,021			(76,198	)			(75,409	)		(25,702	)		(26,173	)		(9,192	)		(33,818	)		(94,885	)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	COMPANHIA VALE DO RIO DOCE
	(Registrant)

Date: November 15, 2005
	By:	/s/ Fabio de Oliveira Barbosa
		Fabio de Oliveira Barbosa
		Chief Financial Officer