PRESS RELEASE: CVRD to acquire Phelps Dodge's 50% stake in Sossego Project.

Phelps Dodge Corp and Companhia Vale do Rio Doce (CVRD) have entered into an agreement in which Phelps Dodge will sell to CVRD, through CVRD's subsidiary Itabira Rio Doce Co Ltd, its 50 % stake in the joint-venture company, Mineracao Serra do Sossego SA, for $42.5 M.

The joint venture, in which CVRD currently holds 50% ownership, has conducted exploration and feasibility studies for the potential development of the Sossego copper-gold deposit in the Carajas region of Brazil.

The transaction is contingent on successful completion of customary closing conditions.

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