November 18th, 2002

1
CVRD NYSE Seminar
November 18th, 2002
2
Disclaimer
This presentation may contain statements that
express managements expectations about future
events or results rather than historical facts.
These forward-looking statements involve risks
and uncertainties that could cause actual results
to differ materially from those projected in
forward-looking statements, and CVRD cannot give
assurance that such statements will prove
correct. These risks and uncertainties include
factors relating to the Brazilian economy and
securities markets, which exhibit volatility and
can be adversely affected by developments in
other countries relating to the iron ore
business and its dependence on the global steel
industry, which is cyclical in nature and
relating to the highly competitive industries in
which CVRD operates. For additional information
on factors that could cause CVRDs actual results
to differ from expectations reflected in
forward-looking statements, please see CVRDs
reports filed with the Brazilian Comissão de
Valores Mobiliários and the U.S. Securities and
Exchange Commission.
3
Speakers

• Delivering the Promises - Roger Agnelli, CEO
• Macroeconomic Outlook, Financial Performance and
  Corporate Governance - Fabio Barbosa, CFO
• Ferrous Minerals - Market Trends and Strategy -
• Armando Santos, Executive Director of Ferrous
  Minerals
• Non Ferrous Minerals - Strategy and Projects -
• Diego Hernández, Executive Director of Non
  Ferrous Minerals
• Aluminum - Industry Trends, Strategy and Projects
  - Antonio Miguel Marques, Executive Director of
  Holdings and Business Development
• Concluding Remarks - Roger Agnelli, CEO

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Delivering the Promises
Roger Agnelli, Chief Executive Officer
5
CVRD Strategic Movements
Since the restructuring of the ownership of its
controlling shareholder Valepar, it has made
several strategic movements to create shareholder
value.

• Corporate Governance Model.
• Management Model.
• Strategic Focus.
• Portfolio Asset Management.
• Completion of Privatization.
• Organic Growth Opportunities and Value Creation.

6
Corporate Governance Model
Board of Directors focused on strategic planning
and supervision of Companys performance. Committ
ees help to facilitate and to improve quality of
Board of Directors decisions. Executive Board
was empowered and has a clear definition of its
roles and responsibilities.
Shareholders
Board of Directors
Strategic Finance Governance and
Ethics Executive Development Audit
Committees
CEO
Executive Board
7
Management Model

• A new organizational structure aimed at focusing
  on core businesses and capturing synergies among
  business areas.

Armando Santos
Ferrous Minerals
Logistics
Guilherme Laager
Non-Ferrous Minerals
Diego Hernández
CEO
Holdings and Business Development
Antonio Miguel Marques
Roger Agnelli
Planning and Control
Gabriel Stoliar
Finance
Fabio Barbosa
Human Resources and Corporate Services
Carla Grasso

• Implementation of shareholders value management
• a) value metrics to improve project evaluation
  and performance measurement
• b) development of a value creation oriented
  culture
• c) development of a common language to facilitate
  communication with capital markets.

8
Strategic Focus

• We are a global mining company aiming to create
  shareholder value.

• Maintain market leadership in iron ore
• Expand pelletizing capacity
• Develop existing portfolio of copper projects
• Expand resource base through exploration
• Opportunistic acquisitions, joint-venture
  investments
• Increase bauxite and alumina production capacity
• Expand resource base through exploration
• Opportunistic acquisitions, joint-venture
  investments
• Increase focus on provision of logistics
  solutions to third party customers
• Maximize return on existing infrastructure
  complex
• Selective investments in hydroelectric generation
  assets
• Generation capacity as a hedge against price and
  supply volatility

Iron Ore
Copper
Aluminum
Logistics
Power Generation
9
Portfolio Asset Management
From a conglomerate to a diversified mining
company

• Consolidation of global leadership in the iron
  ore market.
• Assets acquired --gt US 1,728 million.
• Acquisitions to allow full exploitation of the
  synergies associated to the Carajás mineral
  province.
• Full control of Sossego and Salobo copper gold
  projects --gt US 93 million.
• Acquisition of assets to capture a higher value
  from aluminum business strategy --gt US 44
  million.
• Sale of non-core assets - steel, pulp, paper
  forestry, non-core transportation --gt US 1,350
  million.

10
Completion of Privatization
On March 2002, the final phase of CVRD
privatization was concluded with a successful
Global Offering of 78,787,838 common shares owned
by the Brazilian Government.

• Price of US 24.50 per ADR.
• Gross proceeds of US 1.9 billion.
• Allocation - 56 international tranche/44
  Brazilian tranche (incl greenshoe).
• Investors from 18 countries acquired CVRD shares.
• Approximately 600,000 new Brazilian retail
  shareholders.
• Significant increase of free float and liquidity.

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Free Float Increased as a Result of the Global
Offering
Total Capital
Free Float
Dec 1999
Brazilian Investors 36
Valepar - Principal Shareholder 27.5
Free Float 38.5
Others 34.0
64 Foreign Investors
Sept 2002
Brazilian Investors 30
Valepar - Principal Shareholder 27.5
Free Float 59.4
Others 13.1
70 Foreign Investors
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Organic Growth Opportunities and Value Creation
CVRD has a project pipeline for 2003/2007
involving capital expenditures of approximately
US 6 billion.
2002
2003
2004
2005
2006
2007
Iron Ore and Pellets
Semi-finished
Brownfield Projects
Metallics
Ponta da Madeira Pier III
São Luís Pellets
Greenfield Projects
AlunorteAlumina
Alunorte Alumina
MRN Bauxite
Paragominas
Aluminum
Sossego
118
Copper
Cristalino
Alemão
Salobo
IB Phase 4
Nickel
Vermelho
Industrial Minerals
Taquari Vassouras Potash
PPSA Phase 4 Kaolin
PPSA Phase 3 Kaolin
Tubarão Fertilizer Warehouse
Praia Mole Maritime Terminal Phase II
Logistics
Praia Mole Maritime Terminal Phase I
Grain Terminals
Hydroelectric Power Plants
Candonga
Capim Branco I
Capim Branco II
Foz do Chapecó
Santa Isabel
Funil
Aimorés
Expected after taxes rates of return higher than
15
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CVRD has been a Consistent Value Adder
Economic Profit US 1,445 million
WACC 12

• Polymineral reserves - from iron ore to PGMs -,
  world class assets, availability of core
  competencies in mining and logistics and cost
  investment discipline allow us to expect a
  continuous value creation.

annualized
14
Macroeconomic Outlook, Financial Performance and
Corporate Governance
Fabio Barbosa, Chief Financial Officer
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Short Term Macroeconomic Outlook
Global GDP growth prospects are not bright

• 2003 is likely to be the third consecutive year
  of below trend growth due to an engineless global
  growth dynamic.
• Leading indicators are signalling a US sluggish
  growth for the near future.
• IMF cut its Euroland growth forecast for 2002
  from 0.9 to 0.75 and from 2.3 to 2.0 for
  2003. Current ECB monetary policy is
  pro-cyclical.
• Japanese export-led recovery is losing steam.
  There are indicators that the fragile economic
  recovery may have peaked.
• China is the notable exception in a struggling
  global economy. Export growth, infrastructure
  spending and FDI are powering fast GDP growth.
  China is becoming a powerful driver of metals and
  mining markets. It is boosting the demand for
  steel, iron ore, alumina and copper.

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Short Term Macroeconomic Outlook
Brazil

• Major changes in the Brazilian macroeconomic
  policy regime are not likely.
• Tight monetary policy limiting pass-through of
  the BRL depreciation to domestic prices.
• GDP growth slow pace.
• Growth of agricultural output, exports and a
  repressed demand for logistics services will
  continue to fuel CVRD railroad and port services
  expansion.
• A smaller current account deficit - from US 27
  billion in May 2001 to US 13 billion in
  September 2002 - seems sustainable, although
  additional real depreciation of the BRL is not
  expected. Market expects further reductions in
  current account deficit - US 11 billion by
  yearend.
• Strong fiscal stance primary fiscal surplus of
  3.88 of GDP in 2002 and 3.75 in 2003.
• Manageable public debt.

17
3Q02 iron ore and pellets sales reached a record
high
thousand tons
42,388
41,098
38,281
38,054
37,986
36,707
34,433
18
Despite Brazils slow GDP growth, 3Q02 CVRD
railroad transportation also reached an all time
high
million ntk
General Cargo
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Gross Revenues 3Q 02 By destination and currency
By Market
By Currency
3Q02 Gross Revenues US 1,133 million
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BRL depreciation hurt earnings through its impact
on CVRDs net foreign liabilities
US million
21
Quarterly net earnings - Sensitivity to exchange
rate volatility
US million
Real Depreciation
Real Appreciation

Fx losses were offset by capital gains from
Cenibra sale
22
On the other hand, growing sales and a weaker BRL
are boosting free cash flow
US million
23
Strong and steady cash flow allows CVRD to
finance its investments and to meet dividends
expectations of its shareholders with a good
dividend yield story
Dividend Yield
Year
1997 3.4 1998 8.1 1999 6.8 2000 2.
5 2001 11.8 Average
(97/01) 6.5 2002E 6.8
2002 Interest on Shareholders Equity equal to
R 4.985 per share
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A sound balance sheetDebt Leverage
US million
Total Debt
25
A sound balance sheetInterest Coverage
EBITDA / Interest Expenses
26
Corporate Governance
Following the implementation of its corporate
governance model, announced in October 2001, CVRD
is developing new initiatives designed to improve
its corporate governance practices, strengthening
financial transparency, information disclosure
and protection to investor rights.

• Dividend policy
• Each year CVRD will announce, until January 31, a
  minimum dividend per share in USD to be paid in
  April and October, in line with the expected
  performance for the Company.
• During the year, depending on the actual
  performance of the Company, CVRD may pay an
  additional dividend per share in April and
  October.
• Disclosure policy.
• Creates a Disclosure Committee.
• Enforces simultaneity of information flows.
• Eliminates information asymmetry.
• Intensive use of information technology to ensure
  global diffusion of information.

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Corporate Governance

• CVRD securities trading policy
• Minimizes risks of privileged information use by
  CVRD management on its own benefit.
• Limits management purchases and sales of CVRD
  securities to stock options programs and
  individual medium term investment programs.
• Establishes blackout periods for trading.
• Code of Ethics for CVRD financial managers
• Requires high standards of ethics from
  professionals who deal with insider information
  and large sized financial transactions.

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Ferrous Minerals - Market Trends and Strategy
Armando Santos, Executive Director of Ferrous
Minerals
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Steel Market Trends
World steel consumption is forecast by IISI to
increase 5 in 2003.
Apparent Consumption of Finished Steel (Mt)
841
5
802
10
CHINA
1
OTHER ASIA
3
EUROPE
5
OTHERS
880 925 ( 5)
World Crude Steel Production (Mt)
Source IISI (Consumption) CVRD (Production)
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Steel Market Trends
Steel prices have been recovering sharply since
the beginning of 2002
Base April 1994 100
Asian crisis preludes global price decline
Most recent cyclical peak
Asian boom boosts global prices
CRUspi recovery
Source CRU
31
Iron Ore Market Trends
Lead by further growth in Chinese imports, the
seaborne iron ore market should grow by 4 in 2003
Seaborne Iron Ore Demand (Mt)
490
4
470
4
450
9
20
CHINA
Chinas participation in world seaborne
demand 2001 20 2002 232003 24
3
1
Source CVRD Statistics
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CVRD Strategy in Iron Ore and Pellets

• Combine large scale production with tailor made
  products and technical marketing in order to
  furnish burden solutions for our clients
• Continue to grow with the Chinese market
• Expand pellet sales in the growing direct charge
  market (lump and pellets).

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CVRD Iron Ore and Pellet Sales Forecast
Sales are forecast to grow by 6 in 2002()
million tons US GAAP
Total Sales for CVRD Urucum Ferteco (since
Apr/01). () Compares data on Ferteco full year
basis.
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CVRD Iron Ore and Pellet Sales
Geographical Distribution
CVRD sales are balanced between Europe (32),
Asia (29) and Americas (34)
Europe 32
North America 4
Asia 29
Middle East/India 3
Africa 2
Domestic Market 28
South America 2
Total Forecast for 2002 166 million tons
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CVRD Manganese Ore and Ferro Alloy Facilities
Manganese ore mines are located in Brazil. Ferro
alloy plants are located in Brazil and France
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Strategy in Manganese and Ferro Alloys

• Our strategy is based on
• Increasing of reserves through exploration in
  Brazil
• Improving processes in mines and plants
• Better use of fine ore
• Expanding presence in growth markets.

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Manganese and Ferro Alloys Sales Forecast

• Manganese Ore and Ferro Alloy sales are a
  function of steel production.
• No new Ferro-Alloy capacity is coming on line
  worldwide in 2003.

2.1
0.43
1.9
0.37
E CVRD estimates
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Non Ferrous Minerals - Strategy and Projects
Diego Hernández, Executive Director of Non
Ferrous Minerals
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CVRD Copper Strategy

• CVRD copper strategy is based on organic growth
  with eventual opportunistic acquisitions to fast
  track its insertion in the business, looking at
• 1- Define BNDES participation in Carajás
  projects.
• 2- Implementation of Sossego, 118, IB Phase IV
  and then Alemão, Cristalino and Salobo as CVRD
  operations, not as subsidiaries, in order to
  capture all the operating and administrative
  synergies.
• 3- Keep the exploration effort at Carajás to
  improve CVRD reserves base and projects life.
• 4- Start exploring abroad to replace the
  mainstream effort at Carajás in the future.

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Carajás Copper Gold and Nickel
DistrictShareholding Structure
Salobo CVRD 67 BNDES 33 Convertible
debenture
IB Phase IV Alemão CVRD 67 BNDES 33
Iron Ore Mine
Cristalino CVRD 50 BNDES 50
Sossego CVRD 100 BNDES 0
118 CVRD 50 BNDES 50
Vermelho CVRD 100 BNDES 0
50 km
50 km
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Sossego 118 - Sulphide and Oxide Project
Integrated Plan
Instead of two independent projects, CVRD will
operate Sossego 118 as an integrated mine, with
three open pits (Sossego, Sequeirinho and 118)
feeding two plants a flotation plant for
sulphide ore and a SxEw plant for oxide ore.
Sossego 118 Progress construction PFS concl.
Sulphide (million tonnes) 196 50 Grade (
Cu) 1.0 1.2 Oxide (million tonnes) 17 57
Grade ( Cu) 1.46 1.0 Stripping ratio
(w/o) 3.58 2.8 Process flotation SxEw Copper
recovery 92 68 Concentrate output
(kty) 470 Concentrate grade 30 Cu Cathode output
(kty) 40 Copper production (kty) 140 40 Gold
recovery 80 Mine life (y) 16 11 CAPEX (US
million) 384 150

• Additional oxide ore from Sossego to
• 118/Oxide Project 17 million tonnes
• with 1.47 Cu

118/Oxide
Sossego

• Additional sulphide ore from 118 to
• Sossego Project gt 50 miliion tonnes with
• Copper grade gt 1.2 Cu

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IB Phase IV AlemãoProject Integrated Plan
IB Phase IV concept is to adapt existing gold
mine facilities and anticipate copper concentrate
production from Alemão deposit. The IB Phase IV
pit will reduce Alemão pre-stripping (from 150 to
103 million tonnes), representing a synergy of
US 50 million.
IB Phase IV Alemão
Progress PFS concl. Appraisal S. Sulphide
(million tonnes) 15 200 Grade (
Cu) 1.57 1.52 Grade (g/t Au) 1.37 0.92 Stripping
ratio (w/o) 7.5 5.7 Process
flotation Copper
recovery 93 90 Gold recovery 80 80 Concentrat
e output (kty) 110 670 Copper production
(kty) 36 210 Mine life (y) 6 14 CAPEX (US
million) 55 508
Alemão
IB Phase IV
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Cristalino Project
Second drilling campaign was completed.
Cristalino Progress
Appraisal S. Reserves (million tonnes)
249 Grade ( Cu) 0.79 Grade (g/t
Au) 0.15 Stripping ratio (w/o) 2.8 Process flotati
on Copper recovery 91 Gold recovery
75 Concentrate output (kty) 350 Copper
production (kty) 108 Mine life (y) 15 CAPEX (US
million) 350
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Salobo Project
CVRD is about to conclude a final study to select
the best approach for Salobo. Four different
alternatives are being assessed
Salobo
Progress Re-appraisal Study Reserves (million
tonnes) 740 Grade ( Cu) 0.87 Grade (g/t
Au) 0.52 Stripping ratio (w/o) 2.8 Process
flotation Copper recovery 85 Gold recovery
63 Concentrate grade ( Cu) 38
Salobo alternatives 1- CESL
(hydrometalurgical) 200 kty 2- Brownfield
smelter 200 kty 3- Greenfield smelter 200
kty 4- Custom smelter 100 kty
45
Salobo Project Possible alternatives
CESL Brownfield Greenfield Custom
Smelter Smelter Smelter

Copper production (kt) 200 200 200 200 Production
start-up 2009 2006 2007 2006 Product cathode
cathode cathode concentrate
46
Vermelho Project
Vermelho Progress
PFS ongoing Reserves (million tonnes)
171 Autoclave feed grade ( Ni) 1.74 Process
HPAL Nickel recovery
() 93.8 Nickel output (kty) 45 Cobalt
recovery () 92.9 Cobalt output (kty) 2.2

• Exploration
• 50 x 50 m drilling Mar/2003
• 25 x 25 m drilling Mar/2004
• Process Demonstration
• Pilot plant and engineering data Feb/2003
• Engineering Studies
• Prefeasibility study Oct/2003
• Final feasibility study Dec/2004
• Environmental Permitting
• License of installation Dec/2004

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Identified Synergies

• 1- Sossego oxide
• 2- 118 sulphide
• 3- Alemão pre-stripping
• 4- Incorporation of copper mines into CVRD
  operations
• 5- Satellite deposits
• 6- Logistics
• 7- Infrastructure

48
Projects Schedule
2002
2003
2005
2004
2006
2007
2008
STATUS
PROJECTS
Jul/04
Sossego
Operation
Construction
Nov/02
Pre-Feasibility
Jul/03
118/Oxide
Feasibility
Jun/05
Operation
Construction
Sep/02
Pre-Feasibility
Mar/03
IB Phase IV
Feasibility
Operation
Nov/04
Construction
Jul/03
Pre-Feasibility
Dec/04
Alemão
Feasibility
Operation
Jun/07
Construction
Apr/02
Pre-Feasibility
Jul/04
Cristalino
Feasibility
Operation
Dec/06
Construction
Oct/03
Feasibility
Salobo
Operation
jan/06
Construction
Oct/03
Pre-Feasibility
Dec/04
Vermelho
Feasibility
Dec/07
Operation
Construction
49
Aluminum - Industry Trends, Strategy and Projects
Antonio Miguel Marques, Executive Director of
Holdings and Business Development
50
Aluminum Industry Overview and Outlook

• Demand has picked up, but not enough. Market is
  burdened by excessive supply growth due to
  restarts of idled smelting capacity. An
  additional capacity of 2.5 million tons is coming
  on stream from 2003 to 2005. These events will
  limit a strong price recovery.
• High cost smelters in the US, Europe and China
  are likely candidates for closure. Low power and
  labor costs, and good access to alumina will
  drive the shift of smelting capacity to places
  like Iceland, South Africa, Mozambique, Middle
  East, China and Russia.

51
Aluminum Industry Overview and Outlook

• Given the expected growth in smelting capacity,
  driven by some producers with no internal alumina
  production capacity, we believe that the alumina
  price will trade at a higher long term level
  (from 12.5 to 13 LME).
• We expect global primary aluminum demand to grow
  at an average annual rate of 2.5 from 2002 to
  2015, below GDP long term growth trend. This will
  require an additional capacity of approximately
  50 million tons of bauxite and 20 million tons of
  alumina.

52
CVRD Aluminum Strategy

• Our strategic focus is on the upstream of the
  aluminum production chain, bauxite and alumina.
• Opportunistic approach CVRD may acquire minority
  equity stakes in low cost smelters abroad as a
  way to become exclusive supplier of alumina on a
  long term basis.
• We do have some important competitive advantages
  in bauxite and alumina production.

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Competitive Advantages Bauxite and Alumina

• CVRD owns high quality bauxite reserves estimated
  at 2.68 billion tons, representing 11 of world
  reserves.
• Alunorte, our alumina refinery, has very low
  conversion costs and world class safety and
  environmental protection standards. Its capacity
  can be expanded up to 6.1 million tons.
• Besides superior asset quality, the
  competitiveness of the bauxite-alumina operation
  is leveraged by efficient logistics.

54
CVRD Bauxite Reserves

• Paragominas is the largest bauxite district. Its
  bauxite is very similar to Trombetas in terms of
  quality (a) tri-hydrate bauxite (b) no
  organics (c) 49 to 50 Al2O3.

Almeirim 120 million tons
Trombetas 320 million tons
Paragominas 2 billion tons
Maranhão
Tiracambu 240 million tons
Pará
55
How Good is the Alunorte Project?
Brownfield Projects CAPEX cost - US per ton
Alunorte Wagerup Jamalco Worsley
343 374 460 480
Sources Brook Hunt and CVRD
56
How Good is the Alunorte Operation?
Global Conversion Cost Curve
US/ton
Conversion Cost Cash Cost - Bauxite Cost
ALUNORTE US 65 per ton
Cumulative Capacity (1,000 tpy)
Sources CRU and Aluvale
57
CVRD Aluminum Operations and Logistics
MARAJÓ ISLAND
CVRD Mineral Rights - Paragominas District
Atlantic Ocean
Vila do Conde Port
Albras (Aluminum Smelter) Alunorte (Alumina
Refinery)
Ponta da Madeira Port
JABUTI
TROMBETAS
FUTURO
PIPELINE
PPSA PARAGOMINAS
MILTONEA
GURUPI
RAILROAD
CAMOAI
CARAJÁS
Scale
CARAJÁS
58
Strategy Execution
Brownfield Projects
Capacity Expansion CAPEX Start-u
p million tons US million From to
Bauxite MRN (Trombetas) 11.0 16.3 223 1Q
03 Alumina Alunorte 1.6 2.4 286 January 2003
59
Strategy Execution

• We are studying the development of a new bauxite
  mine, wholly owned by CVRD, at the Paragominas
  bauxite district.
• Simultaneously, we are analyzing further
  expansions of Alunortes capacity.

60
Concluding Remarks
Roger Agnelli, Chief Executive Officer
61
Investment Appeal

• A clearly defined long term strategy.
• Good strategy execution customer focus, cost and
  investment discipline, conservative financial
  policy, focus on shareholder value creation.
• Global market leadership in iron ore - stability
  with high profitability.
• World class mining assets capable of earning
  above average market returns.
• A pipeline of profitable growth opportunities.
• Strong and stable cash flow allows us to meet
  dividend expectations and capex funding without
  concerns about short term cash disruptions.
• Last but not least, CVRD is traded at a discount
  to its peers.

62
CVRD The Best of Brazil
rio_at_cvrd.com.br www.cvrd.com.br