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

March 2006

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 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-     .)

 

 

VALUATION OPINION: STOCKHOLDERS’ EQUITY
AT MARKET VALUE

     ACAL CONSULTORIA E AUDITORIA S/S, a company specialized in valuations, with principal place of business at Avenida Rio Branco 181, 18^th floor, Rio de Janeiro — RJ, CEP 20040 007, registered in the CRC/RJ under number 1144, and registered with the CNPJ of the Finance Ministry under number 28.005.734/0001-82, having as its responsible technical staff member Mr. Gelson José Amaro, after having made the studies and researches which were necessary, here presents this Valuation Opinion on the value of stockholders’ equity, at market value, of COMPANHIA VALE DO RIO DOCE, a corporation with principal place of business at Avenida Graça Aranha 26, Castelo, Rio de Janeiro, State of Rio de Janeiro, registered in the CNPJ/MF under No. 33.592.510/0001-54 — for the purposes of absorption of the subsidiary CAEMI MINERAÇÃO E METALURGIA S/A, a corporation with principal place of business at Praia de Botafogo 228, 6^th Floor, Botafogo, Rio de Janeiro, State of Rio de Janeiro, registered in the CNPJ/MF under No. 31.865.728/0001-00.

     This Valuation Opinion is divided into sections as follows:

•		Objectives;
•		Bases and methods for valuation;
•		Methodology adopted and summary of work carried out;
•		Conclusion.

     The objective of this present Valuation Opinion is to report the valuation, based on market values, of the shares of COMPANHIA VALE DO RIO DOCE for the purposes of absorption of its subsidiary CAEMI MINERAÇÃO E METALURGIA S/A, according to the requirements of Article 264 of Law 6404/76, and according to the methodology established in Article 183, § 1, of that law.

     Determination of the value of the shares of a company is subject to several variables, and also to several non-controllable factors, so that it will always take into account some subjective aspects. As an example we quote some of the main factors which affect such determination:

(a)		The outlook of the proprietors, versus the outlook of a potential purchaser.
(b)		The economic conditions that permitted the results of the past may be more advantageous, or less advantageous, in the future.
(c)		The political and economic context may vary significantly and unpredictably.
(d)		Finally, the various methods of valuation may generate significantly different results.

     This being so, the work of determination of the value of securities representing the registered capital is not something precise, and contains subjective aspects, depending on the expectations of the proprietor and the use to be given to the securities.

     There are, however, several methods used to estimate the value of capital securities. Although such methods vary in their applicability, depending on specific facts and circumstances, they can at least indicate a range of reasonable values for the preliminary determination of such value.

2.1. EXAMPLES OF METHODS BASED ON THE NET VALUE OF THE ASSETS

Valuation of stockholders’ equity

This valuation approach is used to determine the fair market value of specific assets, provide the basis for certain adjustments to net book value (as mentioned above) and as a point of departure for the estimate of liquidation value. Valuation of stockholders’ equity also provides an adquate basis for the value of the business, and is frequently used in transactions in which companies are bought and sold, the value being adjusted by depreciation and obsolecence applicable to specific assets.

Liquidation value

The liquidation value has been used as a basis for negotiation of price and, thus, represents an initial level, of interest both to purchasers and vendors.

The liquidation value is determined through an estimate of the value of the company’s assets, assuming their conversion into cash in a reasonably short space of time, less the value of all of its obligations and the cost of liquidating the business, including valuation fees, brokers’ fees, taxes and legal fees.

The liquidation value may be determined on the basis of consideration of either an orderly liquidation, or a more rapid, forced liquidation, of the business. The latter, clearly, results in a lower value.

2.2 EXAMPLES OF METHODS BASED ON THE RETURN ON INVESTMENT

Price/earnings ratio

For listed companies the price/earnings ratio is well known and can be easily used to obtain an estimated value of the shares of listed companies by multiplication of the P/E by the expected aggregate results. The average P/E for the industry or for various comparable listed companies can be used to arrive at an indication of the amount. Frequently, a premium for stockholding control is added to this estimated amount.

Valuation by the P/E method can also be used to estimate the value of a given company. Assuming a rate of growth of earnings estimated by the present stockholders and a return on investment desired by the acquiring party, this can determine the earnings multiple which would enable it to achieve its objective in terms of return. This method allows the purchaser to determine the price that he is willing to pay, for comparison with the price desired by the vendor.

Discounted cash flow

Discounted cash flow analysis may be used to estimate the value of a company, and consequently of its shares, based on the present value of its cash flow estimates. In theory, this method should result in the same amount as is determined by using the price/earnings ratio, since the latter reflects the present perception of what the company will be worth in the future.

In practice, this analysis is used increasingly to determine the value of a company because it is based on an actual estimate of cash flows, incorporating factors such as reduction of costs resulting from synergies, development of products, etc., and not on the simple market perception of the company’s future profits. Other factors that affect the stock market and, consequently, the P/E ratio, are also eliminated when the discounted cash flow method is used.

III. METHODOLOGY ADOPTED AND SUMMARY OF WORK CARRIED OUT

As mentioned above, there are various methods for determining the value of a company.

To determine the value of stockholders’ equity at market prices of COMPANHIA VALE DO RIO DOCE, on the base date December 31, 2005, considering its characteristic as both an operational company and a holding company, the application of the usual criteria for valuation of assets inevitably includes determination of the value of the investments which it holds in its subsidiaries and affiliated companies. The following is a list of the more significant subsidiaries and affiliated companies, among the company’s investments:

	•		CAEMI Mineração e Metalurgia S.A.
	•		SAMARCO Mineração S.A.
	•		Rio Doce Manganês S.A. — RDM
	•		Companhia Nipo-Brasileira de Pelotização — NIBRASCO
	•		Mineração Rio do Norte S.A. — MRN
	•		ALBRAS — Alumínio Brasileiro S.A.
	•		Valesul Alumínio S.A.
	•		Empreendimentos Brasileiros de Mineração S/A. — EBM
	•		Urucum Mineração S.A.
	•		Companhia Ítalo-Brasileira de Pelotização — ITABRASCO
	•		Companhia Hispano-Brasileira de Pelotização — HISPANOBRAS
	•		Companhia Coreano-Brasileira de Pelotização — KOBRASCO
	•		Alumina do Norte do Brasil S.A. — ALUNORTE
	•		Itabira Rio Doce Company Ltd. — ITACO
	•		California Steel Industries, Inc.
	•		MRS Logística S.A.
	•		Rio Doce Ltd.
	•		CVRD Overseas Ltd.
	•		Rio Doce International Finance Ltd.

     The investments represented by the stockholdings, with total value of R$17,833,951,000 at the base date of this valuation, are equivalent to 38.77% of the company’s total assets, and are thus a significant asset element in the value of stockholders’ equity in the investing company COMPANHIA VALE DO RIO DOCE.

     CVRD’s subsidiaries and affiliated companies are listed in APPENDIX III. The scope of this review and valuation covers the significant investments, totaling R$14,871,907,000, i.e. the equivalent of 83.39% of the total investment recorded on December 31, 2005.

     For the purposes of this Opinion, we adopt as a valuation criterion, as required by Article 264 of Law 6404/76, adjustment to market value of the net assets of COMPANHIA VALE DO RIO DOCE existing on the base date December 31, 2005, both of the holding company and also of its subsidiaries and affiliated companies, and the recognition of these adjustments, by the equity method, in its stockholders’ equity

     The marking to market of the net assets of the controlling company COMPANHIA VALE DO RIO DOCE and its subsidiaries and affiliated companies took into consideration the legal definitions and requirements, notably Article 264 of Law 6404/76, and also the methodology established in Article 183, § 1, of that law. This methodology considers that assets should be valued at their net realization value vis-à-vis third parties (market value), on the assumption of immediate discontinuation of the company’s activities.

     For the purposes of the provision of the above Article, market value is considered to be:

	(a)		for raw materials and goods in working inventory, the price of replacement by purchase in the market;
	(b)		for goods and rights destined for sale, the net realization price upon sales to the market, less the taxes and other expenses necessary for the sale, and the profit margin;
	(c)		for the investments, the net value for which they can be sold to third parties.

     Among the parameters decided for the preparation of this present valuation, the determination of book value — net value at market prices — of the stockholders’ equity of COMPANHIA VALE DO RIO DOCE and its subsidiaries and affiliated companies, for the base date December 31, 2005, is based, also, on a limited review of the financial statements of the said companies raised on that date. This procedure was carried out in accordance with certain usual rules of auditing, and consequently includes examinations in the accounting records where necessary in the circumstances for the specific purpose of determining stockholders’ equity at market prices. These examinations showed that these records and elements were vested with all the legal formalities, including those in relation to obedience to the general accounting principles usually accepted and uniformly and consistently applied by the company.

     Additionally, the accounting statements of COMPANHIA VALE DO RIO DOCE and its subsidiaries and affiliated companies were examined by other independent auditors on December 31, 2005, and their opinion, dated March 6, 2006, contained no reservations.

     These revised accounting statements, for the said base date, with the objective of showing the assets reported at their respective realization values, already include the following accounting provisions:

	•		Provision for doubtful receivables;
	•		Provision for difference of weight of ore at destination;
	•		Provision for difference of price;
	•		Provision for losses on investments;
	•		Provision for Eletrobrás losses;
	•		Provision for losses on various debits;
	•		Provision for losses on investments in tax-incentive arrangements;
	•		Provision for depreciation;
	•		Provision for asset losses;
	•		Provision for depletion in mining rights.

     Additionally, so as to adapt the said accounting statements to market price, as detailed in the table below and demonstrated in APPENDICES I to XIX, adjustments were included to the following account lines:

	•		Expenses paid in advance;
	•		Deferred tax asset items calculated on tax losses, to be offset against future earnings;
	•		Investments — adjustments to stockholders’ equity arising from adjustments to market made in the subsidiary and affiliated companies:

	•		CAEMI Mineração e Metalurgia S.A.
	•		SAMARCO Mineração S.A.
	•		Rio Doce Manganês S.A. — RDM
	•		Companhia Nipo-Brasileira de Pelotização — NIBRASCO
	•		Mineração Rio do Norte S.A. — MRN
	•		ALBRAS — Alumínio Brasileiro S.A.
	•		Valesul Alumínio S.A.
	•		Empreendimentos Brasileiros de Mineração S/A. — EBM
	•		Urucum Mineração S.A.
	•		Companhia Ítalo-Brasileira de Pelotização — ITABRASCO
	•		Companhia Hispano-Brasileira de Pelotização — HISPANOBRAS
	•		Companhia Coreano-Brasileira de Pelotização — KOBRASCO
	•		Alumina do Norte do Brasil S.A. — ALUNORTE
	•		Itabira Rio Doce Company Ltd. — ITACO
	•		California Steel Industries, Inc.
	•		MRS Logística S.A.

•

Property, plant and equipment, based on preliminary studies carried out by the company’s technical managers and also on research and reviews carried out by us specifically for this purpose:

	(a)		The mining rights, the principal item of adjustment of this valuation, were valued on the basis of the cash flow forecasts discounted to present value, assuming no investment is made in the period.
	(b)		The other significant asset items were valued based on the valuation made for the purposes of insurance cover.
	(c)		The railroad assets arising from concessions were not re-valued, since the concession contract provides that at the end of their period the federal government will indemnify the concession holders based on the residual accounting value at that time.
	(d)		For the other remaining (non-significant) assets it is considered that the net accounting value is close to market value and for this reason they were not re-valued.

•

Deferred assets.

The statement of the adjustments which we made is as follows:

		Value in
Description		R$ '000
Book value of stockholders’ equity of CVRD on December 31, 2005			24,052,131
(-) Negative adjustments to stockholders’ equity:			(952,231	)
Writedown of deferred income tax and Social Contribution (Current assets)			(333,881	)
Writedown of anticipated expenses (Current assets)			(26,407	)
Writedown of deferred income tax and Social Contribution (Long term assets)			(421,330	)
Writedown of taxes recoverable: ICMS and CIAPI (Long term assets)			(170,613	)
(+) Positive adjustments to stockholders’ equity			31,518,676
Income from stockholdings by the equity method (Fixed assets)			7,499,276
CAEMI			2,960,058
SAMARCO			1,016,358
RDM			705,373
NIBRASCO			500,130
MRN			479,002
ALBRAS			443,868
VALESUL			362,645
EBM			292,784
URUCUM			290,144
ITABRASCO			255,141
HISPANOBRAS			237,800
KOBRASCO			159,827
ALUNORTE			(147,806	)
ITACO/RDE			(30,785	)
CSI			(15,005	)
MRS			(10,258	)
Adjustment to market of property, plant and equipment of CVRD (Fixed assets)			24,019,400
Assets revalued by insurance			7,873,611
Mining rights			16,265,795
Capitalization of interest			(100,360	)
Provision for closure of mines			(19,646	)
Value of the stockholders’ equity of CVRD adjusted to market on December 31, 2005			54,618,576

     In view of the above and the provisions of Article 8 of Law 6404 of December 15, 1976, as amended, checks were made in the accounting books and records from which the balance sheet was derived, and also in the respective source documents, though on the basis of selective tests and by sampling.

     For all legal purposes, notably those of CVM Instruction 319, we declare that we do not have any direct or indirect interest in any of the companies involved in this work or in their operation, and there is no material circumstance which could characterize conflict of interest for the issuance of this Opinion. We had full and unrestricted access to all the data, elements, information and files related to the companies involved, and there was no indication of direction, limitation or imposition of difficulty on the part of the managers and/or controlling stockholders which might have limited or restrained our conclusion.

     After the due technical examinations and checks carried out by ourselves with COMPANHIA VALE DO RIO DOCE, and based on the data referred to in this Valuation Opinion, we believe that the value of the company’s stockholders’ equity, valued by the method of net asset value net at market prices, for the base date December 31, 2005, is R$54,618,576,000 (fifty four billion, six hundred and eighteen million, five hundred and seventy six thousand Reais).

     This being the expression of our best technical knowledge and assessment, we sign the present Valuation Opinion.

Rio de Janeiro, March 10, 2006.

ACAL Consultoria e Auditoria S/S
CRC — RJ 1.144

Gelson José Amaro
Responsible partner
CRC — RJ — 049.669/O-4 — Accountant

COMPANHIA VALE DO RIO DOCE
STOCKHOLDERS’ EQUITY — AT MARKET VALUE		APPENDIX I
(Financial amounts in R$ ‘000)

		Accounting				Adjustments to Market												Market
Description		value				Positive								Negative				value
ASSETS			45,998,474				31,518,676								1,261,963				76,255,187
CURRENT			5,206,881												360,288				4,846,593
Cash and cash equivalents			131,467																131,467
Credits			2,815,852																2,815,852
Inventories			1,127,391																1,127,391
Other credits			1,132,171								(a	)			360,288				771,883
LONG TERM ASSETS			2,196,992												591,943				1,605,049
Sundry credits			106,628																106,628
Owed by related parties			459,212																459,212
Other			1,631,152								(b	)			591,943				1,039,209
FIXED ASSETS			38,594,601				31,518,676								309,732				69,803,545
Investments			17,833,951				7,499,276				(c	)							25,333,227
Property, plant and equipment			20,760,650				24,019,400				(d	) (e)			309,732				44,470,318
LIABILITIES			21,946,343				309,732												21,636,611
CURRENT			10,061,100																10,061,100
Suppliers			1,767,521																1,767,521
Loans and financing			882,114																882,114
Dividends payable			2,749,661																2,749,661
Provisions			424,466																424,466
Debt to related parties			3,609,363																3,609,363
Other liabilities			627,975																627,975
LONG-TERM LIABILITIES			11,885,243				309,732												11,575,511
Loans and financings			2,146,225																2,146,225
Provisions			3,066,614				309,732				(e	)							2,756,882
Debt to related parties			5,701,060																5,701,060
Other liabilities			971,344																971,344
STOCKHOLDERS’ EQUITY			24,052,131				31,208,944								1,261,963				54,618,576
Composition of stockholders’ equity:
Registered capital			14,000,000																14,000,000
Profit reserves			10,052,131				952,231				(f	)			31,518,676				40,618,576
Total Stockholders’ equity			24,052,131				952,231								31,518,676				54,618,576
Common shares			749,949,429																749,949,429
Class “A” common shares			415,727,736																415,727,736
Total shares			1,165,677,165																1,165,677,165
Value per share (Par = R$1.00)			20.63																46.86

COMPANHIA VALE DO RIO DOCE PROPERTY PLANT AND EQUIPMENT — NET VALUE (Financial amounts in R$ ’000) Base date: December 31, 2005		APPENDIX II

LINES		Accounting				Market				Adjustment to
		value				value				Market
Assets revalued by insurers
Iron ore, potash, copper, gold and CDM mines							9,052,699
Pelletization plants			6,249,429				1,790,091
Ports and terminals							3,280,250
			6,249,429				14,123,040				7,873,611
Railroad logistics assets			5,110,676				5,110,676				—
Mining rights			1,120,360				17,386,154				16,265,795
Capitalization of interest			100,360				—				(100,360	)
Provision for closure of mines			19,646				—				(19,646	)
Other operational and non-operational assets			8,160,179				8,160,179				—
			20,760,650				44,780,050				24,019,400

COMPANHIA VALE DO RIO DOCE
STOCKHOLDINGS AND RESULTING ADJUSTMENTS		APPENDIX III
(Financial amounts in R$ ‘000)
Base date: December 31, 2005

 

																						Total				Market
COMPANIES		%				Adjusted																adjustment				value
		held by				Stockholders’				Value of				Adjustments								in holding				of
		CVRD				Equity				investment				Positive				Negative				company				investment
CAEMI Mineração e Metalurgia S.A.			60.23	%			2,882,000				1,415,000				4,914,592				—				2,960,058				4,375,058
SAMARCO Mineração S. A.			50.00	%			887,000				443,500				2,032,716				—				1,016,358				1,459,858
Rio Doce Manganês S. A. — RDM			100.00	%			634,000				634,000				705,373				—				705,373				1,339,373
Companhia Nipo-Brasileira de Pelotização — NIBRASCO			51.00	%			269,000				137,190				980,647				—				500,130				637,320
Mineração Rio do Norte S. A. — MRN			40.00	%			932,000				372,800				1,197,504				—				479,002				851,802
ALBRAS — Alumínio Brasileiro S. A.			51.00	%			1,131,000				576,810				870,330				—				443,868				1,020,678
Valesul Alumínio S. A.			54.51	%			254,000				138,455				665,282				—				362,645				501,101
Empreendimentos Brasileiros de Mineração S. A. — EBM			9.90	%			1,093,255				108,232				2,957,418				—				292,784				401,017
Urucum Mineração S. A.			100.00	%			47,000				47,000				290,144				—				290,144				337,144
Companhia Italo- Brasilira de Pelotização — ITABRASCO			50.90	%			102,000				51,918				501,259				—				255,141				307,059
Companhia Hispano- Brasileira de Pelotização — HISPANOBRAS			50.89	%			112,000				56,997				467,282				—				237,800				294,797
Companhia Coreano-Brasileira de Pelotização — KOBRASCO			50.00	%			188,000				94,000				319,653				—				159,827				253,827
Alumina do Norte do Brasil S.A. — ALUNORTE			57.03	%			2,084,000				1,188,505				—				259,172				(147,806	)			1,040,699
Itabira Rio Doce Company Ltd. — ITACO			100.00	%			5,102,000				5,102,000				—				30,785				(30,785	)			5,071,215
California Steel Industries, Inc.			50.00	%			749,000				374,500				—				30,010				(15,005	)			359,495
MRS Logística S.A.			10.37	%			629,000				65,227				—				98,923				(10,258	)			54,969
Rio Doce Ltd.			100.00	%			312,000				312,000				—				—				—				312,000
CVRD Overseas Ltd.			100.00	%			646,000				646,000				—				—				—				646,000
Rio Doce International Finance Ltd.			99.80	%			3,114,000				3,107,772				—				—				—				3,107,772
											14,871,907				15,902,200				418,890				7,499,276				22,371,183
Others											2,962,044																2,962,044
TOTAL											17,833,951				15,902,200				418,890				7,499,276				25,333,227

CAEMI MINERAÇÃO E METALURGIA S.A.
STOCKHOLDERS’ EQUITY — AT MARKET VALUE		APPENDIX IV
(Financial amounts in R$ ‘000)
Base date: December 31, 2005

ASSETS		Accounting				Adjustments								Market
		value				Positive				Negative				value
Current			487,131				—				—				487,131
Cash and cash equivalents			149,578												149,578
Dividends receivable			333,024												333,024
Accounts receivable — Subsidiaries			331												331
Accounts receivable — Other			2,060												2,060
Taxes recoverable			2,138												2,138
Long-term assets			10,130				—				—				10,130
Deposits paid into Court			9,127												9,127
Accounts receivable — third parties			1,003												1,003
Fixed assets			2,400,646				4,914,592				—				7,315,238
Investments			2,397,691				4,914,592				—				7,312,283
Cadam S.A.			210,892												210,892
Companhia de Maracas			—												—
CIA Ferro-Ligas do Amapá — CFA			—												—
Empreendimentos Bras.de Mineração S.A. — EBM			766,393				2,073,150	(a)			—				2,839,543
Minerações Brasileiras Reunidas S.A. — MBR			1,050,047				2,841,441	(b)			—				3,891,488
MSL Minerais S.A.			20,489												20,489
CAEMI Holding GMBH — Austria			347,992												347,992
Goodwill to be amortized — MBR			1,878												1,878
Property, plant and equipment			2,955												2,955
TOTAL ASSETS			2,897,907				4,914,592				—				7,812,499
CURRENT LIABILITIES
Current			335,369				—				—				335,369
Suppliers			270												270
Salaries and salary-related costs and charges			325												325
Taxes and contributions payable			121												121
Other accounts payable			256												256
Proposed dividends			334,397												334,397
Long-term liabilities			9,123				—				—				9,123
Taxes and contributions payable			9,063												9,063
Debits to related parties			60												60
Stockholders’ equity			2,553,415				—				4,914,592				7,468,007
Registered capital			1,078,000												1,078,000
Capital reserves			1,475,415				—				4,914,592				6,390,007
							(a	)			2,073,150
							(b	)			2,841,441
TOTAL LIABILITIES			2,897,907				—				4,914,592				7,812,499
PROVISIONS RECORDED IN THE ACCOUNTING STATEMENTS
		Effect of adjustments on stockholders’ equity
Provision for losses on realization of assets		Adjustments				Negative									0
Provision for losses on tax incentive transactions		Adjustments				Positive									4,914,592
Provision for losses on investments															4,914,592
Provision for depreciation		% Stockholding													60.23	%
		Equity income adjustment in CVRD													2,960,058

SAMARCO MINERAÇÃO S.A.
STOCKHOLDERS’ EQUITY — AT MARKET VALUE		APPENDIX V
(Financial amounts in R$ ‘000)
Base date: December 31, 2005

ASSETS		Accounting				Adjustments								Market
		value				Positive				Negative				value
Current assets			574,542				—				22,047				552,495
Cash and cash equivalents			13,555												13,555
Accounts receivable			409,262												409,262
Inventories			86,605												86,605
Taxes recoverable — ICMS, PIS, COFINS			33,433												33,433
Deferred income tax and Social Contribution — temporal differences, negative bases			19,189				(a	)			19,189				—
Anticipated expenses			2,858				(b	)			2,858				—
Advances to employees			1,558												1,558
Other current assets			8,082												8,082
Long-term receivables			112,275				—				41,670				70,605
Deposits paid into Court			49,205												49,205
Deferred income tax and Soc.			41,670				(a	)			41,670				—
Contribution: — temp. differences, negative Taxes recoverable			10,118												10,118
Other			11,282												11,282
Fixed assets			1,741,825				2,096,433				—				3,838,258
Investments — Guilman Amorin hydro plant			27,648												27,648
Investments — Samarco Finance			9,180												9,180
Investments — Samarco Iron Ore BV			612												612
Property, plant and equipment			1,704,385				2,096,433	(c)							3,800,818
TOTAL ASSETS			2,428,642				2,096,433				63,717				4,461,358
LIABILITIES
Current liabilities			852,085				—				—				852,085
Suppliers and contractors			58,225												58,225
Advances against foreign exchange contracts			694,588												694,588
Loans and financings — foreign currency			12,011												12,011
Financial charges payable			8,255												8,255
Salaries and salary-related costs and charges			22,549												22,549
Income tax provision			25,258												25,258
Taxes recoverable			9,466												9,466
Other current liabilities			21,733												21,733
Long-term liabilities			269,573				—				—				269,573
Loans and financings — foreign currency			76,515												76,515
Deferred income tax			83,569												83,569
Provision for contingencies			75,396												75,396
Taxes payable — PAES			15,814												15,814
Other			18,279												18,279
Stockholders’ equity			1,306,984				63,717				2,096,433				3,339,700
Registered capital			297,025												297,025
Capital reserves			2,476												2,476
Revaluation reserves			386,717												386,717
Profit reserves			293,454												293,454
Retained earnings			327,312				63,717				2,096,433				2,360,028
							60,859	(a)
							2,858	(b)
							(c	)			2,096,433
TOTAL LIABILITIES			2,428,642				63,717				2,096,433				4,461,358
(a) Writedown of deferred taxes		Effect of adjustments in stockholders’ equity
(b) Writedown of anticipated expenses		Adjustments				Negative									(63,717	)
(c) Adjustment to PP&E -		Adjustments				Positive									2,096,433
- cash flow valuation, insurance															2,032,716
		% stake													50.00	%
		Equity income adjustment in CVRD													1,016,358

RIO DOCE MANGANÊS S.A. — RDM
STOCKHOLDERS’ EQUITY — AT MARKET VALUE		APPENDIX VI
(Financial amounts in R$ ‘000)
Base date: December 31, 2005

 

ASSETS		Accounting				Adjustments								Market
		value				Positive				Negative				value
Current assets			579,023				—				—				579,023
Cash and banks			8,062												8,062
Financial assistance — holding company			63,166												63,166
Accounts receivable from clients			188,545												188,545
Inventories			273,227												273,227
Securities receivable			12,576												12,576
Taxes recoverable — ICMS, PIS, COFINS			23,776												23,776
Other accounts receivable			9,671												9,671
Long-term assets			159,011				—				79,090				79,921
Loan contracts			11,781												11,781
Securities receivable			19,912												19,912
Taxes recoverable			3,454												3,454
Deferred income tax and Soc. Contribution — temporal differences and negative bases			79,090				(a	)			79,090				—
Deposits paid into Court			44,128												44,128
Other credits			646												646
Fixed assets			417,781				785,456				27,709				1,175,528
Investments — Subsidiaries			190												190
Investments — Other			419												419
Property, plant and equipment			416,179				785,456	(b)(c)			26,716				1,174,919
Deferred			993				(d	)			993				—
TOTAL ASSETS			1,155,815				785,456				106,799				1,834,472
LIABILITIES
Current liabilities			309,528				—				—				309,528
Suppliers			65,666												65,666
Loans and financings			106,759												106,759
Taxes, charges and contributions			22,358												22,358
Dividends payable			15,846												15,846
Advances from clients			1,508												1,508
Provision for income tax and Soc. Contribution			70,453												70,453
Other accounts payable			26,938												26,938
Long-term liabilities			200,147				26,716				—				173,431
Loans and financings			3,835												3,835
Loan contracts			101,751												101,751
Provision for contingencies			61,790												61,790
Provision for closure of mines			26,716				26,716	(c)							—
Other			6,055												6,055
Stockholders’ equity			646,140				80,083				785,456				1,351,513
Registered capital			541,295												541,295
Capital reserves			38,065												38,065
Profit reserves			66,780				80,083				785,456				772,153
							79,090	(a)(b)			785,456
							993	(d)
TOTAL LIABILITIES			1,155,815				106,799				785,456				1,834,472
		Effect of adjustments in stockholders’ equity
(a) Writedown of deferred taxes		Adjustments				Negative									(80,083	)
(b) Adjustment to PP&E —		Adjustments				Positive									785,456
valuation: cash flow, insurance															705,373
(c) Reclassification provision for closure of mines — already included in cash flow		Stockholding													100.00	%
(d) Writedown of deferred assets		Equity income adjustment in CVRD													705,373

COMPANHIA NIPO-BRASILEIRA DE PELOTIZAÇÃO- NIBRASCO
STOCKHOLDERS’ EQUITY — AT MARKET VALUE		APPENDIX VII
(Financial amounts in R$ ’000)
Base date: December 31, 2005

ASSETS		Accounting				Adjustments								Market
		value				Positive				Negative				value
Current assets			322,690				—				322				322,368
Cash and cash equivalents			60,574												60,574
Accounts receivable from related parties			146,527												146,527
Inventories			68,866												68,866
Taxes recoverable — PIS and COFINS			45,782												45,782
Advance insurance payments			322					(a)			322				—
Other			619												619
Long-term assets			71,374				—				16,075				55,299
Deferred income tax and Social Contribution — temporal differences			16,075					(b)			16,075				—
Deposits paid into Court — taxes			54,712												54,712
Deposits paid into Court — labor disputes			587												587
Fixed assets			121,617				997,044				—				1,118,661
Investments — FINAM certificates			2,923												2,923
PP&E — industrial plant			55,156				997,044	(c)							1,052,200
PP&E — real estates			37												37
PP&E — furniture, IT equipment, other			4,977												4,977
PP&E — in progress			58,524												58,524
TOTAL ASSETS			515,681				997,044				16,397				1,496,328
LIABILITIES
Current liabilities			307,359				—				—				307,359
Suppliers — related parties			113,661												113,661
Loans and financings			3,255												3,255
Accounts payable			24,215												24,215
Income tax and Social Contribution			60,084												60,084
Provision for maintenance			9,991												9,991
Dividends proposed			91,593												91,593
Other current liabilities			4,560												4,560
Long-term liabilities			31,151				—				—				31,151
Loans and financings			6,509												6,509
Provision for contingencies			24,642												24,642
Stockholders’ equity			177,171				16,397				997,044				1,157,818
Registered capital			42,788												42,788
Profit reserves			134,383				16,397				997,044				1,115,030
							322	(a)(c)			997,044
							16,075	(b)
TOTAL LIABILITIES			515,681				16,397				997,044				1,496,328
			—												—
		Effect of adjustments on stockholders’ equity
(a) Writedown of anticipated expenses		Adjustments				Negative									(16,397	)
(b) Writedown of deferred taxes		Adjustments				Positive									997,044
(c) Adjustment to PP&E -															980,647
- valuation: insurance cover
		Stockholding													51.00	%
		Equity income adjustment in CVRD													500,130