Vale (RIO) to Invest $110M in Copper Mining Project in Chile

Dow Jones is reporting that Companhia Vale do Rio Doce, or Vale (NYSE: RIO) for short, is planning a $110 million investment in its first ever copper mining project in Chile.

First reported in La Tercera, a Chilean newspaper, the article cites a Vale exec, saying environmental authorities in Chile are currently evaluating the the impacts of the project, known as Papomono, on the environment. The project could produce 20,000 metric tons of copper over an 11-year period for Vale.

Patricia Montes, an exec with Vale's Chilean unit, said, "We hope the project is approved so we can begin construction at the end of the year and start operations in 2009."

Shares of Vale are down about $0.86 from yesterday's close, or 2%, to $39.80 today. The stock appears to be pulling back with crude oil, which has moved off the $130 level, down about $2 on the day.

Companhia Vale do Rio Doce (Vale) is a metals and mining company. The Company is also a producer of iron ore and iron ore pellets.

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