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Brazilian mining and power-generation company Companhia Vale do Rio Doce (CVRD) recently announced plans to spend $1.8 billion on capital expenditures in 2004 — which includes funds to expand the capacity of its railroads — compared with $1.5 billion last year.

During the next few years, CVRD expects to increase its annual mining capacity by 73 million tons of iron ore, 4.5 million tons of bauxite, 1.8 million tons of alumina, 250,000 tons of potash and 185,000 tons of copper.

To handle the additional commodities, the company plans to acquire 88 locomotives and 3,178 rail cars this year to expand its fleet of 744 locomotives and 30,473 cars.

In 2004, CVRD also expects to spend $335.9 million on environmental protection and maintenance projects, $149.4 million on modernization projects, $74.4 million on information technology, and $53.6 million on research and development.