Estado news agency reported cited Mr Roger Agnelli president of Brazilian mining giant Vale SA as saying said that he had always had a good, open and sincere relationship with Brazilian President Luis Inacio Lula da Silva.

Mr Agnelli said that "Vale has always been aligned with government interests and has made large investments.”

He said that Mr Lula is worried that Brazilian steel demand will grow substantially because of its economic development and have to import more steel.

Estado news agency reported Mr Lula has criticized Mr Agnelli in recent months, complaining that Vale was not investing enough in the steel industry to create more jobs and add value to its iron ore. However, even after the criticism, Vale announced in late October a USD 12.9 billion investment plan, allocating just 3% to steel projects.

(Sourced from Dow Jones)