Vale to invest $5.8 bln in Brazil projects-report

SAO PAULO Oct 14 (Reuters) - Vale (VALE5.SA)(VALE.N), the world's largest iron ore miner, will spend up to 10 billion reais ($5.8 billion) in projects in Brazil's southeastern region as a way to counter government criticism over the company's investment plans, O Estado de S. Paulo newspaper said on Wednesday.

Vale Chief Executive Roger Agnelli will present the plan to Minas Gerais state Governor Aecio Neves, Estado said. The paper did not say how it obtained the information.

Minas Gerais has one of Brazil's richest mining reserves.

Vale has become the target of harsh government criticism in recent months following efforts by Agnelli to cushion the mining company from the impact of the economic crisis.

President Luiz Inacio Lula da Silva lashed out at Vale for cutting back on investment and firing 2,000 workers amid the global economic downturn and plunging metal prices.

The 10 billion real plan is aimed at "easing the stress caused by the adoption of Vale's adjustment plans amid the credit crisis," the newspaper said.

Some of Lula's criticism is that Vale, Brazil's largest private company, might not be doing enough to build up the nation's infrastructure at a faster rate, including beefing up its participation in the steel sector, Estado said.

Vale now mines iron ore and other base metals for export, as well as holding small stakes in Brazilian steel plants.

Estado did not specify whether the new projects could be in mining, steel or logistics -- areas in which the company has been expected to make acquisition and expansion announcements.

Vale's spokesman did not immediately respond to to his Rio de Janeiro office and mobile phones for comment on the Estado report weren't immediately answered. ($1=1.727 reais) (Reporting by Guillermo Parra-Bernal; editing by John Wallace)