Iron ore miner Vale said it planned to invest in another steel mill — this time in Para, the northern Brazilian state where its main Carajas iron ore mine is.

The world’s largest iron ore miner will take a 25 percent equity stake
in the new laminated steel plant with steel company Aco Cearense
holding the 75 percent majority stake.

The plant will be integrated into a larger Vale laminated steel project
called Alpa in the state, but Vale is looking for a partner in the
larger project. Investments will depend on the results of a feasibility
study.

The Vale-Aco Cearense plant is expected to cost $750 million and have
the capacity to produce 710,000 tonnes a year of hot laminated steel,
450,000 tonnes of cold laminated steel and 150,000 tonnes of galvanized
steel with Alpa supplying steel plates to the project.

Buckling under heavy pressure from the government of President Luiz
Inacio Lula da Silva for the company to invest more in Brazil, Vale
announced in October it would build the 5.2-billion-real ($3 billion)
Alpa complex with a strategic partner.

Although Vale’s official policy has been not to take majority stakes in
steel projects — saying it does not want to compete with its clients
– the company is a major stake holder in four large steel projects
that will raise Brazilian capacity by 15.5 million tonnes a year, or 50
percent of current capacity.

Source: Reuters

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