Brazilian CVRD presents $11.4 billion steel project

Brazilian CVRD presents $11.4 billion steel project

On Thursday, Brazil's mining giant, Companhia Vale do Rio Doce (CVRD) presented a $11.4 billion project to officials of the country's Brazilian National Bank for Economic and Social Development (BNDES), which calls for the construction of 3 steel smelters to be built in the northeast region of the country. The BNDES, announced that the Maranhao steel complex would increase Brazil's steel output by 70%, or 24 million tons by 2010. BNDES also stated that the steel would be exported, bringing Brazil approximately $9 billion per year. The three smelters would be constructed in two phases, with each beginning to produce 4 million tons of steel by 2008, which would be doubled after the expansion. According to market sources, CVRD has already signed a deal with its customer Baosteel of China to jointly build one smelter in Maranhao.