The construction of a Chinese-owned steel mill in the Brazilian state of Maranhao commenced this month, as local construction company Edeconsil won a tendering contract to build the facility, according to a media report.
The mill will be built in an area where Brazilian state-run oil producer Petrobras planned a refinery, in the city of Bacabeira. China’s CBSteel is expected to own the project, and the state of Maranhao expects to make the mill area an Export Processing Zone (EPZ).
A media report said ground cleaning and setup of worker accommodations began on December 1. By March next year, landscaping of the site should begin, followed by construction of the facility.
CBSteel will invest $3.5 billion in the first phase of the project, and then an additional $4.5 billion, as the mill reaches a 10 million mt/year capacity in longs.
A first non-official forecast for the mill indicated it should start operations by 2022, initially producing 3 million mt of wire rod. Rebar production will commence later.
The project recently raised concerns by Latin America’s steel association, Alacero, which labeled it as “inappropriate.”