Brazil's second largest steelmaker, Cia Siderurgica Nacional (CSN) Tuesday signed a protocol with the government of the southeastern Brazilian state of Minas Gerais to invest US$5.25 billion (9.5 billion reals) into mining, steel and cement projects in the state over the next six years.
The protocol, signed by CSN President Benjamin Steinbruch with Aecio Neves, the governor Minas Gerais, includes a capacity expansion of the company's Casa de Pedra iron ore mine, which will up output from the current 16 million mt per year to 65 million mt per year by 2011.
CSN will also build a new 6 million ton per year pellet plant and two cement plants in the Minas Gerais state, as well as a $2.9 billion, 4.5 million mt per year slab plant to be built near Casa de Pedra. All of the iron ore CSN consumes now comes from Casa de Pedra, with the company selling about half of the iron ore mined there, mostly in the domestic market .
CSN expects the investments to create over 10,000 new jobs.