Brazilian mining giant Companhia Vale do Rio Doce (CVRD) has announced the signing of a memorandum of understanding with Baosteel Group Corporation (Baosteel) and the state government of Espirito Santo, Brazil, for the construction of a steel slab mill in the industrial district of Anchieta.
According to the press release issued by CVRD, the plant's production capacity will be five million tons annually. CVRD also added that the new mill is compatible with CVRD's strategy of attracting new investments to Brazil's steel industry.
In comments made to SteelOrbis, a CVRD spokesperson stated that it was too early to give further particulars about the mill, but that more information would be available toward the end of the year.
However, according to some market sources the plant will cost US$3-4 billion, of which Baosteel will fund 80-90 percent.
Furthermore, the Espirito Santo authorities have said that the plant's construction will continue for five years and create 21,500 employment opportunities.