Brazilian metal and mining company CVRD (Companhia
Vale do Rio Doce) has signed its biggest deal ever - a 15-year
iron ore and pellets supply contract, worth US$7 billion, with German steel company ThyssenKrupp.
Under the 15-year contract, ThyssenKrupp's new
slab plant in Rio de Jeneiro, Companhia Siderurgica Atlantico (CSA), will receive 2.7 million metric tons of pellets and 5.9 million metric tons of
iron ore annually from CVRD.
This contract facilitates CVRD's strategy to promote the expansion of the Brazilian steel industry through minority and temporary stakes in
Brazil.
CSA is still under
construction, with an operations expected to start in March 2009. ThyssenKrupp expects to produce 4.4 million metric tons of steel slabs per year at CSA and export them to its plant in
Europe for finishing.
CVRD is one of the world's biggest metal and mining companies, and
Brazil's largest
iron ore and pellets producer and exporter.
ThyssenKrupp is the world's major international technology group with three primary business areas of steel, capital goods and services.