Vale considers lowering stake in Brazilian steel mill project

Tuesday, 26 April 2011 02:57:26 (GMT+2)

Local media reported Monday that the world's largest iron ore mining company, Brazil-based Vale may reduce its stake in a Brazilian steel mill venture with South Korean steelmakers, POSCO and Dongkuk Steel. In the initial stages of the joint venture, POSCO agreed to hold a 20 percent stake, while Dongkuk would hold a 30 percent stake in the project. Vale had originally agreed to hold a 50 percent stake in the first phase of construction in November 2010, which it may lower 30 percent while POSCO and Dongkuk  both raise their stakes to 35 percent apiece.

A definite decision may not come until 2014, when the first phase of the three million metric ton steel mill's construction in Brazil is expected to be completed.

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