Brazilian iron ore giant Companhia Vale do Rio Doce (Vale) has announced the signing of a memorandum of understanding (MoU) with both Japanese steelmaker JFE and one of the largest steel producers in South Korea, Dongkuk Steel Mill Co.
The MoU stipulates the carrying out of a feasibility study for a slab plant at Pecém in Brazil's Ceara state.
The new deal also opens the possibility for JFE to participate in the enlarged project. If JFE considers the project to be applicable, the three companies will continue to carry it out together. JFE will be the majority shareholder.
The project will involve the construction of a steel slab plant with an annual production capacity of five to six million tons per year.