Brazil-based Vale Wednesday announced they will soon begin construction on a US$ 3 billion steel plant in the Amazon state of Para. When completed, the plant will have an annual output of two million mt. Construction is slighted to begin in June and the plant is targeted to open in the fourth quarter of 2013.
Vale further announced that it has reached an agreement with The Mosaic Company and Mitsui & Co. Ltd. to sell minority stakes in the Bayóvar project in Peru, through a newly-formed company that will control and operate the project. The Bayóvar Project includes construction of a phosphate concentrating plant, a 40-km roadway, a 5-km overland conveyor, a drying and storage area, in addition to a port with capacity to ship 7.9 million tons a year. Completion is expected for the second half of 2010.
Subject to the terms and conditions set forth in the definitive share purchase agreement, Vale has agreed to sell 35% of total capital to Mosaic for US$ 385 million and 25 percent of total capital to Mitsui for US$ 275 million. Following the consummation of these transactions, Vale will retain control of the Bayóvar project, holding 51 percent of the voting shares and 40 percent of total capital of the newly-formed company.