ArcelorMittal is considering joining Brazil’s mining company, Vale S.A., to build a flat steel plant with an output of 5 million metric ton per year in Espirito Santo, Brazil.
Construction of the new plant is set for completion in 2014. As of today, Vale S.A. has begun a public consultation for this project, which involves talks with the mill site’s neighboring parties to identify possible obstacles before the environmental licensing process.
Aditya Mittal, ArcelorMittal’s Chief Financial Officer, is currently evaluating the investment plans in Brazil. Mittal said that the company is interested in analyzing projects of this nature, alluding to Vale’s steel mill building in Espirito Santo, where ArcelorMittal currently operates a plant with an output of approximately 7.5 million ton per year.
Mittal also stated that the company’s $5 billion investment plan for Brazil, which was suspended due to the financial crisis, is going to restart immediately. “Our plans are much larger than this, but we still haven't approved them yet,” Mittal said.
On another note, Mittal mentioned the company would like to guarantee its own iron ore supplies, “Our target is to have 60% to 70% of iron ore for our own use," which is referring to a possible output increase from ArcelorMittal's Serra Azul mine in Minas Gerais, Brazil, "that's where demand is going to rise; that's why we chose Brazil and India to invest in new projects.”