Brazilian CVRD presents $11.4 billion steel project
On Thursday,
Brazil's mining giant, Companhia
Vale do Rio Doce (CVRD) presented a $11.4 billion project to officials of the country's Brazilian National Bank for Economic and Social Development (BNDES), which calls for the
construction of 3 steel smelters to be built in the northeast region of the country.
The BNDES, announced that the Maranhao steel complex would increase
Brazil's steel output by 70%, or 24 million tons by 2010.
BNDES also stated that the steel would be exported, bringing
Brazil approximately $9 billion per year.
The three smelters would be constructed in two phases, with each beginning to produce 4 million tons of steel by 2008, which would be doubled after the expansion.
According to market sources, CVRD has already signed a deal with its customer
Baosteel of
China to jointly build one smelter in Maranhao.