Brazilian iron ore giants to expand pellet production
The world's second largest exporter of iron-ore pellets, Samarco Mineracao SA, will spend $1.2 billion on ore producing operations in Brazil. The plan was approved by iron ore producer Cia. Vale do Rio Doce and mining company BHP Billiton Ltd., each which owns half of Brazil-based Samarco, at a board meeting on Thursday. The operations include a new ore concentration plant in Germano, Brazil and a second 400-kilometer ore-slurry duct to carry ore to the port of Ubu, Brazil. Samarco will also build a third ore-pellet plant with operation slated for February 2008. Samarco's output will raise more than 50 percent once the new facilities are in operation.