The Brazilian Development Bank (BNDES) has announced that it has approved a BRL 666 million ($120.73 million) financing package as part of its Climate Fund for domestic steelmaker Gerdau’s pipeline and scrap recycling project.
With the support of the approved financing, Gerdau will build a 13-kilometer pipeline and a 10-kilometer tailings pipeline between its Miguel Burnier iron ore mine in Ouro Preto and its steel plant in Ouro Branco. As a result, the company will be able to reduce its reliance on trucks in the region, thereby cutting greenhouse gas emissions. It is estimated that the pipeline will replace 1,500 trucks per day transporting 60,000 mt of iron ore.
Gerdau will also construct a recycling center to process scrap metal at its specialty steel plant in Pindamonhangaba. The new unit will process all materials received as scrap and separate impurities. This will contribute to reducing greenhouse gas emissions by increasing scrap use in steelmaking.
According to Rafael Japur, CFO of Gerdau, these investments will also enable the company to increase its energy efficiency and improve its competitiveness.