Cosipar delays plans for Brazilian steelworks project until 2012

Monday, 18 July 2011 02:15:29 (GMT+3)   |  
The Cosipar Group, Brazil's largest pig-iron producer, announced Thursday that it is delaying plans for a steelmaking project in Barcarena, Para in Northern Brazil. The project, Usina Siderurgica do Para, would include a steel slab and a coking coal plant. The project's main partner--Igor Zyuzin, who currently owns a 70 percent stake in OAO Mechel, the largest Russian coal company--and Cosipar decided the plans for the project would be delayed until global steel market conditions improve.

In addition to languid market conditions for developing the project, there is a lack of port facilities adequate to serve the export markets. The parties are expected to resume talks of the steelworks project early next year.


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