Brazil’s development bank BNDES is analyzing the possibility of granting Companhia Siderúrgica do Pecém (CSP), in the state of Ceará, a $1 billion loan, according to media reports.
The mill, a joint venture between Vale (50 percent) and South Korean steelmakers Dongkuk (30 percent) and Posco (20 percent), plans to start production in 2016.
According to media reports, the CSP steel mill has a $4.8 billion expected investment.
Negotiations for long-term loans are “advanced” and the company expects to complete the BNDES load in the first half of this year, media reports said, adding that banks other than BNDES should complete the total investment. Those financial institutions include Korea Trade Insurance Corporation (Ksure) and the Korea EximBank. The total expected investment is still being analyzed.
If approved, the BNDES loan could be the last the Brazilian bank provides for the industry in 2015, according to media reports.