CVRD slab joint venture deal not final

CVRD slab joint venture deal not final

Brazilian mining giant Companhia Vale do Rio Doce (CVRD) announced that the deal to establish a 1.5 million-ton slab plant in Ceara state has not been completed yet. CVRD, South Korean steel producer Dongkuk Steel Mills (DSM) and Italy's Danieli signed a memorandum of understanding in March 2004 to invest $720 million in the construction of a steel slab plant called USC in Cerara. Brazil's national development bank BNDES would provide $110 million of the total investment. CVRD officials announced that the company plans to be a minority shareholder in the joint venture and will supply iron ore to the plant. Production at the plant is expected to start in 2008.