Brazilian integrated steelmaker Gerdau plans to expand its Várzea Lopes complex, in the state of Minas Gerais, however, the company depends on state regulators to move on the project, SteelOrbis has learned.
According to a draft law last updated in early August at the Minas Gerais State Legislative Assembly (ALMG), Gerdau’s expansion project is currently located at Minas Gerais state park, whose area is considered an environmental protection area, known as Mona.
SteelOrbis has learned Gerdau plans to expand its Várzea Lopes complex by 31.6 acres. The expansion is part of a company’s plan to BRL 1.5 billion ($267.3 million) in Minas Gerais state. Gerdau would use the complex expansion to explore new areas and expand the life cycle of its existing iron ore reserves for a further 10-year period.
However, the project is still under review at ALMG. The draft law still needs to be discussed by policymakers before it is amended. Only then, if approved by legislators, will it become a law.