Brazilian iron ore miner Vale and Brazilian steel producer Sinobras have signed a MoU for the construction of a steel plant to produce billet.
The new plant, to be built in the city of Maraba, in the northern state of Para, will receive pig iron from the Tecnored plant currently being built by Vale in the same city.
The production capacity of the new steel plant and details of the technology are the subject of a study, expected to be concluded in 2023 by Sinobras.
The Tecnored technology is a low carbon pig iron process using energy sources, such as biomass, that emit less CO2 than the traditional coal and coke iron-making processes.
Under the agreement, Vale will offer guarantee to Sinobras, in relation to the financial loan for the construction of the new steel plant.