Vale, the world's biggest iron ore miner, will build a US$3.7 billion steel mill in Brazil's northern state of Para, reported a Brazilian newspaper on Friday. Furthermore, the Rio de Janeiro-based firm is also reportedly discussing the construction of a five million mt per year slab plant in the southeastern Brazilian state of Espirito Santo.
Although Vale has yet to officially confirm either project, Ana Julia Carepa, Para state governor, said that the firm has confirmed plans with the government to build the Para mill, and will sign a letter of intent in the near future.
The plant, to be named Acos Laminados do Para, will have an annual capacity to produce 2.5 million mt of rolled steel, from which two million mt will be destined for sale overseas. Construction of the plan should start next May and end in 2013, said the report.
The plant's estimated cost amounts to $3.3 billion, and an additional $275 million will be set aside for the construction of a port facility and $125 million for a railroad.
Additionally, a state secretary for the Brazilian state of Espirito Santo said Vale is considering the construction of a $3 billion slab plant (with annual production capacity of five million mt) in the town of Anchieta.
These reported plans come after recent criticism from the Brazilian government regarding the firm's cutback in planned domestic steel investments, including the layoffs of 2,000 workers earlier this year.