Vale to Build $5 Billion Steel Mill in Northern Brazil

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Brazilian miner Companhia Vale do Rio Doce (NYSE:RIO) (Rio de Janeiro) recently announced that it will build an integrated steel mill in the city of Maraba in northern Brazil's state of Para.

The project entails the construction of a new laminated steel mill to produce hot laminated coils, heavy plates and lumps. The initial capacity is expected to be 2.5 million tons per year with an expansion potential of up to 5 million tons per year. The first stage of the project is expected to cost $3.3 billion, and the entire project is estimated to cost about $5 billion.

The project is now in the conceptual engineering stage, which is expected to be complete by the end of this year. An engineering firm and a construction firm are expected to be selected in the beginning of 2009. The mill is planned to be operational by mid-2012, and 3,500 direct and 14,000 indirect jobs will be created.

Vale owns another ongoing $6 billion steel project in northeastern Brazil in the state of Ceara through the joint venture Companhia Siderurgica do Pecem, created with South Korean steel company Dongkuk Steel Mill Company. This project entails the construction of an integrated 5 million-ton-per-year steel mill to produce steel plates. The mill is expected to begin operation by mid-2011.

View Plant Profile - 1079007
View Project Report - 67000824

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.