Vale earmarks US$ 1 billion for steelmaking

Brazil – Brazilian mining major Vale intends to invest more than US$ 1 billion in steel projects this year, the company’s Executive Director of Marketing, Sales and Strategy, José Carlos Martins, has told a domestic steel institute conference.

According to a report in Steel Business Briefing (SBB), current Vale steel projects include: Companhia Siderúrgica do Atl’ntico (CSA) – a partnership with ThyssenKrupp of Germany; Companhia Siderúrgica de Pecém (CSP) – a joint venture with South Korean plate producer Dongkuk; Aços Laminados do Pará (Alpa); and Companhia Siderúrgica Ubu (CSU). Combined, these projects will add 18.5 million tonnes of annual slab production capacity in Brazil. ‘When investing in steel production, the risk of export is minimised because the projects are born with a guaranteed market,’ said Mr Martins. The ‘guaranteed’ export market for CSA and CSP is provided by their steel-producing partners; however, according to the SBB report, Vale is still seeking foreign partners for its Alpa and CSU plants.