Cia. Vale do Rio Doce, the world’s biggest iron-ore producer, signed a contract with a unit of ThyssenKrupp AG, Germany’s biggest steelmaker, to conduct an engineering study on a $3.3 billion steel project in Brazil.
The study for the Acos Laminados do Para SA steel mill to be sited at Maraba, northern Brazil, should be completed in June 2009, Vale said today in an e-mailed statement. The mill will initially be capable of producing 2.5 million metric tons a year of hot coils, heavy plates and other steel products, Rio de Janeiro-based Vale said, without giving a potential start date.
Vale is building a steel-slabs mill, called Cia. Siderurgica do Atlantico SA, with ThyssenKrupp, that may produce as much as 5 million tons a year. It is also studying steelworks with China’s Baosteel Group Corp Ltd. in Espirito Santo state, Korea’s Dongkuk Steel Mill Corp. and Japan’s JFE Steel Corp. in Ceara state.
The new Maraba mill “is in line with Vale’s strategy to promote the development of the national steel sector through minority interests in projects,” Vale said in the release.
The contract signed with ThyssenKrupp unit TKS Consulting is valued at about 1.3 million euros ($1.63 million), according to the release.
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