Brazil's Vale and S Koea's Donguk start work on $4-billion steel project
19 Dec 2009
Brazillian mining gint Vale and South Korean Dongkuk Steel have announced the commencement of construction work at Companhia Siderúrgica do Pecém (CSP), the first integrated steel mill featuring a coking plant in Brazil's Northeast region.
The project, located at Pecém Industrial and Port Complex (CIPP) in São Gonçalo do Amarante, Ceará State, will generate more than 15,000 jobs during the construction phase.
It is due to come on stream in 2013, with estimated annual output of 3 million tons of steel plates in the first phase, which may later be expanded to 6 million tons in a second phase. In addition to steel plates, CSP will also produce electricity for its own use, with surplus power sold on the domestic market.
CSP is one of the biggest and most important private sector projects in Brazil's north east.
It is also part of Vale's strategy to encourage new steel projects in Brazil, which has one of the lowest production costs in the world, by temporarily holding minority stakes in order to become the exclusive iron ore and pellet supplier.
In addition, the project will promote the country's steelmaking industry, adding value to ore and generating wealth and development for Brazil and the state of Ceará.