Source From BN Americas
http://www.bnamericas.com:80/news/metals/vale-will-continue-search-for-partners-in-steel-projects-says-executive/230986261
Brazilian miner
Vale
(NYSE: VALE) will continue to look for partners to
operate its steelmaking projects, which will add
some 20Mt/y to the country's total steel output by
2015, sales and strategy director José Carlos
Martins said in a press conference in São Paulo on
Friday (Feb 25).
"Our strategy is to make the projects
viable and we always hope to attract a partner in
steelmaking to be responsible for the operation of
the plants," Martins said.
The global steel surplus is not a
concern for Vale as there is still plenty of room
for domestic consumption to grow, according to the
executive. Brazil's per capita steel consumption is
120kg/y, while in developed countries it averages
300-400kg/y.
Vale's projects will play an
important role in supplying growing domestic steel
consumption, although the plants will be mostly
focused on exports.
"We believe that the projects will
come online at a time when the Brazilian economy
will be enjoying a very good moment," Martins said,
adding that apart from minor expansions, there are
no large steel projects underway in the country.
Local steel production will also
contribute to a more stable trade balance, according
to the executive. Last year steel imports were close
to 6Mt. "With the economy growing, Brazil will need
a lot of steel and if it is not produced
domestically, it will come via imports," Martins
said.
PROJECT PIPELINE
Vale is currently developing the Aços
Laminados do Pará (Alpa) project, in Pará state's
Marabá municipality. Earthmoving works are complete
and construction will begin this year. The mill will
have capacity to produce 2.5Mt/y of slabs and is
scheduled to begin operating at end-2013.
Investments are expected to total 5.8bn reais
(US$3.5bn).
The company also has the Companhia
Siderúrgica Ubu (CSU) steel project, in Espírito
Santo state, which is forecast to produce 5Mt/y of
slabs from 2014.
Vale has already teamed up with South Korean firms
Posco
and
Dongkuk Steel
for development of the US$4bn Companhia Siderúrgica
do Pecém (CSP) project. Construction will begin in
the second quarter of this year. The Ceará state
facility is scheduled to begin operating in 2014 and
will initially produce 3Mt/y of plates, but capacity
could be expanded to 6Mt/y in the future.
Vale has also a 26.9% stake in ThyssenKrupp CSA, a
JV with German group
ThyssenKrupp.
The plant began operating in June 2010 and is
designed to produce 5Mt/y of slabs.
Once operational, the facilities will
consume some 30Mt/y of iron ore.
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