CVRD looking to bring new steel projects on stream – Brazil

CVRD looking to bring new steel projects on stream – Brazil

June 1, 2007 Filed Under: Bauxite Mining, Mining Services, Potash Mining  

Rio de Janeiro-based CVRD (NYSE: RIO) is in talks with international steelmakers to bring new steel projects to Brazil, CFO Fã¡bio Barbosa told analysts and investors in a presentation Thursday.

Barbosa was speaking in São Paulo during an event promoted by finance industry trade group Apimec.

CVRD has a 10% minority stake in the under-construction CSA steel mill in Rio de Janeiro state, due to start operations in 2009, while German industrial conglomerate ThyssenKrupp has the other 90%. The Brazilian is also part of the Cearã¡ Steel slab project, though the local steel sector is against proposed subsidized natural gas for Cearã¡ Steel from federal energy company Petrobras.

“We are in talks to bring a steel project to Maranhão and other regions, including Espã­rito Santo state,” the CFO said. “Whoever wants to install a steel project in Brazil should look for us, and can count on our support. Our clients know this,” Barbosa said.

CVRD and Chinese steelmaker Baosteel are already in talks to install a steel project in Maranhão. Meanwhile, Espã­rito Santo is home to steel producer CST, part of Arcelor Brasil.

The Brazilian mining and metals group, the world’s largest iron ore producer, also has interests in alumina, aluminum, bauxite, kaolin, potash, nickel, copper and railroads, among others.

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