Brazilian mining firm Vale announced Wednesday that it has signed a memorandum of understanding, along with Korean steelmaker Dongkuk and Brazil's Companhia Siderurgica do Pecem, with the government of the northeastern Brazilian state of Ceara to build an integrated steel mill in the region that will manufacture plates for export.
The mill is to be built in two phases. The first one is to start in the year 2013 and the second in 2015. Vale explained the plant would have an annual capacity to produce three million mt of plates on its first phase and six million mt at its maximum. The estimated cost of the first phase of the project totals US$4 billion, Vale said.
The plant will be located just west of state capital Fortalza, nearby a newly built deepwater port. The plant construction will generate more than 15,000 jobs during its first phase. Additionally, the plant will require 4,000 employees to operate the facility.