Brazil's Vale, China's CCCC to co-invest in northern Brazil steel plant


SÃO PAULO, May 23 (Reuters) - State-controlled China Communications Construction Co (CCCC) 601800.SS and iron ore miner Vale SA VALE3.SA have agreed to set up a steel mill in Brazil's northern state of Pará with a $450 million investment, the state's government said on Thursday.

Vale confirmed in a separate statement that it had signed a protocol of intentions to support the financial structure of the flat-rolled steel laminating venture by issuing guaranties backing the project's funding.

The plant could emerge as a key destination for iron ore produced at Vale's giant Carajas mine in the same state.

The venture has "the capacity to leverage the economy of dozens of mining municipalities, producers of high-quality raw material, with large stocks to ensure cutting-edge products" for the construction, agricultural equipment, automotive and machinery and equipment companies, the state said.

The announcement comes at a time when Vale has been grappling with the aftermath of a deadly mine collapse which led the company to post a record first-quarter net loss of $1.64 billion.

(Reporting by Roberto Samora; writing by Christian Plumb; editing by Jonathan Oatis)

(( 5511 5644 7751 Reuters Messaging:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.