BNamericas quoted Mr Andre Gerdau Johannpeter CEO of Brazilian steelmaker Gerdau as saying that the company will invest BRL 838 million to nearly double iron ore output and achieve self sufficiency by the end of 2014.

Mr Johannpeter said that "The figure includes transport infrastructure and logistics to deliver iron ore to our steel plants in Minas Gerais state."

The company is planning to install a new 9 kilometers conveyor belt to deliver the raw material at Gerdau Açominas. Additionally, there is a final phase study underway to build a railway terminal, the company said in its quarterly results report.

Gerdau's announced investment aims to increase iron ore production at the company's mines to 11.5 million tonnes per tonne, up from current output of about 6.5 million tonnes.

Mr Johannpeter said that "We expect to complete investments by the end of 2014."

Mr Johannpeter said that Gerdau is still considering plans to find a partner to help develop its mining operations in Minas Gerais state, adding that a next step in the process will be for interested companies to visit the company's mine locations. He added that "We are still looking for a mining partner, so we do not have a date to announce it."

All of Gerdau's 2.9 billion tonnes iron ore assets are located in Minas Gerais.

Source - Business News Americas

(www.steelguru.com)