December 02, 2008

Sao Paulo to begin Maranhao steel studies from September

BNamericas reported that Sao Paulo state university USP is due to begin studies into the potential impact of a steel mill in Brazilian Maranhao state from September 2007.

The studies are due to take 90 days and will measure the environmental and economic impact of a steel mill in Maranhao state capital Sao Luis and also in the city of Bacabeira in Brazil.

Mr Sergio Guimaraes civil construction & mining metals superintendent at Maranhao's commerce & industry ministry said that "We are still going over the budget details." He added that Sao Paulo university USP studies would provide an objective opinion free of particular interests.

It is noted that Brazilian Companhia Vale do Rio Doce and Chinese steel maker Baosteel had plans to build a steel plant in Sao Luis but Maranhao state wanted the mill at Bacabeira and both companies then ruled out Maranhao and signed a letter of intent to build the plant in Espirito Santo state.

CVRD already has minority stakes in the CSA steel mill and the Ceara steel plant and earlier in August 2007 unveiled plans to disburse USD 270 million for a minority share in a JV to acquire the Sparrows Point mill in the US.