December 04, 2008

CVRD considering a pellet plant in Malaysia

BNamericas reported that Brazilian mining and metals group CVRD is evaluating plans for a new pellet plant in Malaysia.

Mr José Carlos Martins executive director of CVRD ferrous minerals told analysts that "We are in discussions to build a palletizing plant in Malaysia to supply the growing needs in the Southeast Asian market.”

CVRD has two under construction pellet facilities in Brazil, including a 7.6 million tonne per year unit at 50% owned pellet producer Samarco due to start up in March. The other plant has a 7 million tonnes capacity and is scheduled to kick off production in June.

Mr Martins said that two other pellet plant projects were submitted to CVRD's board for approval and are expected to begin operations in 2010, including a 7.5 million tonne per year unit in Brazil and a 9 million tonne per year plant in Oman, to supply direct reduction pellets for the local market.