Luxembourg based ArcelorMittal is still planning to double output at its Andrade iron ore mine in Brazil's Minas Gerais state despite its decision to temporarily halt a USD 1.2 billion expansion project at its Monlevade steel plant in the same state.

Mr Benjamin Baptista Filho CEO of ArcelorMittal Brasil said that the company will now sell the iron ore surplus produced at Andrade instead of directing it to Monlevade.

Mr Baptista Filho was quoted as saying by news service Agência Estado that "We'll see what the best way is to sell [the surplus].”

He added that "This suspension [of the Monlevade expansion] is temporary. As soon as market conditions permit it, we will resume the project.”

The executive did not say how much had already been spent on site preparation works. However, he confirmed that contracts to purchase equipment for the expansion have not been cancelled.

The company also suspended a USD 300 million expansion project at its Vega do Sul galvanized steel facility in Santa Catarina state. This project will also be resumed in the future. He added that "We will do it, it's inevitable.”

Mr Baptista Filho said that “The expansion at Vega do Sul was in the bidding stage when it was decided to suspend the project. We were on the verge of signing contracts.”

(Sourced from www.bnamericas.com)