Brazilian steelmaker Gerdau has signed a natural gas supply contract with state run oil and energy producer Petrobras. Petrobras will supply Gerdau's steel milling complex in Ouro Branco in Minas Gerais state of Brazil. The terms of the four-year contract, which begins on 1 January 2022, were not disclosed.Gerdau's Ouro Branco mill, located in the city of same name in Minas Gerais state, is the steelmaker’s largest mill in Brazil. Gerdau is investing BRL 6 billion (USD 1.15 billion) to expand its Minas Gerais operations. At its Ouro Branco mill, it plans to increase output of hot rolled coil by 250,000 tonnes per year starting in 2024 and of structural beams by 500,000 tonne per year in 2025. Gerdau is also investing to reduce its carbon footprint by substituting wood-based charcoal for coking coal. In July, the company also signed a deal with Shell to build a 190MW solar project that will supply Gerdau's plants with renewable power.