Rio Tinto in advanced talks on Brazilian steelworks project

Rio Tinto is near to an agreement with two companies for the construction of a steelworks in Corumbá city, in Brazil's midwestern state of Mato Grosso do Sul. Last week the company announced plans for a substantial expansion of its iron ore mining operations in the region.

“Rio Tinto has started procedures to get the construction license, but steelmaking is not part of our core business,” said a company director, stressing that the miner will not have any participation in the steel project.

Talks about the new steel plant started back in 2005 with more than 10 companies, local and foreign, as reported by Steel Business Briefing. The technology used should be based on natural gas, taking advantage of the good supply in Corumbá. Initially, capacity should stand at 1m tonnes/year for the production of billets, other semis or finished steel.

“The success of the steel plant will impact the following phases of our expansion plans in iron ore,” said the director about Rio Tinto’s plan to expand its iron ore production to 23m t/y.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: August 12, 2008