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CSN Announces Mine Expansion, New Integrated Mill in Minas Gerais State
12/20/2007 - CSN signs a Letter of Intent with the Minas Gerais state government detailing projects in mining, steel and cement production over the next six years, including a significant expansion in iron ore capacity as well as the creation of a new, 4.5 million tonnes/year integrated steel mill.
CSN's CEO and Chairman, Benjamin Steinbruch, signed a Letter of Intent with the Minas Gerais state government detailing projects in mining, steel and cement production that will result in investments in the region totaling around R$ 9.5 billion over the next six years.
CSN is expanding iron ore capacity at Casa de Pedra (the company’s largest mine) from its current production level of 16 million tonnes/year to a targeted 65 million tonnes/year by 2011. Complementing expansion of iron ore capacity at Casa de Pedra, CSN also plans to build a new 4.5-million tonnes/year integrated steel mill and a 6-million tonnes/year iron ore pelletizing facility in the same region.
The company’s investments in Minas Gerais state also include a clinker factory and a limestone plant (geared toward cement production), and a steel processing and distribution center.
"These funds consolidate the cycle of investments previously announced by the company and underline our commitment to the creation of shareholder value and the generation of wealth and jobs in Minas Gerais and in Brazil," declared Steinbruch.
The municipality of Congonhas will host the main projects, which total around R$ 9 billion. This total includes R$ 6.2 billion for installation of the steel mill, R$ 850 million for the pelletizing plant, and R$ 2.2 billion for expansion of the Casa de Pedra mine.
The clinker factory and limestone plant, which are to be installed in the city of Arcos, are expected to absorb joint investments of R$ 205 million. The steel processing and distribution center, estimated to represent an investment of approximately R$ 20 million, will be installed in the metropolitan region of Belo Horizonte, the capital city of the state of Minas Gerais.
CSN estimates the investments will create more than 10,000 new jobs in the region. Local workers will be given priority for jobs, with full training in manufacturing and technological development being provided to the workforce involved.
