UPDATE 1-Miner Vale says signs deal for steel mill in Brazil

(Recasts, add details, background)

RIO DE JANEIRO, June 17 (Reuters) - Brazilian mining giant Vale (VALE5.SA) (VALE.N) on Wednesday said it signed a memorandum of understanding for the construction of an integrated steel mill in Brazil's northeastern state of Ceara.

Vale said it signed the accord with the Companhia Siderurgica do Pecem, or CSP, the state government of Ceara and Korean steelmaker Dongkuk (001230.KS).

The mill will have an initial annual production capacity of 3 million tons per year in its first phase, which will require an estimated $4 billion in investment.

The project is slated to reach production capacity of 6 million tons per year. A company spokeswoman was not immediately available for comment. (Reporting by Brian Ellsworth; Editing by Marguerita Choy)