* Thyssen's 'mistakes' sparked losses in CSA, Estado says
* Claim creates hurdles for sale of money-losing CSA mill
* Thyssen owns 73 pct of slabmaker CSA; Vale holds 27 pct
SAO PAULO, May 29 Vale SA wants ThyssenKrupp AG
to partially reimburse it for some of the $550 million in extra
costs that their CSA slabmaking partnership in Brazil incurred
over the past four years, adding a potential hurdle to the sale
of the money-losing steel mill, O Estado de S. Paulo said on
According to Estado, which did not cite any source for the
information, Vale said "mistakes" by ThyssenKrupp
executives managing CSA had led to significant energy and raw
material purchases as well as unnecessary capital spending since
2009. The newspaper said the CSA partnership contract allowed
Vale to receive compensation when "bad
administration" led to management mistakes and losses.
Thyssen owns 73 percent of CSA, while Vale holds the rest.
The partners' rift may complicate ThyssenKrupp's plans to
sell CSA, Brazil's biggest foreign investment project to date.
ThyssenKrupp, Germany's No. 1 steelmaker, spent more than $8
billion in its Brazilian foray, which has been plagued by a weak
global economy and increasing operating losses.
Spokespeople for Vale in Rio de Janeiro and ThyssenKrupp in
Essen, Germany, declined to comment on the Estado report.
Brazil's Cia Siderúrgica Nacional SA, or CSN, and
a consortium led by ArcelorMittal SA have emerged as
leading bidders for the steel mills that ThyssenKrupp is trying
to sell in both the United States and Brazil, sources told
Of the total in compensation, Vale is seeking about 300
million reais, or 27 percent of the total, for itself and the
rest for CSA, which is known as Cia Siderúrgida do Atlántico SA,
Thyssen reported losses in 2011 and 2012 because of delays
and cost overruns at CSA. Like other steelmakers in Brazil, the
German company has also faced rising raw materials costs and a
glut of slab that have sapped margins and hindered factory