SAO PAULO, Nov 30 (Reuters) - Brazilian mining company Vale VALE5.SA(VALE.N) plans to invest 1 billion reais ($573 million) in a steel rolling mill in Rio de Janeiro state, Folha de Sao Paulo newspaper reported Monday.
The mill will process steel from plate to sheet form and will be sited at a steel plant being built by Companhia Siderurgica do Atlantico (CSA), controlled by Germany’s ThyssenKrupp (TKAG.DE). Vale has a 27 percent stake in it.
The newspaper cited Rio de Janeiro state’s governor Sergio Cabral but Vale would not confirm the information when contacted by Reuters. The paper said the investment still needed the approval of Vale’s board of governors.
The CSA plant, expected to open in the first half of 2010, will produce 5 million tonnes of steel slabs for export each year.
Vale has come under heavy political pressure from the government of President Luiz Inacio Lula da Silva to process more of the minerals it extracts at home to add value and create jobs, rather than exporting them in raw form.
The firm responded by announcing billions of dollars in new investments, quelling talk that Lula was seeking a management shake-up at the company. (Reporting by Peter Murphy; Editing by John Picinich) ((email@example.com; tel +55 11 5644 7736; Reuters Messaging: firstname.lastname@example.org)) ((For help: Click “Contact Us” in your desk top, click here [HELP] or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: email@example.com; +1 646-223-5546))