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MeneameLuxembourg-based ArcelorMittal (NYSE: MT) is still planning to double output at its Andrade iron ore mine in Brazil's Minas Gerais state despite its decision to temporarily halt a US$1.2bn expansion project at its Monlevade steel plant in the same state, ArcelorMittal Brasil CEO Benjamin Baptista Filho said.
The company will now sell the iron ore surplus produced at Andrade instead of directing it to Monlevade, according to the CEO.
"We'll see what the best way is to sell [the surplus]," Baptista Filho was quoted as saying by news service Agência Estado
"This suspension [of the Monlevade expansion] is temporary. As soon as market conditions permit it, we will resume the project," he added.
The executive did not say how much had already been spent on site preparation works. However, he confirmed that contracts to purchase equipment for the expansion have not been cancelled.
The company also suspended a US$300mn expansion project at its Vega do Sul galvanized steel facility in Santa Catarina state. This project will also be resumed in the future, according to the CEO. "We will do it, it's inevitable," he said.
The expansion at Vega do Sul was in the bidding stage when it was decided to suspend the project. "We were on the verge of signing contracts," Baptista Filho said.
The executive was speaking at the 52nd annual congress of the Latin American steel association (Alacero), formerly the Latin American iron ore and steel institute (Ilafa), which is being held in Rio de Janeiro from November 13-15.
ArcelorMittal is the world's largest steelmaker.
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