The US$4.34bn Companhia Siderúrgica do Pecém (CSP) steel mill in Brazil's Ceará state will start construction works in July, Brazilian mining giant Vale's (NYSE: VALE) CEO Murilo Ferreira said during a conference call with journalists.
"We will start the project's physical progress on July 17," Ferreira said.
The mill is expected to increase the state's GDP by 12% once it starts operations, according to a study sent to BNamericas by a company press official.
CSP is expected to produce 3Mt/y of steel slabs in phase one and can later be expanded to produce up to 6Mt/y. The steel mill is scheduled to begin operating in 2014.
Earthworks are scheduled for completion in December. The first foundation pillars will also be in place by year-end, as previously reported.
Posco's engineering and construction division was awarded the construction contract last December.
The steel mill is scheduled to begin operating in 2014.