Maranhão hires university to study CVRD, Baosteel plant impacts

Brazil's Maranhão state plans to hire São Paulo state university USP to carry out studies to measure the impacts of a potential steel project, a government official told BNamericas. Brazilian mining and metals group CVRD (NYSE: RIO) and Chinese steelmaker Baosteel want to build a steel plant in Maranhão capital São Luís, but the state wants the mill installed 50km away at Bacabeira. "The studies will focus on the social and environmental impacts and will also take into account the economics in both locations," Sérgio Guimarães, civil construction and mining-metals superintendent at Maranhão's commerce and industry ministry, said in an interview. Baosteel has reportedly spent US$10mn on studies to install the mill in São Luís, Guimarães said, adding the Chinese steelmaker is already advancing on plans for another study to evaluate another location in Brazil or abroad. USP is expected to present the study proposal by month-end, according to the government official, while the study itself would take up to 70 days. "We are very interested in seeing this steel project installed in Maranhão," Guimarães said. Rio de Janeiro-based CVRD is the world's largest iron ore producer.