Vale makes first delivery of equipment for Pecém construction works

Brazilian mining giant Vale (NYSE: VALE) has made the first delivery of equipment needed to start construction of its iron ore processing plant at the Pecém industrial complex in northeastern Ceará state, local press reported.

"This is the first of a total of 28 shipments scheduled to arrive by mid-2014," Vale's project planning and controlling manager Roberval Abamo said.

"The cargo consists of mechanical equipment, stacker/ reclaimers and conveyor belts, among others," the manager added. The machines were imported from China and Korea.

Vale Pecém's new processing plant will exclusively supply the 5Mt/y iron ore needed for the Companhia Siderúrgica do Pecém (CSP) steel plant being built in the complex.

The iron ore plant's operations are scheduled to begin in the second half of 2015. Vale has earmarked US$98mn for the new plant.

Vale owns a 50% stake in the CSP JV with South Korean firms Dongkuk (30%) and Posco (20%) holding the remainder. Vale's total contributions to be made in the JV as a whole must total US$2.64bn.

The CSP steel mill is scheduled to begin operating in end-2015 and to increase the state's GDP by 12% once it begins operations.

CSP is expected to produce 3Mt/y of steel slabs in its first phase, and can be expanded to produce 6Mt/y in phase two.