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|Investments in steel projects to grow beyond BRL 25 billion in Alto Paraopeba re|
|Mr Anderson Cabido president of the inter municipal consortium for developing Alto Paraopeba told BNamericas that investments in iron ore and steelmaking projects are likely to increase beyond the projected BRL 25 billion in the Alto Paraopeba region, in Brazil's Minas Gerais state.
Mr Cabido said that "That figure is always changing and we see it growing beyond BRL 25 billion."
The investment amount is for projects expected to come online in 2014-15. In addition, studies show that another BRL 3.5 billion will need to be invested in surrounding infrastructure.
Companies with projects in the region are local steelmakers CSN and Gerdau, mining giant Vale, Brazil focused iron ore firm Ferrous Resources and Vallourec & Sumitomo Tubos do Brasil, a JV between French group Vallourec and Japan's Sumitomo.
Projects include VSB's steel complex, which requires an investment of USD 1.6 billion and Gerdau's Ouro Branco expansion, which will require BRL 2.4 billion to begin producing flat steel from 2012 and an additional BRL 100 million to expand production capacity at a structural shape rolling mill to 700,000 tonnes per annum.
Mr Cabido said that CSN is planning to build two new steel mills, one each in Congonhas and São Brás do Suaçuí municipalities. The company is also boosting capacity at its Namisa iron ore mine. At the same time, Vale is building Conceição Itabiritos, which involves a 12 million tonnes per annum plant for pellet feed. The estimated total CAPEX is USD 1.17 billion, of which USD 411 million is budgeted for 2011.
Vargem Grande Itabiritos, another Vale project, involves the construction of a plant with capacity of 10 million tonnes per annum of pellet feed. The estimated total cost is USD 1.5 2 billion. In addition, Vale is carrying out the Apolo iron ore mining project, with projected capacity of 24 million tonnes per annum and startup expected for H1 of 2014. Investment in 2011 is set at USD 377 million, which is still awaiting board approval.
Ferrous Resources has brought forward the startup of its Viga iron ore mine project in Congonhas to H2. Ferrous Resources plans to produce 1.5 million tonnes of iron ore this year, but ramp up will continue through 2013 when it aims to produce 25 million tonnes per annum.
Codap comprises seven municipalities, Congonhas, Conselheiro Lafaiete, Ouro Branco, Jeceaba, São Brás do Suaçuí, Entre Rios de Minas and Belo Vale. A total of 11 other municipalities are expected to join in the future.
Mr Cabido is also the mayor of Congonhas and president of the national association of mining municipalities.