Brazil Miner Vale In Talks With Thyssen On CSA Mill Stake
"The discussion is taking place in light of the need to make feasible the conclusion of the project and the start-up of CSA operations without further delay, as well as the full utilization of its assets according to market opportunities," the statement said.
Vale said ThyssenKrupp had made the invitation for the talks.
Vale currently owns a 10% stake. ThyssenKrupp holds the remaining 90% in the EUR4.5 billion steel slab plant.
According to Gilberto Cardoso, analyst at Rio-based Banif Investment Banking, Vale's 10% share in the project was agreed upon when it was budgeted at EUR3 billion, but its stake has since been diluted by the escalating cost of the project.
"Vale should raise its stake in the mill. The company has an interest in guaranteeing its participation so as to ensure market share for its iron ore," Cardoso said in late May.
Cardoso also noted that Vale currently has a hefty treasure chest and was able to provide the necessary extra investment.
The new 5 million-metric-ton-a-year steel mill is scheduled to start up in December 2009.
Located at Santa Cruz, 80 kilometers west of Rio de Janeiro City, the plant's output will be shipped via its own deep-water terminal.
Vale's iron ore will supply the mill via an existing railroad line.
-By John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086; John.Kolodziejski@dowjones.com
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Publié le 04 Juillet 2009 Copyright © 2009 Dowjones
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