Vale Pece´m, the mining arm of the Brazilian company Vale is to start supplying raw materials to the Pece´m Iron and Steel Company (CSP), which is located in the port of Pece´m's industrial complex, as of September. It will take ten months for the operation to be fully ramped up, with the iron ore involved used to make 3mt (million tonnes) of steel plates annually.

A second-phase development will see production cranked up to 6mt of plates, although no schedule has yet been published as to when this will take place.

Vale Pece´m has been awarded an exclusive contract to supply CSP, a joint venture in which Vale holds a 50% stake. Its other partners — Dongkuk (30%) and Posco (20%) — are both South Korean.

The reception terminal, in which Vale Pece´m is investing $96.7 million, will handle and blend iron ore and iron ore pellets.

Barry Cross