In a separate statement, Vale confirmed that it has signed a letter of intent to support the financial structure of the flat steel mill by providing guarantees to finance the project.
The company has “the potential to attract dozens of manufacturers of high-quality raw materials to the economy in order to ensure the production of modern products, in particular for the construction of infrastructure, agricultural equipment and car manufacturers,” the state said.
Vale's giant Carajas mine is also located in Para.
But Vale's iron ore needs to be turned into raw steel before being processed in a laminating machine. However, the company did not say if there is a similar plant nearby.
“There is no local market and for any export project, Vale's iron ore must be the starting point,” said Carlos Loureiro, President of Brazil's National Institute of Steel.
The announcement comes at a time when Vale faced the aftermath of a fatal mine accident that resulted in the company posting record first-quarter losses of $ 1.64 billion.
