The companies Vale and Sinobras signed a term of commitment for the newest project in the mining sector in Marabá, which consists of a steel production plant from pig iron that will be offered by Vale's subsidiary, Tecnored
During this last Monday, (09/05), the companies Vale and Sinobras closed a partnership with the signing of a term of commitment for a mining project in Marabá, municipality of Pará. Thus, Vale's subsidiary, Tecnored, will be responsible for supplying pig iron at the steel production plant, with the aim of expanding the exploitation of this resource in the state of Pará and bringing new perspectives to companies in the sector.
Steel production plant from pig iron in Pará is the newest project by Vale and Sinobras to expand the mining market in Brazil
Vale and Siderúrgica Norte Brasil SA (Sinobras), a company of Grupo Aço Cearense, signed a term of commitment this week for a steel production plant in the municipality of Marabá. Thus, the steel shop will have the supply Tecnored's pig iron, material that will be used for the production of the metal and commercialization after all the refining of the steel within the new project of the companies.
Tecnored is one of Vale's subsidiaries and will supply pig iron for the initial production of steel billets, materials used as raw material by steel mills in the hot rolling process, which can result in various types of products such as bars, profiles, wire machine, rebar CA50, among others. In addition, the Vale group itself will be responsible for part of the investment that will be applied in the construction of the steel production plant in the state of Pará, although the companies have not disclosed the concrete values for the project.
Furthermore, Sinobras will be responsible for all studies regarding the geomorphology of the site, aiming to guarantee the best use of the space acquired for the production of steel from pig iron. Another announcement that was made is that the project should be completed by the end of 2023 and the detailed work schedule will be presented from the engineering studies phase. This is Sinobras's new bet to expand steel production in Brazil and Vale entered the project as a partner, aiming at yet another high-productivity mining plant.
The companies' steel production project will be essential for the development of the Marabá region and the expansion of the companies in mining
The meeting for the signing of the term of commitment between the companies was attended by the governor of the State of Pará, Helder Barbalho; the mayor of Marabá, Tião Miranda; the president of Grupo Aço Cearense, Vilmar Ferreira; the vice president of operations at Grupo Aço Cearense, Ian Corrêa; and Vale's CEO, Eduardo Bartolomeo. Thus, all the scenarios that will be seen throughout the year 2021 in the project were discussed.
Thus, Tião Miranda highlighted the importance of the steel production project for the region and stated that “It will start with 250 thousand tons of pig iron, using a new, more sustainable technology, which is Tecnored, and they will transform it into steel, reaching at 500 thousand tons, already with a buyer that will industrialize and that has expertise in this, which is Sinobras. Mining without vertical integration does not bring development to the region, so we need to verticalize our ore to bring development and quality employment”.
Finally, the companies Vale and Sinobras highlighted the importance of the initiative for the expansion in mining, since the production of Sinobras, which today is 350 thousand tons/year, will more than double and will be expanded to 850 thousand tons/year, a significant growth for the company.