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Vale (NYSE:VALE) and Brazil’s top commercial port have signed an agreement to study the potential construction of a facility in Rio de Janeiro that would produce low carbon iron ore products, Reuters reported Tuesday.
Vale’s (VALE) deal with the Acu port – Latin America’s largest – follows the company’s efforts to develop a hot briquette iron plant that could supply steel mills in the country looking to manufacture low carbon steel.
The complex with at least one plant could attract $1B for the construction of an HBI plant, and start operating at the port by 2028 with an annual HBI output capacity of ~2.5M metric tons, according to Prumo Logistica, the firm that runs Port do Acu.
The facility likely would receive its initial supply of pellets from Vale (VALE) and may include an iron ore briquette plant to feed the HBI unit, Prumo Logistica.
In a statement, Vale (VALE) touted Brazil’s low carbon steelmaking potential, saying it is studying shipping iron ore to the port, without providing further details.
