Gerdau is to increase its iron ore production capacity by
nearly 80% over the next couple of years, in a move that will
see it start selling the steelmaking raw material in the
The steelmaker's current installed capacity of 6.5 million tpy
of iron ore, which is enough to feed its 4.5 million tpy
Açominas steel works, will be lifted to 11.5 million tpy
by 2014 through the installation of a second beneficiation
plant in Minas Gerais state, in south-eastern Brazil.
"Our target [to feed Açominas] is 6.5 million tpy; the
additional volume will be sold," ceo André Gerdau
Johannpeter told Metal Bulletin during a press conference call
on Thursday May 3.
The company will spend 838 million Reais ($438 million) both to
build the second concentrator and in logistics works.
Investments in logistics will include the installation of a 9km
conveyor system connecting the iron ore site to Açominas
and the construction of a new railway terminal.
Meanwhile, Gerdau continues to move ahead with broader studies
to monetise its iron ore assets, which includes negotiations
with possible partners and the installation of a seaport terminal
capacity to handle as much as 70 million tpy of iron ore.