MOSCOW Russian steelmaker OAO Severstal will not develop its Amapá iron ore project in Brazil "in the near term," senior vice president of corporate development Thomas Veraszto told AMM sister publication Steel First.
The company has started putting some of its global raw materials projects on hold as it aims to avoid risks to its balance sheet, Veraszto said in an interview. Amapá is one of those projects.
"We have a conservative view on the development of this (Amapá) project," he said. "I dont think we will develop it in the near term because the logistical challenges are quite substantial."
The Cherepovets, Russia-based company in 2011 paid $49 million for a 25-percent stake in Macapá, Brazil-based SPG Mineracao SA, which owns prospective iron ore licenses in the northern Brazilian state of Amapá (amm.com, May 11, 2011).
Nadia Popova, Moscow, contributed to this article.
A version of this article was first published by AMM sister publication Steel First.