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
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.