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Bureau of Mines / Minerals yearbook area reports: international 1972
Year 1972, Volume 3 (1972)

Wessel, F. W.
Brazil,   pp. 155-169 ff. PDF (1.6 MB)

Page 166

The mine is expected to begin producing in 1973. Japan will receive 7 million
tons of the 11.5-million-ton annual iron ore production for a 1-5-year period.
The ironore-oriented assets of St. John d' El Rey Mining Co. were transferred
to MBR during a 15-month period ending March 31, 1972, in exchange for a
49% interest in MBR. St. John d' El Rey is in turn 55.4% owned by Hanna Mining
Co., which intends increasing this share to 61.4%. 
 MBR shipped 1.5 million tons of iron ore during the year from present properties,
the Mutuca II and the Pico de Itabirito mines. - 
Iron and Steel.—Production of steel 
ingot continued to grow during 1972, realizing an 8% increase over that of
1971. Pig iron production and production of rolled steel each increased 14%.
 The Conselho Consultivo da !ndustria Nacional de Siderdrgica (CONSIDER),
guiding -body of Brazil's steel industry, established as additional policy
its refusal to financially aid any expansion plans depending (1) on the use
of charcoal for blast furnace fuel, since the expense of reforestation is
increasing, or (2) on utilizing scrap as an electric steel furnace charge,
since -Brazil has insufficient scrap, and further imports would adversely
the trade balance. - 
 Nippon Steel Corp. contracted with Cia. Sidethrgica Nacional (CSN) to build
blast furnace No. 3 at Volta Redonda. This furnace, of 2,830-cubic-meter
working volume, is expected to come onstream in 1975. In addition, Nippon
Steel -is to build two 250-ton basic oxygen furnaces, to expand CSN's raw
steel capacity to 2.5 million tons per year. Another Japanese firm, Kawasaki
Heavy Industries, is -building the offgas cleaner for the basic oxygen shop.
CSN has also bought $9 million worth of Japanese equipment to convert its
hot strip mill from semicontinuous to continuous operation; the conversion
will be completed near the end of 1975. 
 As another part of the planned expanSion of Brazilian steelmaking capacity,
a blast furnace of 2,700-cubic-meter working volume and 6,000-ton output
daily to be built by Ishikawajima-Harima Heavy Industries Co. (IHI) for Usinas
Siderdrgicas de Minas Gerais (U5IMINA5). Production is expected in mid-1974.
USIMINAS intends increasing raw steel production from 
1 million tons annually to 2.4 million; the World Bank has approved a $63
million loan for the ~purpose. 
 The third major steel company in which the Brazilian Government is a financial
partner, Cia. Siderdrgica Paulista (COSIPA), intends expanding its raw steel
production from 1 million tons per year to 2.3 million. The World Bank has
approved a $64.5 million loan to COSIPA to expand its facilities at CubatAo,
near Santos. IHI was negotiating for the contract to build a new blast furnace,
to be ready in mid- 
 For the entire program, Brazil has been granted $320 million -in joint loans
from the World Bank and the -Inter-American Development Bank, and will receive
$300 million in credits from nine major steelequipment-producing countries.
 Cia. Siderdrgica Belgo--Mineira modernized its Monlevade plant, expanding
its wire-rod capacity from 300,000 tons per year to 450,000 tons, and its
wire capacity from 240,000 tons to 360,000 tons per year. Wire capacity at
the Belo Horizonte plant was expanded to 30,000 tons, and other improvements
were instituted at a total cost of $18 million. The plant at Sahara, including
the foundry, was also enlarged. 
 International Finance Corp. (I'FC), Société Financiere Europeenne,
August Thyssen Hütte A.G., and the Brazilian Gerdau Group are financing
a new steel venture undertaken by Cia. SidenIrgica da Guanabara (COSIGUA).
At Sepetiba Bay, 45 miles west of Rio de Janeiro, COSIGUA is -building and
will operate a scrap-based steel plant and rolling mill. The plant, to be
completed by April 1973 at a cost of $43 million, will produce 220,000 tons
of wire rod and reinforcing rod annually. The Gerdau Group also operates
Siderdrgica Aconorte, Sidercirgica Riograndense, and Siderdrgica Guaira.
Production at Açonorte is also being expanded. 
 Thyssen interests were studying the feasibility of a 350,000-ton direct-reduction
plant to be built at Tu-barão and to include an electric-arc melting
furnace and continuous casting of the product. 
 Acos Villares, S.A., Brazil's only producer of rolling-mill rolls and an
important producer of special steels, invested $19.5 million to expand its
facilities to meet the demands of new rolling-mill installations elsewhere
in Brazil. Similarly, Aços Anhan 

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