Brazil's CSN Mineração advances its main project
Brazilian iron ore firm CSN Mineração started key works at its Itabirito P-15 project, also known as Casa de Pedra, in Minas Gerais state.
"In October, we began the heaviest infrastructure works at our plant, and from now on, we will have a very large volume of activity in the construction yard of the P-15," CFO Pedro Oliva told the company's Q3 results call.
According to the executive, earthmoving works are underway, as workers and equipment that was purchased in advance are on-site. CSN expects to announce details of the civil works package during the first half next year, and the assembly phase is expected to start in the second half.
In 3Q24, CSN's capex reached 475mn reais (US$82mn), a 16.7% increase compared with the previous quarter, primarily due to the progress in expansion projects, mostly related to P-15.
Oliva said capex in the fourth quarter will likely double compared with the third quarter due to the progress of construction.
The company plans to start production at the 15Mt/y project in the first quarter of 2027. Itabirito is considered a transformative project as it will improve iron ore quality by increasing the iron content from 58% to 65% by 2028.
The higher quality iron ore is expected to be in greater demand and fetch higher prices due to the need for steel mills in Asia to use raw materials that reduce carbon emissions.
"We're committed to the P-15 project, as we understand that this plant will be our future. The works are progressing at a very good pace, and we're going to carry out this project in the best way possible. As part of the progress on this project, we also recently sold a minority stake in CSN Mineração, as we considered this a timely and positive moment for both parties," CSN group chairman Benjamin Steinbruch told the call.
Recently, steelmaker CSN approved the sale of 11% of its CSN Mineração division to Japanese conglomerate Itochu Corporation. Itochu, which currently owns 9.26% of CSN Mineração through Japan Brasil Minério de Ferro Participações, will pay 4.42bn reais and the proceeds will be used to reduce CSN’s debt.
According to Steinbruch, the sale is also part of an expansion strategy.
"I see Itochu as an important partner for us to explore other possible synergies in areas such as shipping, trade and even finance. It's no secret that we intend to look at international expansion opportunities," said Steinbruch.
Results
CSN Mineração posted a net profit of 446mn reais in 3Q24, down 70.4% year-on-year due to falling iron ore prices. The average price reached US$99.69/t in July-September, down 10.8% quarter-on-quarter and 12.6% year-on-year.
"I see this price level as a minimum threshold, and the trend is for market improvement, since much lower prices would force less profitable production units of iron ore companies around the world to reduce output. Therefore, I expect the trend will be a return to iron ore prices around the US$100 to US$120 per ton level," said Steinbruch.
CSN Mineração’s net revenue totaled 2.97bn reais, down from 4.30bn reais a year ago.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Mining & Metals (Brazil)
Mining gains, steel pain? Brazil braces for new US administration
US President-elect Donald Trump mentioned Brazil as one of the countries that impose “excessive customs tariffs on US products,” adding that he wou...
Brazil iron ore producer Itaminas to invest US$250mn through 2033
The company's investment plan includes a new mining project and a rail terminal in Minas Gerais.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Mining & Metals (Brazil)
Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Pilar 3.0 (Deepening Extension Project)
- Current stage:
- Updated:
3 months ago
- Project: S11D Carajás (Serra Sul)
- Current stage:
- Updated:
4 months ago
- Project: Arapaima
- Current stage:
- Updated:
4 months ago
- Project: Santa Cruz Graphite Project
- Current stage:
- Updated:
4 months ago
- Project: Espigão (ex-BMC)
- Current stage:
- Updated:
4 months ago
- Project: Furnas
- Current stage:
- Updated:
4 months ago
- Project: Lucena
- Current stage:
- Updated:
4 months ago
- Project: Tapajos Copper
- Current stage:
- Updated:
4 months ago
- Project: Coringa
- Current stage:
- Updated:
3 months ago
- Project: Aurizona Expansion
- Current stage:
- Updated:
4 months ago
Other companies in: Mining & Metals (Brazil)
Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Samarco Mineração S.A.  (Samarco)
-
Samarco Mineração S.A. is a Brazilian company engaged in the mining, beneficiation, pelletizing and export of iron ore. The firm's mining and beneficiation operations are locate...
- Company: Fomento do Brasil Mineração Ltda.  (Fomento do Brasil)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: FLSmidth Brasil
-
Danish company with more than 140 years old positioned as the leading provider of technologies and services for the mining and cement industries around the world, expanding its ...
- Company: Progen S.A.
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Companhia Brasileira de Metalurgia e Mineração  (CBMM)
-
CBMM is a Brazilian niobium miner and integrated producer whose operations range from mining to finished products. It extracts niobium from an open-pit mine, the world's largest...
- Company: AtkinsRéalis Brasil
- Company: Mineração Rio do Norte S.A.  (MRN)
-
Mineração Rio do Norte (MRN) is a Brazilian firm that operates the country's largest bauxite mine, an open-cut operation located in Porto Trombetas, Pará state, in the Amazon re...
- Company: Vale S.A.  (Vale)
-
Vale S.A. is a Brazilian metals and mining company with worldwide operations. It is mainly focused on producing iron ore, iron ore pellets, raw materials for steelmaking, and ni...
- Company: Policon Soluções Industriais Ltda.  (Policon Controle e Transporte de Fluidos)
-
A company focused on the supply of tailored solutions of valves and piping. Accumulated experience with high customer satisfaction. Sales to waste and water, infrastructure, met...
- Company: Grupo Asamar