Brazil's CSN Mineração presents US$3bn capex plan

Iron ore miner CSN Mineração, a subsidiary of Brazilian steelmaker CSN, plans to invest 15.3bn reais (US$3.13bn) between 2024 and 2028, compared to 13.8bn reais under the 2023-27 capex plan.

With stepped up mining investment, CSN wants to increase production and buy iron ore from third parties to reach up to 43.5Mt in 2024 and 68Mt in 2028. Projected 2023 production is 42.5Mt. 

"In the mining segment, we have had growth and we will remain strong, by growing our production and in a more selective way in projects, and we will have an increase in profitability," CSN chairman Benjamin Steinbruch said during a presentation with investors on Thursday.

“Mining is on a much more positive and certain path than the steel industry, due to the difficulties the steel industry went through this year, although we expect better performance in 2024,” he added.

According to CSN, its main mining project is Itabirito P15, or Casa de Pedra, in Minas Gerais state, planned to start operations in 1Q27 with capacity of 15Mt/y. Last year’s capex plan said operations would start in 4Q25. The delay is due to a more rigorous hiring process.

Detailed engineering, equipment and structure acquisitions should be completed in 2025. 

STEEL 

Capex for the steel unit is 7.9bn reais for 2024-28.

"In the steel industry, we are investing heavily in qualitative and quantitative terms. We will increase our production capacity and invest in the renovation of equipment to meet environmental standards," said Steinbruch.

He added that Brazil’s steel industry is facing difficulties because of cheap Chinese steel flooding the market, and that the government should act.

CSN will invest up to 5bn reais in its cement division.