June 13 -- Baoshan Iron and Steel (600019) has resumed negotiations with Brazilian mining giant Vale S.A. concerning the establishment of a joint venture factory in Brazil, reports 163.com. The companies began planning it in 2007 and intended to spend US$6 billion, but the plan was rejected by a local government in Brazil due to environmental protection concerns.

Vale modified the plan by cutting annual capacity of the factory to five million tons and obtained preliminary environmental permission in March this year.

Rumors emerged that America’s largest steel maker, Nucor Corporation, last week expressed willingness to participate in the factory’s establishment, whereas Arcelor Mittal announced it would end its negotiations with Vale over the factory.

Source:CapitalVue