Vale to build a steel mill in north of Brazil

RIO DE JANEIRO (Reuters) - Brazilian mining giant Vale (VALE5.SA: Quote, Profile, Research)(RIO.N: Quote, Profile, Research) said on Thursday it intends to build a 2.5 million-5 million tonne per year steel mill with partners in Para state, in Brazil's north region.

The mill would integrate Vale's development projects in Para, where its massive Carajas mine is located, said the director of corporate affairs, Tito Martins, in an interview at Vale's web site.

Partners have not been defined yet, he said.

"We've been talking to BNDES (the Brazilian Development Bank)... for Vale and the BNDES to begin the setting up of a steel mill project in Para," Martins said.

The location and logistic details of the project would be decided together with the strategic partner, Martins said.

Vale is the world's largest iron ore producer. It is currently in talks to buy Swiss rival Xstrata (XTA.L: Quote, Profile, Research).

(Reporting by Denise Luna, Translated by Inae Riveras)