Brazil's Vale: Oman, Malaysia Pellet Plants On Tap - Report

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Brazil's Vale: Oman, Malaysia Pellet Plants On Tap - Report4-18-08 3:07 PM EDT

RIO DE JANEIRO -(Dow Jones)- Brazilian mining giant Companhia Vale do Rio Doce (RIO), or Vale, expects to move forward with pellet plant projects in Oman and Malaysia, a company executive told the local Estado news agency Friday.

Vale has completed a feasibility study to build a pellet plant to produce 10 million metric tons per year in Oman, said Jose Carlos Martins, Vale's director of iron ore mining. According to Martins, Vale's board should vote to approve the project in April or May.

Martins made the comments during the inauguration of a third pellet plant at pellet producer Samarco. Samarco is a 50-50 joint venture between Vale and BHP Billiton (BHP).
Construction on the Oman pellet project was expected to begin later in 2008, Martins said.
In addition, construction on a pellet plant in Malaysia should start in 2009, Martins said. Vale is currently looking for a local partner to also take part in the project, which has also not yet been given the green light by Vale's board.
"We have an interest in meeting growing demand in Southeast Asia," Martins told Estado.

-By Jeff Fick, Dow Jones Newswires; 55-21-3288-5011; jeff.fick@dowjones.com (END) Dow Jones Newswires
04-18-081507ET
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