VM is to invest around R$ 763 million in Minas Gerais to expand its metallic zinc production capacity. The project involves expanding the mining unit in Vazante and metallurgy in Três Marias, set to be concluded in 2010.

The investment was announced on February 21st at a meeting between the directors of Grupo Votorantim and Votorantim Metais with the governor of Minas Gerais, Aécio Neves.

Following the acquisition of mining rights in a zinc reserve in the Northwest of the State, VM is to expand its contained zinc production.

In the Três Marias unit, production capacity will increase from the current 180,000 tons a year 260,000 tons a year.

The company is to use the latest and safest technology in the world in expansion of its two units, both as regards productivity and occupational health and respect for the environment.