Votorantim Metais (VM) signed an agreement for purchasing nickel concentrate from the Australian company Mirabela Mineração do Brasil Ltda. The Agreement contemplates the purchase of 50% of the mining company’s production in the Country up to 2014, and will allow Votorantim Metais to expand its production of contained nickel through sulphide ore, at the Fortaleza de Minas site, from the current six thousand tons to 18 thousand tons annually.

“This Agreement is one more important step towards consolidating the growth strategy of Votorantim Metais’ Nickel Business”, says João Bosco Silva, CEO of Votorantim Metais. “With the Agreement we have optimized our industrial operation at Fortaleza de Minas, we reinforce our commitment to the community, and have added more value to the Brazilian ore and the Country”, he concludes.

The nickel concentrate purchased by Votorantim Metais will be produced from the Santa Rita mine, located in the city of Itagibá (BA). The site is due to start up its operations about 2009.

Votorantim Metais’ nickel production capacity – with the agreement entered into with Mirabela, and the Iron-Nickel Project – will jump from 30 thousand to 53 thousand tons a year, a 75% increment. This is an extremely important advancement within VM’s nickel business strategy, which aims at reaching 100 thousand tons.