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ArcelorMittal (MT) is considering a tie-up with Brazilian mining company Vale SA (VALE, VALE5.BR) to jointly build a 5 million metric ton flat steel plant, the Valor newspaper reported Friday.

Aditya Mittal, the company's chief financial officer, is currently in Brazil evaluating investment plans.

"We're interested in analyzing projects of this type, however, I can't make any more comments," Mittal said referring to Vale's plans to build a steel mill in Espirito Santo state, where ArcelorMittal already operates a 7.5 million ton a year plant.

Mittal also said that the company's $5 billion investment plan for Brazil, interrupted during the financial crisis, was restarting with immediate effect.

"Our plans are much larger than this, but we still haven't approved them yet," he added.

ArcelorMittal also plans to expand its long steel production in Brazil, the type of steel used in infrastructure and construction, Valor said.

The company has three long steel plants on Brazil, one in Espirito Santo and two in the neighboring state of Minas Gerais. All three will raise output. The Joao Monlevade plant will double output to 2.4 million tons, and the Juiz de Fora mill will add 300,000 to 400,000 tons. Both are in Minas. No figure was given for raising production at the Cariacica mill in Espirito Santo, Valor reported.

ArcelorMittal is also looking at raising production at its stainless steel plant in Minas Gerais.

Mittal said the company was also interested in guaranteeing its own iron ore supplies.

"Our target is to have 60% to 70% of iron ore for our own use," Mittal said, referring to a possible increase in output from its Serra Azul mine in Minas Gerais.

ArcelorMittal's focus is to have a greater presence in emerging markets, he said: "That's where demand is going to rise; that's why we chose Brazil and India to invest in new projects."

-By John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086; john.kolodiejski@dowjones.com