Brazilian mining giant Vale (VALE.NYSE, VALE5.SAO) has resumed talks with China’s Baosteel on a partnership to develop a US$6 billion steelworks project in Espirito Santo state in southeast Brazil, the Wall Street Journal reported. “They are just corridor-level talks at the moment, not formal negotiations,” said a Vale official who declined to be named. “But Baosteel’s still in the running.” China’s largest steel-maker may be competing for the project with US-based Nucor (NUE.NYSE), which is also interested in cooperating with Vale, according to statements by Nucor officials last week. ArcelorMittal (MT.NYSE, MT.AMS) Brazil has already said it is not interested. In 2009, Baosteel and Vale were forced to cancel a joint steel mill project after failing to secure approval from Brazilian environmental authorities. Vale then redesigned the same project on a smaller scale with half of the capacity. Vale management says it will proceed alone with the current project until all licenses are acquired and then bring a partner in.