Andes Iron, which plans to develop a $2.5 billion iron ore project known as Dominga, said it is in talks with Chilean-based mining holding, CAP Group, over an eventual joint venture for an iron ore port project.
According to a media report by Paula.cl, Andes Iron commenced conversations with mining and steelmaking holding CAP Group to develop the joint iron ore port project to support Andes Iron’s Dominga project.
“We understand that there’s the will for this (joint project) to take place,” said Francisco Villalon, Andes Iron’s corporate affairs manager.
Villalon said that a potential joint venture would actually increase costs for the Dominga iron ore project, however, the joint iron ore port alternative seeks to mitigate effects to the environment, as CAP Group could use the same structure to support its own businesses.
Recently, a Chilean environmental court in Antofagasta unanimously voted to demand a regional assessment commission to re-evaluate the project’s impact study. Early in August, a Coquimbo Environment Evaluation Commission has finally allowed the project to be once again evaluated.
The $2.5 billion project aims to produce up to 12 million mt of iron ore per year. Local environmental regulator SEA was the first to reject the project in March 2017. Then, a Coquimbo’s environment commission had also banned it. In August 2017, a minister council maintained the project ban.