ArcelorMittal Mexico announced it will resume operations of its Lazaro Cardenas Volcan mine located in the northwestern state of Sonora after almost a year of inactivity. It will also resume operation at its nearby concentrating plant in Ciudad Obregon. The primary port of use is expected to be the Guaymas City port which is also located in the state of Sonora. The company expects to produce 2 million tons per year of iron ore concentrate and its first shipment is expected to exit the facility by the end of first quarter 2017. The production will result in approximately 150 daily trips to the concentrating plant.
The company considered reopening operations as iron ore and coking coal prices have increased recently making operations at the site profitable. Additionally, Mexico’s positive steel outlook and increased political stability in the area assisted in the decision to reopen mining operations.