A combination of bureaucracy and holdups in the delivery of machinery has delayed ArcelorMittal’s $150 million investment in its Las Truchas mining complex in Michoacán. Works on the plant, which aims to increase iron ore pellet production capacity by almost 80 percent, have been delayed for over a year.
In 2021, ArcelorMittal reported that it would invest $150 million to increase annual capacity by 1.0 million metric tons to go from 1.3 million mt to 2.3 million mt. At the time, the steel giant forecast that the project would be in operation in the second half of 2023.
However, the company updated the information last week in its financial report: “Project start-up date delayed to second half of 2024 due to slower progress of equipment deliveries and construction works, as well as delays to obtain required construction permits.”
As in Michoacán, ArcelorMittal also acknowledged delays in investing $350 million in its mining project in Serra Azul, Brazil to produce 4.5 million mt of DRI, part of which will be shipped to Mexico. The operation of the project will have a delay of one year with a start-up for the second half of 2024.