Chilean mining and steelmaking CAP Group announced this week during a shareholder meeting it plans to invest $1.6 billion in the next five years in mining and infrastructure, as well as in new new business development.
The investment plan is part of a company’s ongoing effort to diversify its businesses, which are concentrated in the iron ore and steel segments.
The general manager of the CAP Group, Erick Weber, said 40 percent of the planned investments, or around $640 million, is aimed at growth projects for the mining and steel processing sectors.
“About 50 percent (will be destined to) maintenance and cost reduction, and (the remaining) 10 percent in sustainability,” Weber said during the meeting.
As for the holding steelmaking arm, CAP Acero, the company will continue working on “alternative scenarios” to allow the group to take a decision on “sustainability of the business,” which is seen as “strategic” for the nation.
“The steel industry isn’t just one more (sector), it has a strategic element that depends on each country. … In Chile, the seismic profile of our lands and the constant building requirements … justify a vision that values the relevance of a local and reliable producer,” said Fernando Reitich, president of the CAP Group.