Chilean steelmaker and iron ore miner CAP SA will invest $3.5 billion over the next eight years to double its steel production and more than triple its iron ore production, the company chairman said on Monday.
In four years, CAP will spend $1.5 billion to increase its steel production to 3 million tons a year, up from the current 1.5 million tons per year, Mr. Roberto de Andraca, the company's chairman of the board, told press. He said that the company will spend an additional $2 billion to increase annual iron ore production from 8 million tons currently to 15 million tons in 2009 and to 27 million tons in 2015.
CAP currently consumes only 20 percent of its iron ore production and exports the rest to Asia; however, Mr. de Andraca said that the main goal of the expansions is to supply to Chile's domestic government. CAP is the only integrated steel producer in Chile.
Mr. de Andraca also said that the company is considering the possibility of opening up its capital to other partners. CAP is already 12.5 percent owned by Japan's Mitsubishi Corp.