Chile’s CAP Mineria expects increase in cost production in 2016

Wednesday, 20 April 2016 23:19:53 (GMT+3)   |   Sao Paulo
       

Chilean iron ore producer CAP Mineria expects an increase in the cost of production of iron ore in 2016, according to several media reports quoting a company’s executive.

In 2015, the company’s production cost for the commodity was $33/mt, down from $49/mt in 2014. However, electricity and water contracts should raise that cost, according to a company’s executive, who didn’t provide an exact estimate for 2016.

CAP, which expects to invest $50 million in the on-going year to maintain its operations, said it’s ready to fight “much lower iron ore prices.”

According to a media report, the Chilean iron ore producer said it has the flexibility to shutdown iron ore production in 2016 when the need arises, as it seeks the maximization of profitability.

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