Chilean iron ore producer CAP Mineria announced on Friday it will temporarily suspend iron ore output due falling commodity prices and as a result of high electricity costs.
CAP said output at its Valle de Copiapo magnetite plant will be halted for two months, from January to February, however, primary concentrates production will be kept at the plant. The Chilean producer added it will perform maintenance works at the Copiapo plant while it is shut down.
In addition to shutting down output at the Valle de Copiapo magnetite site, CAP will also suspend production at its El Romeral and Puerto Guayacán iron ore mines in the same period.
CAP clarified pre-concentrates production will continue at the two mines, so it can better fight the challenges in the year to come, due to the current weak market conditions.
CAP said it has kept enough inventory by the end of 2015, so it can meet its commercial obligations.
“The measures cited before aim to mitigate the adverse effects of the fall of [commodity] prices, and we’re sure that [such measures] will allow us to properly fight this period,” the company said.