Indian steelmaker JSW Steel Ltd. (JSW) has announced the signing of a JV agreement with Chile-based Minera Santa Fe, controlled by local entrepreneur Leonardo Farkas Klein, for the development of iron ore mines and other projects in South America, including Chile.
JSW will have a majority stake of 70 percent through its Netherlands-based subsidiary, with Minera Santa Fe holding the remaining 30 percent.
The JV currently holds iron ore exploration and exploitation concessions on a large area of over 26,000 hectares in the Belavista and Vinita mines located in northern Chile's Atacama region. Meanwhile, the JV also has the right to use Punta Caleta Terminal in Caldera for export of iron ore and has applied to develop a new port for large-size vessels like Supramax and Handymax. The Caldera region is just 50-70 km from the location of the mines.
The Indian company also plans to invest around $500 million in the JV, including the development of the new port, and to commence mining operations in the coming 18 months.
The mines in question are expected to produce four million mt of high grade iron ore per annum in the next 12-18 months, with plans to increase the total to 20 million mt per annum in four years.