Mexican ferroalloys producer Minera Autlan is investing $300 million in several key strategic areas as a way to reduce costs and make the company become of the world’s lowest cost ferroalloys producers, the company said.
The company said in a filing at the nation’s stock exchange, BMV that it has been investing in research and development to improve its processes and make the company auto-sufficient in manganese minerals, adding its clear goal is to “reduce costs and grow.”
As for its energy division, the company said it will use the money to increase its capacity to generate electricity through its Atexcaco hydroelectric, as well as by the generation of hydroelectric and wind power. Autlan expects to supply most of its power needs by the generation of electricity through these different sources. It also expects to sell the exceeding electricity to third party companies.
In Autlan’s mining division, part of the investments will be destined to the construction of a beneficiation plant of manganese minerals, whose main target will be to produce minerals of different concentration grades and increase the company’s manganese reserves. As the company succeeds in its project, it will substitute imports of minerals, while consuming less energy and feedstock, it explained.
As a way to reduce what it labeled as a “dependency” of the steel sector, Autlan said it is also trying to diversify its operations by exploring “opportunities” in the precious metals, in the feedstock as well as in other industrial minerals sectors.