Shougang Hierro Peru, the nation’s largest iron ore producer, launched this week its $1.1 billion Marcona iron ore mine project, the nation’s mining ministry said following an opening ceremony. The expansion project, initially estimated at $1.5 billion, was in line with the company’s forecast of a H2 inauguration.
Shougang Hierro Peru expects to expand its production from 11 million mt/year currently to 21 million mt/year out of its existing Marcona mine.
The company obtained $500 million in financing from the Industrial and Commercial Bank of China (ICBC) to fund the second phase of its Marcona mine expansion project. The $500 million in financing from ICBC was combined with another loan of $200 million from DBS Bank, Hong Kong branch, to expand the same mine.
Shougang Hierro Peru’s expanded mine now includes a beneficiation facility and a desalinizing plant that will help the miner to process its concentrates.
Kong Aimin, Shougang Hierro Peru’s general manager, said the company invested a combined $3.5 billion in the country since 1993, including the recently expanded Marcona mine.
The mining activity, including iron ore production, accounts for 60 percent of Peru’s combined exports.