Peru’s only iron ore producer, Shougang Hierro Peru, announced it has received financing to expand its activities, according to a filing at the local securities exchange commission, SMV.
The company said it has secured a bridge loan, a short-term loan used until a company secures permanent financing or removes an existing obligation, of up to $200 million from DBS Bank, Hong Kong branch.
The company said the short-term loan will be used to help the company expand its activities. Among the company’s proposed expansion projects is the expansion of its Marcona mine.
The Peruvian subsidiary of China’s Shougang Group expects to produce an additional 10 million mt/year at its existing Marcona mine. Currently, Shougang produces 11 million mt of iron ore per year. The Peruvian iron ore producer should complete the expansion of the Marcona mine by H2 2018, when it should reach over 20 million mt/year in capacity.