Peru’s only iron ore producer Shougang Hierro Peru has obtained $500 million in financing from the Industrial and Commercial Bank of China (ICBC), according to a company filing at the local securities exchange commission, SMV.
According to the iron ore producer, the money will be used to fund the second phase of its proposed Marcona mine expansion project. As previously reported by SteelOrbis, Shougang Hierro Peru expects to expand production at its Marcona mine by 10 million mt per year. Currently, Shougang produces 11 million mt/year of iron ore at the site.
Shougang expects to complete the expansion of the Marcona mine by H2 2018, when it should reach a 20 million mt/year capacity.
The $500 million in financing from ICBC will be combined with another loan of $200 million from DBS Bank, Hong Kong branch, to expand the Marcona mine.