Peru’s only iron ore producer, Shougang Hierro Peru, is waiting for the government’s approval to formally start the expansion of its Marcona mine, according to a media report from Gestion.
According to Peruvian media, the company is “ready to produce,” however, it still needs approval from the country’s Ministry of Mines and Energy. The company expects to formally initiate expansion works at the mine in the first half of January.
Peru’s Ministry of Mines and Energy wasn’t immediately available to comment the project on Tuesday.
“This week we met with the ministry’s representatives and we hope to have their OK soon,” the company said in an interview in late December.
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 will reach over 20 million mt/year in capacity.