As stated by Peru's Ministry of Energy and Mines, Chinese steel producer Shougang Steel plans to invest $1 billion in the next five years to further expand its iron ore mining program in the South American country.
Shougang Steel is now operating two programs in Peru, at the Cobriza copper mine and at its Shougang Hierro Peru iron ore mining subsidiary. Cobriza is the sixth largest copper producer in Peru, producing 18,519 mt of copper in 2009. Meanwhile, Shougang Peru Hierro runs the only iron ore mining operation in Peru. In November 1992, Shougang Steel acquired 98.4 percent of state-owned Hierro Peru, based in the district of San Juan de Marcona on Peru's southern coast, at a cost of $118 million.
In spite of frequent strikes at its Peru operations, Shougang Steel states that it is cooperating with the government to improve the business environment in the region.