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Shougang to inject $1 bln to double Peruvian mine output
Shougang Hierro Peru S.A.A., a Peru-based Shougang subsidiary, will begin development of new mining zones in Marcona, Peru, to double its annual iron ore production, which will require investment of $1 billion, according to an announcement from China's Ministry of Commerce yesterday (Wednesday).

Shougang Hierro plans to construct an ore processing plant and a 3 million-ton pellet plant at the mine, which would in turn double its annual capacity of iron ore. Last year, the company's iron ore output totaled 7.71 million tons.

Shougang Hierro president, Wu Bin, previously told Interfax that the company intends to first increase iron ore production by 8 million tons, and then reach final annual production capacity of 20 million tons within four years.

Shougang officials were not available for comment when reached by Interfax today.

Shougang's Peruvian operations are located on the Peruvian coast, in the district of San Juan de Marcona, Nazca Province.

Shougang mainly exports iron ore produced from the Peruvian mine back to Chinese market.

Shougang Hierro was established in December 1992 and possesses a 98.4 percent stake in Hierro Peru, which holds the rights to develop and use all mine resources in an area covering 670.7 square kilometers for an indefinite period of time. The mine area contains proven reserves of 1.6 billion tons of iron ore, with associated copper, cobalt, lead and zinc.

Shougang is involved in developing various new iron ore mines both at home and abroad, and is currently finalizing a deal for the Balmoral iron ore project in the Pilbara region of Western Australia. – Interfax