Plunging iron ore prices and high energy costs forced CAP Mineria -- the iron ore branch of Chile's integrated steel group CAP -- to temporarily halt production at one concentration plant and one mine-port complex, the company said Friday.
The magnetite plant at Valle de Copiapo, where the miner also operates its Cerro Negro Norte mine, will be shut in January and February, "aiming to face a stronger production pace at this plant in the rest of the year," CAP Mineria said.
During this period, the plant will undergo maintenance work, "but without stopping the production of primary concentrates," according to the company.
At its Valle del Equi complex, CAP Mineria will "partially suspend operations in January and February, keeping only the production of pre-concentrate due to the current market conditions" at its El Romeral mines and Guayacan port.
The complex also houses the company's El Tofo and Cristales mines, which will not be affected.
"The company had the precaution of composing inventories in the end of 2015 in order to implement these measures. This will allow the company to accomplish its commercial commitments with no problem in 2016," it said.
CAP Mineria stressed that the temporary cuts will not affect the company's production forecasts, which are targeted to reach 18 million mt/year by 2017.
Last month, CAP's branch also announced it will halt operations at its pellets plant at Huasco for a month in January to concentrate sales on higher-margin products such as sinter feed.
