Chile's CAP Weighs Expanding Iron Ore Output To 30 Million Tons
Friday, 25 May 2012 | 11:53
CAP SA (CAP.SN) is weighing expanding its annual iron-ore production capacity to 30 million tons, the chief executive of Chile's only integrated iron ore and steel producer said.
Through a near $1 billion investment, CAP is in the process of increasing capacity to 18 million tons in 2013 from a current 12 million tons.
"We hope to make a decision in 2013 or 2014 whether we'll expand to 30 million tons," said Chief Executive Jaime Charles at a seminar hosted by Santander GBM.
He added the company remains confident that despite recent volatility in global markets, demand for iron ore and steel will remain robust as developing nations, especially those around the Pacific Ocean continue to grow and their populations move to urban centers.
For 2012, the company expects to invest around $700 million, financed through its own cash.
"The volatility we're seeing requires a great deal of financial prudence," he said, adding that the company maintains a cash position of around $1 billion.
According to recently released quarterly filings, CAP's net profit gained 2% on the year in the first quarter of 2012 to $84.2 million.
Source: Dow Jones
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