Chile's CMP Resubmits US$344mn Project to Up Iron Ore Production

SEATTLE (Scrap Monster):  Chile’s CMP submitted a new environmental impact study for a US$344mn project to increase production and continue operating until 2033 at its largest iron ore deposit, Los Colorados.

The miner, which is part of the CAP group, aims to increase the production capacity of iron preconcentrate to 9.8Mt/y from 9.15Mt/y and raise the processing capacity to 14.5Mt/y from 14.3Mt/y. 

The Los Colorados mine project is an important part of a growth strategy but last year it was rejected by environmental review service SEA due to a lack of information on mitigating the possible impact of particulate matter emissions (PM10 and PM2.5) in surrounding areas. 

The regulator also considered that the concentrations of contaminants exceeded the limits allowed, and declared an early termination of the review of the project. 

Although the country's top producer of iron ore and pellets presented an appeal for reconsideration arguing that the deficiencies and additional information could be corrected in an addendum, the SEA ruled out that option.

As a result, CMP prepared a new version of the environmental impact study for the expansion of Los Colorados, adapting the waste rock dumps and ore storage areas, as well as other modifications to the mining facilities located in Huasco in northern Atacama region. 

Los Colorados deposit’s main activity is to supply iron preconcentrate and sinter feed to the company's pellet plant that is located at the same site, about 47km from the city of Vallenar.

Receiving the green light from the authorities for the EIS is key to CMP's strategy to extend the useful life of the iron ore deposit until 2050 and ensure production of around 10Mt/y from the current average of 8.2Mt/y, the company said in a November investor presentation. 

The capex for the long-term planning would involve around US$1.4bn, the company added. 

CMP's shareholders include the local subsidiary of Japan's Mitsubishi Corp, MC Inversiones, with a 25% interest.

 Courtesy: www.bnamericas.com