Shougang Group, the mainland's eighth-largest steel producer, plans to plough in up to US$1 billion to expand the output capacity of its iron ore mine in Peru to help meet growing demand for the raw material, according to chairman Zhu Jimin.
The company was eyeing expansion through new plant construction and acquisitions, including taking control of the Guizhou autonomous region's Guiyang Special Steel and Shanxi province's Changzhi Iron and Steel, Mr Zhu told reporters on the sidelines of the National People's Congress.
'We plan to increase the output capacity of our mine in Peru, but we need to ensure we have sufficient natural gas and power to support it,' he said. 'Once this is resolved, we expect to spend US$700 million to US$1 billion to raise its capacity.'
He did not indicate the scale of expansion of the mine whose existing capacity is 10 million tonnes a year.
Shougang also owns a stake in Australia's Mount Gibson iron ore mine. It received approval from the Australian government in December last year to complete the A$162.5 million stake increase in Mount Gibson, a deal previously rejected by Australian regulators.
Mount Gibson fell into financial difficulties after mainland buyers defaulted on iron ore purchases and Shougang's investment was key to its survival.