Chilean CAP plans to invest more than US$ 500 million in 2012
It is reported that Chilean largest steel group CAP is to invest more than USD$500 million this year.
According to Roberto de Andraca, the president of CAP, the investment is for new developments in the iron ore mining sector which is expected to dedicate on the enlargement of their mines in El Tofo and El Romeral.
The president also predicted that the prices of iron ore will keep stable in short term, the current prices of US$148/ton would stabilize in the first quarter this year.
He added that China’s economy is decelerated but there is no problem about dispatches of iron ore toward China.
However, the president predicts the long term prices of iron ore will be around US$100/ton.
The CAP group earned US$441.65 million as profit in 2011, a jump of 45.5% than previous year.
For this year, the company expects a rise of 5% of their sales revenue this year, which is obviously different than 39.8% growth rate last year.
Regarding the steel making sector of the company, the president said that they were working on solutions for cost down within 3 years. One of the possible solutions is to get helps from the company’s strategy partner Mitsubishi, who owns 20% of the company.
News Date 13 Apr 2012 13:19:02 reported by Raul Lee