Chile iron ore firm CAP sees $650 mln capex, new project in 2014

martes 15 de abril de 2014 15:18 GYT

SANTIAGO, April 15 (Reuters) - Chilean steel and iron ore producer CAP SA will invest $650 million this year, mostly at its Cerro Negro Norte iron ore operation in the country's northern Atacama region, Chief Executive Fernando Reitich said on Tuesday.

CAP, which forecasts iron ore sales of 15 million tonnes by the end of the year and 18 million tonnes in 2015, also said it aims to launch a new project by December.

"My hope is that we can unveil our grand new project toward the end of the year," the CEO told journalists on the sidelines of CAP's shareholders' meeting. He declined to elaborate.

The company has four untapped iron ore deposits in northern Chile, including El Tofo, which CAP has previously said has the potential to produce 13.5 million tonnes of iron ore per year and will require some $3 billion in investment.

Reitich said the company was analyzing different ways to finance El Tofo, including incorporating a partner or forward selling. (Reporting by Felipe Iturrieta; Writing by Anthony Esposito; Editing by Steve Orlofsky)