Chile’s CAP group is increasing its 2021 capital expenditure plan by 59.4pc to $459mn compared to $288mn invested in 2020, with 77pc of the capex this year targeted towards its mining division and the balance to its steel business.
Of the 77pc or $353mn capex targeted for the mining division, 40pc will go towards maintenance, 28pc to growth projects, 17pc towards sustainability, and the remaining 15pc towards cost savings initiatives, the company said in a release on Mar 23.
The company has established an iron ore production guidance of 16.2mn mt for 2021, flat against its 2020 production levels. Steel sales and processing volumes are projected lower for 2021 than initially expected. CAP’s management noted that the steel business may still register a positive EBITDA in 2021 due to improved market conditions, a focus on higher value-added products, and savings initiatives.