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Shougang Hierro Peru S.A.A


In December 1992, in order to meet the development needs of the steel industry and expand overseas business, Shougang Group bid for the shares of Hierro Peru S.A.A and the permanent mining rights, exploration rights and operating rights of mineral resources in a 670-square-kilometer mineral rights area, and founded Shougang Hierro Peru S.A.A (referred to as “Shougang Hierro”).

The mining area is located in Marcona, Nazca, Ica, 520 kilometers away from southeastern Lima, the capital of Peru. The site has unique geographical advantages and development potential. In the 150 square kilometers of iron-producing area that have already been explored, the geological reserves were 2.2 billion tons as of the end of 2019. The iron producing area has not only rich and high-grade iron ores (51-57%), but also abundant resources such as copper ores. The main mineral products are Pellet Feed, Sinter feed fines, Iron Ore Fines, Iron Ore Lumps and so on. The products are mainly sold to the China and other regions in Asia.

On July 31, 2018, the expansion project of 10 million tons of concentrate was completed in the new Shougang Hierro area. After the project was completed, the annual production capacity of Shougang Hierro could reach more than 20 million tons, its mineral product structure was further optimized, and the labor productivity was greatly improved. The site has become an important support point for Shougang’s overseas development strategy.

The seawater desalination plant supporting the new plant was also completed at the same time. The project produces 20,000 cubic meters of fresh water every day. It is the largest seawater desalination plant in Peru independently designed by Shougang and established with modular integration. While improving the quality of concentrate products from the new plant, it has also provided an effective solution for local desalination supply.

Since it began operations in Peru,the annual output of ores has increased from less than 3 million tons in 1992 to nearly 20 million tons at present, with a cumulative output of 213.02 million tons and sales revenues of 10 billion US dollars, achieving good economic and social benefits.