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Aceros Arequipa requests mining concession but denies diversifying

Tuesday, 02 April 2024 21:18:21 (GMT+3)   |   Sao Paulo
       

Peruvian steel producer Aceros Arequipa (AA) has asked for a mining concession in the department of Junin, which was interpreted as a move towards the diversification of its activities.

According to the local press, AA has approved in 2015 an alteration in its statutes to include mining activities, which could be in line with a current strategy of diversification.

The local press also mentioned that, in 2023, the company had sales revenues declining by 15.5 percent from 2022, a fact that could have raised considerations about diversification of activities.

In a statement to the local financial authority SMV, AA informed that that it already counts on a number of mining concessions, which are supposed to give self-sufficiency in the supply of raw materials for the steel production.

“We are not in a process of diversification of activities, but in a process of diversification of supply risks,” the company said, adding that it is investing $185 million, in 2023 and 2024, in different projects linked to its core business, including the rolling mill number 3, a new distribution center, the wire rod plant, the scrap cleaning machine and the piping and beams plant in Bolivia.


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