Chilean iron ore producer CAP Mineria expects an increase in the cost of production of iron ore in 2016, according to several media reports quoting a company’s executive.
In 2015, the company’s production cost for the commodity was $33/mt, down from $49/mt in 2014. However, electricity and water contracts should raise that cost, according to a company’s executive, who didn’t provide an exact estimate for 2016.
CAP, which expects to invest $50 million in the on-going year to maintain its operations, said it’s ready to fight “much lower iron ore prices.”