JSW Steel is weighing up whether or not to shut its iron ore mines in Chile, according to a report by the Economic Times of India.
The reason is simple: falling iron ore prices on the international market, which have fallend substantially over the past 12 months. As a result, Santa Fe Mining (SFM) has been considering a temporary shutdown in May.
JSW holds a 70% share in SFM through its Chilean subsidiary Inversions Eurosh Limitada.
Subdued demand for iron ore from the Chinese has resulted in prices plummeting to a near six-year low. SFM is trying to cut costs to make its mining operations more viable and has already entered into a JV with Minera Santa Fe of Chile to develop mines and other projects in Latin America.
Source: The Economic Times.