Capstone Mining Corp’s Mantoverde iron ore project in Chile is reported to have reached commercial production, marking a significant milestone in the company’s growth journey. The achievement was announced via a newsfeed by the company and coincided with the release of a feasibility study for the project’s expansion.
Established as a leading iron ore producing company, Capstone has positioned itself to match the renewed demand for quality iron ore, especially in Asia. This is largely due to an increase in infrastructure projects and their resulting need for the material. Having commenced copper and iron ore production in the second quarter of 2021, Mantoverde is on track to contribute significantly towards achieving this goal.
The Mantoverde project, positioned in the Atacama region of Chile, carries an expected lifespan exceeding two decades, offering the company extended periods of potential profitability. It aims to generate first ore sales achieving 9,500 tons per day by mid-2022, which looks promising considering the current mining progress of the project.
The revealed Expansion Feasibility Study, which enhances project economics by incorporating iron ore into the mine plan, presents a positive update. With a combination of life extension, cost efficiencies, and increased output, the project outlines an incremental net cash flow of $1.1 billion post-tax. The mine expansion also employs various methods for mining ore, sorting, and processing that will allow it to stay competitive as it meets the increasing global demand and stringent environmental standards.
While the successful development of Mantoverde’s production is a testament to the operational strength and expertise of the Capstone team, the release of the Expansion Feasibility Study is equally significant, laying out the blueprint for the company’s approach to the project’s expansion.
Capstone’s commitment to maintaining sustainable and responsible operations is embedded in everything they do—at the very heart of the Mantoverde project. A significant focus of the expansion is the inclusion of a desalination plant designed to make use of seawater in processing, limiting the project’s environmental impact on scarce water resources.
Additionally, the company strives to create a mutual and beneficial relationship with local communities. Their Social Investment Program includes the provision of educational and healthcare resources, as well as support for small businesses in and around the Atacama region.
The future for Capstone Mining Corp’s Mantoverde iron ore project indeed looks robust. With commercial production on track and an expansion plan in place, Coupled with strong demand trends in the global iron ore market, this commercial production achievement sets the stage for what could be a game-changing period in Capstone’s history.
It is an ebullient era for all stakeholders involved, as the Mantoverde project promises to provide tremendous growth potential for the company, a model for sustainable operations, a boost for local economies, and a steady supply of iron ore for global markets.