MarketWatch reported that Chilean integrated iron ore and steel producer CAP SA aims to enter Colombia's steel processing market.

Mr Jaime Charles CEO of CAP said that it seeks to enter Colombia, which is growing at a fast pace, via an acquisition. He added that it may need to start from scratch if an acquisition opportunity isn't available.

CAP has steel processing plants in Argentina, Chile and Peru. CAP's steel operations in Chile were damaged and temporarily halted after an earthquake struck the Andean nation in late February 2010.

Also, CAP is currently ramping up its iron ore production by nearly 50% to 18 million tonnes annually by the end of 2013 with a USD 1 billion investment. The company expects operations at the USD 575 million Cerro Negro Norte plant, which will produce 4 million tonnes iron ore annually, to begin in the first quarter of 2013.

Additionally, the expansion of its Los Colorados iron ore plant in northern Chile, which will increase production to 7.2 million tonnes from 5.2 million tonnes, will also be complete in the first quarter 2013. The expansion project has a USD 342 million price tag.

Mr Charles said that "Also, as Chile faces some of the highest energy costs in the region, CAP is considering building power generation plants to sell energy and create a hedge against those high costs."

(Sourced from www.marketwatch.com)