Cap SA (CAP), Chile’s biggest steel and iron-ore producer, said plans to expand its mines in the country may be delayed by electricity shortages.
Energy supply in Chile is a problem, Cap Chairman Roberto De Andraca told shareholders in Santiago today. Cap, which plans to invest more than $500 million this year, will be able to fund expansions with its own cash, he said.
The government of President Sebastian Pinera, who last week swore in his fifth energy minister in two years, aims to double power supply in the next decade to match demand growth as mining companies plan investments totaling $91 billion. BHP Billiton Ltd. (BHP), the world’s largest mining company, urged Chilean authorizes yesterday to find ways to increase power supply.