Arrium’s Moly-Cop grinding media business has lodged an application with Chilean environmental authorities to double capacity at its Mejillones plant.
The Australian Financial Review reports on the news, which contrasts noticeably from the fortunes of Moly-Cop’s parent company. Arrium went into administration in April, owing $4 billion, and the survival of its Whyalla steelworks has featured in the current federal election campaign.
Administrator KordaMentha has found $300 million in annual savings at Whyalla.
The Chilean expansion would take two years, add two new lines, take capacity from 265,000 to 540,000 tonnes a year, and cost an estimated $72 million.
The operations of Moly-Cop – sometimes referred to as the jewel in Arrium’s crown – have been kept separate from the rest of the company during the administration.
Deutsche Bank is advising the sale of the business, which has been valued at around $1.5 billion to $2 billion.