CF's petrochemical plant will not affect Shougang operations - report - Peru

Illinois-based fertilizer manufacturer and distributor CF Industries' (NYSE: CF) planned nitrogen complex in San Juan de Marcona in Peru's southern Ica region will not affect the operations of Chinese-owned iron ore producer Shougang Hierro Perú, CF's representative in Peru, Ismael Benavides, was reported as saying by local business daily Gestión.
"Shougang's operations are 5km to 10km from the planned petrochemicals pole," Benavides added.
On January 22, 2009, Peru's mines and energy ministry (MEM) declared San Juan de Marcona the site for the installation of a petrochemical pole and in October zoning for future plants was defined.
However, Shougang argues the land forms part of its concession area over which it holds the rights.
According to Benavides, the area where CF proposes to construct its ammonia and urea plants totals 1,970ha, which represents 3.3% of Shougang's 60,000ha total concession area.
The representative added that it was a mistake to say that petrochemical companies would have to pay a fair price to Shougang for land declared suitable for the development of the petrochemical pole as the land is state-owned and under the administration of the respective regulator.
"Any problem Shougang has, or any discussion, must be resolved with the state," Benavides said.
CF is coordinating the development of its project with MEM for which it plans to submit its EIS at the end of this month.