Sigdo Koppers Falls in Chile on Project Suspension Report
Shares retreated 2.2 percent to 1,160 pesos at 1:17 p.m. in Santiago after earlier falling 3 percent in the steepest intraday decline since Oct. 10. The benchmark Ipsa index was little changed.
The Santiago-based company, which controls subsidiaries in explosives, mining equipment, construction, auto dealers and port operations, may indefinitely postpone a project to build an $850 million ammonia and ammonium nitrate plant in Peru as it has tried unsuccessfully in the last five years to secure natural gas supply contracts, El Mercurio wrote today.
El Mercurio cited unidentified sources from Enaex SA (ENAEX), Sigdo Koppers’s explosives production unit. The Santiago-based newspaper cited Geir Skarstein, chief executive officer of Nitratos del Peru, the company in charge of building the plant, as saying it has tried to secure gas from Peru’s Camisea project. Moving the project to another country is an option, Skarstein was quoted as saying.
Sigdo Koppers’s press office did not return phone calls from Bloomberg News seeking comment.
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