Iron Snafu Seen as Cautionary Tale in Mining-Friendly Chile
- Finance minister resigned over controversy surrounding Dominga
- Andes Iron can still appeal rejection of its $2.5b iron mine
Iron ore rock sits in a cargo wagon before processing at the Stoilensky GOK (SGOK) iron ore mine and processing plant operated by OAO Novolipetsk Steel, also known as NLMK, in Stary Oskol, Russia, on Friday, Sept. 26, 2014. Novolipetsk Steel regained its ranking as the world's most profitable major steelmaker after the biggest Russian producer by domestic output cut costs, Bloomberg reported Aug. 7.
Photographer: Andrey Rudakov/BloombergChilean authorities’ handling of an iron-ore project has stoked a political storm that cost the jobs of two ministers. The industry hopes it will help keep politics out of projects in the future.
In a country boasting strong institutions and clear rules of the game, the way in which the government blocked the $2.5 billion Dominga project even after it was backed by regulators is sounding alarm bells in the industry.