Los Colorados is a mid-sized surface mine situated in the Atacama region of Chile, roughly 30 kilometres northwest of the city of Vallenar. It is majority owned by the vertically integrated Chilean steel producer Compañía de Acero del Pacífico (CAP) and operated by an owned subsidiary, Compañía Minera del Pacífico (CMP). Ore from the mine is used to produce fines, concentrate as well as both direct reduction (DR) and blast furnace (BF) pellets for the export and domestic markets. Production at Los Colorados fell by nearly 6% in 2017 as the mine delayed to receive environmental licenses which would allow production to keep expanding as CAP had initially planned. The mine has the highest strip ratio among all of CAP's operations, which negatively impacts Los Colorados mining costs.