Marcona is a mid-sized surface mine in Peru, located approximately 420 kilometres southeast of Lima. It is the only large-scale iron ore mine currently operating in Peru and is owned by the Shougang Group. Marcona also has the distinction of being the first mine acquired by Chinese steelmakers as part of a strategy aimed at securing their own supply. Shougang is in the process of expanding Marcona's capacity. The project's Phase I was completed in 2016 and enables the mine to increase lump output. Phase II will allow Marcona to increase fines and concentrate production and eventually decrease high-grade, scarce lump output.