Marcona is a medium sized surface mine in Peru, located approximately 420 kilometres southeast of Lima. It is the only 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 steel makers 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. Phase II will encompass the construction of a new beneficiation plant, among other things. This will allow Marcona to increase fines and concentrate production and eventually decrease high-grade-scarce lump output. Due to its location and high silica levels within the ore, most of Marcona’s products receive a substantial discount to global benchmark prices. Despite this, due to the mine’s low operating cost, it is able to continue producing healthy margins.