Under the proposal, Vale would build briquetting plants that would feed third-party direct reduction facilities on the same site.

China is expected to continue building its influence over key minerals such as lithium and cobalt across the developing world, according to S&P Global.

Though metals mining and production is expected to grow 7.0% this year, private investment - largely in mining - is expected to drop 4.5% this year.

For years, the Loma Larga project has faced strong opposition from local indigenous groups and communities.

This follows another job cut announcement 10 days earlier, when Codelco said it would trim 10% of staff.

Inflationary pressure is coming from lower ore quality, which means more rock has to be crushed to extract the same amount of metal.