K&M conducted a feasibility study for the proposed 95-150 MW Shougang Hierro Peru(SHP) power project at San Nicholas. K&M evaluated power generation alternatives to determine the most cost-effective means of meeting SHP’s future energy requirements. The evaluation considered installation of additional generating capacity on land owned by SHP at its Marcona, Peru iron ore facility. It included a review of the expected future energy demand by SHP and a review of the potential for selling excess energy production into the electricity market in Peru. It also compared several alternative generation technologies, various fuels including Orimulsion and sizes of plants by evaluating their overall life cycle costs.