SANTIAGO, April 22 (Reuters) - The Chilean government's

decision to impose anti-dumping tariffs on two steel products

from China boosted shares of the local steelmaker CAP on Monday,

which decided to suspend an announced closure of a plant.

The shares of the local steel company rose up to 3.1% during

Monday morning on the Santiago Stock Exchange.

Chile's finance ministry published a decree over the weekend

that imposed a "provisional antidumping duty" of 24.9% on steel

bars to manufacture conventional grinding balls with a diameter

of less than four inches and 33.5% on steel balls of the same

measurements coming from China.

In March, CAP agreed to suspend operations at the Compañía

Siderúrgica Huachipato (CSH) in southern Chile for about three

months, after it considered a move against Chinese imports by

the local regulator as insufficient.

Then on Sunday, a letter to the securities regulator from

the CAP board said the company "made the decision to reverse the

indefinite suspension process."

The measure was taken after a commission received appeals

from the company and others interested in modifying

recommendations for provisional measures on imports of steel

bars and balls from China.

The statement by CAP said the decision "will imply the

continuity of CSH's steel operations while surcharges remain in

force that allow CSH to operate in a competitive environment,"

adding that will allow for continued employment for workers,

suppliers and contractors.

The company said it was analyzing the "irreversible costs"

of the suspension process.

Tariffs against Chinese products may not exceed six months,

counting from the end of March, according to the decrees.

(Report by Fabián Andrés Cambero; Writing by Alexander

Villegas; Editing by Andrea Ricci)