BEIJING, May 19, 2010 (Dow Jones Commodities News via Comtex) -- Aluminum Corp. of China, or Chinalco, held a groundbreaking ceremony for its Toromocho copper project in Peru Tuesday, the company said Wednesday.
The $2.15 billion Toromocho copper mine project is the largest Chinese investment in Peru to date, Chinalco said in a statement.
Along with the mine, Chinalco is building a new town consisting of 1,050 homes for 5,000 people currently living in the project area. The Chinese metals giant estimated the move to the new town will be completed by 2012.
Chinalco acquired Peru Copper Inc. (CUP) and its development rights to Toromocho for $860 million in 2007, the Chinese company said on its website.
Toromocho is expected to become Peru's largest copper mine by 2012, with an estimated annual capacity of 250,000 metric tons of the red metal. It will also produce significant amounts of zinc.