Author: Paul Ploumis14 Jul 2014 Last updated at 07:30:28 GMT

 

LIMA (Scrap Monster): According to Minister of Energy and Mines, Peru is on the way to achieve double the present copper production by the year 2016 so as to recover its second position among the largest production of the industrial metal in the world.

 

Minister Eleodoro Mayorga Alba, during his recent visit to Freeport-McMoRan Copper & Gold’s Cerro Verde copper complex, located about 30 kilometer southwest of Arequipa, said that the total copper production of the country would reach 2.8 million tonnes in 2016, up from 1.4 million tonnes in 2013. He thanked to the five major projects which were scheduled to start production that year.

 

Among the five, Cerro Verde’s expansion program worth $4.6 billion, which is slated to be completed in the first quarter of 2016, is the major one. Up to now, about 22 percent has been completed and the expanded mine will the initial production in the second half of 2015.

 

Another one is Southern Copper’s controversial $1 billion Tia Maria mine, which is expected to commence in March 2016. At present, China is the second largest producer of copper, with the yearly production rate of about 1.6 million tonnes and Chile is at the first place producing about 5.8 million tonnes per annum, according to CRU Consulting.

 

Chile’s Codelco, Freeport McMoRan, Glencore and BHP Billion have planned to expand the mine capacity that would increase the amount of copper in the market between 1.1 million tonnes and 1.3 million tonnes until 2016. And this would be nearly equivalent to the annual production of Escondida of Chile, the largest mine in the world. Chile's Escondida provides about 5 pct of the world supply.

 

Mineral production is the main factor which made a steady growth in Peru. Last years, through mining, country has produced income of about 49.7 million in the local economy, which is 14 pct higher than that of in the year 2012.

 

Authorities have said they expect to reach similar levels by the end of this year, as there is still there is plenty for everyone to get a descent piece of the resources pie. Peru holds13% of the world's copper reserves, 4% of gold, 22% of silver, 7.6% of zinc, 9% of lead and 6% of tin reserves.