Author: Paul Ploumis26 Aug 2014 Last updated at 08:00:14 GMT
LIMA (Scrap Monster): According to senior officials in Lima, Peru’s is about to become the world’s second largest copper producer and the main reason behind this achievement is the initiation of a Chinese mine. Last month, China Minmetal’s MMG subsidiary acquired 7 billion dollars worth share from, Glencore’s, Las Bambas copper project in Peru, which boosted the links between two countries. The deal between MMG and Las Bambas shows that, Chinese backers are stubborn to acquire shares from at least one third of all new mining projects in Peru, which according to the country’s estimation is 61 billion dollars.
Before the coming of the Chinese projects, the biggest investors around Peru were the US giants, Freeport-McMoran and Newmont Mining. But now the new Chinese projects are worth more than both the U.S investors and Canada combined together.
Peru’s Energy and Mining Minister, Eleodora Mayorga, stated that, the country now posses a great relationship with the Chinese government. He also added that, both the countries are exact partners now. He further added that, the relation between the countries is not merely financial, but it also links social responsibility and trade. He added that, the transitional companies are the ones who play the market game not the traditional Chinese government.
Deputy mining minister, Guillermo Shinno, stated that Peru will exceed its production to 1.2 million tones, and that way the country will push back China, the present second largest copper producer.
Las Bambas, one of Peru’s largest copper mines is expected to produce an annual outcome of 450,000 tonnes, when it will reach to its maximum production capacity.
MMG is analyzing sheduldes and production of the mining project, to start the production before the declared time by Glencore, that is, last part of 2015. The project was initiated by Xstrata, and was later acquired by Glencore.
Other than Glencore’s project, China has engaged in a number of other mining projects in Peru, which are, Tormocho copper mine, worth by 4.82 billion dollars, owned by Chinalco. The mine is at present undergoing expansion. El Galeno, 2.5 billion dollars worth gold and silver mine owned by Minmetal’s and Jiangxi. An iron ore mine worth 1.5 billion dollars located in Marcona, owned by Shougang Heirro. Another iron ore mine, Jinzhao Mining, which is in the middle of construction. The mine is worth 3.28 million dollars and is located in Pampe de Pongo.