SMM, Sept. 12: Peru announces the launch of a new copper mine project, the second major mining investment in Peru in six weeks. The $1.6 billion Ica Mina Justa project in the southern coastal area will begin producing 102000 tons of copper concentrate per year from 2020. Minsur is part of (Breca Group), the Peruvian Breca group, and the country's only tin miner. The company acquired Mina Justa, in 2012 and sold a 40 per cent stake in the project to Copec Group of Chile in April. In August, the company's partners raised $900 million for the project. For Copec, the project marks the diversification of its business and is no longer limited to the distribution of traditional resources in the American region. The production cost of the mine is estimated at $1.40 per pound. It is also located near major roads and ports, reducing transport costs and time.
Peru's Ministry of Energy and Mining expects mining investment to reach $21 billion between now and 2021. Another $37 billion in potential investment is distributed in dozens of mining projects in the early stages of exploration and development.
Anglo American Resources (60 per cent) and Mitsubishi of Japan (40 per cent) recently announced the development of Quellaveco copper mines with an annual capacity of 300000 tons on the southern coast. Investment will exceed $5 billion and production is expected to begin in 2022.
In June, Chinalco (China Aluminum) began spending $1.3 billion to expand the Tromok (Toromocho) mine in the central highlands. By 2020, annual output will nearly double to 300000 tons per year.
The first increase in copper production will occur by the end of the year with the completion of the $1.2 billion expansion of the (Toquepala) copper mine in Torquipala, operated by Cooper (Cooper) in southern Mexico. The mine, located south of Quellaveco, will increase annual production by nearly 70 per cent to 240000 tons per year.
In February, (Southern Copper), the southern copper company, won the right to develop the $2.5 billion Michiquillay copper mine in northern Peru, with an average annual production capacity of 200000 tons.
Peru is the world's second largest copper producer after Chile. Peruvian copper production totaled 195583 tons in July, according to the Ministry of Energy and Mines.
Peru produced 2.4 million tons of copper in 2017.
As of July this year, Peru's mineral export revenue reached 17 billion US dollars.
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