SMM Analysis: Peruvian Minsur will invest at least $2 billion to expand copper and tin business

Published: Sep 5, 2023 16:52

Source: SMM

Save

An executive of Peruvian mining company Minsur (MINSURI1.LM) spoke on Thursday, August 31, that the company has announced an investment of at least $2 billion within five years to expand its copper and tin business.

SHANGHAI, Sep 5 (SMM) - An executive of Peruvian mining company Minsur (MINSURI1.LM) spoke on Thursday, August 31, that the company has announced an investment of at least $2 billion within five years to expand its copper and tin business. At present, the company only produces copper products in Justa, and other mining projects in Peru are still in the exploration stage.

Data source: the company's 2022 annual report

Gonzalo Quijandria, director of Minsur's corporate affairs, said in a telephone interview with Reuters that Minsur will invest about $543 million in the construction of the underground project of the Justa mine (Minsur indirectly holds 60% of Justa's equity), which is jointly owned by the company and the Chilean mining company Copec (COPEC .SN).

Data source: the company's 2022 annual report

Quijandria said it would also invest $381 million to expand the processing plant and improve the Justa mining area, which began operations in 2021. According to official data, the mine produced 125,488 mt of copper products last year (including 96,400 mt of copper concentrate and 29,000 mt of copper cathode). The life of the mine is expected to be about 15 years. The average grade of copper concentrate is 1.61%, which is the world's seventh largest copper mine.

Minsur also operates the only tin mine in Peru, which accounts for about 9% of global tin metal production. Quijandria said Minsur plans to invest $462 million in its tin production line and another $100 million in tin exploration projects in the country. "They are continuing to invest, including a new tailings dam at the San Rafael mine and improvements to the Pisco smelter," the spokesman said. The specific tin production in 2022 of each mining area is shown in the table below.

Location	Output in 2022 (mt）	Start time	Estimation of Remaining Life
Puno department	22947	1977	5 years
Puno (B2 factory area)	5284	2020
Ica department	26679	1996
Total	54910

Data source: the company's 2022 annual report

Minsur also plans to invest approximately $342 million to modernize its polymetallic producer Minera Raura. The figure below shows the company's metal output trends in recent years.

Data source: the company's 2022 annual report

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

15 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

15 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

15 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

15 hours ago