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Peru to be World 2nd Biggest Copper Producer

Sinocast Metals, Mining & Chemicals Beat (China)

SHANGHAI , August 26 , SinoCast -- Benefiting from a USD 20 billion Chinese mining project, Peru will be the world second largest copper producer just after Chile , according to Peruvian governmental officials.

A Chinese consortium lead by China Minmetals Corporation won bid for Glencore Xstrata's Las Bambas copper mine in Peru in July. The Chinese side will acquire the USD 20 billion mine with nearly USD 7 billion . This has been China's biggest overseas mining acquisition.

The Las Bambas project is one of the largest copper mines under construction worldwide; its annual output capacity is predicted to reach 450,000 tons after completion, representing 13% of China's total copper imports last year. The mine is predicted to come into production in the second half of 2015.

The deal means that China owns one third of new mine investment value in Peru calculated at total price of the mine.

The Peruvian government estimates that nationwide new mine investment value would be about USD 61 billion .

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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