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 .