Peru in Line to Be Second Biggest Copper Producer

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 .

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza