NEW PROJECTS IN PERU TO ADD $3.6 BILLION OF MINING INVESTMENT FOR 2013

New mining projects in Peru will attract over $3.6 billion in investments this year, adding to the overall industry forecast of $10 billion, said Wednesday the president for the country’s National Society of Mining, Oil and Energy (SNMPE), Eva Arias.

The South American nation’s extractive sector, which accounts for some 60% of the economy, saw investments for $8.5 billion last year and is expected to bring $53 billion over the next decade, added Arias.

According to LPBnews (in Spanish), mining investment jumped 18% last year compared to 2011 despite large-scale protests against exploration and extraction activities that swept the country in 2012.

SNMPE warned in September last year that, as a result of non-stop anti-mining protests in different regions of the country, investors had started looking for greener pastures and so mining investment in the South American nation was expected to fall.

Although that didn’t happen, the body said Peru did fall to third place from second in the list of world’s top copper and silver producers.

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PERU`S MINING SECTOR TO GROW DOUBLE DIGITS FOR THE NEXT 3 YEARS, STARTING 2013

The country’s mining industry is expected to grow at double-digit rates, for the next few years, local newspaper named Gestion had reported.  According to Julio Velarde, head of the Central Reserve Bank (BCR), Peru will see an average annual growth of 11.2 percent in mining between 2013 and 2016.

"Unlike the previous seven years, we will now see that mining will have double-digit growth," he said, adding that the growth would be driven by about $64 billion in mining investments, over the next two years.

According to Gestion newspaper, the estimates far exceed the $50 billion investments that the Ministry of Energy and Mining had predicted for the next five years.

Copper production, Velarde said, would also grow over the next few years, giving the country considerable reserves for 2015.

The strong mining growth, he added, would in turn support the country’s economic growth. GDP over the next four years, Velarde said, is expected to grow by 6.5 percent annually.

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PERU TO SEE INCREASE IN SILVER PRODUCTION IN 2013

Peru’s production of silver is estimated to increase by 5 percent this year, driven by new mining projects, according to a recent report by Scotiabank branch in PERU.

The growth would represent a considerable increase from the 1.74 percent increase in silver mining last year.

Scotiabank said that the Milpo and El Brocal mining firms were currently in the midst of expanding their plants, which would lead to an increase in sliver production. The bank said the increased investments would lead to growth of 9 percent per year, between 2014 and 2016.

Last year the Buenaventura mining company saw 16 percent growth in their silver output, the daily said.

According to Scotiabank, the increase is also due to new mines such as Xstrata’s Las Bambas, Chinalco’s Toromocho, and Hudbay’s Constancia project.

"Volcan and Hochschild have new projects that are focused on increasing production" 

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Peru's mining investments seen rising 16% this 2013

Lima, Mar. 05 (ANDINA). Investments in Peru's mining sector is seen gaining 16% this year, following last year's 18% increase, worth $8.55 billion, Scotiabank said.

Mining investments last year came from 547 companies, although 53% were made by five companies in large mainly base metals projects: Toromocho, Las Bambas, Minas Conga, Antamina and Cerro Verde.
"During 2013, it is probable that a similar number of companies will make a similar number of investments in mining. However, about 50% of the investment will come from five mega-projects," the bank said.
Scotiabank says this year the main investments will be made by Xstrata PLC in its $5.2 billion Las Bambas copper deposit, and by Minera Chinalco Peru in its $3.5 billion Toromocho project. Minera Chinalco Peru is a subsidiary of Aluminum Corp. of China Ltd.In regards to Toromocho, Scotiabank said, "The company will start to produce copper in 2014, and as such the biggest part of the investment will be made in 2013."

Xstrata said Tuesday that it had spent $1.1 billion last year on Las Bambas, "which will commence commissioning at the end of 2014." It also said it had spent $600 million at the Antapaccay copper project in southern Peru, where production started in November last year.

According to Dow Jones Newswires, another large-scale investment is by Sociedad Minera Cerro Verde SAA as it continues work on its $4.4 billion mine expansion in southern Peru.

Canada's Hudbay Minerals, which forecasts full production in the second quarter of 2015 at its Constancia project, expects to spend about $961 million there in 2013.
Anglo American PLC is expected to submit its Quellaveco copper project to its board for approval this year.

Scotiabank said investments by Minera Yanacocha at its Minas Conga project will drop significantly this year due to the suspension of most work there. Antamina completed its expansion project last year, which helped the company boost its copper production by 33% in 2012 over the prior year.
Peru's Ministry of Energy and Mines is forecasting a rise of only 12% in mining sector investments this year.

Peru is the world's third largest producer of copper and produces large amounts of other base and precious metals.

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