MercoPress. South Atlantic News Agency

Peru develops copper industry hoping to match Chile's production

Peruvian president Alan García said that new promising copper mining projects could in a near future put Peru next to Chile as the world's leading exporters of the metal. Currently Chile is number one with an annual production of 5.37 million tons and Peru figures third with just over a million tons.

"We must overtake our neighbor in copper production", said Garcia, who added "they are winning but with the contract signed with AngloAmerican the score will be less and with the Toromocho deposits, soon to be developed, we'll be far closer, in a good and fair competition spirit". AngloAmerican last April won the Michiquillay deposits tender paying 403 million US dollars, well above the expected price, and now must invest another 700 million US dollars to develop the mines in Cajamarca province to the north of Peru. The deposits contain an estimated 544 million tons with a copper content of 0.69% according to the conditions of the tender. Toromocho deposits belonging to Peru Copper in the Junin area, centre of the country is forecasted to be producing 300.000 tons per year by 2010. PeruCopper estimates the deposits to have a life span of 33 years with an investment in the range of 1.5 billion US dollars. Peru under president Alan Garcia has become a magnet for foreign mining companies given the country's excellent mineral potential and political stability. Mining exports, which are undergoing a world boom, represent over half the country's foreign earnings.