MercoPress. South Atlantic News Agency

Chinese company buys into copper and gold mines in Peru

China's largest metal trader announced this week it had received approval to take control of two Peruvian mines in an operation involving 453 million US dollars.

China Minmetals said it was purchasing a majority stake in Canada's Northern Peru Copper, thereby acquiring two Peruvian mines one of copper and another of gold. "The successful acquisition will ... contribute to relieving the copper supply shortage in China" the company said in a statement. Under the deal, China Minmetals will team up with Jiangxi Copper to buy 95.92% in the Vancouver-based Northern Peru Copper for 455 million Canadian dollars (453 million US dollars). The two Chinese companies would then have control of the Canadian company's El Galeno copper and gold mine and Hilorico gold mine in northern Peru. Northern Peru Copper resources total eight million tons of copper and 198 tons of gold. The development of the Galeno project will require an investment of around 1.5 billion US dollars and it is expected to operate for a 22-year period beginning in 2012, it added. Minmetals said the acquisition was met with a positive response from the Chinese government. The company also has interests in other South American countries, Chile, Argentina and Bolivia.