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Chinese mining giants to invest $7.4 billion in Peru over next 5 years

Chinese mining giants to invest $7.4 billion in Peru over next 5 years

Lima, May 11 2009 (ANDINA).— Chinese mining giants Minmetals, Chinalco, Shougang and Zijin plan to invest over 7.4 billion dollars in Peru during the next five years, Peruvian Vice President Luis Giampietri said Monday.

"These four companies are already developing large-scale mining projects nationwide, and they have recently reaffirmed their commitment to invest 7.4 billion dollars in Peru," he told Andina news agency.

Vice President Giampietri met in late April with the CEOs of these mining groups after attending the signing ceremony of Peru-China Free Trade Agreement (FTA) in Beijing.

Giampietri explained that representatives of Shougang, which operates the Marcona iron mine in Ica, indicated that their investment plans for the next five years amounted to 1.2 billion dollars.

Zijin Mining Group, which develops the Rio Blanco copper project located in the Piura region, will increase its investments from 1.4 to 1.5 billion dollars during the same period.

In addition, China’s state-owned Minmetals will invest 2.5 billion dollars in El Galeno copper and gold project, located in the Cajamarca region.

Aluminum Corporation of China (Chinalco) will invest 2.2 billion dollars over the next five years in implementing the Toromocho copper project in the Junin region.

During his stay in China, Vice President Giampietri also met his counterpart, Xi Jinping, to further strengthen political and trade relations between both countries.

China is currently the second most important trading partner of Peru. In 2008, trade with this Asian country amounted to 7.8 billion dollars, 41.4 percent higher than the amount registered in the previous year.

It is estimated that the recently signed trade deal will allow Peru to export to China about $ 805 million in various non-traditional products.

 source: Andina