Tuesday, May 22, 2012

Peru's Mining Investment Estimated At More Than $53 Billion

Peru's mining sector continues to attract robust investment interest, with an estimated $35.6 billion currently committed to new projects, of an expected $53 billion-plus forecast to be spent there in the next few years, the nation's deputy minister of mines said Tuesday.

"Peru still has enormous potential," Guillermo Shinno said at a mining conference in Sydney, about South America's largest producer of gold, silver, zinc and lead.

"Currently Peru has an estimated investment portfolio of more than $53 billion," Mr. Shinno said, adding there are "many opportunities of investment that Peru offers the world."

Sustainable development is a key pillar of the government's strategy, he said.

"This is a task that must be undertaken by both government and the private sector," Mr. Shinno said.

These latest comments, however, follow more cautious remarks from Miguel Palomino, the head of the Peruvian Economic Institute, who last month said there had been a sharp slowdown in private-sector investments in Peru.

A number of companies, particularly in the mining sector, are having difficulty advancing projects due to community opposition, he said. Newmont Mining's $4.8 billion Minas Conga copper and gold deposit, in particular, has been delayed by strong opposition from residents and local politicians in Cajamarca region, where the project is located.

Finance Minister Luis Miguel Castilla at the time said the government was working to resolve the disputes in the mining sector and that he was confident private-sector investments can post double-digit growth again in the near future.

Source: Fox Business