Brazil CVRD starts work on Peru phosphate mine

PIURA, Peru, Sept 5 (Reuters) - Mining giant Vale (VALE5.SA: Quote, Profile, Research) (RIO.N: Quote, Profile, Research) has started construction on a $479 million phosphate mine in Peru, company officials said on Friday, joining the list of Brazilian firms investing in Peru.

Vale won the bid to exploit a phosphate deposit in Peru's northern Piura region in 2005 and hopes to start production there by 2010.

The Bayovar mine has reserves of 238 million tonnes of phosphate, which is used in fertilizer, according to the government. The company hopes the mine will produce some 3.9 million tons of the rock annually.

The project also includes a phosphate processing plant and an export port.

Earlier this week, Brazilian steelmaker Gerdau (GGBR4.SA: Quote, Profile, Research) (GGB.N: Quote, Profile, Research) said it would pump $1.4 billion into its Siderperu unit in Peru over the next five years to boost output.

Other Brazilian firms with investments in Peru include state-run energy company Petrobras (PETR4.SA: Quote, Profile, Research), construction firms Norberto Odebrecht and Andrade Gutierrez and airline, Gol. (Reporting by Teresa Cespedes and Marco Aquino; Writing by Dana Ford)