Oct 14 Peru's leftist president, Ollanta
Humala, has secured some $15 billion in pledged investments for
the country's fast-growing economy since narrowly winning the
June 5 presidential election.
Though just six months ago Humala's ascent in polls had
unnerved financial markets and caused businesses to put plans
on hold, he has implemented a center-left platform that aims to
please both the rural poor and businesses, rather than follow
the model of his one-time mentor, Venezuelan President Hugo
Humala, a former army officer, has pacified investors in
Peru, a top minerals exporter, by appointing a conservative
economic team committed to keeping free-market reforms intact
and adopting a moderate discourse.
The new investments are equal to about 10 percent of
current gross domestic product.
Below are key new investments announced in Peru's mining,
energy and telecommunications sectors since Humala was elected
to a five-year term, along with planned investments that
companies reaffirmed after he won:
NEW INVESTMENTS (ABOUT $15 BILLION):
Spanish oil firm Repsol-YPF (REP.MC) plans to spend
between $2.5 billion and $3 billion in the next five years,
company President Antonio Brufau said on Oct. 13. The company
expects to spend about $1 billion in its Pampilla refinery; the
rest of the investments would go to exploration and development
of blocks that are already producing natural gas.
Prime Minister Salomon Lerner said on Sept. 28 that
Brazil's Votorantim, the world's No. 3 zinc producer, would
invest $3.2 billion in Peru in the next five years. Votorantim
controls Peruvian miner Milpo (MIL.LM) and operates the
Cajamarquilla refinery in Peru. [ID:nS1E78R0W]
Barrick Gold (ABX.TO), the world's largest gold producer,
plans to "bet on Peru" with a $550 million investment by 2013,
the head of the company's Peruvian subsidiary, Darrell Wagner,
said at the Perumin mining convention on Sept. 13.
Canada's HudBay Minerals (HBM.TO) (HBM.N) will spend at
least $1 billion to develop its Constancia copper project in
Peru, the company's chief executive, David Garofalo, told
Reuters on Sept. 12. [ID:nS1E78B1YV]
Peruvian miner Buenaventura (BVN.N) and U.S.-based Newmont
(NEM.N) said they would pour up to $4.8 billion into the Conga
gold and copper mine, the largest mining investment in Peru's
history, on July 27, the day before Humala took office.
Spain's Telefonica (TEF.N) approved a plan to invest $1.5
billion in Peru through 2013 as it accelerates investment plans
in the country, confident of the incoming government, the
company announced on July 20. [ID:nN1E76J1VL]
Claro, a unit of Mexico's America Movil (AMXL.MX), said on
June 9 it would spend $1 billion in Peru over three years --
the first major investment announced by a foreign firm after
Humala won the presidency.
REAFFIRMED INVESTMENTS (SOME $17 BILLION):
China's Chinalco started construction on its $2.2 billion
Toromocho Peru mine in May, and it should be ready to operate
in October 2013, the company said on Sept. 15. [ID:nS1E78E1ZV]
Anglo America (AAL.L), the world's fourth-largest
diversified miner, will start construction on its $3 billion
Quellaveco copper mine next year, the company's Peru chief said
on Sept. 14. [ID:nS1E78D2D3]
Gold Fields' (GFIJ.J) key Chucapaca mine, a $750 million
joint venture with Peru's Buenaventura, is on track to start
construction by the second quarter of 2013 and initiate
operations in 2015, Latin American head Juan Luis Kruger said
on Sept. 14. [ID:nS1E78D25H]
Southern Copper (SCCO.N) expects to complete the
feasibility study for its $1.3 billion Los Chancas project in
Peru this year and is preparing to resume talks with the
government over its planned $1 billion Tia Maria mine, the
company's chief executive, Oscar Gonzalez, told Reuters on
Sept. 12. Southern Copper will also invest $800 million to
expand its Toquepala mine. [ID:nS1E78B0S1]
Xstrata Copper XTA.L will invest $1.47 billion in its
Tintaya and Antapaccay copper mines in Peru. The company also
plans to start construction on its $4.2 billion Las Bambas
project in the third quarter of 2011. [ID:nS1E78B0S1]
Cerro Verde, which produces around 2 percent of the world's
mined copper, expects to submit an environmental impact study
for its $3.5 billion proposed expansion project by year's end.
The mine is controlled by Freeport-McMoRan (FCX.N).
These projects are part of about $50 billion that Peru's
national association of mining and energy companies said it
expects over the next decade.
(Compiled by Caroline Stauffer and Patricia Velez; Editing by