Copper market’s biggest whale fuels speculation of a major shift
The world’s single biggest buyer of copper, State Grid Corp. of China, has slowed its purchases of copper wire this year.
The president of Peru’s National Society of Mining, Petroleum, and Energy, Pablo de la Flor, issued a statement today saying that Anglo American (LON:AAL) and Mitsubishi’s joint venture to develop the Quellaveco project marks a new era for the country’s mining industry.
According to de la Flor, the project located in the southern Moquegua region will create 9,000 jobs during its construction phase and additional 2,500 jobs once it goes into production.
“It is a project that will inject some energy into the local economy and will have a positive impact throughout Moquegua and southern Peru,” he wrote in the brief.
De la Flor also said that with an investment of over $5 billion, Quellaveco will create positive cash flow for the country’s coffers, both at national and local level, through taxes, royalties and mining cannons.
The president of the mining society emphasized that investment in the Andean country will grow as long as the government is able to maintain a stable legal environment and enforce the rule of law.
Quellaveco, which is 60 per cent owned by Anglo and 40 per cent owned by Mitsubishi, has all the permits needed for its development but has been stalled since 2013.
Peru is the world’s number two producer of the red metal behind Chile.
