Soaring demand for copper will help drive mergers, BHP CEO says
Demand for copper, a key element in the energy transition, is set to rise by 70% to 100% by 2050, Mike Henry said
Over the past decade, mining investment in Latin America has more than doubled, even after experiencing a sharp drop in 2009. According to a report by the Metals Economic Group, Latin America is now the primary destination for mining exploration investment in the world, with 25% of total investment going to Chile, Peru, Brazil, Colombia, Mexico and Argentina.
In 2003, hardly 10% of global mining investment was headed towards Latin America, but today big announcements abound.
London-based Hochschild Mining, which operates throughout Latin America, recently said it will invest another LIMA$425 million in two silver projects near its Arcata and Pallanca mines in southern Peru over the next two years.
Unveiled earlier this week at the International Gold Symposium in Lima by Hochschild’s executive chairman, Eduardo Hochschild, this is the latest mining investment announced for Peru, and for Latin American mining in general, which continues to experience an investment boom.
Other recent announcements have included a combined $1.3 billion investment into Colombia’s coal mining industry by the Drummond Company Inc., Cerrejon Mineria Responsable and Glencore International’s Prodeco Coal; as well as South African miner Gold Fields’ increased investment for its Peruvian Chucapaca project to $1.2 billion, from an earlier US$750 million.
Over the next five to 10 years, more than $425 billion in investments have already been announced, again, with a focus on Chile, Peru and Colombia, from such companies as BHP Billiton, Xstrata and Rio Tinto, among others.
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With the contribution of Suzanne Soto, owner of Si! Corporate Communications, a Greater Toronto Area company providing public relations services in both English and Spanish.
