Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Peru’s largest copper mine, Antamina, will spend $2 billion to extend the useful life of the deposit through 2036, up sharply from $1.6 billion previously planned, the company’s chief executive officer told Reuters on Wednesday.
Antamina CEO Victor Gobitz said the new investment figure for Antamina, co-owned by Glencore PLC, BHP Group Ltd, Teck Resources Ltd and Mitsubishi Corp, was due to higher and additional costs.
“It was due to costs on the one hand, and on the other hand because there are recurrent investments that the authorities believe should also be included in the investment figure,” Gobitz said in an telephone interview, adding he expected approval by mid-year.
Peru is the world’s second-largest producer of copper.
The lifespan of Antamina, which produced 467,905 tonnes of copper last year, is currently set to expire in 2028.
Gobitz said approval of the extension is pending an environmental impact study and should be approved by mid-year, “although we do not have control over that.”
The executive did not rule out requesting at extension beyond 2036 for the life of the mine, which is located in Peru’s central Andes and also produces silver and zinc.
“The fact that the mine is extended until 2036 does not mean that the mine is finished. In order for a new environmental impact study to be presented, an engineering study will have to be carried out to support a new expansion,” Gobitz said.
(By Marco Aquino; Editing by Adam Jourdan, Jamie and Sandra Maler)
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