Xstrata Commits to Peru

Nov 1, 2010

Peru may end up calling 2010 the year of Xstrata. It unveiled plans to invest $7 billion in deals including one the president calls “the contract of the century.”

by Lucien Chauvin

Switzerland-based mining giant Xstrata announced this year that it will proceed with three projects that will make it Peru’s largest single foreign investor, with more than $10 billion spent in the country. It also aims to consolidate its place as one of the world’s principal copper producers.

"Peru is going to play a principal role in Xstrata’s copper division. Our worldwide copper production in 2009 was 907,000 tons and Peru will represent more than 500,000 tons in the coming years, increasing our production by more than 50%," Domingo Drago, Xstrata’s corporate affairs officer in Peru, tells LatinFinance.

Besides the ore grade and synergies with existing projects, Drago says conditions in Peru for mining investments and the country’s overall economic and political performance over the past decade make it extremely attractive. "Peru has one of the best economies in the world, with...

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