Reuters reported that China Minmetals will launch construction at its Galeno copper mine in Peru 2010 with production due to start in 2012.
Mr Zhang Shoulian assistant president of Minmetals said that Chinese demand has been the engine of world copper markets 2009 while Peru, the world's No 2 copper producer has a chance to boost output of the metal 70% in the next 5 years thanks to a string of new mines and expansion projects.
He said that "Our Galeno copper mine is going through detailed feasibility studies. After this, construction will start 2010. 2 years later production will be launched."
A 2007 feasibility study on Galeno showed that over a 20 year mine life, it would produce 144 000 tonnes of copper in concentrate annually, averaging more than 200 000 tonnes per year in the first 5 years.
Mr Zhang's remarks suggest Minmetals which controls some 60% of Galeno is pushing for quick development of the roughly USD 1 billion project, since the firm had previously said Galeno could be up and running by 2014. He said that the state owned trading firm was looking for investments in Africa, Latin America and Southeast Asia, with possible investment targets including brownfield and Greenfield projects in copper, iron ore, zinc, nickel and lead.
China has pressed ahead with its strategy of targeting foreign resources through the economic downturn but its plans have hit a few obstacles, most notably Chinalco's failure to clinch USD 19.5 billion deal with Rio Tinto.
Mr Zhang predicted that there would be no change in the attitude of Chinese mining firms. They will keep trying. The government will continue to encourage companies to go abroad. China's raw materials can't satisfy demand, therefore going out is absolutely necessary. But buying into existing projects was often preferable, since green field projects took too long and didn't help to satisfy immediate demand.
