News: UK mining company Anglo American is reported to have approached US development company Southern Copper about the possibility of jointly developing its Quellaveco copper mine in Peru, Mineweb reports. Southern Copper stated that Anglo American had been in touch to discuss the possibility following rising costs and falling commodity prices. Once up and running, the project is expected to produce around 225,000 ounces of copper per year.
BMI View: We forecast Peru's mining sector will grow steadily over our forecast period, driven primarily by investment in both base and precious metals. We forecast Peru's mining sector will grow an average of 4.3% a year through to 2017, reaching a value of US$23.0bn. Various projects remain in early development and construction phases, and the sector presents promising growth opportunities for miners of a wide array of minerals. Investment from mining companies through to 2020 is currently estimated at US$53bn, although continued protests by local communities may reduce this figure as project delays mount and costs continue to rise.