Chinalco Mining sets sights on copper projects in Latin America
Metal unit keen on copper projects in Peru with its huge potential and friendly environment
Chinalco Mining, the non-ferrous and non-aluminium metals unit of aluminium giant Chinalco, is seeking acquisition opportunities in Latin America for copper projects with long-term return rates of more than 10 per cent.
Chief executive Peng Huaisheng said the region presented more development potential, especially Peru, where the company has been developing the Toromocho copper project since 2007.
Peru has a strategy to catch up with Chile in mining development
"Our understanding is that Peru offers greater potential within Latin America," he said. "Peru has a strategy to catch up with Chile in metals and mining development, so it provides an overseas-investor-friendly investment environment."
Chile is the world's largest producer and resource holder of copper, which is used widely in the power distribution and construction sectors. China imports about 70 per cent of its raw copper ore needs.
Hong Kong-listed Chinalco Mining's US$3.5 billion Toromocho project, about 140 kilometres from Lima, started trial commercial production in December.
But power shortages, caused by a three-month delay in power connection, meant the company had to first process ore with lower copper content than originally planned. This caused the firm to slash in December its output target for this year to between 120,000 and 150,000 tonnes from 190,500 tonnes.