The future of the proposed $5 billion Conga copper and gold project in Peru remains in limbo as its main opponent was recently re-elected governor of the region where the project is situated.
Jailed Gregorio Santos is set to win the re-election in the country’s gold-rich Cajamarca region, casting fresh doubts on the future of the long-delayed copper and gold project.
Agreement with the government of Catamarca ensures a smooth permitting process for the miner’s 6.5 million ounce Agua Rica Gold project.
Peru’s Central Government has sent thousands of troops into the jungles of Madre de Dios to confiscate and destroy illegal mining equipment. With unregulated, untaxed gold mining operations estimated at $2 billion a year in Peru, the stakes are high.
Productivity, followed by capital decisions and obtaining a social license to operate, are among the top risks global mining and metals companies face.
Around 15,000 of the total 55,000 licences in effect risk fines and even losing all privileges over the land.
Chinese backers are now behind one-third of all Peru’s new mining investments by value.
Increased output from its mines in Peru and Argentina also helped the company slash first-half interim loss.
Who were the top earners in 2013?
The Peruvian firm will develop the deposit as an underground mine, instead of as an open-pit project.
"My view is that it's all about real return."
The mine is expected to produce 120,000 tons of copper a year during its 20 years of mine life.
Las Bambas will be one of the world’s largest copper mines after it starts up in 2015, with annual output equivalent to more than twice the amount of copper MMG currently produces.
The news come only weeks after the government announced it would begin funding explorations projects to locate deposits of the coveted elements.
Currently China is the second largest producer of the red metal, with an annual output of about 1.6 million tonnes per year.
Miner allegedly failed to pay the soldiers a periodical fee in exchange for them turning a blind eye to illegal mining on Venezuelan territory.
China's 'Order 9' makes it much easier for domestic companies to make acquisitions abroad.
Cajamarca region governor Gregorio Santos was ordered to jail for 14 months amid a corruption probe. Supporters claim he is being target of political repression for opposing Newmont's mine.
Community mobilization effective at raising costs to companies.
Former head of the National Federation of Artisanal Miners of Peru claims the union gave Humala's party 17kg of gold to help finance his campaign.
Ricardo Carrión and Alberto Arispe of Peru-based Kallpa Securities have a boots-on-the-ground view of the politics, legal battles and investment climate for precious metals mining in the Andes.
Driven by China's seemingly insatiable demand for concentrates as more smelter capacity comes on-line and refined copper imports diminish, the need for foreign sourcing of copper raw materials is increasing.
The region produces 45% of the world’s copper, 50% of its silver, 26% of its molybdenum, and equally high percentages of zinc, gold and iron ore.
On May 21, 2014 Rio Alto Mining (RIOM-NYSE) announced that it would buy Sulliden Gold (SUE-TSX.V) in a deal valued at $300-million, creating a Peru-focussed gold miner.
But long-term future uncertain, reveals study.
The official was especially critical of the other two countries openness to foreign investors.
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