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Peru is preparing to compete with Chile's copper industry

29 July 2014

Analyzing copper industry experts come to the conclusion that Peru, gradually increasing the production capacity in the near future will be able to compete with Chile's largest at present world producers of the red metal with an annual production of 5.8 mln. Tons. Now Peru conducts development of new deposits and is ready for the completion of projects aimed at increasing operating mines. Peru ranks third among liderov- copper producer, behind Chile and China are at the second position — its annual production capacity is about 1.6 million tons of copper… According to former Minister of Economy, Pedro Pablo Kuczynski, Peru is able to increase annual volumes of produced metal up to 3 million tons in 2016 and about 4 million tons will be able to provide by 2019. In 2013, the annual capacity of production of the country was about 1.4 mln. Tons.

The growth of copper smelting in the camp, to a large extent depend on the disclosure of the productive capacity of «Glencore» companies, «Chinalco» and «HudBay». Work is being completed on the expansion of the Cerro Verde mine in the mine for the extraction of copper and gold «Freeport McMoRan Copper and Gold» — investment in the project amounted to about 4.6 billion USD… A significant way to the growth of production and processes affected, the initialized on «China Minmetals» mines, «Southern Copper» and «Anglo American».

According to information provided by the Chilean static Agency, supply the red metal in Chile increased relative performance in 2012 by 6.1%, Peru is preparing to increase production by half by 2016.

According to analysts, despite the increase in consumer demand, the market expects a surplus of copper — more likely, 2014 and 2015 will be held under the sign of the surplus. And this despite the fact that production capacities are increasing, not all enterprises, many factories for copper smelting capacity is reduced. Accordingly, the expected and falling value of the metal. As representatives of the banking sector at the moment among the negative factors affecting the copper market in the first place there is a huge number of Chinese products. In addition, a high percentage of goods in China is located in the warehouses, this situation will require a permit from six months to a year of time, which also affects the price of copper. Presumably copper price drops to 6200 USD / ton for 12 months.

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