July 20, 2008

Chinalco invests USD 2.15 billion in copper mines in Peru

Shanghai Securities News reported that Aluminum Group of China and Empresa Minera del Peru SA have signed an exercise contract on May 8th 2008 on copper exploiter in Toromocho in Peru, setting a new milestone in Chinalco’s development.

Chinalco will pour USD 2.15 billion to exploit the copper mine. The total fund that invested in this project would be afforded by China Development Bank, about 67% in maximum, and Chinalco, about 33%.

Toromocho copper mine is one of the oversize copper mines to be exploited in the world, which owns about 15 million tonnes of metal resources in equivalence and as much copper as 19% of the total in China. It is expected to yield 2.5 million tonnes of fine copper each year, equaling one third of China's domestic output.

Chinalco have successfully purchased the entire stocks of Empresa Minera del Peru SA with USD 860 million in August 2007. Empresa Minera del Peru SA is a Canadian company listed in Canada, US and Peru.

China heavily depends upon imported copper, with about 70% of its demand met by imported copper. As a result, overseas copper exploitation becomes one of the major tasks for Chinese enterprises. Chinalco has prepared much and has acquired several domestic enterprises before this deal.