Living in Peru : your everyday companion

Living in Peru
Israel J. Ruiz

Southern Copper, a mining company controlled by Grupo Mexico - the third largest producer of copper in the world - confirmed Tuesday its plans to invest in a copper reserve in Peru.

The corporation, a leading global producer of copper that operates in Peru and Mexico, is planning to invest $934 million in Tia Maria, a copper reserve located in Cocachacra - a district in the southern department of Arequipa.

It was reported that the company has already begun investing some of the 900 plus million and will begin producing in 2010.

After surveying the area where the project is to take place, Oscar Gonzales, the president of Southern Copper affirmed that mining this reserve was a win win situation for everyone.

According to Gonzales, the reserve would increase the company's production 120,000 tons, producing $900 million in sales.

On the other hand, Peru will receive $250 million in taxes while the region of Arequipa receives $120 million.

Aside from this, Arequipa will receive another $20 million in royalties as well as additional voluntary payments made by the mining company.

Even though environmental impact studies have not been approved yet, the company has already invested $400 million in the purchase of heavy machinery to begin mining.