Living in Peru : your everyday companion

Vena Resources Continues to Find Higher Grades of Uranium Mineralization Than Expected at Macusani

Vena Resources Inc. today announced further uranium drill results from the Macusani region. Assays from the Tantamaco project are continuing to exceed expected grade levels. Drilling in Tantamaco is near completion for phase one of the program. An additional drill platform has been made following favorable geology and visual mineralization at platform 10. (Fox Business - click here to read complete press release)


Japan's JOGMEC and Perupetro to study exploration

Japan's state-run Japan Oil, Gas and Metals National Corp said on Friday it signed an agreement with Perupetro, Peru's petroleum agency, to explore holding joint crude oil and natural gas exploration activities in Peru. JOGMEC has yet to decide further investment or exploration project plans, a spokesman said. (Reuters - click here to read complete article)


Peru protests imperil Phoenix firm's mines

Phoenix-based Southern Copper Corp. may be forced to temporarily close its copper smelter and two mines in Peru because of protests that have cut supplies. Company officials said that the shutdown could take place beginning today. The Moquegua region, where Southern Copper's Cuajone mine and Ilo smelter are located, has been rocked for a week by protesters who are demanding that the region receive more government funds collected from mining companies. (Arizona Republic - click here to read complete article by Max Jarman)

Living in Peru
Israel J. Ruiz

After regional authorities from Moquegua came to an agreement this morning in negotiations led by Prime Minister Jorge del Castillo, protestors began clearing Panamericana Highway, ending a 10-day blockade.

On the other hand, Zenon Cuevas, President of the Moquegua Defense Front, affirmed that the strike would not officially end until the people of the region had been given details on the agreement made with the government.

Protests, which later turned into riots and even developed into a hostage situation, began with claims that the distribution of mining royalties was not proportional among Peru's southern regions.

Moqueguan authorities, which have been negotiating in Lima for several days, returned to the southern region today to give protestors specific information on the agreement made with the government.

It was reported that the agreement has eight main points, one of which involves more investments in the region's infrastructure.

"We've achieved an important agreement that puts an end to this conflict," said Peru's Premier. "Each mayor will go home with at least one project under his arm."

Southern Copper says strike cuts Peru mine output

A labor strike is "greatly affecting" output at Southern Copper's Cuajone mine in Peru, company officer Alberto Giles told Reuters on Wednesday. The strike started on Tuesday at the mine. The Cuajone mine of Southern Copper, Peru's biggest copper producer, churned out 148,936 tonnes of the red metal last year. (Reuters - click here to see article)


Peru strike lift US copper to 4-wk high

U.S. copper futures rallied 2.7 percent, or 9.80 cents a lb, on Wednesday as chart-based buying boosted values to their highest level in four weeks, while escalating strike action in South America provided additional support, analysts said. (Reuters - click here to read complete article)


Metals - Copper higher on Peru strike concerns

Copper prices rose in London on Wednesday as strike action at the world's second-largest copper mine heightened supply concerns already stretched by low inventories of the red metal. At 11.59 a.m., London Metal Exchange (LME) copper for three-month delivery was at $8,128 a tonne up from $8,088 at the close on Tuesday, having touched a two and a half week high $8,159 a tonne on Monday. (Forbes - click here to read complete article)


Reliance evaluates investment in new petrochemicals complex in Peru

India's oil and petrochem major Reliance plans to explore for oil in Peru and will evaluate investing in a new petrochemicals complex in the Andean country. In its first venture in Peru, Reliance plans to look for hydrocarbons in the province of Puno and the Amazon basin, at an investment of hundreds of millions of dollars. (Plastemart - click here to read complete article)

Energy Transfer Partners Presents Plan For Peru Gas Pipeline

Energy Transfer Partners L.P. (ETP) has presented a proposal to construct a natural gas pipeline in Peru, which could require a $2 billion investment, the government said Tuesday. The company, a partnership owning and operating various energy assets in the U.S., is proposing to construct an 880-kilometer pipeline through the Andes Mountains, the office of President Alan Garcia said in a statement. (Dow Jones - click here to read complete article)


India's Reliance eyes Peru energy investments

Indian energy group Reliance plans to explore for oil in Peru and will evaluate investing in a new petrochemicals complex in the Andean country, officials said on Tuesday. The Indian group, a newcomer to Peru, plans to look for hydrocarbons in the province of Puno and the Amazon basin. (Reuters - click here to read complete article)


Vena Commences Underground Development at Pucara Copper/Gold Project

Vena Resources Inc. is pleased to announce that it has received all the required permits to commence an underground development program to further investigate its 100% owned copper-gold-silver-lead project at Pucara in the Puno District of Peru. A 4,800 metre drill program was completed on this property earlier this year showing continuity along the northern veins for more than 550 metres and preliminary metallurgical tests have indicated encouraging results. (Fox Business - click here to read complete press release)


Judge sets deadline in Asarco bankruptcy

A federal bankruptcy judge has given bankrupt Tucson copper producer Asarco LLC until July 2 to negotiate a Chapter 11 reorganization plan for the company. Asarco wanted until Aug. 1 to develop the plan, which will likely include the sale of its working assets to Sterlite Industries Ltd. for $2.6 billion, but Judge Richard Schmidt would only extend the deadline until he rules on the Sterlite sale. (Arizona Republic - click here to read complete article by Max Jarman)


Shougang Hierro Peru to start iron mine project in Marcona

ANDINA reported that Shougang Hierro Peru agreed to start the project of its iron mine new zone in Marcona which will demand an investment of around USD 1 billion. In the board of directors session carried out recently the company approved the development of new mines in the implementation of infrastructure that includes a new benefit plant and a pellet plant. (Steel Guru- click here to read complete article)

Shougang Hierro Peru agreed Monday to start the project of its iron mine new zone in Marcona (Ica), which will demand an investment of around 1 billion dollars.

In the board of directors session carried out today the company approved the development of new mines, the implementation of infrastructure that includes a new benefit plant and a pellet plant.

The project aims to obtain an increase in the annual production capacity of eight million tons. Last year, the company production totaled seven million 711,000 tons of mineral.

Shougang Hierro Peru is a company of iron ore that belongs to the Chinese group Shougang from 1993.

Its mining center of metallurgical operations is located on the Peruvian coast, to 530 kilometers ( Lima’s south), in the district of San Juan de Marcona, Nazca province (Ica).

Shougang's production obtained in Peru is mainly sent to the Chinese market.

News source: ANDINA

Living in Peru
Israel J. Ruiz

Demanding that money brought in from mining be shared with the region's poor, protestors in Moquegua - a small region in southern Peru - have blocked roads to Chile as well as a mine and smelter.

Not only are the region's people protesting, but also authorities in the area, who have announced the start of an indefinite hunger strike.

Fourteen mayors in Moquegua have begun a hunger strike, stating the government is being indifferent to demands being made.

According to the mayors, the government is not paying attention to the fact that mining royalties from Southern Copper have been reduced.

Over 150,000 people were unable to reach their destinations after miners and protestors blocked both sides of the highway, reported the country's Ministry of Transportation (MTC).

Furthermore, the MTC said that over 3,000 vehicles were unable to get past the roadblocks set along Panamericana highway.

The MTC affirmed that protestors were violating citizen's rights and putting them as well as themselves in danger.

Panamericana highway has been blocked at several different points.

Motorists were unable to reach areas in the north of the country such as Huaraz, La Libertad, Piura, Tumbes, San Martin, Amazonas, Cajamarca and Ucayali because the highway was blocked in Chimbote.

This was the case in the south of Peru as well. Rocks and boulders kept motorists from reaching Tacna, Puno and Moquegua.

To make matters worse, the country's largest federation of mining unions has threatened to strike on June 30 if a bill to improve benefits for workers is not approved.

Protesters block roads at Southern Copper Peru

Protesters blocked roads leading into Southern Copper's Ilo smelter and Cuajone mine in Peru on Wednesday, as miners nationwide face growing demands from workers and communities. The protesters live nearby and have demanded the miner, one of the world's largest copper producers, provide more financial assistance to their towns. (Reuters - click here to read complete article)


Striking Workers At Peru's Cerro Verde Copper Mine In Talks

Striking workers at Peruvian base metals miner Sociedad Minera Cerro Verde SAA were in talks on Wednesday, aiming to end the walkout that started Tuesday. "The strike continues, but there are talks going on with the Ministry of Labor," said Luis Castillo, secretary general of Peru's National Federation of Mining, Metallurgy and Steel Workers. (Dow Jones - click here to read complete article)


Grenville Gold Cancels 1,277,220 Stock Options

Grenville Gold Corporation announces that it has cancelled 1,277,220 stock options granted to certain former directors, employees and consultants. "Our focus is to limit dilution of the company's shares while joint venture partners develop our properties in the San Mateo area of Peru." stated A. Paul Gill, President & CEO. (Fox Business - click here to read complete article)


Bear Creek, Rio Tinto amend Peru silver mine deal

Bear Creek Mining Corp. said Wednesday it gained more time to buy out joint venture partner Rio Tinto PLC's minority stake in a Peruvian silver mine. The $75 million price that Vancouver, British Columbia-based Bear Creek will pay London-based Rio Tinto for its 30 percent interest in the Corani property of southeastern Peru remains unchanged. (AP - click here to read complete article)


Panoro Drills Zinc and Silver at the El Rosal Project, Peru

Panoro Minerals Ltd.is pleased to announce the intersection of significant zinc and silver mineralization in its recently completed program of drilling at the El Rosal Project in Northern Peru. A total of 3,025 metres were drilled in nine holes, eight of which were in the La Ramada zone and one in the El Rosal zone. (Marketwire - click here to read complete article)

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.

BPZ plans drilling off Peru

Houston-based BPZ Energy has received clearance from Peruvian environmental regulators to transport oil from its CX-11 platform offshore Peru to the nearby Talara refinery. The company's transport barge, loaded with around 30,000 barrels of crude oil, is now on its way to Talara, delivering its first shipment since production restarted in May 2008. (Energy Current - click here to read complete article)


Maple Energy to Drill 22 Development Wells at Peru Oil Fields

Maple Energy Plc, the London-listed oil explorer with operations in Peru, said it plans to drill 22 development wells in the South American country. Work will begin in the third quarter, the company said in a statement distributed by the Regulatory News Service today. The wells will be as deep as 2,000 feet (610 meters) and are expected to produce an additional 385 barrels a day of oil from the Maquia and Agua Caliente fields. (Bloomberg - click here to read complete article by Will Kennedy)


Peru mining union postpones nationwide strike until June 30

Peru's largest mining union has postponed a nationwide strike until June 30 to allow lawmakers to debate a measure that would increase profit sharing for miners, according to Dow Jones Newswires. Some 28,000 miners will walk off the job if Congress does not pass a law scrapping a ceiling on profit sharing, introduce a law regulating retirement and end company outsourcing, the article reports. (Resource Investor - click here to read complete article by Jon Nones)

Living in Peru
Israel J. Ruiz

Over 35,000 motorists in Peru have installed a natural gas tank in their vehicle and equipped it to run on compressed natural gas (CNG), reported El Comercio daily on Monday.

With each passing day this number increases, said El Comercio. An estimated 70 to 80 people have a natural gas tank installed in their vehicle every day, thus, giving them the option to choose between gasoline and CNG.

Why choose natural gas, it contaminates less, said El Comercio, explaining natural gas emitted 97 percent less toxic gases than conventional fuels.

Furthermore, the daily explained that motorists who chose to use gasoline were contaminating the environment 32 times more than people that used natural gas.

The daily quoted the new minister of health Antonio Brack and advised citizens to consider their health, assuring that 13,000 Peruvians died every year because of air pollution.

Upon listing the advantages of CNG, the daily added that it was 70 percent cheaper than gasoline and 50 percent under the price of liquefied petroleum gas (LPG).

On the other hand, it was reported that there needed to be more CNG fueling stations to meet the demand of rising natural gas motorists.

There are currently 33 natural gas stations in Lima. For a handy map of where they are located, click here.