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Glencore Plc bought a Peruvian mining project in the country\u2019s third copper deal in less than two weeks as companies jostle to boost their exposure to a metal projected to be in short supply.<\/p>\n
The Swiss commodities giant is acquiring the Quechua project in the Cusco region from Japan\u2019s Pan Pacific Copper Co for an undisclosed sum, it said Tuesday in a statement. Peru\u2019s government estimates the investment required to build the mine at $1.3 billion.<\/p>\n
That follows two other Peruvian copper deals this month. Canada\u2019s Rio2 is acquiring the Condestable mine from Southern Peaks Mining in a transaction valued at $241 million. Fortescue agreed to buy the 64% it didn\u2019t already own in Alta Copper Corp, marking the Australian firm\u2019s first major foray beyond iron ore.<\/p>\n
Read: Glencore would seek equal stake in Chile mine deal with Anglo<\/p>\n
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The Peruvian deal flurry is taking place at a time of near-record prices of a metal seen as critical for electrification and the energy transition. A more than 30% jump in copper prices this year is underpinned by production disruptions and the difficulties in building new mines and expanding existing operations.<\/p>\n
Glencore is stepping up its presence in Peru as part of a plan to almost double its copper output globally. The company is betting it can navigate sporadic protests over expansion plans amid broader tensions between communities and mining in a part of Peru that\u2019s also seen a jump in informal digging.<\/p>\n
Companies are also showing their willingness to steer through onerous red-tape in Peru, where it can take decades to turn an exploration project into a functioning mine.<\/p>\n
Rea: Glencore-Merafe retrenchments are another casualty of Eskom<\/p>\n
Quechua, which was left undeveloped by Pan Pacific Copper, adds another piece to a district that includes Glencore\u2019s Antapaccay mine and the future Coroccohuayco project.<\/p>\n
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\u201cThe asset should carry greater value for Glencore, which can leverage existing infrastructure much as it plans to do with Coroccohuayco,\u201d Bloomberg Intelligence analysts Alon Olsha and Grant Sporre wrote in a note.<\/p>\n
RadL Glencore is said to invest in chinese aluminum smelter\u2019s IPO<\/p>\n
Antapaccay began producing in 2012, churning out about 146,000 metric tons last year. Glencore also has a 34% stake in Peru\u2019s giant Antamina mine, where it is partnering with BHP Group, Teck Resources and Mitsubishi Corp.<\/p>\n
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