Peru wants mining companies to help build a railroad to the Pacific coast

From Marco Aquino

LIMA, Aug 25 (Reuters) – Peru is seeking help from Mining Company Las Bambas of Chinas MMG Ltd and Grupo Mexicos Southern Copper to build a railroad system from a mineral-rich Andean zone to the country’s central Pacific coast, Mining Minister Ivan Merino said in an interview.

Representatives of both companies openly declared themselves to participate in the railway, which is to be used for both freight and passenger transport. Peru is already the world’s second largest copper producer, and the country’s new government wants to develop the sector further.

The railway, which is in the technical evaluation phase and whose construction is to begin in 2023, would start in Cusco or Apurimac and go to the port of Marcona, Merino said late Tuesday in an interview with Reuters.

“The cost of the project is being assessed,” said the minister, adding that the train should be running in 2028.

Peru’s southern Andean region has large mines such as Las Bambas from MMG and Los Chancas from Grupo Mexico.

Las Bambas produces an average of 350,000 tons of copper per year and Los Chancas is a $ 2.6 billion project that is currently in the environmental impact assessment phase. Southern Copper plans to produce 100,000 tons of copper per year at the site.

“You’re part of the project,” said Merino.

When asked about the plan, Raul Jacob, Southern Copper’s vice president of finance, said he had discussed the move proposal with Merino.

“We think it’s an interesting project that needs careful evaluation,” he told Reuters in a written statement.

MMG’s Corporate Affairs Manager Maggie Qin said in an email that Las Bambas is aware of the rail plan.

“We are ready to work closely with the government and help them when and where needed,” she said.

Australia-based MMG is a subsidiary of the Chinese state-owned company China Minmetals Corp.

(Reporting by Marco Aquino, writing by Hugh Bronstein)