LIMA Jan 8 Anglo American will "most
certainly" move ahead with its $3 billion Quellaveco copper mine
in Peru and is already making preliminary investments before
formal approval by its board, the country's mines and energy
minister said on Tuesday.
Jorge Merino said the government has approved necessary
licenses so that the global miner can start construction on the
mine, situated in the southern region of Moquegua.
He also said the miner had worked out an accord with the
local community about water usage in the arid region. In a bid
to defuse potential conflicts over resources, President Ollanta
Humala has urged companies to guarantee water supplies to local
towns before opening big projects.
"About a month ago Anglo officials visited us in Peru and
assured us the project would go forward," Merino told reporters.
"Board approval is only needed to formalize the decision."
Quellaveco would produce about 220,000 tonnes a year of
copper in Peru, the world's No. 2 producer of the red metal
Earlier on Tuesday, Anglo American named veteran miner Mark
Cutifani as chief executive to replace Cynthia Carroll, who
resigned in October. Cutifani will leave his current post as
head of AngloGold in March.
Anglo American has said it would take 44 months to build
Quellaveco. The company also operates in Chile, where it is a
partner with Xstrata in the giant Collahuasi mine, which
holds the world's No. 3 copper deposit.