Peru Copper

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Posted by pompos 04/03/2009 @ 19:07

Tags : peru copper, copper, mining, business

News headlines
Peru mining unions call nationwide strike for June - Reuters
Last year, the group held a nearly one-week strike, which hit some key mines and helped push global copper prices to record highs. The work stoppage had a minimal impact on production as managers called in temporary workers. Peru is the world's top...
Peru Stock Indexes End Lower; Sol Weakens - Wall Street Journal
Base metals miner Southern Copper Corp. (PCU) declined 0.97% to end at $18.33, while copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) lost 1.78% at end at $16.60. The sol ended weaker at PEN3.026 per US dollar. The sol had closed the previous...
Peru Stocks' Rebound May Hint At Broader Recovery - Wall Street Journal
Shares of Southern Copper Corp. (PCU), which shed nearly 84% last year after copper prices collapsed, have gained more than 14% since the close of 2008. Refuge in gold amid the global economic crisis is also helping to buoy Peru's market....
Apoquindo's Very Big Copper Deal - Midas Letter
A) Zafranal Copper-Gold project in Arequipa, Peru. Speculation among industry geologists suggests that as much as 200 million tonnes of ore averaging at least .5% copper and gold credits of .1 grams per tonne present in the rich deposit....
China and Peru Sign Free Trade Agreement - Alibaba News Channel
The Free Trade Agreement (FTA) between Peru and China was signed on April 28. For China, Peru is an important source of minerals, primarily copper. For Peru, increasing trade with China is a key way of diversifying the export economy toward an area of...
DJ Southern Copper:'09 Copper Output Seen At Up To 480000 Tons - Trading Markets (press release)
The company said in the filing that it plans to begin production at its Tia Maria copper project in Peru in the second quarter of 2011. The company said that in July its board will decide whether to proceed with a $600 million expansion of its...
Peru says March copper, zinc outputs down, gold up - Reuters
LIMA, May 5 (Reuters) - Peru, a leading global metals exporter, saw its copper and zinc outputs fall in March from the same month a year ago, while gold and silver production rose, the mining ministry said on Tuesday. Prices for most of Peru's metal...
Peru Stocks Rebound With Metals Prices; Sol Strengthens - Wall Street Journal
(PCU) surged 5.94% to close at $18.20, as copper prices rose. Precious-metals miner Compania de Minas Buenaventura SAA (BVN) saw its shares rise 2.06% to end at 68.79 soles ($22.82). Financial holding Credicorp Ltd. (BAP), the owner of Peru's largest...
Peru Stock Indexes End Lower; Sol Weakens - Wall Street Journal
Base metals miner Southern Copper Corp. (PCU) dropped 3.9% to $19.60, while copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) lost 1.3% to $17.32. "The movements of the General Index will continue to be influenced by international markets - as...

Southern Copper Corporation

Southern Copper Corporation NYSE: PCU is a mining company originally founded in 1952. The current incarnation Southern Copper can be traced to the 2005 acquisition of Mexican copper producer Minera México by Southern Peru Copper Corporation.

Currently 75.1 percent of Southern Copper is owned by Mexican mining conglomerate Grupo México. Based on 2007 reserves data, Southern Copper is the world's largest publicly traded copper mining company; and the world's seventh largest copper mining company based on 2007 sales. In addition the firm is the eighth largest copper smelting company. The firm ranks among the world's largest producers of molybdenum, silver and zinc.

The company is a major producer and refiner of copper, molybdenum, zinc, silver, lead and gold, and operates mines and smelters in Mexico and in Peru, in the Andes mountains southeast of Lima.

The firm's operations are primarily within southern Peru and northern Mexico.

Current southern Peruvian operations include the mines located at Cuajone and Toquepala. The two mines produced a total of 359,655 tons of copper in 2007, with Cuajone producing 182,117 tons and Toquepala producing 177,538 tons respectively.

A recent strike at the largest mine, Cuajone, was suspended pending mediation between the two parties.

Cananea, located in northern Mexico, produced 98,503 tons of copper in 2007. It is among the world's largest copper mines in terms of reserves, and has the longest remaining mine life of any major open-pit copper mine in the world, based on current production levels.

La Caridad, located in northern Mexico, produced 124,972 tons of copper in 2007.

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Grupo México

Grupo México (Grupo México S.A. de C.V.), is the largest mining corporation in Mexico and the third largest copper producer in the world.

Ferrocarril Mexicano (Ferromex), the company's rail transport division, operates the nation's largest rail fleet.

The company was founded by Raul Antonio Escobedo and Larrea in 1988. After the government of Carlos Salinas declared the state mining company bankrupt, Larrea purchased key Mexican copper mines in Cananea and Nacozari (cities in the state of Sonora). He also purchased numerous other mining sites, including coal mines in the state of Coahuila. By 2000, Grupo México was responsible for 87.5 percent of Mexico's copper production and was the world's third-largest copper producer.

Grupo México has been in continual conflict with Local 65, the traditionally militant Cananea branch of the Mexican Mine Workers' Union (SNTMMSRM). During miners' strikes in January 2003 and October 2004, Grupo México responded with threats to close the Cananea mines.

In 2004, Grupo México has also purchased a controlling interest in the Southern Peru Copper Corporation. Grupo Mexico acquired 54.2% equity interest in Southern Peru Copper Corporation from ASARCO LLC, a mining company operating in the United States. The SPCC equity sale is subject to a litigation between Grupo Mexico and ASARCO pending in the U.S. District Court for the Southern District of Texas under District Court Judge Andrew Hanen.

On February 19, 2006, an explosion occurred in a coal mine in San Juan de Sabinas, Coahuila, that is owned by Grupo México. Although the mining operations of a coal deposit is always a risky business, due to the possibility of huge gas concentrations, there are certain theories that indicate the mine has an important lack of safety rules, very similar to the problem presented in the Sago Mine disaster in West Virginia with the accident that caused death of 12 miners in January 2, 2006.

Grupo Ferroviario Mexicano, S.A. de C.V.

Runs Mexico’s largest and most profitable railroad with near 6,000 miles of tracks and 15,000 carloads, transporting over 40% of all the railroad cargo of the country. GMEXICO acquired the rail concession from the Mexican federal government for 100 years in 1998. GMEXICO owns 74% and Union Pacific 26% of the company. The railroad, known as FERROMEX, has the largest coverage of the nation’s railway system. The railroad system connects the main cities in the country, where 70% of industrial production is created and services five land ports on the border with USA, four seaports on the Pacific Ocean and two on the Gulf of Mexico.

Intermodal México, S.A. de C.V.

Operates since November 2001. Its objective is to develop and provide multi-modal services and logistics for load transportation. For such purposes it has constructed facilities in Guadalajara, Monterrey, Torreón, Silao, Saltillo and is in the process of constructing several other facilities in major cities of central and Northern Mexico.

Texas Pacifico, Inc.

Holds and operates a railroad in USA, that interconnects the border point Ojinaga Mex./Presidio Texas with the City of Dallas, Texas.

On November 25, 2005, the railroad division acquired the company Ferrosur, thus strengthening its transportation capabilities in México. This acquisition is pro-competitive and will lead to increase in the railroad Division's share in the Groups´ total revenues, flows and profits. This Transaction was duly notified to the Mexican Antitrust Commission.

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ASARCO

ASARCO mine, Garfield, Utah, 1942

ASARCO LLC is a mining, smelting, and refining company based in Tucson, Arizona that mines and processes primarily copper. The company, a subsidiary of Grupo México, is currently in Chapter 11 bankruptcy. ASARCO plans to emerge from bankruptcy in 2008, and opposes calls for it to totally liquidate its mining and industrial assets.

Its three largest open pit mines are the Mission, Silver Bell and the Ray mines in Arizona. Its mines produce 350 to 400 million pounds of copper a year. ASARCO conducts solvent extraction/electrowinning at the Ray and Silver Bell mines in Pima County, Arizona and Pinal County, Arizona and a smelter in Hayden, Arizona. Before its smelting plant in El Paso, Texas was suspended in 1999 it was producing 1 billion pounds of anodes each year. Refining at the mines as well as at a copper refinery in Amarillo, Texas produce 375 million pounds of refined copper each year.

ASARCO's hourly workers are primarily represented by the United Steelworkers.

ASARCO has 20 superfund sites across the United States, and it is subject to considerable litigation over pollution.

India-based Sterlite Industries announced the acquisition of Asarco on 31 May, 2008 for US$2.6 billion. Sterlite would become the world’s third largest copper miner with a combined capacity of 650,000 tonnes a year, if the Asarco deal closes. Grupo Mexico, the current owner, opposes the sale, and hopes to block it .

ASARCO was founded in 1899 as the American Smelting And Refining Company by Henry H. Rogers, William Rockefeller, Adolph Lewisohn and Leonard Lewisohn. In 1901 Meyer Guggenheim and his sons took over the company. In 1916, 17 ASARCO employees were killed and mutilated by Pancho Villa's men, one of the incidents that sparked the US Military's Punitive Expedition against Villa.

In 1975 it officially changed its name to ASARCO Incorporated. In 1999 it was acquired by Grupo México, which itself began as ASARCO's 49%-owned Mexican subsidiary in 1965, and on August 9, 2005, the company filed for Chapter 11 bankruptcy in Corpus Christi, Texas under then-president Daniel Tellechea.

The first environmental lawsuit was brought against Asarco in 1910 by a group of farmers in Solano County, California for the sulfur dioxide emissions from the company's San Francisco Bay smelter. The court granted an injunction that shut down the smelter, and the decision was upheld by the California Supreme Court. One of Asarco's lawyers then got a committee appointed, which included a company-appointed chemist, which led to a settlement that limited the smelter's release of sulfur dioxide to 30 tons per day. The settlement did not address lead, and scores of horses died of chronic lead exposure in the area in the following decades.

United States v. Asarco rulings have been unfavorable to the company in Arizona, Colorado, Idaho, Kansas, Montana, Tennessee, Texas, Utah, and Washington.

In the 1970s, a study by Philip J. Landrigan for the Centers for Disease Control found the ASARCO smelter in El Paso, Texas was responsible for abnormally high lead levels in children who lived nearby. The city won a lawsuit against the company and, although denying guilt, ASARCO agreed to strict monitoring for lead, zinc, cadmium, and arsenic releases as well as to provide medical exams and blood therapy to children with lead poisoning.

After the Colorado Department of Public Health and Environment sued ASARCO for damages to natural resources in 1983, the EPA placed the ASARCO Globe Plant on its National Priorities List, with ASARCO to pay for the site's cleanup.

ASARCO consolidated several plants at the corner of 5th & Douglas Streets in Downtown Omaha on April 4, 1889. Within 25 years it was the largest lead refinery in the world. In 1972 the plant was found to be releasing high amounts of lead into the air and ground surrounding the plant. In 1995 ASARCO submitted a demolition and site cleanup plan to the Nebraska Department of Environmental Quality for their impact on the local residential area. Fined $3.6 million in 1996 for discharging lead and other pollutants into the Missouri River, Omaha's ASARCO plant was closed in July, 1997. After extensive site cleanup, the land was turned over to the City of Omaha as a 23-acre (93,000 m2) park. All of North Omaha, comprising more than 8,000 acres (32 km²), was declared a Superfund site, and as of 2003, 290 acres (1.2 km²) had been cleaned.

In January 2003, ASARCO and the Environmental Protection Agency set up a trust fund of $100 million to help pay for the company's environmental clean-up costs. Actual estimated costs for clean-up were between $500 million and $1 billion, as of 2006.

One stated reason for declaring bankruptcy was the number of pending lawsuits (Daniel Tellechea identified "numerous environmental-related lawsuits brought by governmental authorities and private parties"). Asarco had more than 100 civil environmental cases pending against it when it filed for bankruptcy.

In January 2003, nearly 3 years prior to the bankruptcy filing, Asarco sold its interest in Southern Peru Copper to Grupo México for $765 million. This transaction was reviewed and approved by the U.S. Department of Justice. $100 million of the proceeds from this transaction were used to establish the aforementioned environmental remediation fund. Due to the historically low copper prices prevailing in late 2002, contemporary independent valuation reports show that Grupo México paid a 20% premium to fair market value to acquire the Southern Peru Copper interest. Following the ASARCO bankruptcy, Grupo México's profits rose sharply (along with ASARCO's and every other copper mining firm in the world), due primarily to the 500% rise in the market price of copper from January 2003 to today. Half of this increase occurred in the 18 months immediately following Asarco's bankruptcy filing.

In 2007, the Environmental Protection Agency released the results of soil and air tests in Hayden, Arizona taken adjacent to the ASARCO Hayden Smelter. The results showed abnormally high amounts of pollutants that violate prescribed health standards. Arsenic, lead and copper were among the most egregious pollutants found in Hayden. As a consequence of the contamination, the EPA proposed to add Hayden, Arizona to the list of Federal "Superfund" sites. This action would provide funding to clean up the contamination.

ASARCO has a long history of polluting in the Hayden–Winkleman–Dudleyville area from their smelter and mining operations.

The local workers at the Hayden smelter call windy, stormy nights "Smelting Weather", referring to the company's intentional night-time violations of pollution laws facilitated by windy conditions. The company has been known to willingly pay for repainting employees' cars parked at the smelter and damaged by airborne acids, while claiming no significant emission of sulphuric acid fumes. While the top of the smokestack at the plant seldom shows visible emissions, most of the airborne contaminants are released at ground level (termed "fugitive gases").

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Rail transport in Peru

Rail transport in Peru has never consisted of a true network, primarily comprising separate lines running inland from the coast.

Many of the lines owe their origins to contracts granted to Henry Meiggs but the mountainous nature of Peru made expansion slow and much of the surviving mileage is of twentieth-century origin. It was also challenging to operate, especially in the age of the steam locomotive.

The principal public railways, the Central and Southern, with others, passed to the control of The Peruvian Corporation (registered in London) in 1890. In 1972 they were nationalized as Empresa Nacional de Ferrocarriles del Perú (ENAFER), but this survived as an operator only until 1999 when most surviving lines were privatized. Regular passenger traffic now operates over only a small proportion of the mileage.

The Tacna-Arica line crosses the boundary with Chile (but is not directly connected with the rest of that country’s lines) and the Southern Railway provided connection with Bolivia by ship across Lake Titicaca.

The Central Railway, Ferrocarril Central del Perú (FCC), incorporates the first railway in Peru opened on May 17 1851 linking the Pacific port of Callao and the capital Lima (13.7 km (9 mi) of standard gauge). This was expanded to form the Callao, Lima & Oroya Railway, opened to Chicla by 1878, the original contractor being Henry Meiggs and engineer being Ernest Malinowski assisted by Edward Jan Habich. The line reached La Oroya by 1893 and Huancayo (346 km (215 mi)) in 1908. It is the second highest railway in the world (following opening of the Qingzang railway in Tibet), with the Galera summit tunnel under Mount Meiggs at 4,783 m (15,692 ft) and Galera station at 4,777 m (15,673 ft) above sea level, requiring constructional feats including many switchbacks and steel bridges. Since 1999 it has been operated as the Ferrocarril Central Andino (FCCA) (with its associated maintenance company Ferrovias Central Andina (FVCA)) by the Pittsburgh-registered Railroad Development Corporation. There is no regular passenger traffic but excursions are operated from the Lima Desamparados station. In April 1955 the Central Railway opened a spur line from La Cima on the Morococha branch (4,818 m (15,807 ft) above sea level) to Volcán Mine, reaching an (at the time) world record altitude of 4,830 m (15,846 ft). Both branch and spur have since closed to traffic.

The Central is extended by the Ferrocarril Huancayo - Huancavelica which was authorised in 1904 (engineer: Charles Weber) but work was interrupted during the World War I and it was not opened throughout (148 km (92 mi) of 3 ft (0.91 m) gauge) until 1926. Work was continued but never completed on extending the line to the Pacific coast. After a period under provincial government control it was agreed in June 2006 by the Peruvian government that FCCA should go ahead with converting the line to standard gauge (as had in fact been intended prior to 1919). Estimated to take 16 months, the US$33m project was to be funded jointly by the government and the Andean Development Corporation.

Also connecting with the Central, at La Oroya, is the Cerro de Pasco railway opened in standard gauge form in 1904 to serve ore mining in the Cerro de Pasco district. It was thoroughly North American in all its operations and, although primarily a mineral line, did run a passenger operation, latterly known as the “Flamingo” from the consist purchased from the Florida East Coast Railway. The owning company was nationalised as Centromín in 1974 and operation of the railway was taken over by FCCA. 80 km (50 mi) of 3 ft (0.91 m) gauge was completed of a Tambo del Sol-Pachitea line intended eventually to extend to the head of Amazon navigation on the Ucayali River at Pucallpa; this aspiration was abandoned by the government in 1957.

The Southern Railway, Ferrocarriles del Sur del Perú (FCS), another Meiggs concession, was completed from Arequipa to Puno in 1876 and to the coast at Matarani. The railway also operated steamers (including the Yavari) and train ferries on Lake Titicaca connecting with Guaqui in Bolivia. Although work on the Juliaca–Cuzco section was begun in 1872 it was not completed through until 1908. The summit of this section is reached at La Raya (4,313 m (14,150 ft) above sea level). Since 1999 it has been operated by PeruRail, an affiliate of the Orient-Express Hotels group, whose tourist trains form the only passenger services.

From Cuzco, the 3 ft gauge Ferrocarril Santa Ana (Ferrocarril Cuzco á Santa Ana) (engineer: Mauro Valderrama) was authorised in 1907, originally at 2 ft 6 in. gauge, but the first section was not opened until the early 1920s. It was extended to Aguas Calientes (113 km (70 mi)) in 1928, passing to government control in 1931. Although further extended in stages through to Quillabamba (reached in 1978), landslides (attributed to effects of El Niño) caused it to be abandoned beyond Hidroelectrica in 1998. It is now also operated by PeruRail and forms the only means of access for visitors to Machu Picchu.

The isolated Ferrocarril Tacna á Arica was completed in 1856. Following the War of the Pacific it and the surrounding territory passed to Chile; after a settlement in 1929 the Tacna end of the line was returned to Peru while the port of Arica remained in Chilean hands. The British concession for the line reverted to the Peruvian government during World War II and the line remains open for both passengers and freight, with a museum collection at Tacna station.

The newest railway in Peru is a standard gauge line opened in 1959 by the Southern Peru Copper Corporation from its opencast mine at Toquepala to the port of Ilo (187 km (116 mi)) with a later branch largely in tunnel to its workings at Cuajone.

There were a number of other lines, all now closed, mostly for mineral or agricultural traffic, running inland from the coast north of Lima and in Pisco Province. There were also lines serving nitrate deposits in the Tarapacá Region, ceded to Chile in 1883.

Some railway exhibits, including a working 50 cm gauge pleasure line, are to be seen in the Parque de la Amistad in the Surco district of Lima.

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Ilo

Ilo is a port city in southern Peru. It is the largest city in the Moquegua Region and is the capital of the Ilo Province.

Puerto Ilo is a small port town (70,000 pop.) on the very southern coast of Peru. Before the arrival of the Spanish in the mid 16th, the area was populated by the Chiribaya people . The Conquistadores were given land grants by Charles V and brought olives to this area. Olive agriculture was the main crop and source of work until the early 20th. century. A small settlement, Pacocha, was established by the seashore where Rio Osmore flows into the Pacific ocean. High tides in late 19th. century flooded Pacocha and the population moved to Ilo's current location and took its present name. Until the beginning of the 20th. century most of the people lived along the banks of the Rio Osmore, whose waters flow sporadically during the summer months. Ilo was a of port of call to the ships traveling from the east to the west coast of the United States via Tierra del Fuego; after the building of its pier in the 1800s, world commerce was increased. Italians, Chinese, Japanese, Germans settled in Ilo during this time. This international trade came to a stop with the building of the Transcontinental rail road and the Panama Canal. All that remained were steamships transporting commerce between Peruvian and Chilean ports.

Along with its Pier, a railroad was built to connect Ilo to Moquegua. The railroad took the name of Calamazo (Spanish pronunciation of Kalamazoo, Mi. from the name stamped on the equipment used by the railroad.) The original industries of the city include fishing and mining. Copper mines originally owned by the Southern Peru Copper Corporation (SPCC) provided many jobs to the region. SPCC was established by the American Smelting and Mining Corporation in the middle of the 20th century. Many Americans and Peruvians working for SPCC live in an area of Ilo called Ciudad Nueva. A copper smelter plant that was once owned by SPCC is located within 10 kilometers of the city, and has contributed to a large amount of air and water pollution in Ilo. Local swimming areas include Poso de Lisas and Puerto Ingles. Temperatures in Ilo range between 18 and 28 degrees Celsius year round. Rain is almost non existent, as Ilo is located north of the Atacama desert, one of the driest coastal deserts in the world. The country of Bolivia has in the past utilized Ilo to conduct trade, giving them access ocean shipping. The Battle of Pacocha took place near Ilo.

Ilo has one of the largest copper smelters in the country. It also has a formerly state owned copper refinery. Both of these businesses are located at a distance from the urban center. These businesses have been known to affect the fish populations and the water. Ilo's industry appeared in the movie The Corporation as an example of environmental exploitation for profit.

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Source : Wikipedia