Peru's Mining Investments Rise 70% To $2.95 Billion In 1st Half

Mining companies in Peru invested $2.95 billion in the first half of 2011, up 70% compared to the same period last year, the government said.

In the January to June period, miners spent $457 million on preparation activities for projects, $446 million on infrastructure, $436 million on mining equipment, $421 million on processing plant equipment, $405 million on production and $382 million on exploration, the Mines and Energy Ministry said in a release on Tuesday.

Cajamarca region had investments of $524 million, representing 17.8% of the total expenditures in the period. It was followed by Cuzco at $431 million, Apurimac at $411 million and Ancash at $348 million.

Companies investing in the sector include Xstrata PLC (XTA.LN), which has the Tintaya mine and the Antapaccay and Las Bambas projects in southern Peru. At Tintaya, Xstrata invested $418 million and at Las Bambas it invested $330 million, the ministry said.

Gold producer Minera Yanacocha had investments of $249 million, while Compania Minera Antamina SA invested $197 million and Chinese-owned Minera Chinalco Peru SA invested $182 million.

Peru is the world's largest producer of silver and a large-scale miner of copper, gold, zinc and other minerals.

-By Ryan Dube, Dow Jones Newswires; 51-1-945-043-802; [e-mail]