Peru's Minsur to invest at least $2.25 billion as it expands copper operations

A view shows a makeshift dwelling near an area where hundreds of artisan miners have found a rich seam of copper, in the hills of Tapairihua in Peru's Andes, October 18, 2022. REUTERS/Marco Aquino/file photo Acquire Licensing Rights

LIMA, Aug 31 (Reuters) - Peruvian miner Minsur (MINSURI1.LM) has announced an investment of at least $2.25 billion as it expands its copper operations, the country's mining ministry said on Thursday.

The announcement followed a meeting between Minsur CEO Juan Luis Kruger and Peru's Energy and Mines Minister Oscar Vera.

Minsur is set to invest $1.8 billion in the Justa mine, which is owned by the firm and the Chilean mining company Copec <COPEC.SN>. The deposit's reserves are expected to rise by 30%.

The mine produced 126,036 fine metric tons of copper last year and was the world's seventh-most productive copper mine, according to official data.

"The Mina Justa Subterranea project will be the second-largest and most modern underground mine in Peru," the ministry said in a statement, adding that Minsur expects to present the first permits for this project in the first months of next year, with production expected to start in 2027.

Peru is the world's No. 2 copper producer behind Chile.

Minsur also plans to invest some $450 million in the modernization of its polymetallic producer Minera Raura.

Minsur did not immediately respond to a request for comment. It operates the only mine in Peru for tin, a relatively rare element, and produces about 9% of this metal globally, according to the company.

Reporting by Marco Aquino; Editing by Brendan O'Boyle and Paul Simao

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