Diseno y Color rethinks strategy ahead of possible US recession

Diseno y Color of Peru has reacted to the dipping dollar and signs of US recession by rethinking its strategy and looking to diversify business. The textile group's general director Raul Torres wants to grow its Peruvian retail activities. Diseno y Color boasts 12 shops now but should enter 2009 with 17 - and also build a new textile-printing factory at a cost of US$4mil so as to raise its profile as a producer for third parties.

Publication: SABI - Business News
Provider: South American Business Information
Date: April 17, 2008


Candente to produce Canariaco feasibility in early 2009

Candente Resources expects to publish a feasibility study on its Canariaco copper project in Peru in early 2009, CEO Joanne Freeze told MB. The project is near Chiclayo in Peru`s Lambayeque department. The company has expanded the project scope, which has extended the timetable, and aims to receive a new resource estimate by mid-May that will provide the geological information to form the basis of the feasibility study.

An updated scoping study based on the new resource estimate, showing updated cash flow analyses and estimated capital expenditure, is expected by end-July. "We started the feasibility study on the basis of the first best 100 million tonnes, but we decided that was too small. The first idea for processing was leaching but we are now moving towards flotation because it has a higher recovery rate and we feel that leaching leaves too much copper on the table," she said.

Freeze said 90% copper recovery is possible with flotation, and that the company has been advised that an operation capable of processing 65,000 tpd of mineral could be developed for under $1 billion. A project of this size should yield an estimated 80,000 tpy of copper. The company, which aims for first production by late 2011, is open to advancing the project on its own or with a partner.

"If we are on our own, we will start smaller and ramp up after payback of capex, perhaps starting between 50,000 tpd and 65,000 tpd to get it into production and get cash flow. If we take on a partner, there could be other options," she said. The project could provide enough feed for an operation capable of processing as much as 120,000 tpd of mineral eventually, although Freeze said the capex of such a sized project would likely be "more than we wish to do alone". Candente was formerly looking at a leach and SX-EW operation that would process 30,000 tpd of mineral to produce 37,000 tpy of copper. Freeze said the company has received interest from copper smelters and traders around the world, including in Asia, that are interested in providing attractive investments to develop the project in order to secure copper concentrates.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: April 14, 2008


Peru's scrap prices at US$200-250/t on average

While Peru's main steelmakers - Aceros Arequipa and Siderperu - are still chasing scrap supplies abroad, as previously reported by Steel Business Briefing, domestic prices for the material remain strangely low.

Local sources say average domesic scrap prices are reaching US$200-250/t delivered to the mill, and even though material could not be considered as 'premium quality', the price is low if compared with neighbouring countries.

Furthermore, Peru still imports more than 50% of its scrap needs - from Chile, Bolivia and even the US market - paying higher prices for this material. Local press estimates the country's scrap needs reach about 80,000 tonnes per month, but no more than 40,000 t/m are locally produced.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: April 9, 2008


Kraft hopes Lacta can clip Nestle's chocolate wings

Last November, Jose Antonio Luna, marketing director at Nestle Peru, estimated that the chocolate market nationally would grow by 20% in 2008. Nestle has a 40% share of a market that produces 13,000 m tons of chocolate per annum but will soon have to do battle with Kraft.

Kraft, which already produces bars such as Mostro, Dona Pepa and Cua Cua, is entering the tablet-style chocolate segment 70% dominated by Nestle. It will do so with its Lacta brand, explains Carlos Palomino, snacks boss at the firm locally.

Publication: SABI - Business News
Provider: South American Business Information
Date: April 3, 2008


Petroperú launches Talara revamp management prequalification

Peruvian state oil company Petroperú has launched an international prequalification call to provide project management consultancy services for the FEED-EPC work of the US$1bn Talara refinery modernization project.

Registration will run through April 30 with company information due by May 5, Petroperú reported. Prequalifiers will be announced on May 14.

The winning company will help provide project monitoring and control and quality assurance, among other tasks.

The revamp aims to increase refinery capacity to 90,000b/d from 62,000b/d, optimize fuel quality at existing units and construct new ones. Talara is 1,185km north of Lima.

On March 24, Petroperú launched the international prequalification call for the FEED-EPC work and still has to launch bidding for the project's technologies selection.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: April 1, 2008