Cencosud yesterday announced the issuing of a set of shares in Santiago de Chile with which to finance the acquisition of Peru's Grupo de Supermercados Wong and to allow the Wongs into the Cencosud set-up. The part of the operation that involves the Wong family mist be wrapped up by January 31, 2008, whilst the part relating to purchasing the Wong operation must be completed by December 31. The shares being issued are those left over from a capital increase carried out by Chile's retail giant in January 2005 (when it bought department-store chain Almacenes Paris). The shares cost US$4 apiece and thus the issue should raise US$580mil. Of the total, 49,750,000 shares will be acquired by the family Wong, the Peruvians thereby taking up a 2.5% stake in Cencosud, the third largest individual stake behind the family Paulmann and the impresario Jorge Galmez. Another 75 million shares will be sold on the Chilean exchange where the latter two plan to acquire a third. Another package of 20 million shares is to be aimed at a compensation plan for Cencosud executives.
Publication: SABI - Business News
Provider: South American Business Information
Date: December 29, 2007
12/30/07
12/27/07
Falabella keen to get best locations for itself in Peru
Chile's Grupo Falabella has expanded fast enough in Peru but now the retail group will try to speed up said expansion in light of the arrival locally of its Chilean rival Cencosud (which has purchased Grupo Wong, the local supermarkets leader).
Falabella has sent out the command from Chile that the best possible locations in the leading Peruvian cities must be bought up for future store developments. To get the ball rolling, this week Malls Peru, the local property wing of the Chilean group, acquired a plot of land in Cusco, measuring 10,000 square metres (a size that will permit the installation of two of the group's three big formats - Saga Falabella, Tottus and Sodimac); the project has already been dubbed Open Plaza Cusco. Meanwhile work has begun on what is expected to be a new Sodimac outlet on Avenida Quilca, Bocanegra (El Callao), alongside the recently-opened Tottus hypermarket.
Publication: SABI - Business News
Provider: South American Business Information
Date: December 26, 2007
Falabella has sent out the command from Chile that the best possible locations in the leading Peruvian cities must be bought up for future store developments. To get the ball rolling, this week Malls Peru, the local property wing of the Chilean group, acquired a plot of land in Cusco, measuring 10,000 square metres (a size that will permit the installation of two of the group's three big formats - Saga Falabella, Tottus and Sodimac); the project has already been dubbed Open Plaza Cusco. Meanwhile work has begun on what is expected to be a new Sodimac outlet on Avenida Quilca, Bocanegra (El Callao), alongside the recently-opened Tottus hypermarket.
Publication: SABI - Business News
Provider: South American Business Information
Date: December 26, 2007
12/25/07
CPPQ celebrates seventy-fifth birthday
Bruno Schenone, general director of Corporacion Peruana de Productos Quimicos (CPPQ), part of Grupo Brescia, is about to oversee his firm's seventy-fifth birthday celebrations, happy that CPPQ's sales have risen 140% over the last four years but concerned about the future of the paints sector. Schenone says that any attempt at growth could eat into margins across the Peruvian sector (which posts an annual turnover of US$150mil with CPPQ providing just over a third this year, US$52mil compared with US$43mil). The chemicals (paints) firm now makes 12% of its money from new products, having consolidated its brands portfolio. In the last three years, CPPQ has invested US$3mil in the implementation of security systems at its plants in Brena and Nana, the construction of laboratories and the expansion of its factory and warehouse capacity. In January, 2008, CPPQ's chemical materials plant wil grow by 40%.
Publication: SABI - Business News
Provider: South American Business Information
Date: December 24, 2007
Publication: SABI - Business News
Provider: South American Business Information
Date: December 24, 2007
12/21/07
Peruvian Govt Evaluates Olympic Peru Proposal for Construction of Piura-Chimbote Gas Pipeline
The Energy and Mines Ministry of Peru is currently evaluating the proposal of the Peruvian gas company Olympic Peru for the construction of a natural gas pipeline, which will connect the northern department Piura with Chimbote, located in the northwestern department Ancash, the daily Andina said on December 20, 2007.
Olympic Peru plans this construction as it wants to deliver gas to industrial clients in Chimbote, mainly fishing companies. The investment value of the project has not been determined yet.
It is not clear yet when the government will take a final decision on the issue, the Energy and Mines Minister, Juan Valdivia, said.
According to data from the country's state oil sector promotion agency Perupetro, Olympic has natural gas reserves mainly in block XIII.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: December 21, 2007
Olympic Peru plans this construction as it wants to deliver gas to industrial clients in Chimbote, mainly fishing companies. The investment value of the project has not been determined yet.
It is not clear yet when the government will take a final decision on the issue, the Energy and Mines Minister, Juan Valdivia, said.
According to data from the country's state oil sector promotion agency Perupetro, Olympic has natural gas reserves mainly in block XIII.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: December 21, 2007
12/18/07
Dubai Ports World Callao set to tap Muelle Sur terminal developer
Dubai Ports (DP) World Callao is set to choose next week the firm that will be in charge of building the new Muelle Sur terminal at Callao port, Peru's largest, government news service Andina reported.
Four companies presented economic proposals to DP World Callao, company CEO Maciek Kwiatkowski said without naming the companies or the countries from which they come.
DP World Callao - comprised of Dubai Ports and Spanish firm Uniport - was awarded the terminal's 30-year concession after submitting a proposal that involves total investment of US$617mn, including US$144mn for the common port area.
The consortium expects to launch operations at the terminal in 2010 but is still awaiting national port authority (APN) approval for the technical aspects of the project, including the new terminal design, which was done by engineering firm Royal Hakoning from the Netherlands, Kwiatkowski said.
The company's aim is to convert Callao into a hub port for the western coast of South America, which is already on its way to happening thanks to its geographical location, sustained export growth and the free trade agreements (FTAs) signed, he added.
Indeed, with the FTA recently signed with the US alone, container movement at Callao is expected to grow more than 20% a year, transport and communications (MTC) minister Juan Suito was quoted as saying.
At the same time, some US$204mn would be needed to improve highway access to Callao port, Andina reported.
Callao's regional government is working in conjunction with MTC and APN to define the financial structure needed to upgrade access to the port, Callao government's planning manager Daniel Casella said.
Roadworks are expected to begin in the second half of 2008 and include works on the highways Néstor Gambetta and Costanera - the latter which crosses various coastal districts of capital Lima.
Part of the finance may come from the additional US$144mn that DP World Callao offered for the development of common areas, APN head Frank Boyle said, while MTC's Suito added that part of the investment would probably have to come from government coffers.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 17, 2007
Four companies presented economic proposals to DP World Callao, company CEO Maciek Kwiatkowski said without naming the companies or the countries from which they come.
DP World Callao - comprised of Dubai Ports and Spanish firm Uniport - was awarded the terminal's 30-year concession after submitting a proposal that involves total investment of US$617mn, including US$144mn for the common port area.
The consortium expects to launch operations at the terminal in 2010 but is still awaiting national port authority (APN) approval for the technical aspects of the project, including the new terminal design, which was done by engineering firm Royal Hakoning from the Netherlands, Kwiatkowski said.
The company's aim is to convert Callao into a hub port for the western coast of South America, which is already on its way to happening thanks to its geographical location, sustained export growth and the free trade agreements (FTAs) signed, he added.
Indeed, with the FTA recently signed with the US alone, container movement at Callao is expected to grow more than 20% a year, transport and communications (MTC) minister Juan Suito was quoted as saying.
At the same time, some US$204mn would be needed to improve highway access to Callao port, Andina reported.
Callao's regional government is working in conjunction with MTC and APN to define the financial structure needed to upgrade access to the port, Callao government's planning manager Daniel Casella said.
Roadworks are expected to begin in the second half of 2008 and include works on the highways Néstor Gambetta and Costanera - the latter which crosses various coastal districts of capital Lima.
Part of the finance may come from the additional US$144mn that DP World Callao offered for the development of common areas, APN head Frank Boyle said, while MTC's Suito added that part of the investment would probably have to come from government coffers.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 17, 2007
German Siemens To Participate in Construction of Kallpa TPP in Peru
Siemens Power Generation, the power plant equipment arm of German electronics and engineering group Siemens AG, will participate in the second and third phases of the construction of Peru's thermoelectric power plant (TPP) Kallpa, Peruvian daily Andina said on December 17, 2007.
The TPP will be located in the district Chilca, south of the capital Lima. The second phase is expected to be completed in 2009, while the third one would be finished in 2010.
The first phase of the construction of the TPP was completed on July 24, 2007 after an investment of $80 mln (54.71 mln euro).
After completion of the three phases of the construction the Kallpa TPP will add 568 MW to the country's production capacity.
Investments during the second phase are expected at $90 mln (61.55 mln euro). The resources, to be allocated during the third and final phase, were not quoted.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: December 18, 2007
The TPP will be located in the district Chilca, south of the capital Lima. The second phase is expected to be completed in 2009, while the third one would be finished in 2010.
The first phase of the construction of the TPP was completed on July 24, 2007 after an investment of $80 mln (54.71 mln euro).
After completion of the three phases of the construction the Kallpa TPP will add 568 MW to the country's production capacity.
Investments during the second phase are expected at $90 mln (61.55 mln euro). The resources, to be allocated during the third and final phase, were not quoted.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: December 18, 2007
12/16/07
InVita launches market's cheapest microinsurance policy
Peruvian life insurer InVita Seguros has launched a life policy with a monthly premium of one sol, local press reported.
It is the cheapest life policy on the market and provides coverage of up to 2,500 soles (US$835) for natural and 5,000 soles for accidental death, according to the reports.
The insurance company signed an agreement with NGO ProMujer to sell the policy to a potential customer base of around 40,000.
InVita is also in talks with two other NGOs to launch more microinsurance products at similar prices, financial daily Gestión quoted InVita chair Caridad de la Puente Wiese as saying.
Demand for individual life insurance is growing in Peru as the population's purchase power is increasing, de la Puente said. The life market as a whole has expanded 30% this year and the growth prospect for next year is even better, Gestión quoted her as saying.
Invita Seguros offers a wide range of life, annuity and retirement products.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 14, 2007
It is the cheapest life policy on the market and provides coverage of up to 2,500 soles (US$835) for natural and 5,000 soles for accidental death, according to the reports.
The insurance company signed an agreement with NGO ProMujer to sell the policy to a potential customer base of around 40,000.
InVita is also in talks with two other NGOs to launch more microinsurance products at similar prices, financial daily Gestión quoted InVita chair Caridad de la Puente Wiese as saying.
Demand for individual life insurance is growing in Peru as the population's purchase power is increasing, de la Puente said. The life market as a whole has expanded 30% this year and the growth prospect for next year is even better, Gestión quoted her as saying.
Invita Seguros offers a wide range of life, annuity and retirement products.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 14, 2007
12/14/07
IFC and Wachovia Co-Arrange Financing to Mibanco in Peru, Latin America’s First International Syndication for Microfinance
IFC, a member of the World Bank Group, and Wachovia Capital Markets, LLC have co-arranged a $40 million syndicated financing agreement that will enable Peru’s Mibanco (Banco de la Microempresa S.A.) to offer longer loan maturities to its microenterprise clients and reach more customers in rural areas.
The transaction is the first international syndication for a microfinance institution in Latin America. Mibanco has provided more than two million loans to low-income individuals and small businesses in Peru, many of whom had little or no prior access to formal credit institutions. IFC’s financing supports the bank’s growth strategy, which aims to expand the penetration of microloans outside the Lima area and in rural areas, where financing needs remain very high.
Rafael Llosa, Mibanco’s General Manager, said, “This financing, the first of its kind for a microfinance institution in the region, will allow us to continue diversifying our funding sources. It also supports Mibanco’s strategy for expanding our microfinance portfolio. We are very pleased with this transaction and with the continuing support from IFC, a long-term partner of ours since 2001.
This financing also opens Mibanco's access to the international financial community and sets an important precedent for the microfinance industry in the world.” Through this transaction, IFC and Wachovia Capital Markets, LLC, the mandated lead arrangers and bookrunners, have also helped Mibanco broaden its relationships with international banks. This significantly diversifies its funding base, a key ingredient for future growth.
Originally structured as a $30 million loan, the syndication was oversubscribed by $18 million and attracted 10 participant banks from North America, Europe, Asia, and Latin America. Lead arrangers with $5 million shares include Bancolombia, HSBC, Natixis, Rabobank, and State Bank of India, and Wachovia Bank. Co-arrangers with $3 million shares include Israel Discount Bank, Republic Bank, and WGZ Bank; Minlam Asset Management, a microfinance-focused fund, participated with $1.5 million.
Ritva Laukkanen, IFC’s Director for Syndication and Resource Mobilization, noted, “The success of this syndication represents a strong vote of confidence—in Mibanco and the region’s microfinance industry—from the international financial community. Promoting microfinance services, a pillar of IFC’s strategy, is a key tool for creating opportunities and eradicating poverty. It makes basic financial services available to those left out of the traditional banking system.”
"We are pleased with the success of this transaction, which reflects both the quality of Mibanco and the increasing interest in the international financial community to support microfinance,” said Carlos Perez, Managing Director of the Americas for Wachovia’s Global Financial Institutions and Trade Division.
"Microfinance institutions enable business development in impoverished areas by providing access to modern financial tools. We bring Wachovia’s support to Mibanco, including our experience and relationships with thousands of banks and financial institutions around the world.” IFC’s relationship with Mibanco started in 2001, when IFC extended a five-year, $5 million loan to help the bank expand its lending activities outside the Lima area. As Mibanco increased its lending and opened new branches, its funding needs increased, leading to a second loan from IFC, of $29 million, in June 2006. In April 2007, IFC extended a third round of financing, consisting of a $7 million subordinated loan (counting as Tier 2 capital) to support Mibanco’s capital base and high growth.
Building on its lending relationship, in June 2007 IFC became a shareholder in Mibanco with a 6.5 percent equity stake. About IFC IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives.
In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org About MIBANCO Mibanco is the leading microfinance bank in Peru.
It is the country’s largest provider of microfinance loans by number of clients served and the second-largest in terms of loan volume. As of September 30, 2007, it reported a 14.2 percent market share with total assets of over $512 million and net worth of $59 million. Mibanco has a network of 81 branches and 25 ATMs, serving a customer base of over 376,000. Mibanco’s strategy is to target the middle and lower sectors of the microfinance market, where the demand for microcredit is highest and the supply weakest. Mibanco offers both lending and savings products. Loans are used for working capital and fixed investment needs.
Publication: International Finance Corporation - Press Release
Provider: International Finance Corporation
Date: December 14, 2007
The transaction is the first international syndication for a microfinance institution in Latin America. Mibanco has provided more than two million loans to low-income individuals and small businesses in Peru, many of whom had little or no prior access to formal credit institutions. IFC’s financing supports the bank’s growth strategy, which aims to expand the penetration of microloans outside the Lima area and in rural areas, where financing needs remain very high.
Rafael Llosa, Mibanco’s General Manager, said, “This financing, the first of its kind for a microfinance institution in the region, will allow us to continue diversifying our funding sources. It also supports Mibanco’s strategy for expanding our microfinance portfolio. We are very pleased with this transaction and with the continuing support from IFC, a long-term partner of ours since 2001.
This financing also opens Mibanco's access to the international financial community and sets an important precedent for the microfinance industry in the world.” Through this transaction, IFC and Wachovia Capital Markets, LLC, the mandated lead arrangers and bookrunners, have also helped Mibanco broaden its relationships with international banks. This significantly diversifies its funding base, a key ingredient for future growth.
Originally structured as a $30 million loan, the syndication was oversubscribed by $18 million and attracted 10 participant banks from North America, Europe, Asia, and Latin America. Lead arrangers with $5 million shares include Bancolombia, HSBC, Natixis, Rabobank, and State Bank of India, and Wachovia Bank. Co-arrangers with $3 million shares include Israel Discount Bank, Republic Bank, and WGZ Bank; Minlam Asset Management, a microfinance-focused fund, participated with $1.5 million.
Ritva Laukkanen, IFC’s Director for Syndication and Resource Mobilization, noted, “The success of this syndication represents a strong vote of confidence—in Mibanco and the region’s microfinance industry—from the international financial community. Promoting microfinance services, a pillar of IFC’s strategy, is a key tool for creating opportunities and eradicating poverty. It makes basic financial services available to those left out of the traditional banking system.”
"We are pleased with the success of this transaction, which reflects both the quality of Mibanco and the increasing interest in the international financial community to support microfinance,” said Carlos Perez, Managing Director of the Americas for Wachovia’s Global Financial Institutions and Trade Division.
"Microfinance institutions enable business development in impoverished areas by providing access to modern financial tools. We bring Wachovia’s support to Mibanco, including our experience and relationships with thousands of banks and financial institutions around the world.” IFC’s relationship with Mibanco started in 2001, when IFC extended a five-year, $5 million loan to help the bank expand its lending activities outside the Lima area. As Mibanco increased its lending and opened new branches, its funding needs increased, leading to a second loan from IFC, of $29 million, in June 2006. In April 2007, IFC extended a third round of financing, consisting of a $7 million subordinated loan (counting as Tier 2 capital) to support Mibanco’s capital base and high growth.
Building on its lending relationship, in June 2007 IFC became a shareholder in Mibanco with a 6.5 percent equity stake. About IFC IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives.
In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org About MIBANCO Mibanco is the leading microfinance bank in Peru.
It is the country’s largest provider of microfinance loans by number of clients served and the second-largest in terms of loan volume. As of September 30, 2007, it reported a 14.2 percent market share with total assets of over $512 million and net worth of $59 million. Mibanco has a network of 81 branches and 25 ATMs, serving a customer base of over 376,000. Mibanco’s strategy is to target the middle and lower sectors of the microfinance market, where the demand for microcredit is highest and the supply weakest. Mibanco offers both lending and savings products. Loans are used for working capital and fixed investment needs.
Publication: International Finance Corporation - Press Release
Provider: International Finance Corporation
Date: December 14, 2007
12/12/07
ProChile: Peru an interesting export destination for software developers
Peru is becoming an increasingly attractive export destination for Chilean software, according to Chile's government export promotion agency ProChile.
Chilean financial daily Diario Financiero reported ProChile's Lima office as saying that currently there are few foreign companies competing with local Peruvian software developers with applications for niche markets such as construction, health, finance and web design.
Demand for such applications, which boost competitiveness and efficiency of company processes, is growing, according to ProChile.
Peru has favorable legislation for companies exporting software to that country.
Imported packaged and tailor made software only pays taxes on the physical means in which the software is transported, such as the CD, unlike in Chile where a tax is also levied on the actual content of the software.
ProChile also sees opportunities for applications for the growing telecoms sector.
According to statistics of consultancy IDC, IT investments in Peru are expected to grow 15.8% this year compared to 2006, reaching a total value of US$800mn.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 12, 2007
Chilean financial daily Diario Financiero reported ProChile's Lima office as saying that currently there are few foreign companies competing with local Peruvian software developers with applications for niche markets such as construction, health, finance and web design.
Demand for such applications, which boost competitiveness and efficiency of company processes, is growing, according to ProChile.
Peru has favorable legislation for companies exporting software to that country.
Imported packaged and tailor made software only pays taxes on the physical means in which the software is transported, such as the CD, unlike in Chile where a tax is also levied on the actual content of the software.
ProChile also sees opportunities for applications for the growing telecoms sector.
According to statistics of consultancy IDC, IT investments in Peru are expected to grow 15.8% this year compared to 2006, reaching a total value of US$800mn.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 12, 2007
12/10/07
Hochschild increases interest in EXMIN to 19.9%
Peru's Hochschild Mining has agreed to purchase via private placement an additional 2.74mn common shares of Vancouver-based EXMIN Resources, the companies said in separate statements.
After completing the transaction Hochschild (LSE: HOC) will have increased its stake in the Canadian miner by some 3.05% to 19.9%.
Each EXMIN (TSX-V: EXM) share will be sold at Cdn$0.40.
The transaction is expected to close on or around December 14.
Proceeds of the placement will be used at the Moris Mine in Mexico, which poured its first gold-silver dore in October and is jointly owned by Hochschild with 70%, with EXMIN holding the remaining 30%.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 10, 2007
After completing the transaction Hochschild (LSE: HOC) will have increased its stake in the Canadian miner by some 3.05% to 19.9%.
Each EXMIN (TSX-V: EXM) share will be sold at Cdn$0.40.
The transaction is expected to close on or around December 14.
Proceeds of the placement will be used at the Moris Mine in Mexico, which poured its first gold-silver dore in October and is jointly owned by Hochschild with 70%, with EXMIN holding the remaining 30%.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 10, 2007
Scotiabank, N-Via launch m-payments service in Peru
Provider of financial services and money transfer services N-Via USA has teamed with financial services provider Scotiabank Peru to offer mobile money payments service with cash out options through Scotiabank Peru's more than 400 service outlets in 27 cities across Peru. US-based N-Via is specialised in financial services and money transfer, including prepaid debit cards, bill payment, mobile payments and mobile to mobile transfers. According to the Interamerican Development Bank's Multilateral Investment, Peru receives USD 2.86 billion in annual remittance, the seventh largest receiver in Latin America.
Publication: Telecom.paper News
Provider: Telecom.paper
Date: December 10, 2007
Publication: Telecom.paper News
Provider: Telecom.paper
Date: December 10, 2007
Jiangxi looks to Peru for concentrate boost
Jiangxi Copper`s self-sufficiency in copper concentrate will be significantly boosted by its proposed joint acquisition of Northern Peru Copper Co (Noc), the company told MB.
This year Jiangxi will produce some 150,000 tonnes of copper concentrates from its own Chinese mines, supplying just 30 percent of this year`s expected production of 500,000 tonnes. The balance is made up from imports.
But following the launch of a new smelter in September, the company`s capacity is now 700,000 tpy.
Noc`s key Galeno copper-and-gold resource, based in Peru, is expected to produce an average of 200,000 tpy in the first five years of its life, a large proportion of which could be supplied to Jiangxi, according to officials at the Chinese company.
"As Noc controls the Galeno mine, our concentrate supplies will be significantly boosted after the full development of the mine," said one official. "However, the specific figure is not available yet."
Jiangxi Copper, China`s biggest copper smelter, has agreed to buy Noc with China Minmetals Nonferrous Metals Co Ltd (Minmetals) in a deal worth C$455 million ($450 million) (MB Dec 6).
Noc has not set a date for commissioning its Galeno mine, but Jiangxi and Minmetals said they may spend three to four years developing it. A feasibility study carried out by Northern Copper is due to be completed in the middle of next year.
"Noc has already been a supplier of our copper concentrate," said a second Jiangxi official.
Noc is a Vancouver- and Lima-based copper exploration company that controls the Galeno project, which boasts 3.3 million tonnes of copper reserves, 79 tonnes of gold and 86,000 tonnes of molybdenum.
Jiangxi Copper and Minmetals plan to set up a joint venture for the management of the Noc with an investment of 1.15 billion yuan ($155.5 million). Minmetals will hold 60 percent of total stake while Jiangxi copper will hold the remaining 40 percent.
Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: December 10, 2007
This year Jiangxi will produce some 150,000 tonnes of copper concentrates from its own Chinese mines, supplying just 30 percent of this year`s expected production of 500,000 tonnes. The balance is made up from imports.
But following the launch of a new smelter in September, the company`s capacity is now 700,000 tpy.
Noc`s key Galeno copper-and-gold resource, based in Peru, is expected to produce an average of 200,000 tpy in the first five years of its life, a large proportion of which could be supplied to Jiangxi, according to officials at the Chinese company.
"As Noc controls the Galeno mine, our concentrate supplies will be significantly boosted after the full development of the mine," said one official. "However, the specific figure is not available yet."
Jiangxi Copper, China`s biggest copper smelter, has agreed to buy Noc with China Minmetals Nonferrous Metals Co Ltd (Minmetals) in a deal worth C$455 million ($450 million) (MB Dec 6).
Noc has not set a date for commissioning its Galeno mine, but Jiangxi and Minmetals said they may spend three to four years developing it. A feasibility study carried out by Northern Copper is due to be completed in the middle of next year.
"Noc has already been a supplier of our copper concentrate," said a second Jiangxi official.
Noc is a Vancouver- and Lima-based copper exploration company that controls the Galeno project, which boasts 3.3 million tonnes of copper reserves, 79 tonnes of gold and 86,000 tonnes of molybdenum.
Jiangxi Copper and Minmetals plan to set up a joint venture for the management of the Noc with an investment of 1.15 billion yuan ($155.5 million). Minmetals will hold 60 percent of total stake while Jiangxi copper will hold the remaining 40 percent.
Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: December 10, 2007
12/9/07
Rimac expects microinsurance segment to grow 50% in 2008
Peruvian insurer Rimac Seguros expects the country's microinsurance market to grow 50% next year to US$5mn compared to 2007, local financial daily Gestión reported.
The potential microinsurance market in Peru is from 15mn-18mn people, said José Cordano, Rimac manager for non-traditional distribution channels.
Non-traditional distribution channels like retail stores, small neighborhood shops and drugstores are key for insurers looking to reach Peru's low-income population, Cordano said.
Cordano also said microinsurance sales are being helped by increased bank penetration in Peru as insurers offer newly banked people low-cost policies to protect their plastic.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 7, 2007
The potential microinsurance market in Peru is from 15mn-18mn people, said José Cordano, Rimac manager for non-traditional distribution channels.
Non-traditional distribution channels like retail stores, small neighborhood shops and drugstores are key for insurers looking to reach Peru's low-income population, Cordano said.
Cordano also said microinsurance sales are being helped by increased bank penetration in Peru as insurers offer newly banked people low-cost policies to protect their plastic.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 7, 2007
12/7/07
Inca Pacific releases feasibility on Magistral
Vancouverite Inca Pacific Resources (TSX-V, BVL: IPR) has released the final feasibility study for its Magistral copper-molybdenum project in Peru's Ancash department.
The study outlines a 2011 startup and 7Mt annual throughput for a 15-year mine life to produce 34,100t/y of copper and 2,860t/y molybdenum, the company said in a statement, adding the strip ratio is 2.2:1.
The project has a US$146mn net present value at an after-tax 8% discount rate and an internal rate of return of 14.9%. The study also determined a capital payback of 3.3 years for an initial capital expenditure of US$402mn.
"I am very pleased that, while capital costs have escalated, we do have a robust project with a rapid payback," Inca Pacific CEO Anthony Floyd said in the statement.
The company must present at least one letter from a financial institution backing the project to the government of Peru for the feasibility to be considered bankable.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 6, 2007
The study outlines a 2011 startup and 7Mt annual throughput for a 15-year mine life to produce 34,100t/y of copper and 2,860t/y molybdenum, the company said in a statement, adding the strip ratio is 2.2:1.
The project has a US$146mn net present value at an after-tax 8% discount rate and an internal rate of return of 14.9%. The study also determined a capital payback of 3.3 years for an initial capital expenditure of US$402mn.
"I am very pleased that, while capital costs have escalated, we do have a robust project with a rapid payback," Inca Pacific CEO Anthony Floyd said in the statement.
The company must present at least one letter from a financial institution backing the project to the government of Peru for the feasibility to be considered bankable.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 6, 2007
12/1/07
Maple begins ethanol feedstock dev
Dallas-based integrated energy company Maple Energy (AIM: MPLE) has started development of its first seed cane plot in Peru's Piura region.
The plot will provide seed sugarcane for the company's sugarcane estate, which in turn will provide feedstock for Maple's planned ethanol plant.
Third-party contractors are preparing the land for the installation of drip irrigation systems, the company said in a statement.
"The La Huaca seed cane farm represents a significant milestone in Maple's planned 30Mg/y [114Ml/y] ethanol project," Maple chairman and executive director Jack Hanks said.
In October, Maple leased 58ha of land near La Huaca village, which is close to the Chira river and the company's 10,676ha estate. Roughly 47ha of the leased land will be planted with sugarcane.
Eight to 10 months after planting, each hectare of seed cane will provide enough material to plant 10-12ha of commercial cane land. The seed cane program will be expanded through 2008 to about 320ha, the statement said.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 30, 2007
The plot will provide seed sugarcane for the company's sugarcane estate, which in turn will provide feedstock for Maple's planned ethanol plant.
Third-party contractors are preparing the land for the installation of drip irrigation systems, the company said in a statement.
"The La Huaca seed cane farm represents a significant milestone in Maple's planned 30Mg/y [114Ml/y] ethanol project," Maple chairman and executive director Jack Hanks said.
In October, Maple leased 58ha of land near La Huaca village, which is close to the Chira river and the company's 10,676ha estate. Roughly 47ha of the leased land will be planted with sugarcane.
Eight to 10 months after planting, each hectare of seed cane will provide enough material to plant 10-12ha of commercial cane land. The seed cane program will be expanded through 2008 to about 320ha, the statement said.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 30, 2007
11/23/07
Colombia Ecopetrol To Invest $50 Mln in Explorations in Peru
Colombian state oil company Ecopetrol plans to invest $50 mln (34.2 mln euro) for the exploration at three hydrocarbon lots in Peru by the end of 2008, Ecopetrol president, Javier Gutierrez, said on November 22, 2007.
Ecopetrol will participate in the exploration of the Lot 90 together with Repsol Exploracion Peru, as well as of the Lots 101 and 134 with local subsidiary of Canadian Talisman Energy.
Separately, Ecopetrol along with Brazil's oil and gas giant Petrobras and Peruvian state oil company Petroperu signed an agreement to carry out a technical evaluation in six areas in the Maranon basin, Peru's northern Loreto region. Each company will have a 33.33 pct stake and Petrobras will be the technical evaluation operator.
Peru is among the first countries to become part of Ecopetrol's expansion abroad.
The company seeks to expand by establishing alliances with other companies and is engaged in talks with some operators in Peru, Gutierrez said.
Ecopetrol will participate in the exploration of the Lot 90 together with Repsol Exploracion Peru, as well as of the Lots 101 and 134 with local subsidiary of Canadian Talisman Energy.
Separately, Ecopetrol along with Brazil's oil and gas giant Petrobras and Peruvian state oil company Petroperu signed an agreement to carry out a technical evaluation in six areas in the Maranon basin, Peru's northern Loreto region. Each company will have a 33.33 pct stake and Petrobras will be the technical evaluation operator.
Peru is among the first countries to become part of Ecopetrol's expansion abroad.
The company seeks to expand by establishing alliances with other companies and is engaged in talks with some operators in Peru, Gutierrez said.
Cimpor to invest US$125mn in cement production plant
Portuguese cement company Cimentos de Portugal (Cimpor) will invest US$125mn in the construction of a cement plant in southwestern Peruvian department Arequipa, Cimpor reported in a release.
The initiative will be carried out through the company's Peruvian subsidiary, Cimpor Inversiones, which has purchased 80% of the company Cementos Otorongo for 57mn soles (US$18.8mn).
It was Cementos Otorongo that, at the time, was developing the cement project. The company has enough raw material to produce cement and clinker, and has all the permits needed to build and operate a plant of this kind in Arequipa.
The plant's capacity will reach 650,000t annually, being able to cover 10% of Peru's cement consumption. It will initially sell only to the domestic market, but plans on exporting in the future.
The facility is expected to become operative in two years.
Besides Portugal, Cimpor also has operations in Spain, Turkey, China, Egypt, Mozambique, Morocco, Brazil and South Africa.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 23, 2007
The initiative will be carried out through the company's Peruvian subsidiary, Cimpor Inversiones, which has purchased 80% of the company Cementos Otorongo for 57mn soles (US$18.8mn).
It was Cementos Otorongo that, at the time, was developing the cement project. The company has enough raw material to produce cement and clinker, and has all the permits needed to build and operate a plant of this kind in Arequipa.
The plant's capacity will reach 650,000t annually, being able to cover 10% of Peru's cement consumption. It will initially sell only to the domestic market, but plans on exporting in the future.
The facility is expected to become operative in two years.
Besides Portugal, Cimpor also has operations in Spain, Turkey, China, Egypt, Mozambique, Morocco, Brazil and South Africa.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 23, 2007
11/21/07
Xstrata creates southern Peru division
Anglo-Swiss resources group Xstrata (LSE: XTA) is creating a southern Peru division in a move designed to promote the company's growth in the country, according to an Xstrata statement.
The company's Tintaya copper mine, along with the Las Bambas and Antapaccay projects in southern Peru, will fall under the new division, to be managed by newly appointed COO José Marún, formerly Tintaya's general manager.
Former technical services manager for Argentina's Minera Alumbrera, Luis Rivera, is taking over for Marún at Tintaya.
Ronald Luethe is to continue as general manager for projects in southern Peru while Domingo Drago is taking over as general manager of corporate affairs at the division.
Xstrata controls the Alumbrera gold-copper mine with a 50% stake. In Peru the company also has control of the Antamina copper-zinc mine together with BHP Billiton (NYSE: BHP), each holding 33.8%.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 21, 2007
The company's Tintaya copper mine, along with the Las Bambas and Antapaccay projects in southern Peru, will fall under the new division, to be managed by newly appointed COO José Marún, formerly Tintaya's general manager.
Former technical services manager for Argentina's Minera Alumbrera, Luis Rivera, is taking over for Marún at Tintaya.
Ronald Luethe is to continue as general manager for projects in southern Peru while Domingo Drago is taking over as general manager of corporate affairs at the division.
Xstrata controls the Alumbrera gold-copper mine with a 50% stake. In Peru the company also has control of the Antamina copper-zinc mine together with BHP Billiton (NYSE: BHP), each holding 33.8%.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 21, 2007
11/20/07
Marcobre Gets $145 Mln Funding for Peruvian Marcona Mine
Peru-based mining company Marcobre SAC has got a $145 mln (99.2 mln euro) funding to develop its copper project Mina Justa in Marcona, in the southern region of Ica, the Peruvian Foreign Affairs Ministry said on November 16, 2007.
The financial institutions to support the project are the agency Export Development Canada, Korean Eximbank and German KfW IPEX-Bank.
Marcobre is 70 pct controlled by Canadian miner Chariot Resources Ltd (www.chariotresources.com). The remained is owned by South Korean state-run Korea Resources Corporation (KORES) and South Korea's copper producer LS-Nikko Copper Inc, previously known as LG-Nikko Copper Inc.
Marcobre seeks to consolidate its position of a medium-sized copper producer.
Peruvian mining exports totalled $12.1 bln (8.275 bln euro) in January to September 2007, up 16.5 pct year-on-year. Copper exports alone rose by 18 pct, according to latest data of Peru's export and tourism promotion commission Promperu.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 20, 2007
The financial institutions to support the project are the agency Export Development Canada, Korean Eximbank and German KfW IPEX-Bank.
Marcobre is 70 pct controlled by Canadian miner Chariot Resources Ltd (www.chariotresources.com). The remained is owned by South Korean state-run Korea Resources Corporation (KORES) and South Korea's copper producer LS-Nikko Copper Inc, previously known as LG-Nikko Copper Inc.
Marcobre seeks to consolidate its position of a medium-sized copper producer.
Peruvian mining exports totalled $12.1 bln (8.275 bln euro) in January to September 2007, up 16.5 pct year-on-year. Copper exports alone rose by 18 pct, according to latest data of Peru's export and tourism promotion commission Promperu.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 20, 2007
11/17/07
Six prequalify for Kingsmill acid plant bidding
Peru's mining ministry reported that six parties have prequalified for the bidding to construct the Kingsmill acid water treatment plant to resolve environmental liabilities near the Yauli and Mantaro rivers.
The prequalified bidders are Peruvian engineering firms BISA, CESEL and GyM, the Chilean branch of Canada's Hatch, and two consortiums: one made up of Peru's COSAPI and the US arm of France's Veolia, and another between Mexico's Earth Tech and Canadian Environmental and Metallurgical.
Twenty potential bidders had shown interest in participating.
The ministry will accept official bids starting December 12 and open them January 21, 2008, with the first construction work set to start in the first quarter of next year, it said in a statement.
Vancouverite Peru Copper (PCR), the owner of the Toromocho copper project, recently presented a feasibility study for the Kingsmill plant and agreed to donate US$24.1mn to build the operation.
The endeavor aims to clean up acid runoff from mining into the Yauli and Mataro rivers in Junín department that has been a serious problem for decades as a result of activities linked to the La Oroya polymetallic smelter.
The pollution first started when the Cerro de Pasco copper corporation owned La Oroya and in 1934 finished building the Kingsmill tunnel as an annex to it. Today US company Doe Run owns La Oroya.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 16, 2007
The prequalified bidders are Peruvian engineering firms BISA, CESEL and GyM, the Chilean branch of Canada's Hatch, and two consortiums: one made up of Peru's COSAPI and the US arm of France's Veolia, and another between Mexico's Earth Tech and Canadian Environmental and Metallurgical.
Twenty potential bidders had shown interest in participating.
The ministry will accept official bids starting December 12 and open them January 21, 2008, with the first construction work set to start in the first quarter of next year, it said in a statement.
Vancouverite Peru Copper (PCR), the owner of the Toromocho copper project, recently presented a feasibility study for the Kingsmill plant and agreed to donate US$24.1mn to build the operation.
The endeavor aims to clean up acid runoff from mining into the Yauli and Mataro rivers in Junín department that has been a serious problem for decades as a result of activities linked to the La Oroya polymetallic smelter.
The pollution first started when the Cerro de Pasco copper corporation owned La Oroya and in 1934 finished building the Kingsmill tunnel as an annex to it. Today US company Doe Run owns La Oroya.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 16, 2007
11/16/07
Argentine Techint To Start 408 KM Gas Pipeline Construction in Jan 2008
Argentine industrial group Techint will start the construction of a 408 km long gas pipeline in Peru in January 2008, general manager of Peruvian gas exports consortium, Peru LNG, Barbara Bruce, said on November 15, 2007.
The gas pipeline will transport liquefied natural gas (LNG) of the Camisea field. It will start from the Ayacucho department and will reach the gas liquefaction plant in Pampa Melchorita on the Pacific coast of the country, run by Peru LNG. Between 10 pct and 15 pct of that plant is already concluded and some 85 pct of the equipment is bought.
The first ship, which will transport natural gas to Mexico, is expected to sail in May 2010. The capacity of each ship will round 170,000 cu m of LNG and every fourth day a ship will sail to Mexico.
The exports of gas from Camisea are awarded to Peru LNG, formed by U.S. energy group Hunt Oil, South Korea's SK Corp, Algerian Sonatrach, and Argentine Pluspetrol and Techint. Pluspetrol Peru Corporacion SA, local subsidiary of Argentine Pluspetrol, operates the gas field.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 16, 2007
The gas pipeline will transport liquefied natural gas (LNG) of the Camisea field. It will start from the Ayacucho department and will reach the gas liquefaction plant in Pampa Melchorita on the Pacific coast of the country, run by Peru LNG. Between 10 pct and 15 pct of that plant is already concluded and some 85 pct of the equipment is bought.
The first ship, which will transport natural gas to Mexico, is expected to sail in May 2010. The capacity of each ship will round 170,000 cu m of LNG and every fourth day a ship will sail to Mexico.
The exports of gas from Camisea are awarded to Peru LNG, formed by U.S. energy group Hunt Oil, South Korea's SK Corp, Algerian Sonatrach, and Argentine Pluspetrol and Techint. Pluspetrol Peru Corporacion SA, local subsidiary of Argentine Pluspetrol, operates the gas field.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 16, 2007
11/15/07
Peru, Argentina Seen To Attract More Copper Investments than Chile 2008-2012
Peru and Argentina are expected to attract more investments in the copper sector than Chile in the 2008-2012 period, Chilean brokerage LarrainVial said on November 14, 2007.
One of the reasons is that Chile is expected to produce 1.1 million tonnes of copper annually, which will be less than Peruvian and Argentine output.
Peru is the third biggest copper producer worldwide, accumulating 7.0 pct of the world output, after Chile with 35 pct and the USA with 8.0 pct. Peru is expected to post a 6.0 pct rise in its 2007 copper output and to produce more than 1.11 million metric tonnes.
Peru and Argentina are opening their copper market to foreign investment, a process, which has already started in Chile, Chilean Mining Minister, Karen Poniachik, said. There also is a process of displacement of foreign investments from Chile to Peru and Argentina, Poniachik added.
The Chinese gold producer Zijinc, for example, acquired the shares of British mining company Monterrico Metals in the copper project Rio Blanco, in the Piura department, northern Peru.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 15, 2007
One of the reasons is that Chile is expected to produce 1.1 million tonnes of copper annually, which will be less than Peruvian and Argentine output.
Peru is the third biggest copper producer worldwide, accumulating 7.0 pct of the world output, after Chile with 35 pct and the USA with 8.0 pct. Peru is expected to post a 6.0 pct rise in its 2007 copper output and to produce more than 1.11 million metric tonnes.
Peru and Argentina are opening their copper market to foreign investment, a process, which has already started in Chile, Chilean Mining Minister, Karen Poniachik, said. There also is a process of displacement of foreign investments from Chile to Peru and Argentina, Poniachik added.
The Chinese gold producer Zijinc, for example, acquired the shares of British mining company Monterrico Metals in the copper project Rio Blanco, in the Piura department, northern Peru.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 15, 2007
Cerro Corona gold-copper start-up delayed, costs rise, says Gold Fields
The start-up of Gold Fields` Cerro Corona gold-copper project in Peru will be delayed by four months with ore treatment now due to begin by mid-June 2008 rather than March because of the South African company`s inability to complete engineering tasks on schedule.
Cerro Corona, in Cajamarca department, is due to produce 140,000 oz per year of gold and more than 27,000 tpy of copper contained in concentrates.
Poor rock quality and inadequate material delivery rates have hampered building the tailings management facility and several contractors responsible for installing the concentrator have underperformed, Gold Fields said.
The company also increased its forecast for capital costs. Construction costs will rise by 23 percent to $421 million from $343 million, it said.
"While we are disappointed with the delay and the increased construction costs, Cerro Corona remains a robust project and will make a significant contribution to the future of Gold Fields. We have thoroughly reviewed every facet of this project and I am confident that the required steps have been taken to ensure completion within the revised project schedule and budget," said ceo Ian Cockerill, in a statement.
Cerro Corona has reserves of 3.2 million oz of gold and 1,089 million lb of copper.
Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: November 15, 2007
Cerro Corona, in Cajamarca department, is due to produce 140,000 oz per year of gold and more than 27,000 tpy of copper contained in concentrates.
Poor rock quality and inadequate material delivery rates have hampered building the tailings management facility and several contractors responsible for installing the concentrator have underperformed, Gold Fields said.
The company also increased its forecast for capital costs. Construction costs will rise by 23 percent to $421 million from $343 million, it said.
"While we are disappointed with the delay and the increased construction costs, Cerro Corona remains a robust project and will make a significant contribution to the future of Gold Fields. We have thoroughly reviewed every facet of this project and I am confident that the required steps have been taken to ensure completion within the revised project schedule and budget," said ceo Ian Cockerill, in a statement.
Cerro Corona has reserves of 3.2 million oz of gold and 1,089 million lb of copper.
Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: November 15, 2007
11/13/07
Spanish Telefonica Invests $210 Mln in Peru Jan-Sept 2007
Spanish telecommunications company Telefonica invested a total $210 mln (144 mln euro) in Peru for the period from January to September 2007, Peruvian daily Andina said on November 12, 2007.
The number of the company's clients in Peru totalled 11.2 million in the same period, of them 4.0 million people used fixed telephony and the rest were clients of the mobile telephone service.
In turn, the clients of Telefonica in Latin America rose by 14.9 pct from January to September 2007 in comparison to the nine months to September 2006. The rise was mainly attributed to the 20.2 pct increase of the mobile telephony clients, whose number reached 94.7 million.
The most significant rise of the mobile telephony clients was registered in Peru, up 60 pct, Mexico, up 48.8 pct, Central America, up 36.8 pct and Argentina, up 28.8 pct.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 13, 2007
The number of the company's clients in Peru totalled 11.2 million in the same period, of them 4.0 million people used fixed telephony and the rest were clients of the mobile telephone service.
In turn, the clients of Telefonica in Latin America rose by 14.9 pct from January to September 2007 in comparison to the nine months to September 2006. The rise was mainly attributed to the 20.2 pct increase of the mobile telephony clients, whose number reached 94.7 million.
The most significant rise of the mobile telephony clients was registered in Peru, up 60 pct, Mexico, up 48.8 pct, Central America, up 36.8 pct and Argentina, up 28.8 pct.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 13, 2007
11/12/07
Peruvian Credicorp Net Profit Up 75.9 Pct Y/Y Q3 2007
Peruvian financial holding company Credicorp reported a 75.9 pct year-on-year rise in its net profit for the third quarter of 2007 to a total $90.3 mln (61.7 mln euro), the company said on November 9, 2007.
The net profit rose by 3.3 pct compared to the net profit seen in the second quarter of 2007.
The accumulated net profit for January to September 2007 totalled $256.7 mln (175.5 mln), up 54 pct year-on-year.
Credicorp holds a 97.3 pct stake in Peruvian bank Banco de Credito (BCP). The holding Credicorp includes Banco de Credito de Peru, Atlantic Security Holding Corporation and Pacifico Peruano Suiza, listed on the stock exchange in Lima and New York.
BCP continues to be the main contributor of Credicorp's net profit with $88.2 mln (60.3 mln euro). BCP's net profit totalled $238.7 mln (163.2 mln euro) in the nine months to September 2007.
(Note: Unless otherwise stated, all figures/comparisons are for Q3 2007/Q2 2006.)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 12, 2007
The net profit rose by 3.3 pct compared to the net profit seen in the second quarter of 2007.
The accumulated net profit for January to September 2007 totalled $256.7 mln (175.5 mln), up 54 pct year-on-year.
Credicorp holds a 97.3 pct stake in Peruvian bank Banco de Credito (BCP). The holding Credicorp includes Banco de Credito de Peru, Atlantic Security Holding Corporation and Pacifico Peruano Suiza, listed on the stock exchange in Lima and New York.
BCP continues to be the main contributor of Credicorp's net profit with $88.2 mln (60.3 mln euro). BCP's net profit totalled $238.7 mln (163.2 mln euro) in the nine months to September 2007.
(Note: Unless otherwise stated, all figures/comparisons are for Q3 2007/Q2 2006.)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 12, 2007
Mapfre could launch mortgage unit
The Peruvian unit of Spanish insurer Mapfre is considering the launch of a mortgage financing unit, Lima-based financial daily Gestión reported.
Mapfre Perú has the capacity to enter the mortgage financing business and so it is a project under consideration, the paper reported VP Mario Payá as saying.
The Mapfre unit would grant mortgage loans and later offer those in securitized form to institutional investors like insurers and private pension fund managers, according to the report.
Mapfre is betting strongly on Latin America and Peru for growth and earlier this year bought Peruvian insurer Latin Seguros for US$13.4mn.
Mapfre is a top five player both in Peru's non-life and life markets and one of the largest insurance groups in Latin America.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 12, 2007
Mapfre Perú has the capacity to enter the mortgage financing business and so it is a project under consideration, the paper reported VP Mario Payá as saying.
The Mapfre unit would grant mortgage loans and later offer those in securitized form to institutional investors like insurers and private pension fund managers, according to the report.
Mapfre is betting strongly on Latin America and Peru for growth and earlier this year bought Peruvian insurer Latin Seguros for US$13.4mn.
Mapfre is a top five player both in Peru's non-life and life markets and one of the largest insurance groups in Latin America.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: November 12, 2007
11/7/07
Chilean Tottus To Invest $60 Mln in Opening up to 15 Hypermarkets in Peru 2008
Chilean hypermarket chain Tottus will invest $60 mln (41.23 mln euro) in the opening of up to 15 hypermarkets in Peru in 2008, the CEO of Tottus, Juan Correa, said on November 6.
Some 50 pct of the hypermarkets will be located in Lima, he added. The remaining will be definitely opened in cities such as Chiclayo, Trujillo and Arequipa, Correa was quoted as saying.
Peru is currently enjoying an economic stability and growth, which is the main reason Tottus wants to expand on the Peruvian market, he commented.
Tottus opened a new hypermarket in Lima's district Chorrillos on November 6. The new hypermarket is the fifth of the company in Peru.
Tottus is owned by the Chilean retail chain Falabella. The total investment plan of Tottus for 2007 stands at $50 mln (34.36 mln euro).
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 7, 2007
Some 50 pct of the hypermarkets will be located in Lima, he added. The remaining will be definitely opened in cities such as Chiclayo, Trujillo and Arequipa, Correa was quoted as saying.
Peru is currently enjoying an economic stability and growth, which is the main reason Tottus wants to expand on the Peruvian market, he commented.
Tottus opened a new hypermarket in Lima's district Chorrillos on November 6. The new hypermarket is the fifth of the company in Peru.
Tottus is owned by the Chilean retail chain Falabella. The total investment plan of Tottus for 2007 stands at $50 mln (34.36 mln euro).
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: November 7, 2007
11/5/07
EIU's Peru Business environment at a glance
Policy towards private enterprise and competition
2008-10: Business-friendly rules the norm, but distortions persist, owing to powerful lobbying groups.
2011-12: Continued strengthening of business rules and intellectual property protection to comply with terms of free-trade agreement (FTA) with the US.
Policy towards foreign investment
2008-10: Few formal barriers, but some ambiguity in policy towards investors. Mining, energy, communications and transport will remain magnets. Addressing community-based tensions will be important in reducing political risk.
2011-12: Emphasis on attracting foreign investment into transport infrastructure, mining, energy and tourism.
Foreign trade and exchange controls
2008-10: Implementation of FTA with the US. Negotiation of bilateral FTAs with the EU, Mexico and China. Tariffs will remain below the common external tariff (CET) of the Comunidad Andina (CAN, the Andean Community).
2011-12: Gradual liberalisation to comply with bilateral trade agreements.
Taxes
2008-10: System remains unsettled and complex. Net assets and financial transactions taxes retained at lower rate; little prospect of cut in 19% value-added tax (VAT) rate.
2011-12: Additional elimination of some of the many tax exemptions to widen the tax base, but no major reform.
Financing
2008-10: Capital market grows in depth and sophistication. Bank lending sees cautious growth.
2011-12: Deepening local capital market as pension funds grow.
The labour market
2008-10: Additional rigidities introduced as labour code is revised. Wage pressures weak, but skill levels generally low.
2011-12: Unions still weak, owing to high unemployment and underemployment. Implementation of FTA with the US increases pressure for greater labour-market flexibility.
Infrastructure
2008-10: Concessions issued and awarded for transport infrastructure, including roads and ports.
2011-12: Further development of projects linking Peru’s transport infrastructure with that of Brazil.
Publication: EIU Business - Background
Provider: The Economist Intelligence Unit Limited
Date: November 5, 2007
2008-10: Business-friendly rules the norm, but distortions persist, owing to powerful lobbying groups.
2011-12: Continued strengthening of business rules and intellectual property protection to comply with terms of free-trade agreement (FTA) with the US.
Policy towards foreign investment
2008-10: Few formal barriers, but some ambiguity in policy towards investors. Mining, energy, communications and transport will remain magnets. Addressing community-based tensions will be important in reducing political risk.
2011-12: Emphasis on attracting foreign investment into transport infrastructure, mining, energy and tourism.
Foreign trade and exchange controls
2008-10: Implementation of FTA with the US. Negotiation of bilateral FTAs with the EU, Mexico and China. Tariffs will remain below the common external tariff (CET) of the Comunidad Andina (CAN, the Andean Community).
2011-12: Gradual liberalisation to comply with bilateral trade agreements.
Taxes
2008-10: System remains unsettled and complex. Net assets and financial transactions taxes retained at lower rate; little prospect of cut in 19% value-added tax (VAT) rate.
2011-12: Additional elimination of some of the many tax exemptions to widen the tax base, but no major reform.
Financing
2008-10: Capital market grows in depth and sophistication. Bank lending sees cautious growth.
2011-12: Deepening local capital market as pension funds grow.
The labour market
2008-10: Additional rigidities introduced as labour code is revised. Wage pressures weak, but skill levels generally low.
2011-12: Unions still weak, owing to high unemployment and underemployment. Implementation of FTA with the US increases pressure for greater labour-market flexibility.
Infrastructure
2008-10: Concessions issued and awarded for transport infrastructure, including roads and ports.
2011-12: Further development of projects linking Peru’s transport infrastructure with that of Brazil.
Publication: EIU Business - Background
Provider: The Economist Intelligence Unit Limited
Date: November 5, 2007
11/3/07
Cos investing USD500mn/y in electric sector
Generation, transmission and distribution companies in Peru are investing US$500mn/y to meet growing energy demand, principally in the provinces. During the first half of this year, power demand in Arequipa rose 65% year-on-year, 44% in Apurímac, 23% in La Libertad, 20% in Huancavelica and 20% in Tumbes. Power prices in Peru have dropped more than 30% in the last 10 years due to efforts by the ministry, energy and mining investment watchdog Osinergmin and companies. The sectors pending task is to increase coverage as 25% of the population has no service, which increases to 65% in rural areas.
Date: 2007-11-01
Source: Business News Americas, Chile
Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: November 2, 2007
Date: 2007-11-01
Source: Business News Americas, Chile
Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: November 2, 2007
Repsol YPF invests in Peru
Repsol YPF announced an investment of USD 2.000 million in Peru from 2008 to 2015. The plan is to develop operations in the hydrocarbons sector The information was provided by Carlos Alfonso director of the company. BIS - Business Information Systems
Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: October 31, 2007
Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: October 31, 2007
Cepsa acquires stake in Lot 127
Spanish oil and gas company Cepsa affirmed that its subsidiary in Peru has acquired 80 percent share in Lot 127, located in Loreto department. The agreement was signed with Loon Peru that planned to invest USD 40 million to explore the facility. BIS - Business Information Systems
Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: October 31, 2007
Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: October 31, 2007
10/30/07
Petrobras To Bid for Fertilsers Plant Construction in Peru
Brazilian state-owned oil and gas giant Petroleo Brasileiro (Petrobras) will bid for the right to build and operate a fertilisers plant in Peru, Brazilian media reported on October 29, 2007.
The Peruvian Government will accept the proposals of interested in the concession companies until October 31, 2007. The plant will be fuelled by gas from Peru's Camisea field. The consortium offering the highest price for the gas used as raw material will win the bid. The minimum price set by Peru is $1.43 (0.99 euro) per million British thermal units (BTU).
The Peruvian government seeks the construction of a plant with a production capacity of 650,000 tonnes of ammonia and 1.0 million tonnes of urea, the president of Peruvian state-owned oil company PetroPeru, Cesar Gutierrez Pena, said. Petrobras and PetroPeru will jointly bid for the construction and the operation of the plant.
In 2006, Petrobras and PetroPeru signed a memorandum of understanding (MoU) for the construction of fertilisers and polyethylene producing plants in Peru. The MoU was renewed in March 2007.
Their competitors will be U.S. CF Industries and Terra Industries, Chilean Enaex, Mexican Protexa and a consortium comprising Indian Oswal Chemicals and Australian Burrup Fertlizers.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 30, 2007
The Peruvian Government will accept the proposals of interested in the concession companies until October 31, 2007. The plant will be fuelled by gas from Peru's Camisea field. The consortium offering the highest price for the gas used as raw material will win the bid. The minimum price set by Peru is $1.43 (0.99 euro) per million British thermal units (BTU).
The Peruvian government seeks the construction of a plant with a production capacity of 650,000 tonnes of ammonia and 1.0 million tonnes of urea, the president of Peruvian state-owned oil company PetroPeru, Cesar Gutierrez Pena, said. Petrobras and PetroPeru will jointly bid for the construction and the operation of the plant.
In 2006, Petrobras and PetroPeru signed a memorandum of understanding (MoU) for the construction of fertilisers and polyethylene producing plants in Peru. The MoU was renewed in March 2007.
Their competitors will be U.S. CF Industries and Terra Industries, Chilean Enaex, Mexican Protexa and a consortium comprising Indian Oswal Chemicals and Australian Burrup Fertlizers.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 30, 2007
10/27/07
Reliance Industries in talks with Peru for two Oil Blocks
Reliance Industries, which is set to begin production from the countrys largest gas block, is in talks with Peru for picking up stake in two oil blocks. The contract is likely to be signed soon. The names of the blocks and the amount of stake that RIL is likely to pick up are not known. The agreement with the Peruvian company involves co-operation in exploration and production, besides forming joint ventures for setting up petrochemical plants.
RIL, is also looking to set up a refinery in Central America and is considering a bid for building a 350,000 barrels a day oil refinery in one of the Central American countries of Costa Rica, Guatemala, Honduras and Panama. RIL already operates a 660,000 barrels a day refinery at Jamnagar, Gujarat. Another 580,000 barrels a day refinery is being constructed by its subsidiary Reliance Petroleum, close to the existing refinery.
Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: October 26, 2007
RIL, is also looking to set up a refinery in Central America and is considering a bid for building a 350,000 barrels a day oil refinery in one of the Central American countries of Costa Rica, Guatemala, Honduras and Panama. RIL already operates a 660,000 barrels a day refinery at Jamnagar, Gujarat. Another 580,000 barrels a day refinery is being constructed by its subsidiary Reliance Petroleum, close to the existing refinery.
Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: October 26, 2007
10/20/07
U.S. Terra, Australian Orica Mull $1.0 Bln Petrochemical Project in Peru
A consortium between U.S. fertiliser producers Terra Industries and Australian chemicals producer Orica Mining Services declared their interest to invest some $1.0 bln (699.1 mln euro) in a petrochemical complex at a meeting with Peruvian President, Alan Garcia, Terra Industries' president, Peter Bennet, said on October 18, 2007.
The complex will be located in Pisco, Ica department, southern Peru. The choice of Pisco was grounded on several factors such as the access to maritime port, and the close location of gas pipeline and a village, which would supply the labour force needed for the complex.
The complex will produce ammonia and ammonium nitrate. Terra Industries will also sign a contract with the Peruvian ferlitiser producer Misti to start production of urea, which will be used for the fertilisers.
The consortium will participate in a tender for the natural gas of of block 88 of the field Camisea, operated by the Peruvian unit of Argentine oil and gas company Pluspetrol, Pluspetrol Peru Corporation. Natural gas is the raw material for the production of ammonia and ammonium nitrate.
Terra Industries is one of the largest U.S. nitrogen producers, with eight petrochemical complexes worldwide.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 19, 2007
The complex will be located in Pisco, Ica department, southern Peru. The choice of Pisco was grounded on several factors such as the access to maritime port, and the close location of gas pipeline and a village, which would supply the labour force needed for the complex.
The complex will produce ammonia and ammonium nitrate. Terra Industries will also sign a contract with the Peruvian ferlitiser producer Misti to start production of urea, which will be used for the fertilisers.
The consortium will participate in a tender for the natural gas of of block 88 of the field Camisea, operated by the Peruvian unit of Argentine oil and gas company Pluspetrol, Pluspetrol Peru Corporation. Natural gas is the raw material for the production of ammonia and ammonium nitrate.
Terra Industries is one of the largest U.S. nitrogen producers, with eight petrochemical complexes worldwide.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 19, 2007
10/17/07
Peru Closes Bayovar Mineral Concessions with Cementos Pacasmayo
Peruvian state investment promotion agency ProInversion finalised the mineral concession contracts with local cement company Cementos Pacasmayo SAA and Juan Paulo Quay SAC, in which local conglomerate Grupo Romero holds 40 pct, regarding the non-metal mineral concessions in the area of Bayovar, Peru's northern Piura region.
The decision for the granting of the concession was made on August 29, 2007. Cementos Pacasmayo will operate chalk and diatomite deposits in Bayovar, while Juan Paulo Quay will exploit the gypsum reserves.
Cementos Pacasmayo will produce at least 40,000 tonnes a year, starting 18 months after the signing of the contract, and to raise the annual output to 80,000 tonne 36 months after the signing of the contract. In terms of chalk, the company's commitment is for 40,000 tonnes annually, starting 60 months after the signing of the contract.
Juan Paulo Quay assumed the obligation to produce the same quantity of gypsum as Cementos Pacasmayo's obligation regarding the diatomite.
The chalk deposits lies on 22,326 ha with 42.4 million tonnes proved reserves and 73 pct average calcium carbonate concentration.
Granted diatomite deposits are located on an area of 6,891 ha and gypsum reserve on an surface of 12,575 ha.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 17, 2007
The decision for the granting of the concession was made on August 29, 2007. Cementos Pacasmayo will operate chalk and diatomite deposits in Bayovar, while Juan Paulo Quay will exploit the gypsum reserves.
Cementos Pacasmayo will produce at least 40,000 tonnes a year, starting 18 months after the signing of the contract, and to raise the annual output to 80,000 tonne 36 months after the signing of the contract. In terms of chalk, the company's commitment is for 40,000 tonnes annually, starting 60 months after the signing of the contract.
Juan Paulo Quay assumed the obligation to produce the same quantity of gypsum as Cementos Pacasmayo's obligation regarding the diatomite.
The chalk deposits lies on 22,326 ha with 42.4 million tonnes proved reserves and 73 pct average calcium carbonate concentration.
Granted diatomite deposits are located on an area of 6,891 ha and gypsum reserve on an surface of 12,575 ha.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 17, 2007
10/16/07
Cerro Verde approves Cerro Negro Norte, Sur development
Peru's Cerro Verde copper mine has approved the development of the Cerro Negro Norte and Cerro Negro Sur deposits that will allow the mine to extend its life until at least 2018, according to a company statement to Peru's securities regulator Conasev.
Cerro Verde, 53.7% controlled by US company Freeport McMoRan Copper & Gold (NYSE: FCX), previously estimated investment at US$3.27mn to bring the Cerro Negro oxide open pit into production.
The company plans to mine Cerro Negro's 72.7Mt of copper oxide resources at a rate of 27,000t/d. It will process some 4.78Mt/y of high-grade "crush leach" material and 3.30Mt/y of run-of-mine using existing primary crushing and heap leach installations.
An FCX representative was not immediately available to provide further details on the project.
Japan's Sumitomo has 21% of Cerro Verde, Peru's Buenaventura (NYSE: BVN) 18.2% and minority shareholders, including mine employees, the remaining 7.2%.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: October 16, 2007
Cerro Verde, 53.7% controlled by US company Freeport McMoRan Copper & Gold (NYSE: FCX), previously estimated investment at US$3.27mn to bring the Cerro Negro oxide open pit into production.
The company plans to mine Cerro Negro's 72.7Mt of copper oxide resources at a rate of 27,000t/d. It will process some 4.78Mt/y of high-grade "crush leach" material and 3.30Mt/y of run-of-mine using existing primary crushing and heap leach installations.
An FCX representative was not immediately available to provide further details on the project.
Japan's Sumitomo has 21% of Cerro Verde, Peru's Buenaventura (NYSE: BVN) 18.2% and minority shareholders, including mine employees, the remaining 7.2%.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: October 16, 2007
10/15/07
Strike hopes to start mining iron ore in Peru by 2009
Australia’s Strike Resources hopes to begin production of iron ore from a new mine in Peru in 2009. The initial operation could produce some 2m tonnes/year from scree and near-surface material at the company’s Cuzco project site.
The scree ore is largely high-grade magnetite, Strike says in a statement obtained by Steel Business Briefing. It is negotiating to use a nearby existing railway to transport the ore to the port of Matarani.
Strike is pursuing exploration work at Cuzco with the aim of delineating an orebody capable of producing 20m t/y. The company is also exploring deposits at Apurimac that could support an additional 20m t/y production.
The initial mine would be separate from these much larger-scale mining operations.
Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: October 15, 2007
The scree ore is largely high-grade magnetite, Strike says in a statement obtained by Steel Business Briefing. It is negotiating to use a nearby existing railway to transport the ore to the port of Matarani.
Strike is pursuing exploration work at Cuzco with the aim of delineating an orebody capable of producing 20m t/y. The company is also exploring deposits at Apurimac that could support an additional 20m t/y production.
The initial mine would be separate from these much larger-scale mining operations.
Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: October 15, 2007
10/14/07
Peru excludes Cusco from airport concession package
Peru's Government is to exclude Cusco from its forthcoming package of airport concessions in the south of the country, as it sees the possibility of opening an independent tender process which could include construction of a new airport at Peru's principle tourism destinations.
Peruvian transport minister Veronica Zabala told local reporters that Cusco will "definitely not be part of the concession process of the southern airports".
This leaves the list of airports set for privatising their management in 2008 as covering Arequipa, Tacna, Juliaca, Ayacucho, Madre de Dios, Ica and Apurimac.
The ministry says it has already performed an initial viability study for a new international airport serving Cusco near Chincheros, but a spokesman could not confirm if construction of a new airport would be part of the conditions for assuming the concession of the current, operationally limited, airport.
Publication: Reed Business Information - Air Transport Intelligence
Provider: Reed Business Information, The Flight Group
Date: October 14, 2007
Peruvian transport minister Veronica Zabala told local reporters that Cusco will "definitely not be part of the concession process of the southern airports".
This leaves the list of airports set for privatising their management in 2008 as covering Arequipa, Tacna, Juliaca, Ayacucho, Madre de Dios, Ica and Apurimac.
The ministry says it has already performed an initial viability study for a new international airport serving Cusco near Chincheros, but a spokesman could not confirm if construction of a new airport would be part of the conditions for assuming the concession of the current, operationally limited, airport.
Publication: Reed Business Information - Air Transport Intelligence
Provider: Reed Business Information, The Flight Group
Date: October 14, 2007
10/11/07
Five Companies Interested in Peruvian Ica Gas Pipeline
Spanish Gas Natural, U.S. Energy Transfer and Colombian Promigas, Invercolsa and TGI, are interested in participating in the construction and operation of the $63 mln (44.5 mln euro) gas pipeline to Ica, in southern Peru, local investment promotion agency ProInversion said on October 10, 2007.
Gas Natural, Energy Transfer and Promigas have already bought the package of documents for the participation, while Invercolsa and TGI expressed interest to participate.
Gas Natural specialises in natural gas supply, distribution and sale, and operates in Spain, Mexico, Argentina, Colombia, Brazil, Italy, Puerto Rico and Morocco.
Energy Transfer, in turn, acts in the area of the transportation, storage and wholesale of natural gas in the United States.
The international tender for the concession was launched in August 2007 and is scheduled to finish in January 27, 2008. The concession of the Ica-Pisco-Marcona-Nazca gas pipeline is for a 30-year period. The winner in the tender will be responsible for the pipeline design, construction, operation and maintenance.
There are possibilities the total investments in the project to expand to $180 mln (126.4 mln euro), if additional demand is secured before the end of the concession contract.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 11, 2007
Gas Natural, Energy Transfer and Promigas have already bought the package of documents for the participation, while Invercolsa and TGI expressed interest to participate.
Gas Natural specialises in natural gas supply, distribution and sale, and operates in Spain, Mexico, Argentina, Colombia, Brazil, Italy, Puerto Rico and Morocco.
Energy Transfer, in turn, acts in the area of the transportation, storage and wholesale of natural gas in the United States.
The international tender for the concession was launched in August 2007 and is scheduled to finish in January 27, 2008. The concession of the Ica-Pisco-Marcona-Nazca gas pipeline is for a 30-year period. The winner in the tender will be responsible for the pipeline design, construction, operation and maintenance.
There are possibilities the total investments in the project to expand to $180 mln (126.4 mln euro), if additional demand is secured before the end of the concession contract.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 11, 2007
10/10/07
Investments in Peru Camisea Seen at $4.0 Bln by 2011
Projects at Peru's Camisea natural gas field are expected to attract investments of nearly $4.0 bln (2.833 bln euro) within the next four years, the Energy Minister Juan Valdivia forecast on October 9, 2007.
The construction of the Pampa Melchorita plant of the consortium Peru LNG alone is projected to cost some $2.0 bln (1.417 bln euro), the minister added. The plant, whose construction is set to be completed in 2010, is aimed at exporting liquefied natural gas (LNG) from Camisea.
There also are another petrochemical projects in consideration, involving methane use from Camisea's natural gas. The investment value of each of the projects is estimated at over $1.0 bln (708.3 mln euro). However, the current natural gas reserves allow Argentine Pluspetrol, which is the operator of the Camisea field, to develop only two of these projects.
On October 25, Pluspetrol will announce the names of the companies it will contract to sell natural gas for developing their own petrochemical projects.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 10, 2007
The construction of the Pampa Melchorita plant of the consortium Peru LNG alone is projected to cost some $2.0 bln (1.417 bln euro), the minister added. The plant, whose construction is set to be completed in 2010, is aimed at exporting liquefied natural gas (LNG) from Camisea.
There also are another petrochemical projects in consideration, involving methane use from Camisea's natural gas. The investment value of each of the projects is estimated at over $1.0 bln (708.3 mln euro). However, the current natural gas reserves allow Argentine Pluspetrol, which is the operator of the Camisea field, to develop only two of these projects.
On October 25, Pluspetrol will announce the names of the companies it will contract to sell natural gas for developing their own petrochemical projects.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 10, 2007
10/9/07
Rural Telecom wins broadband licence in Peru
Rural Telecom, Peru-based VSAT operator, has won a licence to offer broadband services in over 1,700 localities in Peru, covering over 1.5 million possible customers, reports Ahciet. With the move, the company will receive USD 8.84 million funding from the government. Osiptel, Peruvian telecommunications regulator, will supervise the quality and continuity of the project.
Publication: Telecom.paper News
Provider: Telecom.paper
Date: October 9, 2007
Publication: Telecom.paper News
Provider: Telecom.paper
Date: October 9, 2007
10/7/07
Geneva Resources, Inc. Reports Expanded Trenching on Vilcoro Gold Property, Peru
Marcus Johnson, President of Geneva Resources, Inc. ("the Company") (BULLETIN BOARD: GVRS) and Lori McClenahan, President of St. Elias Mines Ltd. ("St. Elias"), report they have launched next-stage trenching on the Vilcoro Gold Property (the "Property") located in north-central Peru. The trenching will be carried out in order to establish specific targets for an upcoming drill program. Geneva has an option to earn a 66% interest in the Property from St. Elias.
Chief Geologist on the project, John Brophy, together with exploration crews, have carried out the reconnaissance and follow-up work in order to collect gold-in-soil anomalous samples across the central portion of the Vilcoro property. From the total of approximately 1,000 samples collected, three trends have emerged which warrant trenching.
A detailed trenching program on the Main Trend, South Trend and newly identified trend will begin immediately, with samples submitted to ALS Laboratory, Peru for analysis. IP/Resistivity geophysical surveys are also planned. The geologic team and management will use the additional data in determining the most strategic pattern for upcoming drill targets on a planned drill program slated to begin in the first quarter of 2008.
The Vilcoro Gold Property comprises 1,600 hectares and lies along the same geological belt of Tertiary rocks that hosts many multi-million-ounce deposits in northern Peru such as Newmont's Yanacocha Mine (+40 million oz gold) and Barrick's Pierina deposit (8 million oz. gold). The Property is favorably located adjacent to the claim block that covers the Lagunas Norte mine (+9 million oz gold) recently put into production by Barrick Gold in the Alto Chicama mining district of central Peru.
Geneva Resources, Inc. is a mineral exploration company participating in known mineral producing regions. The Company is focused on the exploration and advancement of well-defined gold, copper and mineral prospects. Geneva Resources' current exploration initiatives include Central Peru; Nigeria, Africa; Saskatchewan, Canada and Panama.
Publication: PR Newswire
Provider: PR Newswire
Date: October 6, 2007
Chief Geologist on the project, John Brophy, together with exploration crews, have carried out the reconnaissance and follow-up work in order to collect gold-in-soil anomalous samples across the central portion of the Vilcoro property. From the total of approximately 1,000 samples collected, three trends have emerged which warrant trenching.
A detailed trenching program on the Main Trend, South Trend and newly identified trend will begin immediately, with samples submitted to ALS Laboratory, Peru for analysis. IP/Resistivity geophysical surveys are also planned. The geologic team and management will use the additional data in determining the most strategic pattern for upcoming drill targets on a planned drill program slated to begin in the first quarter of 2008.
The Vilcoro Gold Property comprises 1,600 hectares and lies along the same geological belt of Tertiary rocks that hosts many multi-million-ounce deposits in northern Peru such as Newmont's Yanacocha Mine (+40 million oz gold) and Barrick's Pierina deposit (8 million oz. gold). The Property is favorably located adjacent to the claim block that covers the Lagunas Norte mine (+9 million oz gold) recently put into production by Barrick Gold in the Alto Chicama mining district of central Peru.
Geneva Resources, Inc. is a mineral exploration company participating in known mineral producing regions. The Company is focused on the exploration and advancement of well-defined gold, copper and mineral prospects. Geneva Resources' current exploration initiatives include Central Peru; Nigeria, Africa; Saskatchewan, Canada and Panama.
Publication: PR Newswire
Provider: PR Newswire
Date: October 6, 2007
10/5/07
Peru's Cormin closes metals-backed deal
Cormin, a Peruvian subsidiary of commodities trader Trafigura Beheer has closed a US$200mn syndicated borrowing base facility, via bookrunners and mandated lead arrangers Fortis and Natixis.
The transaction is structured as a one-year revolving borrowing base facility backed by non-ferrous metals and concentrates inventories as well as trade receivables in Peru.
It was syndicated out to a pool of six banks: Bayerische Hypo-und Vereinsbank, Crédit Agricole, Credit Suisse, Scotia Bank (Peru), Société Générale and Standard Chartered.
The Cormin group of companies in Peru, as well as Chile, Mexico and Bolivia provide supply and logistical support for mining activities along the Pacific coast of South America. In Peru, the group has investments in Condestable copper mine, Catalina Huanca zinc, lead and silver mine, and Volcan, a large lead, zinc and silver producer.
Cormin"s Peruvian facilities also include the "Antonio Cornetti Memorial Warehouse,” based in the Callao port district of Lima, dedicated to the handling and storage of lead concentrates. From this warehouse, Cormin supplies blended lead, zinc, and copper concentrates for smelters around the world.
The group runs similar facilities on a smaller scale in Copiapo in Chile and in Mexico.
Publication: Global Trade Review News
Provider: Exporta Publishing & Events Ltd
Date: October 4, 2007
The transaction is structured as a one-year revolving borrowing base facility backed by non-ferrous metals and concentrates inventories as well as trade receivables in Peru.
It was syndicated out to a pool of six banks: Bayerische Hypo-und Vereinsbank, Crédit Agricole, Credit Suisse, Scotia Bank (Peru), Société Générale and Standard Chartered.
The Cormin group of companies in Peru, as well as Chile, Mexico and Bolivia provide supply and logistical support for mining activities along the Pacific coast of South America. In Peru, the group has investments in Condestable copper mine, Catalina Huanca zinc, lead and silver mine, and Volcan, a large lead, zinc and silver producer.
Cormin"s Peruvian facilities also include the "Antonio Cornetti Memorial Warehouse,” based in the Callao port district of Lima, dedicated to the handling and storage of lead concentrates. From this warehouse, Cormin supplies blended lead, zinc, and copper concentrates for smelters around the world.
The group runs similar facilities on a smaller scale in Copiapo in Chile and in Mexico.
Publication: Global Trade Review News
Provider: Exporta Publishing & Events Ltd
Date: October 4, 2007
10/4/07
Peruvian Natural Gas Output Jumps 48.92 Pct Y/Y Jan-Sept 2007
The natural gas output in Peru jumped by 48.92 pct year-on-year to 66.579 billion cubic feet in the period January to September 2007, Peru's state oil sector promotion agency Perupetro said on October 3, 2007.
In September 2007 the country's average natural gas production decreased by 2.42 pct month-on-month to 300.8 million cubic feet per day (mcfd), according to Perupetro data. The decrease is mainly attributed to the lower gas consumption of the thermoelectric plants.
Block 88 of the field Camisea, operated by the Peruvian unit of Argentine oil and gas company Pluspetrol, Pluspetrol Peru Corporation, reported the highest average output in the country, this of 222.15 mcfd in September 2007. Block 31-C, operated by Peruvian gas producer Aguaytia Energy del Peru, ranked second with 41.7 mcfd of natural gas in the ninth month of 2007. Block Z-2B, operated by the Peruvian unit of U.S. oil company Petro-Tech International, Petro-Tech Peruana, reported a production of 18.24 mcfd in September 2007.
The revenue to the state generated by Perupetro in September 2007 totalled 236.85 mln Peruvian soles ($78.2 mln/55.4 mln euro).
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 4, 2007
In September 2007 the country's average natural gas production decreased by 2.42 pct month-on-month to 300.8 million cubic feet per day (mcfd), according to Perupetro data. The decrease is mainly attributed to the lower gas consumption of the thermoelectric plants.
Block 88 of the field Camisea, operated by the Peruvian unit of Argentine oil and gas company Pluspetrol, Pluspetrol Peru Corporation, reported the highest average output in the country, this of 222.15 mcfd in September 2007. Block 31-C, operated by Peruvian gas producer Aguaytia Energy del Peru, ranked second with 41.7 mcfd of natural gas in the ninth month of 2007. Block Z-2B, operated by the Peruvian unit of U.S. oil company Petro-Tech International, Petro-Tech Peruana, reported a production of 18.24 mcfd in September 2007.
The revenue to the state generated by Perupetro in September 2007 totalled 236.85 mln Peruvian soles ($78.2 mln/55.4 mln euro).
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 4, 2007
10/3/07
Visa Card Transactions in Peru At $1.142 Bln Jan-Aug 2007
The transactions carried out via Visa credit and debit cards in Peru increased to $1.142 bln (806.4 mln euro) in the period from January to August 2007, up 33.5 pct year-on-year, Visanet del Peru, the local unit of U.S. credit card company Visa International, said on October 2, 2007.
The transactions carried out via Visa Electron debit cards rose by 38.5 pct to $441.6 mln (311.8 mln euro), while the transactions via Visa credit cards increased by 30.5 pct to $701.1 mln (495 mln euro).
The Visa cards' transactions marked the biggest rise in the Libertad department, up 66.6 pct, followed by Piura, up 60 pct, Cusco, up 53.5 pct, Lambayeque, up 48.4 pct, and Arequipa, up 45.7 pct.
The average sum of each Visa credit card transaction went up to $42.6 (30 euro) from $39.3 (27.7 euro), while the average transaction of Visa Electron increased to $27.5 (19.4 euro) from $25.6 (18 euro).
[Editor's note: According to data of the Latin America News Digest from January 22, 2007, Visanet del Peru (www.visanet.com.pe) reported $1.559 bln ($2.21 bln euro) in transactions carried out with Visa debit and credit cards in 2006, up 34.1 pct year-on-year.]
(Note: Unless otherwise stated, all figures/comparisons are for Jan-Aug 2007/Jan-Aug 2006.)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 3, 2007
The transactions carried out via Visa Electron debit cards rose by 38.5 pct to $441.6 mln (311.8 mln euro), while the transactions via Visa credit cards increased by 30.5 pct to $701.1 mln (495 mln euro).
The Visa cards' transactions marked the biggest rise in the Libertad department, up 66.6 pct, followed by Piura, up 60 pct, Cusco, up 53.5 pct, Lambayeque, up 48.4 pct, and Arequipa, up 45.7 pct.
The average sum of each Visa credit card transaction went up to $42.6 (30 euro) from $39.3 (27.7 euro), while the average transaction of Visa Electron increased to $27.5 (19.4 euro) from $25.6 (18 euro).
[Editor's note: According to data of the Latin America News Digest from January 22, 2007, Visanet del Peru (www.visanet.com.pe) reported $1.559 bln ($2.21 bln euro) in transactions carried out with Visa debit and credit cards in 2006, up 34.1 pct year-on-year.]
(Note: Unless otherwise stated, all figures/comparisons are for Jan-Aug 2007/Jan-Aug 2006.)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 3, 2007
Deutsche Bank To Start Business in Peru Q1 2008
German banking group Deutsche Bank plans to start operations in Peru in the first quarter of 2008, once it obtains a permission from the country's banking sector regulator SBS, the president of Deutsche Bank Chile, Jose Miguel Alcalde, said.
The bank applied for the permission in August 2007, motivated by the financial stability in the country.
The activity of the bank in Peru will be strongly supported by the offices in Chile and New York. The president of the Peruvian unit will be Jose Miguel Alcalde.
Initially the Peruvian model will be very similar to the activity of the bank in Chile, with similar money supply, presence on the interest rate markets, and corporate finances covering companies and institutional investors on the domestic and international markets.
Peru will be the 76th country where Deutsche Bank will operate. The Andean country has been registering one of the highest economic growths in Latin America for the last ten years.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 3, 2007
The bank applied for the permission in August 2007, motivated by the financial stability in the country.
The activity of the bank in Peru will be strongly supported by the offices in Chile and New York. The president of the Peruvian unit will be Jose Miguel Alcalde.
Initially the Peruvian model will be very similar to the activity of the bank in Chile, with similar money supply, presence on the interest rate markets, and corporate finances covering companies and institutional investors on the domestic and international markets.
Peru will be the 76th country where Deutsche Bank will operate. The Andean country has been registering one of the highest economic growths in Latin America for the last ten years.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 3, 2007
10/1/07
Altas Cumbres close to sale deal with Scotiabank
Continuing its financial restructuring process, Chilean group Altas Cumbres, linked to the impresario Santiago Cummins, is thought to be close to selling the Peruvian entity Banco del Trabajo to Scotiabank of Canada. As well as the Peruvian bank, Guatemala's Banco de Antigua and the Dominican Republic's Banco de Ahorro y Credito Altas Cumbres are also to be included in the package for a total of around US$200mil. The Chilean group has already sold off assets in Peru, Costa Rica and Ecuador this year whilst Scotiabank has been adding Latin American assets this year. Banco del Trabajo started up in Peru in late 1994 and has 96 branches and a net worth of almost US$46mil these days.
Publication: SABI - Business News
Provider: South American Business Information
Date: October 1, 2007
Publication: SABI - Business News
Provider: South American Business Information
Date: October 1, 2007
Is Ace Maestro for Sale?
The conglomerates Ripley and Cencosud, from Chile, affirm that they have talked with the proprietors of Ace Home Center for a possible purchase or merger, whereas this chain denies it sharply.
Most analysts of retail sector consider that Maestro is not on sale... at this very moment. After the recent entrance of the investment group Enfoca, Maestro Ace Home Center, previous injection of capital, aims to become a shopping center developer (in fact already it opened one in Ate) and to open an own financing company. The idea of Enfoca (who represents American real estate group Farallon Capital) is to consolidate the company and soon to sell it to a much greater price in the medium term (not more than five years).
Publication: Dia Uno
Provider: El Comercio
Date: October 1, 2007
The translation of this article has been prepared using machine translation software, which has been enhanced with a specialized dictionary
Most analysts of retail sector consider that Maestro is not on sale... at this very moment. After the recent entrance of the investment group Enfoca, Maestro Ace Home Center, previous injection of capital, aims to become a shopping center developer (in fact already it opened one in Ate) and to open an own financing company. The idea of Enfoca (who represents American real estate group Farallon Capital) is to consolidate the company and soon to sell it to a much greater price in the medium term (not more than five years).
Publication: Dia Uno
Provider: El Comercio
Date: October 1, 2007
The translation of this article has been prepared using machine translation software, which has been enhanced with a specialized dictionary
9/28/07
Mexican Banco Azteca To Open 85 Branches in Brazil, Argentina, Peru
Mexican bank Banco Azteca plans to open 85 branches in Brazil, Argentina and Peru by the end of 2008, the bank announced on September 27, 2007.
Banco Azteca is a unit of Mexican retail chain Grupo Elektra.
In fact Banco Azteca will start operation in Brazil, Argentina and Peru with the opening of the 85 branches.
Banco Azteca also plans to expand its presence in the markets of Panama, Guatemala and Honduras.
Banco Azteca currently has a network of 1,450 branches in Mexico.
The bank was set up in Mexico at the end of 2002, with the objective to provide consumer credits to low-income Mexicans who shop at Elektra stores and have little access to loans. Banco Azteca opened its first branch outside Mexico in Panama, on March 1, 2005.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 28, 2007
Banco Azteca is a unit of Mexican retail chain Grupo Elektra.
In fact Banco Azteca will start operation in Brazil, Argentina and Peru with the opening of the 85 branches.
Banco Azteca also plans to expand its presence in the markets of Panama, Guatemala and Honduras.
Banco Azteca currently has a network of 1,450 branches in Mexico.
The bank was set up in Mexico at the end of 2002, with the objective to provide consumer credits to low-income Mexicans who shop at Elektra stores and have little access to loans. Banco Azteca opened its first branch outside Mexico in Panama, on March 1, 2005.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 28, 2007
Peru's Electricity Output Up 9.7 Pct Y/Y Aug 2007
Peru's electricity production stood at 2,366 GWh in August 2007, up 9.7 pct year-on-year, the Energy Ministry reported on September 27.
Hydropower utilities generated 60.6 pct of the total electricity production. Other 33 pct corresponded to natural gas-fueled plants, and 2.5 pct and 3.9 pct to residual fuels and coal facilities, respectively.
Peru's electricity generation from natural gas rose by 45.8 pct to 755.4 GWh. The natural gas demand for electricity production reached 206.8 million cu m, up 36.1 pct.
Peruvian state-owned electric power generation company Electroperu produced 623,439 MWh, up 0.4 pct. The output of the private utility Edegel SA increased by 40 pct to 587,115 MWh.
The total electricity sales in the country rose by 8.8 pct to 2,028 GWh in August 2007.
The electricity sales in Peru totalled 22,290 GWh in 2006, the ministry reminded. The industry concentrated 54 pct of the sales in the past year, the commercial sector and services had a share of 21 pct, while the residential demand represented 24 pct.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 28, 2007
Hydropower utilities generated 60.6 pct of the total electricity production. Other 33 pct corresponded to natural gas-fueled plants, and 2.5 pct and 3.9 pct to residual fuels and coal facilities, respectively.
Peru's electricity generation from natural gas rose by 45.8 pct to 755.4 GWh. The natural gas demand for electricity production reached 206.8 million cu m, up 36.1 pct.
Peruvian state-owned electric power generation company Electroperu produced 623,439 MWh, up 0.4 pct. The output of the private utility Edegel SA increased by 40 pct to 587,115 MWh.
The total electricity sales in the country rose by 8.8 pct to 2,028 GWh in August 2007.
The electricity sales in Peru totalled 22,290 GWh in 2006, the ministry reminded. The industry concentrated 54 pct of the sales in the past year, the commercial sector and services had a share of 21 pct, while the residential demand represented 24 pct.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 28, 2007
9/27/07
Investment in Peru Coaster, Bus Assembling Seen At $5.0 Bln 2008-2012
The assembling of 20,000 coasters and buses for the public transport sector in Peru is expected to attract investments of a total $5.0 bln (3.528 bln euro) in the next five years, the general manager of Peruvian heavy vehicle company Motores Diesel Andinos SA (Modasa), Hector Garcia projected on September 26, 2007.
The Peruvian motor vehicle assembling market is estimated to post a combined revenue of $50 mln (35.3 mln euro) in 2007. Modasa expects to be responsible for $20 mln(14.1 mln euro) of the total, Garcia said.
Modasa (www.modasa.com.pe) launched natural gas-fueled buses on September 26. The company has also expanded its Ate-Vitarte plant in the province of Lima with an investment of $4.5 mln (3.2 mln euro).
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 27, 2007
The Peruvian motor vehicle assembling market is estimated to post a combined revenue of $50 mln (35.3 mln euro) in 2007. Modasa expects to be responsible for $20 mln(14.1 mln euro) of the total, Garcia said.
Modasa (www.modasa.com.pe) launched natural gas-fueled buses on September 26. The company has also expanded its Ate-Vitarte plant in the province of Lima with an investment of $4.5 mln (3.2 mln euro).
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 27, 2007
Ferrocarril Transandino eyes RR extension project
Peruvian rail concessionaire Ferrocarril Transandino, which runs the railway connecting colonial city Cuzco to the Inca ruins at Machu Picchu, will request authorization to extend the line to the Santa Teresa area, local paper Gestión reported.
The company has already met with officials from the regional government of Cuzco, as well as with authorities from Peru's transport and communications ministry (MTC) to discuss the project, Ferrocarril Transandino's general manager Rómulo Guidino was quoted as saying.
The extension would total about 7km and would also include the construction of a bridge over the Vilcanota river.
If approved, the company would invest the canon of 37.3% of income that it currently pays to the state in the construction of the extended railway until the investment is recovered.
Company officials are currently working on a proposal to submit to MTC, said Guidino.
Ferrocarril Transandino is in charge of the maintenance and administration of the rail system and its rolling stock. The company is also associated with operator PeruRail to provide service.
The company further handles the Línea del Sur rail system, which connects cities Matarani/Mollendo-Arequipa-Juliaca/Puno-Cuzco, totaling some 800km.
Last year, the company and PeruRail were awarded a 10-year contract to transport minerals from the mining company Cerro Verde to the Matarani port using a bimodal transport system, consisting of trucks and rails.
Officials are currently evaluating the possibility of expanding the service to other mining companies such as Tintaya, said Guidino, adding that the use of a rail system is not only more efficient and cheaper, but also helps reduce traffic on local highways.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 26, 2007
The company has already met with officials from the regional government of Cuzco, as well as with authorities from Peru's transport and communications ministry (MTC) to discuss the project, Ferrocarril Transandino's general manager Rómulo Guidino was quoted as saying.
The extension would total about 7km and would also include the construction of a bridge over the Vilcanota river.
If approved, the company would invest the canon of 37.3% of income that it currently pays to the state in the construction of the extended railway until the investment is recovered.
Company officials are currently working on a proposal to submit to MTC, said Guidino.
Ferrocarril Transandino is in charge of the maintenance and administration of the rail system and its rolling stock. The company is also associated with operator PeruRail to provide service.
The company further handles the Línea del Sur rail system, which connects cities Matarani/Mollendo-Arequipa-Juliaca/Puno-Cuzco, totaling some 800km.
Last year, the company and PeruRail were awarded a 10-year contract to transport minerals from the mining company Cerro Verde to the Matarani port using a bimodal transport system, consisting of trucks and rails.
Officials are currently evaluating the possibility of expanding the service to other mining companies such as Tintaya, said Guidino, adding that the use of a rail system is not only more efficient and cheaper, but also helps reduce traffic on local highways.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 26, 2007
9/26/07
Backus Plans $250 Mln Investments 2007-2008
Peruvian beer producer Union de Cervecerias Peruanas Backus & Johnston SA plans $250 mln (176.8 mln euro) investments in 2007 and 2008, aimed basically at buying modern equipment, general manager Roberto Priday said on September 25, 2007.
With the investments Backus seeks to increase its production and distribution capacity.
With the new allocation, the total investments made by the company in the period since 2005 when it passed under the control of UK-South African brewer SABMiller, will reach $500 mln (353.6 mln euro).
Backus has recently invested $12 mln (8.5 mln euro) to renew the equipment in its beer plant near Motupe, in the western Lambayeque region.
[Editor's note: SABMiller announced on January 18, 2007 plans to invest $1.8 bln (1.273 bln euro) in expansion in South America between 2007 to 2011, encouraged by the rising sales in the region. The company will initially focus on expansion in Colombia and Peru.]
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 26, 2007
With the investments Backus seeks to increase its production and distribution capacity.
With the new allocation, the total investments made by the company in the period since 2005 when it passed under the control of UK-South African brewer SABMiller, will reach $500 mln (353.6 mln euro).
Backus has recently invested $12 mln (8.5 mln euro) to renew the equipment in its beer plant near Motupe, in the western Lambayeque region.
[Editor's note: SABMiller announced on January 18, 2007 plans to invest $1.8 bln (1.273 bln euro) in expansion in South America between 2007 to 2011, encouraged by the rising sales in the region. The company will initially focus on expansion in Colombia and Peru.]
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 26, 2007
Barrett evaluating offers to partner on block 67
US oil firm Barrett Resources is evaluating offers from companies interested in becoming a strategic partner for block 67 in Peru, according to company corporate affairs director Fernando Deustua.
Barrett has hired investment bank Goldman Sachs as financial advisor for this process, state news agency Andina quoted Deustua as saying.
Development of block 67 to produce 100,000b/d of heavy crude starting in 2011 will require investment of US$1.6bn. The block is in the Marañón basin in Loreto department. Barrett will continue to operate the block.
A data room has been prepared that companies can access by signing a confidentiality agreement, Deustua said.
Barrett's principal partner Citigroup and multilateral lenders such as the World Bank will help finance part of the US$1.6bn, he added.
In related news, Barrett asked the energy and mines ministry to expedite approval of the EIS to carry out seismic work at the block.
"We have expressed our concern to the ministry and expect approval this week," Deustua said.
Barrett's timetable calls for starting seismic and basic engineering work on October 15.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 26, 2007 (21:08)
Barrett has hired investment bank Goldman Sachs as financial advisor for this process, state news agency Andina quoted Deustua as saying.
Development of block 67 to produce 100,000b/d of heavy crude starting in 2011 will require investment of US$1.6bn. The block is in the Marañón basin in Loreto department. Barrett will continue to operate the block.
A data room has been prepared that companies can access by signing a confidentiality agreement, Deustua said.
Barrett's principal partner Citigroup and multilateral lenders such as the World Bank will help finance part of the US$1.6bn, he added.
In related news, Barrett asked the energy and mines ministry to expedite approval of the EIS to carry out seismic work at the block.
"We have expressed our concern to the ministry and expect approval this week," Deustua said.
Barrett's timetable calls for starting seismic and basic engineering work on October 15.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 26, 2007 (21:08)
9/25/07
BBVA pays US$7.5mn for 55.7% stake in microlender
The 162,008 shares four investors held in Peruvian microlender CajaSur have been transferred to Fundación BBVA para las Microfinanzas at 141.41 soles each, CajaSur told securities regulator Conasev in a filing.
The number of shares is equivalent to a 55.7% stake in CajaSur, for which BBVA's foundation paid 22.9mn soles (US$7.50mn).
The sale agreement was signed last February, the filing said.
Fundación BBVA para las Microfinanzas is the non-profit microfinance arm of Spain's BBVA (NYSE: BBV), which promotes access to financial services for low-income groups by taking controlling stakes in microfinance institutions.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 25, 2007
The number of shares is equivalent to a 55.7% stake in CajaSur, for which BBVA's foundation paid 22.9mn soles (US$7.50mn).
The sale agreement was signed last February, the filing said.
Fundación BBVA para las Microfinanzas is the non-profit microfinance arm of Spain's BBVA (NYSE: BBV), which promotes access to financial services for low-income groups by taking controlling stakes in microfinance institutions.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 25, 2007
9/24/07
Volcán proposes 16% capital increase, dividends
Peruvian zinc miner Volcán has proposed a capital increase equivalent to 16% of its shares worth roughly 120mn soles (US$38.4mn), the company reported to securities regulator Conasev.
The company was not immediately available for comment on the purpose of the funds that will be raised from the issue of some 166mn shares.
The miner also informed it has proposed to issue a dividend of 0.10 soles for each A common shares and 0.105 soles per B share amounting to a total of 107mn soles.
Volcán is one of the world's largest zinc producers with the Yauli, Cerro de Pasco and Vinchos operations in central Peru. The company sold 449,550t of zinc concentrates in 2006.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 24, 2007 (21:07)
The company was not immediately available for comment on the purpose of the funds that will be raised from the issue of some 166mn shares.
The miner also informed it has proposed to issue a dividend of 0.10 soles for each A common shares and 0.105 soles per B share amounting to a total of 107mn soles.
Volcán is one of the world's largest zinc producers with the Yauli, Cerro de Pasco and Vinchos operations in central Peru. The company sold 449,550t of zinc concentrates in 2006.
Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 24, 2007 (21:07)
Cementos Pacasmayo invests USD 150 mln
Cement manufacturer Cementos Pacasmayo plans to expand production to meet the demand of the construction market. According to its general manager, Lino Abram Caballerino the company is studying a project to expand capacity of Portland cement in Pacasmayo (La Libertad). The project will demand investments of USD 150 million until 2011. In 2007, the company already invested USD 40 million for the same purpose. Cementos Pacasmayo is a subsidiary of Hochschild group. BIS - Business Information Systems
Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: September 24, 2007
Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: September 24, 2007
9/19/07
PSEG Global Enters Into Agreement to Sell Electroandes
PSEG Global, a subsidiary of PSEG, announced today that it has entered into a definitive agreement to sell its ownership of Electroandes, a hydro-electric generation company in Peru, to a wholly-owned subsidiary of Statkraft Norfund Power Invest (SN Power) of Norway. The purchase price will total approximately $390 million, including the assumption of $106 million of debt, and closing is expected in October of this year.
"Electroandes is a strong company in an attractive market with dedicated employees. We are selling Electroandes as part of PSEG's announced strategy of opportunistically monetizing its international assets at attractive prices. We are pleased that we were able to make the sale to a company with an excellent reputation, significant experience in hydro-electric power operations and a strong environmental focus," said Matthew McGrath, president, PSEG Global.
PSEG indicated that the sale is expected to result in an after-tax gain which will be recorded in Discontinued Operations. After-tax net cash proceeds, including dividends paid prior to closing, are expected to total $215 to $225 million.
JP Morgan acted as financial advisor to PSEG on the transaction.
Electroandes owns and operates four hydro-generation plants with total capacity of 180 megawatts, 437 miles of electric transmission lines, and has a number of growth initiatives. It is located in the central Andean region of Peru.
SN Power is a growing international renewable energy company that develops, owns and operates hydro power projects and plants in emerging markets. The company is owned by Statkraft and Norfund. Statkraft is a Norwegian state-owned renewable energy company and northern Europe's largest generator of hydroelectric power, operating 91 hydropower stations with 42 TWh of annual generation. Norfund is a leading Norwegian risk capital investor in emerging markets with funding from the Government of Norway.
PSEG Global owns and operates electric generation plants in the US and in selective other countries as well as electric distribution companies in South America. PSEG Global's US investment includes 100 percent ownership in two 1,000-mw electric generation plants in Texas, and partial ownership of smaller plants in California, Hawaii and New Hampshire. PSEG Global is a subsidiary of PSEG Energy Holdings and an indirect subsidiary of PSEG . PSEG is a diversified energy company based in Newark, New Jersey.
Publication: PR Newswire
Provider: PR Newswire
Date: September 19, 2007
"Electroandes is a strong company in an attractive market with dedicated employees. We are selling Electroandes as part of PSEG's announced strategy of opportunistically monetizing its international assets at attractive prices. We are pleased that we were able to make the sale to a company with an excellent reputation, significant experience in hydro-electric power operations and a strong environmental focus," said Matthew McGrath, president, PSEG Global.
PSEG indicated that the sale is expected to result in an after-tax gain which will be recorded in Discontinued Operations. After-tax net cash proceeds, including dividends paid prior to closing, are expected to total $215 to $225 million.
JP Morgan acted as financial advisor to PSEG on the transaction.
Electroandes owns and operates four hydro-generation plants with total capacity of 180 megawatts, 437 miles of electric transmission lines, and has a number of growth initiatives. It is located in the central Andean region of Peru.
SN Power is a growing international renewable energy company that develops, owns and operates hydro power projects and plants in emerging markets. The company is owned by Statkraft and Norfund. Statkraft is a Norwegian state-owned renewable energy company and northern Europe's largest generator of hydroelectric power, operating 91 hydropower stations with 42 TWh of annual generation. Norfund is a leading Norwegian risk capital investor in emerging markets with funding from the Government of Norway.
PSEG Global owns and operates electric generation plants in the US and in selective other countries as well as electric distribution companies in South America. PSEG Global's US investment includes 100 percent ownership in two 1,000-mw electric generation plants in Texas, and partial ownership of smaller plants in California, Hawaii and New Hampshire. PSEG Global is a subsidiary of PSEG Energy Holdings and an indirect subsidiary of PSEG . PSEG is a diversified energy company based in Newark, New Jersey.
Publication: PR Newswire
Provider: PR Newswire
Date: September 19, 2007
Motorola launches Mototrbo system in Peru
Motorola has launched its Mototrbo two-way digital radio system in Peru. The system integrates voice and data communications, and is customised to meet the needs of each customer. The system incorporates digital technology into two-way analogue radios. The system allows for the supply of advanced solutions and applications for professional communications. Mototrbo also offers localisation services via a GPS receiver and text messages between equipment on the network and between this equipment and other devices such as cellphones, PDAs and PCs.
Publication: Telecom.paper News
Provider: Telecom.paper
Date: September 19, 2007
Publication: Telecom.paper News
Provider: Telecom.paper
Date: September 19, 2007
Peru Hoteles Jose Antonio To Invest $8.0 Mln in Four-Star Hotel
Peruvian hotel chain Hoteles Jose Antonio will invest $8.0 mln (5.7 mln euro) in the construction of a four-star hotel, located in Miraflores district, Lima province, Peruvian daily Andina said on September 18, 2007.
This will be the third hotel the company will have in Miraflores. The initiative corresponds with the company's policy not to renovate old buildings but to start from the beginning.
The construction works will start in November or December, 2008, after the company opens its hotel in the Puno department, southern Peru. It is estimated to be finished in 2010, company's sales director, Cecilia Barrera, said.
The Puno hotel is located on the shore of the Titicaca lake. Its construction also required an $8.0 mln investment. The hotel is expected to be officially opened on March 12, 2008.
At present Hoteles Jose Antonio runs two hotels in Lima, and a 126-room hotel in Cusco, northeast from the Puno department. The three are all four-star hotels.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 19, 2007
This will be the third hotel the company will have in Miraflores. The initiative corresponds with the company's policy not to renovate old buildings but to start from the beginning.
The construction works will start in November or December, 2008, after the company opens its hotel in the Puno department, southern Peru. It is estimated to be finished in 2010, company's sales director, Cecilia Barrera, said.
The Puno hotel is located on the shore of the Titicaca lake. Its construction also required an $8.0 mln investment. The hotel is expected to be officially opened on March 12, 2008.
At present Hoteles Jose Antonio runs two hotels in Lima, and a 126-room hotel in Cusco, northeast from the Puno department. The three are all four-star hotels.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 19, 2007
9/12/07
Peruvian Yura Plans $85 Mln Investment for 2007-2009
Peruvian cement company Yura will invest $85 mln (61 mln euro) in increasing its clinker output by more than twice over the period 2007 to 2009, Yura said on September 11, 2007.
Yura will increase the annual capacity of its clinker production line to 1.2 million tonnes, up from the current 590,000 tonnes. Thus the company will consolidate its position in the national industry.
Over the period 2005 to 2006 Yura invested $28 mln (20 mln euro) in equipment acquisition and improvement of its environmental control systems. It increased its cement grinding capacity with the installation of a vertical roller mill of German capital goods maker Loesche GmbH. It renewed its quality management system certificate ISO 9001:2000 and the environmental certificate ISO 14001:2004.
Yura is part of Peruvian industrial conglomerate Grupo Gloria SA (www.grupogloria.com.pe). Yura produces and sells cement, ready mixed concrete and aggregates, and lime. It supplies products principally to the construction and mining industries.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 12, 2007
Yura will increase the annual capacity of its clinker production line to 1.2 million tonnes, up from the current 590,000 tonnes. Thus the company will consolidate its position in the national industry.
Over the period 2005 to 2006 Yura invested $28 mln (20 mln euro) in equipment acquisition and improvement of its environmental control systems. It increased its cement grinding capacity with the installation of a vertical roller mill of German capital goods maker Loesche GmbH. It renewed its quality management system certificate ISO 9001:2000 and the environmental certificate ISO 14001:2004.
Yura is part of Peruvian industrial conglomerate Grupo Gloria SA (www.grupogloria.com.pe). Yura produces and sells cement, ready mixed concrete and aggregates, and lime. It supplies products principally to the construction and mining industries.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 12, 2007
9/10/07
Peru opens international tender to build new gas pipeline
The Peruvian government has opened an international tender for the construction of a gas pipeline in the Ica region. The result will be known in January of next year, when the proposals of the interested companies will be opened.
Steel Business Briefing learns from the government that the successful company will be responsible for the design, construction and operation of the pipeline, which will transport gas from Pisco city to Marcona, a distance of some 240 km.
The local longs steelmaker Aceros Arequipa and the iron ore producer Shougang Hierro Peru have already stated their interest in obtaining a supply of gas. Arequipa plans to use it for a new DRI plant, which is planned to be constructed from the next year, Shougang wants to change from oil to natural gas the fuel used at its beneficiation process, as previously reported.
SBB learns that the energy companies Transportadora de Gas del Perú, Suez Energy and Promigas are interested in participating in the tender. The pipeline is due to be commissioned in 2009 and will require an investment of US$70m.
Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: September 10, 2007
Steel Business Briefing learns from the government that the successful company will be responsible for the design, construction and operation of the pipeline, which will transport gas from Pisco city to Marcona, a distance of some 240 km.
The local longs steelmaker Aceros Arequipa and the iron ore producer Shougang Hierro Peru have already stated their interest in obtaining a supply of gas. Arequipa plans to use it for a new DRI plant, which is planned to be constructed from the next year, Shougang wants to change from oil to natural gas the fuel used at its beneficiation process, as previously reported.
SBB learns that the energy companies Transportadora de Gas del Perú, Suez Energy and Promigas are interested in participating in the tender. The pipeline is due to be commissioned in 2009 and will require an investment of US$70m.
Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: September 10, 2007
9/6/07
Peruvian Wood Sector Posts 117 Pct Y/Y Surge in Exports Jan-July 2007
The Peruvian wood sector posted a 117 pct year-on-year surge in exports in the period January to July 2007 to $98.06 mln (71.7 mln euro), Lima Chamber of Commerce (CCL) said on September 4, 2007.
The principal foreign market of Peruvian wood sector was the USA, with $37.34 mln (27 mln euro), up 84 pct. Mexico ranked second major destination of Peruvian wood exports with $29.86 mln (21.8 mln euro), surging 127 pct from the first seven months of 2006.
Sawn or chipped wood was the best-exported product with a 59.3 pct share in the total exports of the wood sector in the first seven months of 2007. Sawn or chipped wood exports jumped 92.56 pct to $58.14 mln (42.5 mln euro).
Other furniture and parts concentrated an 8.82 pct share in exports. Peruvian wood sector saw a 14 pct rise in the exports of other furniture and parts to $8.65 mln (6.3 mln euro).
(Note: Unless otherwise stated, all figures/comparisons are for Jan-July 2007/Jan-July 2006.)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 6, 2007
The principal foreign market of Peruvian wood sector was the USA, with $37.34 mln (27 mln euro), up 84 pct. Mexico ranked second major destination of Peruvian wood exports with $29.86 mln (21.8 mln euro), surging 127 pct from the first seven months of 2006.
Sawn or chipped wood was the best-exported product with a 59.3 pct share in the total exports of the wood sector in the first seven months of 2007. Sawn or chipped wood exports jumped 92.56 pct to $58.14 mln (42.5 mln euro).
Other furniture and parts concentrated an 8.82 pct share in exports. Peruvian wood sector saw a 14 pct rise in the exports of other furniture and parts to $8.65 mln (6.3 mln euro).
(Note: Unless otherwise stated, all figures/comparisons are for Jan-July 2007/Jan-July 2006.)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 6, 2007
U.S. Hunt Oil To Explore Peruvian Block 102
U.S. energy group Hunt Oil bought the 43.75 pct stake in the contract for exploration and exploitation of the Peruvian Block 102 in the Maranon Basin in Loreto region, northern Peru, of U.S. oil and gas exploration and development company Shona Energy, Hunt Oil CEO, Carlos del Solar, said on September 4, 2007.
Hunt Oil will explore Block 102 in partnership with U.S. contractors Ramshorn International and Andean Oil and Gas. The entrance of Hunt Oil in the partnership entails a modification of the exploration contract signed with the Government of Peru and requires the approval of Peru's state oil sector promotion agency Perupetro.
Ramshorn International, Shona Energy International and Andean Oil and Gas were awarded a 30-year oil concession and a 40-year gas concession for Block 102 in December 2005. Under the modified contract, Hunt Oil and Ramshorn will have a 43.75 pct stake each in the concession, and Andean Oil and Gas will have the remaining 12.5 pct.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 6, 2007
Hunt Oil will explore Block 102 in partnership with U.S. contractors Ramshorn International and Andean Oil and Gas. The entrance of Hunt Oil in the partnership entails a modification of the exploration contract signed with the Government of Peru and requires the approval of Peru's state oil sector promotion agency Perupetro.
Ramshorn International, Shona Energy International and Andean Oil and Gas were awarded a 30-year oil concession and a 40-year gas concession for Block 102 in December 2005. Under the modified contract, Hunt Oil and Ramshorn will have a 43.75 pct stake each in the concession, and Andean Oil and Gas will have the remaining 12.5 pct.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 6, 2007
8/31/07
Peruvian Pacasmayo To Export Portland Cement, Lime to Pacific Countries
Peruvian cement producer Cementos Pacasmayo will use the limestone and diatomite deposits in Bayovar in the northwestern region of Piura to produce Portland-type cement and lime for export to the Pacific countries, Pacasmayo said on August 29, 2007.
Pacasmayo will produce both white and gray Portland cements. Pacasmayo was awarded the project by Peruvian state investment promotion agency ProInversion.
Pacasmayo will carry out some exploration work at the deposits over the next 18 months, Pacasmayo's CEO, Lino Abram, said.
The company's cement manufacturing plant in Pacasmayo in the western region of La Libertad is being supplied with limestone from the deposit Tembladera, located in La Libertad. The company owns other limestone deposits in Bayovar, but the deposits awarded now are with higher purity, which allows the production of white Portland cement and lime.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 31, 2007
Pacasmayo will produce both white and gray Portland cements. Pacasmayo was awarded the project by Peruvian state investment promotion agency ProInversion.
Pacasmayo will carry out some exploration work at the deposits over the next 18 months, Pacasmayo's CEO, Lino Abram, said.
The company's cement manufacturing plant in Pacasmayo in the western region of La Libertad is being supplied with limestone from the deposit Tembladera, located in La Libertad. The company owns other limestone deposits in Bayovar, but the deposits awarded now are with higher purity, which allows the production of white Portland cement and lime.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 31, 2007
Peru Egasa To Build $337 Mln HPP in Arequipa
Peruvian utility Empresa de Generacion Electrica de Arequipa SA (Egasa) was granted a temporary concession to build a $337 mln (246.7 mln euro) hydroelectric power plant (HPP) in southern Arequipa region, the Energy and Mining Minister, Juan Valdivia, said on August 30, 2007.
The 310 MW Molloco plant will be located on the Colca river in the province of Caylloma. It would reportedly be the largest electricity generator in Arequipa.
The minister spoke at the launch of a dam construction in Caylloma. The Chalhuanca dam will be built by Egasa and is estimated at nearly 3.583 mln Peruvian soles ($1.1 mln/829,000 euro). It is expected to increase by 10 pct the power generating capacity of the region.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 31, 2007
The 310 MW Molloco plant will be located on the Colca river in the province of Caylloma. It would reportedly be the largest electricity generator in Arequipa.
The minister spoke at the launch of a dam construction in Caylloma. The Chalhuanca dam will be built by Egasa and is estimated at nearly 3.583 mln Peruvian soles ($1.1 mln/829,000 euro). It is expected to increase by 10 pct the power generating capacity of the region.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 31, 2007
Peruvian Ajegroup Posts $60 Mln Investment Since Start-2007
Peruvian soft drinks maker Ajegroup posted a total investment of $60 mln (44 mln euro) in its 22 production plants throughout the world since the beginning of 2007, the company’s corporate affairs and communications director, Alfredo Paredes, said on August 30, 2007.
The investment planned by the company for full-year 2007 stands at $76 mln (51 mln euro).
Ajegroup is present in Mexico, Peru, Venezuela, Ecuador, Central America, Thailand and Colombia. Ajegroup entered Colombia a month ago with the product Big Cola.
At the end of August 2007 the company will introduce on the Mexican market a line of citrus juices with vitamins under the brand Big Citrus Punch. In this market segment the company has no competitors in Mexico and thus it will gain a 100-pct market share from scratch. In Peru this line of citrus juices is being sold under the brand Cifrut Citrus Punch for seven months.
Ajegroup's Mexican unit, Ajemex, has four soft drinks manufacturing plants in the country. Ajemex has an 8.0 pct market share on the Mexican soft drinks market. Mexico is the world's biggest consumer of soft drinks per capita and the second largest in beverage production.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 31, 2007
The investment planned by the company for full-year 2007 stands at $76 mln (51 mln euro).
Ajegroup is present in Mexico, Peru, Venezuela, Ecuador, Central America, Thailand and Colombia. Ajegroup entered Colombia a month ago with the product Big Cola.
At the end of August 2007 the company will introduce on the Mexican market a line of citrus juices with vitamins under the brand Big Citrus Punch. In this market segment the company has no competitors in Mexico and thus it will gain a 100-pct market share from scratch. In Peru this line of citrus juices is being sold under the brand Cifrut Citrus Punch for seven months.
Ajegroup's Mexican unit, Ajemex, has four soft drinks manufacturing plants in the country. Ajemex has an 8.0 pct market share on the Mexican soft drinks market. Mexico is the world's biggest consumer of soft drinks per capita and the second largest in beverage production.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 31, 2007
Peru Topy Top Opens Store in Venezuela
Peru's leading clothing exporter Topy+TopTopy Top SA launched the first out of a total four stores planed to be opened in Venezuela by the end of 2007, Peruvian news agency Andina reported on August 30, 2007.
The store occupies 1,500 sq m in the Orinokia commercial centre in the town of Puerto Ordaz, Bolivar state. The other three Topy+Top shops will be located in Maturin, Monagas state, Barquisimeto, Lara state, and in the capital Caracas.
In Venezuela the company will sell the Xiomi clothing line for youths, the New York line for females and males, the sports line Maui & Sons, the urban Hawk and Knext and the casual Topy Top line.
Topy+Top's exports rose by 23.86 pct year-on-year in January to July 2007. The company presently exports 70 pct of its production, addressing 95 pct to the American market, according to corporate data.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 31, 2007
The store occupies 1,500 sq m in the Orinokia commercial centre in the town of Puerto Ordaz, Bolivar state. The other three Topy+Top shops will be located in Maturin, Monagas state, Barquisimeto, Lara state, and in the capital Caracas.
In Venezuela the company will sell the Xiomi clothing line for youths, the New York line for females and males, the sports line Maui & Sons, the urban Hawk and Knext and the casual Topy Top line.
Topy+Top's exports rose by 23.86 pct year-on-year in January to July 2007. The company presently exports 70 pct of its production, addressing 95 pct to the American market, according to corporate data.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 31, 2007
8/28/07
Peru, Colombia Start 2nd Round of FTA Talks with EFTA Nations
Peru and Colombia have started the second round of talks for the signing of a free trade agreement (FTA) with the member countries of the European Free Trade Association (EFTA), the news portal Invertia said on August 27, 2007.
EFTA includes Iceland, Liechtenstein, Norway and Switzerland.
The second round of FTA talks takes place in Lima. The two sides are expected to discuss issues such as market access, sanitary and phytosanitary measures, technical obstacles to trade, origin rules and customs procedures, among others.
According to Peru's Deputy Minister of Foreign Trade, Luis Alonso Garcia, the most problematic issue in the talks with EFTA is expected to be the trade with agriculture products.
The second round will last until August 31. The first round was held in Bogota in June, while the third and final round is scheduled for October in Geneva.
Despite the common talks, Peru and Colombia will sign separate FTAs with EFTA once the talks are completed.
EFTA was created in 1960.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 28, 2007
EFTA includes Iceland, Liechtenstein, Norway and Switzerland.
The second round of FTA talks takes place in Lima. The two sides are expected to discuss issues such as market access, sanitary and phytosanitary measures, technical obstacles to trade, origin rules and customs procedures, among others.
According to Peru's Deputy Minister of Foreign Trade, Luis Alonso Garcia, the most problematic issue in the talks with EFTA is expected to be the trade with agriculture products.
The second round will last until August 31. The first round was held in Bogota in June, while the third and final round is scheduled for October in Geneva.
Despite the common talks, Peru and Colombia will sign separate FTAs with EFTA once the talks are completed.
EFTA was created in 1960.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 28, 2007
Peru's Domestic Passenger Traffic Jumps 27 Pct Y/Y Jan-July 2007
The domestic passenger traffic of Peru jumped 27 pct year-on-year to 2,007,661 passengers between January and July 2007, compared to the same period a year ago, the local civil aviation authority DGAC said on August 27, 2007.
In July 2007 the domestic passenger traffic totalled 338,435 persons, compared to 285,226 in June 2007.
LAN Peru, a subsidiary of Chilean air carrier LAN Airlines SA, transported 1,221,600 passengers between January and July 2007, followed by Aerocondor, with 357,957.
(Editor’s note: LAN Peru expects its national passenger traffic to reach 2.2 million in 2007, compared to 1.8 million passengers in 2006, the Latin America News Digest said.)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 28, 2007
In July 2007 the domestic passenger traffic totalled 338,435 persons, compared to 285,226 in June 2007.
LAN Peru, a subsidiary of Chilean air carrier LAN Airlines SA, transported 1,221,600 passengers between January and July 2007, followed by Aerocondor, with 357,957.
(Editor’s note: LAN Peru expects its national passenger traffic to reach 2.2 million in 2007, compared to 1.8 million passengers in 2006, the Latin America News Digest said.)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 28, 2007
Peru Fishing Exports At $1.072 Bln H1 2007
Peru fishing exports rose by 17.7 pct year-on-year to $1.072 bln (784.3 mln euro) in the first six months of 2007, the association of Peru's exporters, Adex, said on August 26, 2007.
Traditional fishing exports generated 72.8 pct of the total, while non-traditional contributed with 27.2 pct. Value-added exports, in turn, rose to 27.2 pct of the total exports compared to 24.3 pct in the first half 2006.
The share of the traditional exports fell from 75.7 pct in the first half of 2006 which reflected a gradual reduction of Peru's dependence on the fish flour as well a diversification and development of the non-traditional fishing exports, Adex said.
Non-traditional exports grew by 31.8 pct to $277.3 mln (202.9 mln euro) with exports to Spain generating $54 mln (39.5 mln euro). Exports to the USA, which is the largest market of crustaceans from Peru, were estimated at $42.3 mln (30.9 mln euro), followed by China, Italy, South Korea, Japan, France, South Africa and Germany.
Hayduk was the leading exporter of Peru with $20.6 mln(15 mln euro), followed by Corporacion Refrigerados with $14.5 mln (10.6 mln euro), Austral Group with $14.1 mln (10.3 mln euro). The big exporters included also Tecnologica de Alimentos, Pacific Freezing Company and Seafrost.
(Note: All figures/comparisons are for H1 2007/H1 2006)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 27, 2007
Traditional fishing exports generated 72.8 pct of the total, while non-traditional contributed with 27.2 pct. Value-added exports, in turn, rose to 27.2 pct of the total exports compared to 24.3 pct in the first half 2006.
The share of the traditional exports fell from 75.7 pct in the first half of 2006 which reflected a gradual reduction of Peru's dependence on the fish flour as well a diversification and development of the non-traditional fishing exports, Adex said.
Non-traditional exports grew by 31.8 pct to $277.3 mln (202.9 mln euro) with exports to Spain generating $54 mln (39.5 mln euro). Exports to the USA, which is the largest market of crustaceans from Peru, were estimated at $42.3 mln (30.9 mln euro), followed by China, Italy, South Korea, Japan, France, South Africa and Germany.
Hayduk was the leading exporter of Peru with $20.6 mln(15 mln euro), followed by Corporacion Refrigerados with $14.5 mln (10.6 mln euro), Austral Group with $14.1 mln (10.3 mln euro). The big exporters included also Tecnologica de Alimentos, Pacific Freezing Company and Seafrost.
(Note: All figures/comparisons are for H1 2007/H1 2006)
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 27, 2007
8/24/07
Retailer Supermercados Peruanos To Invest $5.8 Mln in New Hypermarket in Chiclayo
Peruvian retailer Supermercados Peruanos SA will invest $5.8 mln (4.3 mln euro) in the construction of a new hypermarket of its Plaza Vea retail chain in the town of Chiclayo, in the western Lambayeque region, the company said on August 23, 2007.
The Plaza Vea hypermarket in Chiclayo will be opened in October. It will cover a total area of 8,500 sq m in the Real Plaza shopping mall. The hypermarket will offer food and textile goods, electrical appliances, detergents and personal hygiene products.
The construction works are estimated to create 300 direct jobs.
The Plaza Vea chain has 20 hypermarkets in Lima and one in Trujillo.
[Editor's note: Supermercados Peruanos SA announced it would invest $30 mln (22.1 mln euro) in hypermarket openings of the Plaza Vea retail chain in 2007, the Latin America News Digest reported on December 4, 2006. In 2006 the retailer invested $25 mln (18.4 mln euro) in the expansion of Plaza Vea. Apart from Plaza Vea, Supermercados Peruanos runs also the chains Vivanda, Minisol and Santa Isabel.]
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 24, 2007
The Plaza Vea hypermarket in Chiclayo will be opened in October. It will cover a total area of 8,500 sq m in the Real Plaza shopping mall. The hypermarket will offer food and textile goods, electrical appliances, detergents and personal hygiene products.
The construction works are estimated to create 300 direct jobs.
The Plaza Vea chain has 20 hypermarkets in Lima and one in Trujillo.
[Editor's note: Supermercados Peruanos SA announced it would invest $30 mln (22.1 mln euro) in hypermarket openings of the Plaza Vea retail chain in 2007, the Latin America News Digest reported on December 4, 2006. In 2006 the retailer invested $25 mln (18.4 mln euro) in the expansion of Plaza Vea. Apart from Plaza Vea, Supermercados Peruanos runs also the chains Vivanda, Minisol and Santa Isabel.]
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 24, 2007
8/22/07
U.S. Terra, Australian Orica Mull Petrochemical Investment in Peru
U.S. fertiliser producer Terra Industries and Australian chemicals producer Orica Mining Services are interested in opening a petrochemical complex in Pisco, southwestern Peru, Peru’s Production Ministry said on August 21, 2007.
The complex will have a capacity to produce 550,000 tonnes of ammonia and 300,000 tonnes of ammonium nitrate annually. The project will require a total investment of $1.2 bln (891 mln euro). The complex is expected to start operations in 2009, Peru’s Industry Vice-Minister, Carlos Ferraro, pointed out. The project will have a positive impact on job creation in Pisco, because the construction works will require at least 2,500 workers over a two-year period.
The Peruvian unit of Argentine oil and gas company Pluspetrol, Pluspetrol Peru Corporation, is currently negotiating with Terra and Orica over a contract for the supply of natural gas from Peruvian natural gas field Camisea. Natural gas is the raw material for the production of ammonia and ammonium nitrate. The negotiations are at an advanced stage and the companies could shortly reach an agreement, Ferraro said.
Currently, Peru imports some 170,000 to 190,000 tonnes of ammonium nitrate annually.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 22, 2007
The complex will have a capacity to produce 550,000 tonnes of ammonia and 300,000 tonnes of ammonium nitrate annually. The project will require a total investment of $1.2 bln (891 mln euro). The complex is expected to start operations in 2009, Peru’s Industry Vice-Minister, Carlos Ferraro, pointed out. The project will have a positive impact on job creation in Pisco, because the construction works will require at least 2,500 workers over a two-year period.
The Peruvian unit of Argentine oil and gas company Pluspetrol, Pluspetrol Peru Corporation, is currently negotiating with Terra and Orica over a contract for the supply of natural gas from Peruvian natural gas field Camisea. Natural gas is the raw material for the production of ammonia and ammonium nitrate. The negotiations are at an advanced stage and the companies could shortly reach an agreement, Ferraro said.
Currently, Peru imports some 170,000 to 190,000 tonnes of ammonium nitrate annually.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 22, 2007
Wong acquires supermarket chains
Corporacion Wong has acquired four stores of the supermarkets chain Merpisa paying US$7.05mil, and is completing negotiations to acquire the small chains El Centro (5 stores) and El Super (3 stores). Chiappe family, to which belongs El Centro, has received proposals from Supermercados Peruanos and Falabella, but Wong is confident to incorporate it as part of a strategy to reach the Peruvian interior.
Publication: SABI - Business News
Provider: South American Business Information
Date: August 22, 2007
Publication: SABI - Business News
Provider: South American Business Information
Date: August 22, 2007
Alfa purchases land to erect mall at Jockey Club Arequipa
Inversiones Alfa, teaming the Chilean retailers Falabella, Ripley and Mall Plaza, have acquired a 100,000 m2 land from Jockey Club de Arequipa paying US$70 per m2. Plans are to erect there a mall hosting stores from Falabella, Ripley, Tottus and Sodimac and also other 70 smaller shops, totalling investments of US$40mil.
Publication: SABI - Business News
Provider: South American Business Information
Date: August 22, 2007
Publication: SABI - Business News
Provider: South American Business Information
Date: August 22, 2007
Altas Cumbres expands Jockey Plaza
Jockey Plaza is the largest mall in Lima and should end 2007 with a 15% increase on sales to around US$400mil, estimates general manager Juan Jose Calle, boasting the mall as the top performer in Peru. Owned by the Chilean lessor Altas Cumbres, Jockey Plaza is also investing US$8mil to set up a medical center building and plans expansion in the built area attracting anchor stores as Paris and La+Polar.
Publication: SABI - Business News
Provider: South American Business Information
Date: August 22, 2007
Publication: SABI - Business News
Provider: South American Business Information
Date: August 22, 2007
8/17/07
Chile Enap, Peru Romero, Brazil Petrobras Eye Repsol Fuel Stations in Chile
Chilean state oil company Enap, in cooperation with Peruvian conglomerate Grupo Romero, and Brazilian federal oil and gas company Petroleo Brasileiro (Petrobras) may buy the fuel distribution assets of Spanish oil group Repsol in Chile, Economia y Negocios reported on August 15, 2007.
The operation is still being prepared and the final conditions have not been officially announced, yet. The process is in the hands of the U.S. investment bank Goldman Sachs.
If Enap and Romero, through their joint venture Primax SA, win the deal, Enap will control 10 pct of the fuel stations in the country. Primax is 49 pct controlled by Enap, and Romero holds the majority 51 pct stake. The joint venture plans to have 200 fuel stations at the end of 2007 in Peru, where it currently controls 30 pct of the market. Primax also plans to invest over $30 mln (22.4 mln) to expand to Bolivia and to countries in Central America in the mid-term.
Representatives of Petrobras in Chile had previously announced plans to expand in the local fuel distribution business.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 17, 2007
The operation is still being prepared and the final conditions have not been officially announced, yet. The process is in the hands of the U.S. investment bank Goldman Sachs.
If Enap and Romero, through their joint venture Primax SA, win the deal, Enap will control 10 pct of the fuel stations in the country. Primax is 49 pct controlled by Enap, and Romero holds the majority 51 pct stake. The joint venture plans to have 200 fuel stations at the end of 2007 in Peru, where it currently controls 30 pct of the market. Primax also plans to invest over $30 mln (22.4 mln) to expand to Bolivia and to countries in Central America in the mid-term.
Representatives of Petrobras in Chile had previously announced plans to expand in the local fuel distribution business.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 17, 2007
8/9/07
Peru: Lima hotels sprouting up everywhere
Lima is set to do Peru proud at last as regards hotel rooms, luxury ones at that; the traditional deficit looks set to be remedied over the next 30 months. Projects afoot or planned include the US$12mil remodelling of the hotel formerly known as Cesar's, now run by Casa Andina, and the building of second towers for the hotels Swissotel, Melia and Prince (San Borja), which should be completed in 2008 after joint spending of US$35mil.
Additionally, Colombian group GHL is to open a five-star Sonesta Posadas del Inca in San Isidro next year after investment of US$12mil. It will also remodel its six other hotels at a cost of US$2mil.
The Country Club Hotel too is being remodelled to reach a total of 100 rooms at a cost of US$3mil. France's Accor will inaugurate two hotels in San Isidro and Miraflores respectively next year after investment of US$25mil (using the Novotel and Ibis formats).
Also, Costa del Sol-Ramada has just inaugurated a four-star hotel at Lima's Jorge Chavez airport after spending US$9mil and is now looking for another Lima location; Casa Andina is interested in operating Grupo Sam's Gran Hotel Miraflores; Jonker will construct a five-star hotel at the Centro Aereo Comercial, in front of the airport, too; finally, today, Crowne Plaza, part of the Intercontinental chain, will inaugurate a hotelin Lima after investing US$12mil.
Publication: SABI - Business News
Provider: South American Business Information
Date: August 9, 2007
Additionally, Colombian group GHL is to open a five-star Sonesta Posadas del Inca in San Isidro next year after investment of US$12mil. It will also remodel its six other hotels at a cost of US$2mil.
The Country Club Hotel too is being remodelled to reach a total of 100 rooms at a cost of US$3mil. France's Accor will inaugurate two hotels in San Isidro and Miraflores respectively next year after investment of US$25mil (using the Novotel and Ibis formats).
Also, Costa del Sol-Ramada has just inaugurated a four-star hotel at Lima's Jorge Chavez airport after spending US$9mil and is now looking for another Lima location; Casa Andina is interested in operating Grupo Sam's Gran Hotel Miraflores; Jonker will construct a five-star hotel at the Centro Aereo Comercial, in front of the airport, too; finally, today, Crowne Plaza, part of the Intercontinental chain, will inaugurate a hotelin Lima after investing US$12mil.
Publication: SABI - Business News
Provider: South American Business Information
Date: August 9, 2007
8/6/07
Chilean Ripley To Invest $200 Mln in Expansion in Peru 2008-2009
Chilean department store chain Ripley will double all investments made in Peru until now, allocating $200 mln (145 mln euro) to finance an aggressive expansion plan in the country in the period 2008 to 2009, Ripley executive director for Peru, Sergio Collarte, said on August 5, 2007.
The company has invested a total $89 mln (65 mln euro) in Peru since it entered the country in 1997. In the next two years Ripley will invest in the construction of malls and shops, and the expansion of its financial business in Peru.
Ripley (www.ripley.cl) is specialising in the retail selling of clothes, accessories and home furnishings. It is also involved in the financial business providing consumer credits to customers with its own credit card Ripley and its banking unit Banco Ripley. Banco Ripley offers consumer credits and insurance, as well as the products of U.S. credit card company MasterCard.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 6, 2007
The company has invested a total $89 mln (65 mln euro) in Peru since it entered the country in 1997. In the next two years Ripley will invest in the construction of malls and shops, and the expansion of its financial business in Peru.
Ripley (www.ripley.cl) is specialising in the retail selling of clothes, accessories and home furnishings. It is also involved in the financial business providing consumer credits to customers with its own credit card Ripley and its banking unit Banco Ripley. Banco Ripley offers consumer credits and insurance, as well as the products of U.S. credit card company MasterCard.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 6, 2007
Grupo Gloria invests USD 60 mln
Grupo Gloria announced that it will invest USD 60 million during the 2007 - 2009 period. Resources will be invested in the expansion of its sugarcane production and in its subsidiary Agroindustrial Casa Grande. Only in 2007, Gloria will invest USD 33.7 million in Casa Grande. BIS - Business Information Systems
Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: August 6, 2007
Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: August 6, 2007
8/1/07
Peruvian Govt To Invest $221 Mln in Raising Electrification Rate to 83 Pct in 2008
The Government of Peru will invest 700 mln Peruvian soles ($221 mln/162 mln euro) in raising the national electrification rate to 83 pct in 2008, Peru's Energy and Mines Minister, Juan Valdivia, said on July 31, 2007.
At the end of 2007 the electrification rate in Peru is expected to stand at 78 pct, after the fulfilment of the planned investment of over 700 mln soles ($221 mln/162 mln euro) for the year.
The investments are being carried out under the state target of increasing electrification rate in the country to about 90 pct in 2011. The government will use resources from the Treasury and the Rural Electrification Fund.
Chilean state-owned oil company Enap, in partnership with Peruvian gas station operator Primax, has taken the commitment to invest in the opening of 10 vehicular natural gas (VNG) stations by the end of 2007, Valdivia said.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 1, 2007
At the end of 2007 the electrification rate in Peru is expected to stand at 78 pct, after the fulfilment of the planned investment of over 700 mln soles ($221 mln/162 mln euro) for the year.
The investments are being carried out under the state target of increasing electrification rate in the country to about 90 pct in 2011. The government will use resources from the Treasury and the Rural Electrification Fund.
Chilean state-owned oil company Enap, in partnership with Peruvian gas station operator Primax, has taken the commitment to invest in the opening of 10 vehicular natural gas (VNG) stations by the end of 2007, Valdivia said.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 1, 2007
Peru New Vehicle Sales Jump 53.95 Pct Y/Y H1 2007
New vehicle sales in Peru jumped by 53.95 pct year-on-year to 22,753 units in the first half of 2007, the local automobile representatives' association Araper said on July 31, 2007.
Japanese Toyota (www.toyota.com) was the best selling vehicle brand in the country in the first six months of 2007 with a 26.2 pct share. Japanese Nissan (www.nissan.co.jp) ranked second with 11.7 pct, followed by South Korean Hyundai (www.hyundai-motor.com) with 9.1 pct, Japanese Suzuki (www.suzuki.co.jp) with 8.5 pct, Japanese Mitsubishi (www.mitsubishi.co.jp) with 5.9 pct and German Volkswagen (www.vw.com) with 5.2 pct.
A total 36 pct of the vehicles sold in the period corresponded to light cars, station wagons and multi-purpose vehicles. Light sport utility vehicles (SUVs) accounted for 19 pct of the total. Sales of commercial vehicles for cargo transport, including pick-ups and panel vans, accounted for 26 pct; and sales of commercial vehicles for passenger transport, including microbuses and minibuses, for 4.0 pct. Sales of trucks and trailers had a 12 pct share. Bus sales accounted for 3.0 pct.
In June 2007 alone, new vehicle sales in Peru totalled 4,451 units, soaring by 60.16 pct year-on-year, according to Araper data.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 1, 2007
Japanese Toyota (www.toyota.com) was the best selling vehicle brand in the country in the first six months of 2007 with a 26.2 pct share. Japanese Nissan (www.nissan.co.jp) ranked second with 11.7 pct, followed by South Korean Hyundai (www.hyundai-motor.com) with 9.1 pct, Japanese Suzuki (www.suzuki.co.jp) with 8.5 pct, Japanese Mitsubishi (www.mitsubishi.co.jp) with 5.9 pct and German Volkswagen (www.vw.com) with 5.2 pct.
A total 36 pct of the vehicles sold in the period corresponded to light cars, station wagons and multi-purpose vehicles. Light sport utility vehicles (SUVs) accounted for 19 pct of the total. Sales of commercial vehicles for cargo transport, including pick-ups and panel vans, accounted for 26 pct; and sales of commercial vehicles for passenger transport, including microbuses and minibuses, for 4.0 pct. Sales of trucks and trailers had a 12 pct share. Bus sales accounted for 3.0 pct.
In June 2007 alone, new vehicle sales in Peru totalled 4,451 units, soaring by 60.16 pct year-on-year, according to Araper data.
Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 1, 2007
Antamina copper-zinc mine to boost output by 10 percent
The Antamina copper-zinc mine plans to start-up a new pebble crusher in February 2008 that will increase annual production by about 10 percent, president and chief executive Ian Kilgour told MB.
The $39 million pebble crusher at the mine in Peru`s central Ancash deparment will reach full production capacity in April 2008. "The project is on track and we will be commissioning it in January," he said.
Antamina is forecast this year to produce 1.2 million tonnes of copper, 600,000 tonnes of zinc, 12,000 tonnes of molybdenum and up to 5,000 tonnes of bismuth, all in concentrates, Kilgour said.
Antamina is mining a zinc-rich area of the deposit that will maintain current prodution levels through the next five years before declining.
The company is engaged in an extensive $36 million exploration programme within its open pit mine to identify more resources in the deposit, which is open at depth.
"We are doing 200,000 metres of drilling, some 10,000 metres a month," he said.
Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: August 1, 2007
The $39 million pebble crusher at the mine in Peru`s central Ancash deparment will reach full production capacity in April 2008. "The project is on track and we will be commissioning it in January," he said.
Antamina is forecast this year to produce 1.2 million tonnes of copper, 600,000 tonnes of zinc, 12,000 tonnes of molybdenum and up to 5,000 tonnes of bismuth, all in concentrates, Kilgour said.
Antamina is mining a zinc-rich area of the deposit that will maintain current prodution levels through the next five years before declining.
The company is engaged in an extensive $36 million exploration programme within its open pit mine to identify more resources in the deposit, which is open at depth.
"We are doing 200,000 metres of drilling, some 10,000 metres a month," he said.
Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: August 1, 2007
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