Hochschild Plans Purchase Of Peruvian Assets
News: UK precious metals producer Hochschild Mining has released plans to buy the remaining 40% of its Peruvian mining assets through the acquisition of US silver producer International Minerals , Mineweb reports. The company, which owns a 60% stake in the Pallancata and Inmaculada gold-silver projects in Peru, stated that it plans to raise up to GBP59.4mn ( US$96mn ) to partially fund the acquisition process.
BMI View: We forecast Peru's mining sector will grow steadily over our forecast period, driven primarily by investment in both base and precious metals. We forecast Peru's mining sector will grow an average of 4.3% a year through to 2017, reaching a value of US$23.0bn. Various projects remain in early development and construction phases, and the sector presents promising growth opportunities for miners of a wide array of minerals. Investment from mining companies through to 2020 is currently estimated at US$53bn, although continued protests by local communities may reduce this figure as project delays mount and costs continue to rise.