Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China’s HBIS Resources, a unit of HBIS Group, has signed an agreement with Zhongrong Xinda, to develop the Pampa de Pongo iron ore mine in Peru.


The two companies will form a joint venture to work on the first phase of the mine, according to media reports, though the companies have not disclosed the investment required for the project.


The deal includes the development of the mine, port construction, and its operations.


The mine, which contains copper, cobalt, and gold, is located in Arequipa, Peru and consists of eight adjoining mineral claims that form a contiguous claim block of 8,000 hectares.


The Pompa de Pongo mine is expected to produce 28.1mn mt of iron ore per year, according to Peru’s Ministry of Energy and Mines (Minem).


The Peruvian mining industry is planning to invest $498.6mn this year for the exploration of 64 projects, according to Minem. Of this amount, 53pc correspond to copper projects, 18pc to gold projects, 16pc to silver exploration projects, 6pc to zinc projects, 5pc to tin projects, and 3pc to lead mining projects.


The mining industry in Peru represents about 9pc of GDP and 60pc of the country’s exports. Copper and Gold are the most important metals exported by value.


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