Peru's government has hailed the successful auction of the Michiquillay copper project as a sign of a revival in mining investment in the Andean nation, but several industry participants dispute that notion.
Southern Copper Corp, controlled by Grupo Mexico, last week won a public tender to develop the world-class mining project in Peru's northern region of Cajamarca with an offer of $400 million. This was the first auction for a mining project in Peru in seven years and marks a significant change in the mining investment situation in the country, according to state-run investment promotion agency Proinversi??n.Peruvian President Pedro Pablo Kuczynski said that the auction was "great news for the development of Peru," adding that the country "is attracting large investments with very good conditions."But a number of industry participants in Peru viewed the auction for the Michiquillay project more as a failure than a success."There were only two bidders in the auction. But if you think of the prospects for the copper market, a project like that should have attracted much more interest," one industry source said."This is a clear indication...