Grupo Mexico is one of the companies sought after Peru’s new Ministry of Energy and Mines aimed to build an ambitious mining megaproject.
Peru’s New Ministry of Energy and Mines, Iván Merino, revealed the country’s new administration under socialist president Pedro Castillo is looking for help from world-renowned mining companies to build a megaproject consisting of a massive railway from Andean mineral deposits to the central coastal areas of the country. Grupo México, alongside Southern Copper and Las Bambas de China, are some of the companies chosen by the Minister.
Representatives from Grupo México and Southern Copper have already expressed their interest in taking part of the project, willing to plan the train, scheduled to transport both people and mineral resources. Although the project is in its technical evaluation phase, the train’s main infrastructure is planning to begin construction as early as 2023. The train is planned to run from the mining node in either Cusco or Apurimac and reach the port of Marcona, on the Pacific Ocean. “The cost of the project is being evaluated,” said Mr. Merino, “taking into account the bureaucratic processes, the whole train infrastructure may be finished by 2028.”
Minister Merino pointed out that the wagons transporting minerals will be sealed, so no contamination may occur. Passengers may also utilize the train for transportation. He added that it has not been decisively decided whether the project will be done through a “government to government” deal or through exclusive private agreements, given that the Andean mineral regions already have multinational mining companies in operations, like Grupo México’s very own “Las Chancas'' project, a US$2.6 billion property still in its environmental impact study stage. The company expects to produce more than 100 thousand tons per year.
“They (private companies) are part of the project; we have shown them all the agreements and we are going to involve all stakeholders involved with the project. . It is a viable project and President Pedro Castillo could inaugurate the first section of the project by the time his mandate concludes in 2026,” Minister Merino further added.
On its part, Southern Copper’s Finance Vice President, Raúl Jacob, said, “we consider it an interesting project that must be carefully evaluated to meet the expectations of all eventual users of the services. The development of transportation infrastructure is relevant for everyone."
The company, which is owned mostly by Grupo Mexico, already operates a 218km railways in Peru for exclusive transportation of their operations that run from the south of the country to the port of Ilo.