Delays to the construction of copper and gold mines in Peru are hurting sales of storage and transport services to the mining industry, according to Grupo Ransa, the country’s biggest logistical firm.
Mining will account for 10 percent of Ransa’s sales this year, compared with 30 percent in the last two years, Chief Executive Officer Emilio Fantozzi said yesterday in an interview in Lima. Rising sales to other industries are projected to boost the company’s total revenue to $360 million from $320 million in 2013, he said.
Anglo American Plc (AAL), Newmont Mining Corp. (NEM:US) and Southern Copper Corp. have postponed the construction of new mines in Peru after opponents said the projects threatened local water supply. Demand from the manufacturing, agriculture and consumer goods industries, and Ransa’s operations overseas, are compensating for stagnant or negative growth in other sectors of Peru’s economy, Fantozzi said.
“Mining pushes everything else but the market isn’t growing like it was,” Fantozzi said. “We’ve been developing other markets and we’re going to keep growing this year.”
Peru mining investment will fall to $9 billion this year from $9.7 billion in 2013, according to the Peru’s National Society of Mining, Petroleum and Energy.
Southern Copper may receive government approval this month to build its Tia Maria mine, CEO Oscar Gonzalez said May 20. Newmont is focusing on winning community support for its Conga gold project, CEO Gary Goldberg said May 14.
Ransa is owned by the Romero family, which also controls Alicorp SAA, Peru’s largest consumer goods company. Ransa has operations in six other Latin American countries and plans acquisitions in Costa Rica, Nicaragua and Panama, Fantozzi said.
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To contact the editors responsible for this story: James Attwood at email@example.com Will Wade, Tina DavisDelays to the construction of copper and gold mines in Peru are hurting sales of storage and transport services to the mining industry, according to Grupo Ransa, the country’s biggest logistical firm.