Phelps Dodge Corp, which owns Peru’s third-largest copper mine, Cerro Verde, has said it has secured loans of $450 million to help with its expansion plans for the mine. The US company said it may replace $90 million of the financing with a bond sale in Peru. This follows a decision late last week by Cerro Verde shareholders to approve issuing bonds for up to $250 million. Phelps Dodge expects to triple annual production to 300,000 metric tons following expansion.
Category: Regions
Posted inDaily Brief
Inflation Roundup For September
Peru experienced 0.09% deflation in September, making it the second month of consecutive deflation in the country after 0.18% recorded in August. This takes cumulative inflation for the nine months to end-September to 0.89%. Brazil also witnessed a fifth deflationary month with a rate of 0.53%, following August’s fall of 0.65%. Meanwhile, Colombia recorded a rise of 0.43% in September’s rate of inflation, pushed up by higher school fees at the start of the academic year, according to official sources. Cumulative inflation was at 4.42% as at end-September. And Venezuela registered 1.5% in September, meaning that cumulative inflation for the first nine months of the year is now 11.6% against 14.7% for the same period last year. Argentina is due to release its figures on Wednesday.
Posted inDaily Brief
Peru To Auction La Granja In December
Peru has set the date of 16 December for the anticipated privatization of La Granja copper deposit. The project, which has gold as well as copper deposits, has been explored before, most recently by Melbourne-based BHP Billiton. The Australian company, however, pulled out citing low-grade ore and high extraction costs. Officials say new technology now available should make extraction easier. An estimated $700 million is needed to develop the project.
Posted inDaily Brief
FLAR Attaches Strings To $416 Million Ecuador Loan
The Bogotá-based Latin American Reserve Fund (FLAR), has attached conditions to the $416 million four-year loan it is extending to Ecuador to help that country improve its fiscal accounts. FLAR has said that Ecuador’s primary spending of its non-financial public sector must not exceed 7% of GDP in 2006 and 5% in 2007, 2008 and 2009. The short-term loan from the fund will allow Ecuador to consolidate its short-debt obligations on better terms. FLAR is an adjunct of the six-member Andean Community and aims to support the financial accounts of its member countries.
Posted inDaily Brief
Cerro Verde Shareholders Approve Bond Issue
Shareholders of Peruvian copper mining group Cerro Verde have approved a $250 million bond issue, the company said. The funds raised will be used to pay for its $850 million expansion plans which are expected to boost copper production to around 300,000 metric tons a year by mid-2007 from around the current 100,000 tons a year.
Posted inDaily Brief
Colpatria Shows Interest in Granahorrar
Colombian bank Red Multibanca Colpatria has said it is interested in the upcoming privatization of state-owned Banco Granahorrar. This is the first financial institution to express interest publicly in the sale. The government hopes to push through the sale this year for at least $185 million. Spanish firms BBVA and Santander, as well as local Grupo Aval are all said to be interested in the sale.
Posted inDaily Brief
Nicaragua Recalls Ambassador From Costa Rica
Nicaragua has recalled its ambassador to Costa Rica, Francisco Fiallos Navarro, as a long-running border dispute between the two countries escalates. Since 2001, Nicaragua and Costa Rica have been disputing sovereignty of the San Juan River border between the two nations. Costa Rica says it is considering bringing the case in front of the International Court of Justice in The Hague.
Posted inMagazine
Building a Brilliant Future
Bancolombia has struggled for years to raise profits. Now it is reaping the results of its hard work as it leads bank consolidation in Colombia.
Posted inMagazine
Hunting for Champions
LatinFinance picked over 20 banks across Latin America and the Caribbean as the very best in the business. This is how we chose the winners.
Posted inDaily Brief
Bolivia May Delay December Elections
Bolivia may have to delay its general elections, due to take place on 4 December, because of administrative delays and regional disputes. Bolivia has been in political and social turmoil in the past two years and seen two presidents during this time. The current interim president, Eduardo Rodríguez, took office in June following the resignation of Carlos Mesa.