Peru to Build $1 Billion Cargo Railway by 2019

Peru's President Alan Garcia announced a plan to build a $1 billion cargo railway by 2019, which will carry minerals from copper, gold, and phosphate mines to the Bayovar port. The railway, aiming to transport 4 million tons annually, will link to the northern port of Paita and is expected to boost economic growth, create jobs, and reduce costs. This ambitious project will facilitate mineral transportation from mines operated by major companies such as Newmont Mining Corp., Gold Fields Ltd., Rio Tinto Group, and Anglo American Plc.

Key Takeaways:

• The $1 billion cargo railway is expected to be operational by 2019, connecting copper, gold, and phosphate mines to the Bayovar port.
• The railway will transport 4 million tons of minerals annually, including gold and copper from mines operated by Newmont Mining Corp. and Gold Fields Ltd., and phosphate from Vale SA's Bayovar deposit.
• The project aims to add 2 percent to Peru's annual GDP and create 500,000 jobs.
• The railway will also carry 1 million tons of supplies, such as fuel, back to the mines.
• The project has the support of company officials and regional and central governments, who expect it to spur development and reduce costs.
• The cargo railway will also link to the northern port of Paita, which was awarded an operating concession to Mota-Engil SGPS SA.
• Peru's Energy & Mines Ministry expects at least $6 billion in mining investment over the next decade in northern Peru.
• The project will facilitate transportation from mines operated by Lumina Copper Corp. and Cia. de Minas Buenaventura SA.

Statistics:

• $1 billion: Estimated cost of the cargo railway.
• 4 million tons: Annual mineral transport capacity of the railway.
• 500,000 jobs: Estimated number of jobs created by the railway project.
• 2 percent: Expected boost to Peru's annual GDP from the railway project.
• $6 billion: Expected mining investment in northern Peru over the next decade.

Sources:

• [1] Euclid Infotech Pvt. Ltd.