The following question was asked on Otto's blog:
According to the announcements made this week in Lima, how much does Peru expect to attract in new mining industry investments to 2015?
a) U$6Bn
b) U$10Bn
c) U$15Bn
d)U$20Bn
The correct answer is c), U$15Bn. More serious moolah. That's like a Toromocho every year for the next 7 years. Metals' production going up? You betcha.
Is Hugo going to let himself get trounced by Peru in terms of mining competition? Peru is attracting more capital than the Chinese have invested for the steel plant at $4.5 billion.
It is safe to assume that Hugo knows Peru is doing better than Vz in mining, that Hugo is losing the capital formation, and that he is falling behind in this area amongst peer nations. He looks bad to his peers and more importantly his peers are taking his share of the capital available for investment in mining. This is no doubt eating him alive. competition is a wonderful thing. Wasn't Peru's environmental minister who just resigned ? Peru knows where its bread is buttered and Hugo knows he is missing out.
