LIMA – Mining companies in Peru invested $7.2 billion in 2011, up 77% from the prior year, the government said.

The Mines and Energy Ministry said that mining companies invested $1.39 billion on infrastructure, $1.12 billion on processing plant equipment and $853 million on production.

Companies also spent $849 million on exploration, $787 million on preparation activities last year and just over $700 million on mining equipment, the ministry said. It categorized $1.42 billion as "other."

Gold producer Minera Yanacocha invested $1.15 billion in 2011, nearly quadruple the prior year, the ministry said. Yanacocha, majority held by Newmont Mining Corp. (NEM), operates South America's largest gold mine and owns the Minas Conga project, Peru's biggest mining development requiring an investment of up to $4.8 billion.

The ministry said that Xstrata PLC (XTA.LN) invested $763 million last year in its Las Bambas project and $668 million in its Tintaya project, both located in southern Peru.

Just a simple question. JW