Chilean banks to join Peruvian market for good investment conditions

Some Chilean banks and others from the region aim to enter the Peruvian market because of its good investment conditions, said Peruvian Finance Minister Luis Carranza.

“We received visits from Chilean banks which aim to join Peruvian market but I can not mention names. If there are Chilean financial institutions that see Peruvian market with optimism, they are welcome,” he said.

“In general, there is great interest of banks of the region that aim to join Peruvian market,” he told El Financiero, a Chilean newspaper.

“Investment conditions in Peru are really positive because there are signs that Peruvian economy attracts investment.

Chile is an important trade and economic partner for Peru and we expect that commercial and financial ties between both countries can continue improving,” he said.

He pointed out that while the world is falling 1 or 2 percent due to global financial crisis, Peruvian economy grows between 3 and 4 percent, which in relative terms keeps much attraction.

“Local financial conditions are positive, curve in soles is below curve in dollars and that is a clear sign that the market chooses the sol; choose the strength of Peruvian economy,” he added. (Andina)

Peru's author Mario Vargas Llosa detained upon arrival in Caracas

Peruvian author Mario Vargas Llosa was detained upon arrival in Caracas for a democracy forum organized by Cedice.

Authorities seized his passport after he arrived in Caracas airport at 13.30 horas (local time), while a committee send by the organization waited for him. 

Mario Vargas Llosa's son , Alvaro, also was briefly detained upon arrival in Caracas for the same democracy forum.

Interior and Justice Minister Tarek El Aissami denied Vargas Llosa had been held, saying that immigration officers had followed the usual protocol.

Alvaro is a writer and political commentator, and a critic of Venezuelan President Hugo Chavez.

Other guests at the Caracas forum are to include Mexican historian Enrique Krauze, former Bolivian president Jorge Quiroga, Colombian writer Plinio Apuleyo Mendoza and former Mexican foreign minister Jorge Castaneda. (Andina)

Peru to assume CAN pro tempore presidency with "responsibility"

Peruvian Foreign Minister Jose Antonio Garcia Belaunde said Tuesday that Peru will assume the pro tempore presidency of the Andean Community (CAN) with responsibility and will propose a "less economic and commercial" agenda that prioritizes social, energy and infrastructure development. 

Garcia Belaunde said that amid differing views on economic matters, the main thing is to preserve the gains achieved by the Andean bloc’s four member countries: Peru, Colombia, Ecuador and Bolivia. 

He noted that Peru will assume the CAN presidency with great responsibility and a strong commitment to identifying an agenda that meets the bloc’s needs.

According to Minister Garcia Belaunde, the agenda should focus primarily on infrastructure, energy, and social development instead of debating economic and trade issues.

In his speech at 40th anniversary ceremony of the signing of the Cartagena Agreement, García Belaunde said there have been diverse problems during this time, but eventually the integration process prevailed.

He noted that we currently tackle the global crisis from different approaches as well as political and economic perspectives.

Given this, the chancellor proposed to "rescue our long tradition of ideological pluralism, respect for diversity and ability to move forward with an agenda that involves everyone. (Andina)

Photo: Peruvian Foreign Minister Jose Antonio Garcia Belaunde. Photo: ANDINA / Rubén Grández.  

Peru president likely to visit S Korea to sign FTA in November

Peruvian President Alan Garcia Perez is likely to visit Seoul in November this year to meet his South Korean counterpart Lee Myung-bak and sign a bilateral Free Trade Agreement (FTA), Korean Ambassador to Peru, Han Byung-kil, said Monday.

“So far, there are great chances that President Garcia will attend the signing of the bilateral agreement which will be of huge benefit to both counties,” he told Andina.

Ambassador Han Byung-kil detailed that the meeting would take place few days before the Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit to be held in Singapore on November 14-15, 2009.

The diplomat noted that trade negotiations between Peru and South Korea have made significant progress as it is expected that they will conclude in July this year.

“We share the optimism of Peruvian Trade Minister Mercedes Araoz, who said that with the current progress of negotiations, these could be concluded in the next round in July,” he added.

He explained that after the conclusion of their free trade talks, both governments aim to finalize the agreement’s legal review process by October at the latest. (Andina)

Peruvian cereal exports grew by 630% in first quarter

Peruvian cereal exports amounted to US$ 20’833,000 in the first quarter of 2009, a 630 percent increase compared to last year's US$ 2.85 million, the Peruvian Exporters Association (Adex) reported Sunday.

Adex reported that in the first quarter of 2009, Peru exported a total of 19 cereal shipments.

The shipment which registered the most important amount was “semi-milled and milled rice, whether or not polished or glazed” with US$ 16’914,000.

Peru also exported “Kiwicha except for sowing” for US$ 316,772; “Other cereals” for US$ 109,575; “Purple corn” for US$ 35,227; “Other wheat” for US$ 23,396; among others.

According to ADEX Data Trade Intelligence System, cereal exports reached 22 markets, led by Colombia with imports totaling US$ 17’273,000, an encouraging figure based mainly in Peruvian rice purchases.

Followed by Spain with US$ 1.5 million, the United States with US$ 697,000, Germany (US$ 344,554), Japan (US$ 303,948) among others. (Andina)

Peru, Japan to start first FTA negotiations round next week in Lima

The First Round of Negotiations for a bilateral economic partnership agreement -an expanded version of a free-trade agreement- between Peru and Japan will take place from May 25 to 29 in Lima, which seeks to facilitate both countries’ investment, trade in goods and services. 

It is worth mentioning that in November last year, Peru’s president Alan Garcia requested the Japanese prime minister, Taro Aso, to begin the negotiations during the Annual Asia-Pacific Economic Cooperation (APEC) Leaders Meeting held in Lima.

Japan has signed free trade agreements with about ten countries, of which two are from Latin America, Mexico and Chile. 

The negotiation teams will discuss issues such as market access, trade in services, telecommunications, financial services, competition policy and public procurement. 

Other issues to be discussed during the meeting are rules of origin, trade protection, customs procedures, dispute settlement, institutional issues and cooperation. 

The negotiations round will begin on Monday, May 25; nevertheless, the opening ceremony will be held on Wednesday, May 27. The information sessions for the private sector will take place on May 26 and 29. 

On the other hand, Peruvian Ambassador to Japan, Juan Carlos Capunay, hopes that Peru and Japan will conclude their bilateral economic partnership agreement by yearend or early next year.

"The proposed EPA will help boost bilateral trade links further and encourage Japanese investment in Peru," Capunay said during a visit to The Japan Times.

Capunay arrived in Tokyo last January for his third assignment in Japan. (Andina)

Photo: Taro Aso Japan Prime Minister

Peru, Brazil see increased tourism revenues by 2010

Revenues from tourism along the Amazonía - Andes - Pacífico International Route connecting Peru and Brazil would total some 225 million U.S. dollars by 2010, the Brazilian Micro and Small Business Support Service (Sebrae) said Thursday.

"We expect that 100,000 domestic tourists visit this new route every year with a turnover of US$ 150 million. Furthermore, we expect to receive 50,000 foreign tourists and US$ 75 million in tourism revenues," said Sebrae representative Orlando Sabino.

He noted that this International Tourism Route being developed by authorities from both countries will strengthen the connection between Rio Branco and Cusco provinces.

"The Brazilian states of Amazonas, Rondonia and Acre, with the support of the Peruvian Ministry of Foreign Trade and Tourism (Mincetur) have been working for months on the integration of their routes, as well as the routes of Bolivia and Peru, creating the Amazonía - Andes - Pacifico International Route," Sabino explained.

According to Mincetur, this project aims to increase the flow of tourists between both countries because there is a great tourism potential in the area. (Andina)

Brazilian trade mission to visit Peru

A trade mission of 63 companies from Brazil will visit Peru on May 26-27 to attend Brasil Tech in Lima, the Brazilian Trade and Investment Promotion Agency (Apex Brasil) reported Wednesday.

Brasil Tech is a Project directed to international commercial promotion of Brazilian sectors whose strong edge is in technology.

Besides creating business opportunities to domestic companies, Brasil Tech aims at showing overseas markets that Brazil has advanced technologies in several areas and that its products and services are quite competitive.

Under Brasil Tech flag we have synergetic sectors such as Information Technology,Plastics, Electro-Electronics, Machines and Equipment, Medical-Dentistry Products, Biotechnology, Medications, and others.

Apex Brazil Business Director Mauricio Borges said that bilateral trade has been increasing year after year and it should be encouraged, so the topics addressed in this event have been carefully selected to meet the demands of the Peruvian market, especially presenting successful cases of Brazil and cooperation forms with Peru.

The event is part of the National Innovation Week of the National Council of Science, Technology and Technological Innovation (Concytec) and will include seminars for trendsetters and 1,260 business rounds among businesspeople.

The first Brasil Tech event took place in November 2007 in Mexico City. The second one in May 2008 in Johannesburg, South Africa and the third one in September 2008, in Colombia. (Andina)

Photo: Sao Paulo

Brazilian entrepreneurs interested in purchasing potato and olives from Arequipa

Potatoes, olives and cement are some of the products the state of Rondonia (Brazil) would be interested in purchasing from Arequipa once the South Interoceanic Highway is finished, opening access to the Peruvian territory through the Matarani port, located in the province of Islay.

 

Ciro Muneo Funada, coordinator of the state of Rondonia, who attends the Peru-Brazil Business Meeting in Arequipa, said expectations of entrepreneurs of the states of Acre, Mato Grosso and Amazon are really high.

 

Currently, to buy products, entrepreneurs must travel more than 3,000 kilometers to get to the Atlantic Ocean ports, and other 1,000 kilometers along the Interoceanic to get to the Pacific Ocean.

 

Seventy entrepreneurs and officials from Rondonia arrived in Arequipa to hold business meetings with their Arequipa peers in order to explore opportunities and establish business relationships.

 

The business meeting was held in the premises of the Chamber of Commerce of Arequipa, where a cooperation agreement between this organization and the Binacional Peru-Brazil Chamber of Commerce and Integration was signed. (Andina)

Miami trade mission likely to close US$15mln business deals with Peru

Several enterprises from Miami (Florida), United States, may close business with national companies worth US$ 15 million this year, the representative of the Greater Miami Chamber of Commerce, Alejandra Collarte reported Monday.

A trade mission from Miami, composed by 24 companies, participates in Americas Linkage Outbound 2009, which began on Monday in Lima.

Americas Linkage Outbound is a program developed for ten years by the Greater Miami Chamber of Commerce in order to report to their participants different business opportunities between United States and Peru.

“Business opportunities between both countries are wider considering the bilateral Free Trade Agreement,” she said.

This trade mission is composed by several companies from tourism, iron and steel, mining, construction, legal services, consultancy, education and real state sectors, among others.

“In recent years, Peru showed a sustained economic growth that opens many doors of potential sectors for investments,” she added. (Andina)

Photo: Members of the Greater Miami Chamber of Commerce, at the Country Club Hotel. Photo: ANDINA / Jorge Paz H.

Peru's GDP rose 3.05% in March totaling 93 months of consecutive growth

Peru's Gross Domestic Product (GDP) increased 3.05 percent in March totaling 93 months of consecutive growth, and a rise of 2.02 percent in the first quarter of this year, reported today the National Institute of Statistics and Informatics (INEI).

At the same time, Peru's GDP soared 7.81 percent between April 2008 and March 2009.

Peru's economy only grew 0.19 percent in February and 3.14 percent in January.

The INEI said the mining and hydrocarbons sector declined 2.01% in February, manufacturing fell 7.45%, and the fishing sector declined 17.62%.

The retail sector declined 0.71% in February, while water and electricity fell 1.71%.

The Finance Ministry's index of leading economic indicators had pointed to economic growth of 2.2% in February.

Economic growth is slowing in the Andean nation, following a 9.8% expansion in GDP last year. (Andina)

Photo: Classroom construction in the district of Ocoruro, in Cusco. Photo: ANDINA / Xtrata Tintaya.

Fitch affirms Peru's ratings, outlook stable

Fitch Ratings today has affirmed Peru's long-term foreign currency Issuer Default Rating (IDR) at 'BBB-' and its long-term local currency IDR at 'BBB'. The Outlook on these ratings is Stable. Fitch also has affirmed Peru's short-term IDR at 'F3' and Country Ceiling at 'BBB'.

Robust fiscal and external solvency ratios, as well as high external liquidity, support Peru's sovereign ratings.

These strengths sufficiently counterbalance the country's key credit weaknesses, including a concentrated export base, weaker social and governance indicators relative to similarly rated peers and still high dollarization.

"Peru's solid macroeconomic fundamentals have increased the economy's capacity to withstand a commodity price collapse, a recession in the world's advanced economies, as well as reduced capital and financial flows," said Theresa Paiz Fredel, Senior Director for Latin American Sovereign Ratings.

Of the challenges facing all emerging markets, the collapse in commodity prices will affect Peru the most, contributing to lower exports and private capital inflows, as well as reduced fiscal revenues.

As is the case with other sovereigns, the global recession will feed into lower growth in Peru through reduced external demand for its key exports. In addition, decelerating credit growth and weaker labor market conditions will also hit domestic demand.

Even though Fitch expects Peru's growth to decelerate sharply to around 3% in 2009 from an estimated 9.8% in 2008, it will still be among the highest rates of growth in Latin America.

Positive trends in public finances, underpinned by high commodity prices, the strength of the economy as well as prudent fiscal management, have led to an improvement in Peru's government debt burden relative to peers.

Both gross and net government debt/GDP ratios, at 24% and 15% are notably below the 10-year 'BBB' medians of 35% and 25%, respectively. (Andina)

Over 300 operators in 40 countries to attend XI International Tourism Exhibition 2009

More than 300 operators in 40 countries will attend the XI International Tourism Exhibition (SIT) 2009, which will be held from May 21 to 23 in Lima, Nuevo Mundo Viajes, an agency belonging to Nuevo Mundo group, reported today.

Representatives of the tourism promotion offices in Canada, Mexico, Argentina, Brazil, South Africa, Uruguay and Colombia as well as tour operators in Costa Rica, Panama, the Caribbean, the United States and Europe, among others will participate in this show, which hopes to attract 38,000 visitors.

The general manager of Destinos Mundiales, a company belonging to Nuevo Mundo group, Ana Maria Morin, said that in this new version of SIT 2009, visitors will find the best offers over previous years, by the special situation that has been generated by the international crisis.

"All prices have been upgraded, this is the year for people to travel to the best fares," she said.

Morin explained that the first day of this fair will target corporations wishing to meet with their operators, the second one will be the exclusive for travel agencies, and finally the third day will be opened to the public.

She said that the investment made for this show amounts to 500,000 dollars and they expected to grow between five and eight percent in sales over the past year. (Andina)

Colca Canyon, Lake Titicaca jump to 3rd and 4th places in Seven Wonders of Nature

The Colca Canyon located in Arequipa and Lake Titicaca, a nomination shared by Peru and Bolivia, jumped to third and fourth places in the New Seven Wonders of Nature contest, increasing their posibilities to be among the top ones.

Until last week, the Colca Canyon ranked fourth in Group D (Caves, Rock formations and Valleys) while Lake Titicaca ranked fifth in Group F (Lakes, Rivers and Waterfalls) of the New Seven Wonders of Nature contest.

Lake Titicaca is the highest commercially navigable lake in the world. By volume of water it is also the largest lake in South America.
The lake is located at the northern end of the endorheic Altiplano basin high in the Andes on the border of Peru and Bolivia.

Meanwhile, other Peru nominees including Amazon River ranked second in Group E (forest, National Parks, National Reserves).

Voting for nominees will continue through July 7, 2009. The top 77 nominees by group categories (the top 11 in each of the seven groups) will be eligible for consideration by the New7Wonders of Nature Panel of Experts.

The Panel of Experts will review these 77 nominees and choose from them the 21 Official Finalists, according to published criteria.

The selection will be announced on 21 July 2009, and the 21 Official Finalists will then enter the third and final phase to vote and choose the Official New7Wonders of Nature. (Andina).

Photo: Lake Titicaca candidature is being supported by thousands. Photo:ANDINA/Carlos Lezama.

Chinese mining giants to invest $7.4 billion in Peru over next 5 years

Chinese mining giants Minmetals, Chinalco, Shougang and Zijin plan to invest over 7.4 billion dollars in Peru during the next five years, Peruvian Vice President Luis Giampietri said Monday.

"These four companies are already developing large-scale mining projects nationwide, and they have recently reaffirmed their commitment to invest 7.4 billion dollars in Peru," he told Andina news agency.

Vice President Giampietri met in late April with the CEOs of these mining groups after attending the signing ceremony of Peru-China Free Trade Agreement (FTA) in Beijing.

Giampietri explained that representatives of Shougang, which operates the Marcona iron mine in Ica, indicated that their investment plans for the next five years amounted to 1.2 billion dollars.

Zijin Mining Group, which develops the Rio Blanco copper project located in the Piura region, will increase its investments from 1.4 to 1.5 billion dollars during the same period.

In addition, China's state-owned Minmetals will invest 2.5 billion dollars in El Galeno copper and gold project, located in the Cajamarca region.

Aluminum Corporation of China (Chinalco) will invest 2.2 billion dollars over the next five years in implementing the Toromocho copper project in the Junin region.

During his stay in China, Vice President Giampietri also met his counterpart, Xi Jinping, to further strengthen political and trade relations between both countries.

China is currently the second most important trading partner of Peru. In 2008, trade with this Asian country amounted to 7.8 billion dollars, 41.4 percent higher than the amount registered in the previous year.

It is estimated that the recently signed trade deal will allow Peru to export to China about $ 805 million in various non-traditional products. (Andina)

Repsol investment in Peru likely to reach US$ 6 billion over next five years

Spanish-Argentine oil and gas company Repsol YPF plans to invest 6 billion U.S. dollars in the Peruvian oil sector over the next five years, said Tuesday the company's CEO and chairman, Antonio Brufau.

After a meeting held with Peruvian President Alan Garcia at the Government Palace, Brufau said the company will invest 500 million dollars per year.

The meeting was also attended by a group of Repsol YPF officials and Peru's Energy and Mines Minister Pedro Sanchez.

Antonio Brufau said the company's current investment amounts to 2.2 billion dollars; however the investment plan scheduled for the coming years is expected to reach 6 billion dollars given the attractiveness of the sector.

He said Peru is the third most attractive country for Repsol’s investment in the world after Argentina and Spain.

During the meeting at the Presidential Palace, Alan Garcia was informed about the LNG project the company is currently developing in southern Peru along with other investors, including Peru LNG and Hunt Oil.

Repsol's CEO Antonio Brufau noted that more than 6,000 people work in the construction of Pampa Melchorita LNG plant, which is scheduled to be operational in 2010.

Repsol YPF in Peru

For more than 50 years, Repsol YPF develops in Peru business activities of oil and gas exploration, manufacturing, distribution and marketing of oil products, and it is considered as one of the first companies by turnover and one of the most important taxpayers in the country.

In 1995 the company began its exploration activities and currently owns stock in eight blocks, being operator in four of them (two in the Marañon river basins and the other two in the Ucayali river basins). In august 1996 Repsol YPF acquired LaPampilla refinery, the most important refinery in Peru, which has been a constant target of capital investment for its modernization.

In regards to product commercialization, Repsol YPF is one of the sector’s principal operators with a network of more than 230 service stations situated thought almost all the country. Additionally, it realizes direct, industrial and aviation fuel sales and is the leader in the Peruvian LPG market.

At the end of July 2005, Repsol YPF signed a final agreement with Hunt Oil to develop Camisea’s (Pampa Melchorita) gas fields and LNG plant. Under this agreement, Repsol YPF will exclusively market the4 million tons per year production of LNG. The agreement reached with Hunt Oil contemplates the acquisition by Repsol YPF of 20% of Peru LNG Company LLC, owner of the noted liquefaction plant and a 10% stake in the 56 and 88 blocks of the Camisea field.

Camisea’s production will supply LNG to diverse markets on the American Pacific coast and Asian countries. (Andina)

Photo: Peru's president, Alan Garcia, met with Spain's Repsol YPF officials. Photo: Sepres.

Rocmec Mining Inc. acquires 40% interest in 6 Peru mining concessions

Rocmec Mining said it has entered into an agreement with the owners of the mining concessions known as the Puma concessions located in close proximity to the city of Arequipa in Peru.

These are the same concessions that management visited in November 2007 and on which Rocmec conducted diamond drilling in February 2008.

The property covers 1700 hectares and its gold potential is very interesting especially with regards to the numerous narrow-veins.

In the NI43-101 technical report prepared by SGS Geostat Ltd. in June 2008, its author reports that 21 gold bearing veins were sampled, lengths varied between a few metres to 570 metres, apparent thickness ranged from 0.10 metre to 1.2 metres with grades varying from between 0.003g/t over 0.10 metre to 48.47g/t over 0.10 metres (apparent thickness).

Additionally, during the drill campaign, diamond drill hole RSA-30 intercepted gold mineralisation of 53.57g/t over 70 cm (apparent thickness).

The report also states that the gold mineralisation at Puma is associated to quartz veins that vary in thickness of a few centimetres to close to 1 metre.

The Ramal vein was identified at surface over more than 300 metres, the Principal vein was visible over more than 450 metres, whereas, the El Pollo vein was identified at surface over more than 500 metres.


About Rocmec

Rocmec Mining Inc. is a Canadian junior exploration company actively involved in the acquisition, exploration and development of precious metal projects. The Company’s exclusive thermal fragmentation process combined with its growth strategy place it as the partner of choice for the development of narrow high-grade precious metal quartz vein properties. The Company is listed on the TSX Venture Exchange and trades under the symbol: RMI

Rocmec’s growth strategy is to focus on the development of quality assets that will significantly enhance shareholder value. Exploitation of narrow high-grade precious metal quartz veins with its exclusive thermal fragmentation process coupled with conventional mining methods will lead the Company in becoming a mid-size gold producer. The acquisition, development and future exploitation activities at the recently acquired Rocmec I (Russian Kid) property are an excellent example of this strategy. (Andina)