PERU COPPER (CUP)

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LIMA -(Dow Jones)- Mining companies plan to invest $11 billion in Peru in the 2007-2011 period, Energy and Mines Minister Juan Valdivia said in a statement late Wednesday.
Key projects include Peru Copper Inc.'s (CUP) Toromocho copper mine that will require $2 billion, and Minera Yanacocha's Minas Conga gold-copper mine that is expected to require $1.5 billion. Minera Yanacocha is operated by Newmont Mining Corp. (NEM).
Oscar Gonzalez Rocha, chief executive officer of Southern Copper Corp. (PCU) recently said his company plans to invest $2.88 billion in Peru by 2011 to increase its copper production by an annual 328,000 tons.
The company currently produces around 350,000 tons of copper in Peru.
Moreover, according to Minister Valdivia, in 2008 mining companies will contribute more than 5.2 billion soles ($1=PEN3.1585) to the regions and municipalities where mining projects are located.
Those funds include a special regional tax known as the "canon" and royalties. The canon payments will be tied to 2007 income tax payments. They also include a PEN500 million voluntary payment for social projects. -By Rebecca Howard, Dow Jones Newswires; 51-1-221 7050; [e-mail]