Peru awards China's Jinzhao $405 million port construction contract

LIMA - The Peruvian government said on Friday it has awarded a subsidiary of Chinese firm Jinzhao a contract to build a port in the south of the Andean nation, expected to require $405 million in investments.

As part of the deal, Jinzhao Peru will receive a concession to operate the port for 30 years, according to the head of state investment agency Proinversion, Jose Salardi.

"We hope that construction begins by the end of 2025 or beginning of 2026, with the first phase of the port coming online around two years later," Salardi told Reuters after the event.

With the project, Jinzhao will become the second Chinese firm to build and operate a port in Peru, one of the world's top copper producers.

In the north of Peru, a subsidiary of Chinese firm Cosco Shipping Ports is building a "megaport" set to kick off operations at the end of this year.

Jinzhao's port, in the southern region of Ica, is near its Pampa de Pongo iron project, set to require a $2.34 billion investment in its "pre-feasibility stage."

The port will transport bulk goods as well as iron concentrate and copper, according to Proinversion.

In total, it will reactivate mining projects worth $15 billion, Salardi said.

(Reporting by Marco Aquino; Writing by Kylie Madry; Editing by Leslie Adler)