Mining companies are stirring up the "copper rush," with Jiangxi Copper possibly joining the trend of acquiring Peruvian copper mines.

Jiangxi Copper has acquired a mining project in Peru, marking the country's third copper mining deal in less than two weeks, with companies competing to increase investments in this metal expected to be in short supply. Jiangxi Copper stated on Tuesday in a statement that it will acquire the Quechua copper mining project in the Cusco region from Japanese copper mining company Pan Pacific Copper, with the specific amount undisclosed. The Peruvian government estimates the construction investment for this mine to be around 1.3 billion US dollars. This deal follows two other copper mining transactions in Peru this month: Canadian company Rio2 Ltd. purchased the Condestable project from Southern Peaks Mining for 241 million US dollars, while Australian company Fortescue agreed to acquire the remaining 64% stake in Alta Copper Corp. that it did not already own, marking the first large-scale entry into the copper mining sector for this Australian company. The current wave of copper mining deals in Peru comes at a time when copper prices are nearing historic highs, as copper is seen as a key metal for electrification and energy transition. Copper prices have risen by over 30% this year, mainly due to production disruptions and the numerous challenges faced by new and expanding mines. Jiangxi Copper is increasing its investment in Peru as part of its global plan to double copper production. The company is betting on being able to handle sporadic protests in certain areas of Peru due to expansion plans, as well as broader tensions between local communities and the mining industry in the region. In addition, informal mining activities in the area have also increased. Companies are also showing willingness to overcome the cumbersome bureaucratic procedures in Peru, where turning an exploration project into a fully operational mine can take decades. The Quechua project was previously developed by Pan Pacific Copper and adds a new component to the region, which already includes Jiangxi Copper's Antapaccay mine and the future Coroccohuayco project. Analysts suggest that this asset should hold greater value for Jiangxi Copper, as the company can utilize existing infrastructure like it plans to do with Coroccohuayco. The Antapaccay mine began production in 2012, with a production of around 146,000 tons last year. Jiangxi Copper also holds a 34% stake in the giant Peruvian mine Antamina, and is working with BHP Group Ltd, Teck Resources, and Mitsubishi Corporation on its development. Earlier this month, Jiangxi Copper announced plans to increase its annual copper production to around 1.6 million tons by 2035, in order to reverse the trend of declining copper production. This comes as global miners are ramping up copper production, but Jiangxi Copper's own copper production has been declining for the fourth consecutive year. The company's copper production is expected to decrease by about 40% from 2018. Jiangxi Copper has also reiterated its plan to increase copper production to 1 million tons by 2028, and has indicated that it will restart the Alumbrera mine as part of this plan.