The lure of Latin America: get set for a new mining boom

Latin America has long been fertile, yet dangerous territory for mining investors. But now the legal backdrop is improving and the prospects for the region’s main metals are excellent, says James McKeigue.

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Latin American mining has captivated international investors for centuries. Tales of Bir, a magical gold-laden land that we now know as Peru, were enough to convince Spanish conquistador Francisco Pizarro to lead a risky expedition against the Incas. In the short-term the mission was an outstanding success: Pizarro ransomed Inca emperor Atahualpa for 13,000 pounds (lbs) of gold and twice as much silver. In today's prices that is almost £2.4bn worth of gold, though the silver comes to a paltry £6m. Since then, investors have continued to scour the region looking for similar pots of gold. The mythical El Dorado, for example, first believed to be a king, then a kingdom, finally turned out to be a waste of time and money for the British, Spanish and German investors who backed expeditions to find it.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.