Mining companies in Peru invested $2.43 billion in the first five months of 2011, up 68% compared to the same period last year, the government said.

The investments were made during Peru's presidential campaign that resulted in the June 5 election of left-leaning nationalist Ollanta Humala. Investors have expressed concern that Humala's proposals to increase the state's role in the economy and raise taxes on miners could curb private investments.

In the January to May period, miners spent $416 million on preparation activities for projects, $398 million on mining equipment, $350 million on processing plant equipment, $331 million production and $311 million on infrastructure, the Mines and Energy Ministry said in a release on Wednesday.

Cuzco region had investments of $394 million, representing 16.2% of the sector's total expenditures in the period. It was followed by Apurimac at $390 million, Cajamarca at $373 million and Ancash at $277 million.

Companies investing in the sector include Xstrata PLC (XTA.LN), which has the Tintaya mine and the Antapaccay and Las Bambas projects in southern Peru. Xstrata's investments accounted for more than 30% of the overall investments during the period, the ministry said.

Gold producer Minera Yanacocha accounted for 10.2% of the sector investments, while Compania Minera Antamina SA invested 8.1%.

Peru is the world's largest producer of silver and a large-scale miner of copper, gold, zinc and other minerals.

-By Ryan Dube, Dow Jones Newswires; 51-1 9454 043 802; peru@dowjones.com

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