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Looks like the crankshaft pulley, the one at the bottom of the engine that the alternator belt runs over so you should have a charging light on too.
I believe this is a common fault on Peugeots but never personally had one fail on me
 

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Is that your thumb in the picture? If so, its quite a big chunk of metal.

Look at the left hand side of the engine. Is there a couple of wheels that do not have a belt around them or appear to be hanging free?
 
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