Mining in Peru / LATAM – 2022 / Opportunities – 10 FACTS

The legislative framework of international treaties signed by Peru ensures an environment of legal stability for investments, being a market of permanent attraction for trading activity in the main world stock exchanges and international markets.

Mining is one of the economic activities with the greatest impact on the Gross Domestic Product of Peru. This sector has reached within the period from 2011 to 2020 approximately 9% share, being one of the most profitable together with commerce (10.9%) and non-primary manufacturing (10%), according to the Central Reserve Bank of Peru.

It was determined, in the same period, that mining reached 16% participation in private investment in Peru, unlike the period 2001-2010, in which it reached 8%, which shows that it increased its attractiveness to investors and international stock market activity.

According to the global survey of U.S. Geological Survey (USGS), in the world ranking of mining production, Peru is establishing itself as one of the most important countries in the industry.

In this 2022, Peru has remained in second place as a copper producer worldwide, rising to the same place in relation to zinc production. In addition, confirming an upward trend, Peru climbed to third place in tin production and maintained fourth place in lead and molybdenum production.

In this world survey Peru, at Latin American level, ranked first in the production of zinc, lead and tin, and second place in the production of gold, copper, silver and molybdenum, which makes Peru an attractive destination for mining investment.

This year Peru statistically increased mining production in four main minerals compared to the previous year ceteris paribus as follows: tin (+14.7%), copper (12.7%), gold (+4.5%) and molybdenum (+ 0.2%).

Confirmed by the Ministry of Energy and Mines, the Peruvian territory enjoys a great geological variety, which has allowed Peru to currently hold a mining exploration portfolio of 586 million dollars. This amount is reflected in 63 mining exploration projects, mostly gold and copper. These projects are scattered in 17 regions of the country, 33 are in execution or one step away from starting it and 43 are copper and gold initiatives that correspond to investments of more than 465 million dollars.

It is the cycle of high commodity prices, which allows a greater number of mining projects to be promoted in the country. This stage is positive for the Peruvian export of minerals, so it should be taken advance of. The current transition to a green economy is increasing the use of copper, which increases its price.

According to the International Monetary Fund, the demand for ore is going to double in the next few years.

All of the above shows that Peru is one of the world’s top destinations for investors.

By Heidi Camus, Luis Aguado and Giorgio Albertini