Mining investment will continue to grow

A period of growth for mining investment is projected for Peru in 2019, totaling US$ 5.7 billion this year, a figure that represents a significant increase over the US$ 5 billion it reached in 2018.

This projection was announced by the president of the Central Reserve Bank of Peru (BCRP), Julio Velarde, during his conference at PDAC 2019, held last March in Toronto, Canada. Velarde also estimated an increase in mining investment by 2020, when it would reach US$ 6.1 billion.

At the event, Velarde also highlighted Peru’s mining exports, which exceed 12 % of GDP, as well as copper production, which he said has seen "impressive growth".

"We expect in 2023 to have almost 3.3 million metric tons. Unit costs will also be low. Of the medium and large countries, we have been the country that has done best so far this century. If we compare ourselves to the world, we have grown more," said the economist.

Projects in progress

At the same mining event, the Minister of Energy and Mines, Francisco Ísmodes said that construction is expected to begin on six new projects that will generate a global investment of US$ 3.4 billion, and that in 2020 and 2021 another nine projects will be carried out, generating US$ 11.8 billion in investment.

Work will begin on the following projects this year: Extension of Santa María (La Libertad), Tía María (Arequipa), Optimization of Lagunas Norte (Ancash), Extension of Pachapaqui (Ancash), Integration of Coroccohuayco (Cusco) and Corani (Puno).

During his speech, Ísmodes stressed that our country has certain elements that make us stand out more than other nations, such as low energy prices, the quality of deposits, skilled labor, competitive costs and legal certainty.

These advantages put us in 14th place in the Fraser Institute survey, which measures the Investment Attractiveness Index for mining. "Our goal is to reach the Top Ten in the Fraser Institute ranking in the next few years",  the minister added. It should be noted that in 2018 we ranked 19th.

Mining, a driving force for growth

According to a survey carried out at the beginning of the year by El Comercio - Ipsos, 56 % of Peruvians state that mining is the activity that contributes most to the country's economy; tourism and agriculture for the domestic market are in second and third place with 46 % and 34 %, respectively.

The survey also revealed that it is in the provinces that mining is recognized as a driving force for growth. According to the study, 55 % of people from Lima have this opinion, while inland this figure reaches 57%.

Sources: Andina/ El Comercio