Once the hard times are over, the next step will be to rise up and reactivate the economy. And it is no secret that, other than tourism, fishing and agriculture, mining is one of the mainstays of the Peruvian economy. In this sector in particular, the news is more than encouraging. Pay attention.
According to the latest report from the Prospectors and Developers Association of Canada convention - PDAC 2020, Peru is the first country that "comes to mind when one thinks of mining." The survey was conducted among attendees at the mining convention held in Toronto, Canada, from March 1 to 4 of this year.
On behalf of the Peruvian government, the Minister of Economy and Finance, María Antonieta Alva, and her colleague from Energy and Mines, Susana Vilca, attended the meeting, as well as mining executives and investors from all over the world.
The PDAC 2020 survey was conducted there, among 140 decision makers from across the planet. Respondents said that Peru is the first destination that comes to mind when they think about investing in mining. In this category, Peru surpassed countries like Canada (68.6%), Chile (45.0%) and Australia (26.4%), with 81.4%.
Likewise, the experts said that, out of all the countries, Peru is one of the most important mining destinations (32.1%), only below Canada (35.0%); more than half even added that they "would strongly consider Peru" to be a destination for their capital. Development doesn't stop.
In his last message to the nation on July 28, Peruvian President Martín Vizcarra referred to the issue of minerals, pointing out the need to reform the current General Mining Law in order to "provide a clear legal framework for investors and offer tranquility and development for all."
During her presentation at the PDAC 2020 convention, Minister Susana Vilca highlighted the measures implemented by the Peruvian government, such as authorizing dollar accounting for 15-year stability contracts, as well as new environmental regulations for mining exploitation, transport and storage, which increases predictability for investors in the permit process.
In short, Peru is committed to clean, sustainable and easily managed mining. And this is reflected in the PDAC 2020 survey: almost 90% of those surveyed believe that Peru has one or several advantages for investing in the mining sector. Another notable figure is that more than 70% of the attendees who visited Peru’s stand during the convention were either very satisfied or satisfied with the services received. Another winning point for Peru.
Source of income
Formal mining contributes 14% of Peru's GDP. Its growth impacts employment generation and contributes to tax revenues. The star mineral of Peruvian exports is copper, which represents 51% of total mining trade. According to the Ministry of Energy and Mines, Peru produces 2.44 million metric tons of fine copper each year, representing almost 12% of the world total.
The main destinations of this mineral are China, Japan and South Korea. Peru also stands out for its silver and zinc production, which also represent potential foreign exchange for the government.
Sources: PDAC2020: Imagen y Posicionamiento de la Minería Peruana, y realizada entre los asistentes a la convención minera Prospectors and Developers Association of Canada – PDAC 2020/ Oficina de Estrategia de Imagen y Marca País/ Confiep/ Camiper/ Andina