Peru is experiencing a "new mining investment wave" due to greater business confidence and better metal prices, Economy and Finance Minister Claudia Cooper affirmed Wednesday.
During her participation in Perumin 33rd Mining Convention, the government official noted US$2.372 billion has —so far— been invested in various mining projects nationwide.
"Mining investment is recovering, and it will expand for the first time in 2017 after having fallen for three consecutive years," Cooper expressed.
"In particular, investment in exploration has grown 25% so far this year, thus leading to better prospects for 2018," she added.
Minister Cooper pointed out that mining investment dynamizes regions, where such activity takes place.
Between January and June 2017, electricity production —an indicator linked to domestic demand in regions associated with mining investment— rose 38.4%.
The cabinet member also noted Peru is in good position to surf this new mining investment wave, as it remains the world's second-largest producer of copper, zinc and silver.
Besides, Peru's copper reserves grew 31% last year and might reach those of Chile, she said.
Mining sector's agenda
On the other hand, Cooper said President Pedro Pablo Kuczynski's administration has a work agenda to streamline the mining sector under 4 axes:
1) Investment promotion. Peru currently relies on a US$50 billion mining portfolio, including projects such as Quellaveco, Michiquillay, Toromocho expansion, Mina Justa and Corani.
2) Public and public-private investment reform. It focuses on achieving a greater allocation of investment in regions, through the new public investment system (Invierte.Pe) and Public-Private Partnerships (PPPs).
3) Targeting investments. Peru has a portfolio containing more than 1,300 Works for Taxes projects worth over S/7 billion (about US$2.157 billion).
4) Regulatory improvement. A more predictable mining legislation —in line with international standards— will lead to improving mining sector's competitiveness.
(END) MDV/MDV/JAA/MVB