Andina

Peru: Mining exports maintain momentum

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10:40 | Lima, Jul. 24.

Peruvian mining exports sustain the upward trend and totaled US$9.71 billion in January-May 2017, thus expanding 28% over the same period in 2016, private-run Foreign Trade Society (ComexPeru) reported.

Value-wise, main mineral exports were copper (US$4.362 billion; +46%), gold (US$2.628 billion; +6%), zinc (US$718 million; +82%), iron (US$254 million; +69%) and silver (US$203 million; +37%), according to State-run tax and customs agency Sunat. 

Regarding export destinations, China accounted for 37% of the total at US$3.613 billion, followed by the United States (US$935 million; 9.6%), Switzerland (US$934 million; 9.6%), India (US$703 million; 7.2%) and Japan (US$692 million; 7.1%). 

"Such positive export performance has been joined by a moderate increase in production," ComexPeru underlined. 

In this sense, National Institute of Statistics and Informatics’ (INEI) latest data —as of May 2017— revealed a 3% year-over-year rise in metallic mining. 

This result was driven mainly by growing production of copper (+5%), zinc (+12%) and iron (+9%). 

Projects on hold

In addition, ComexPeru referred to positive metal prices, which "join large-scale mining projects expected to begin execution next year, such as Michiquillay (Cajamarca region), Quellaveco (Moquegua) and Mina Justa (Ica)."

Investments for Michiquillay venture are valued at US$1 billion, and its annual production forecast is 187,000 FMT of copper. The government expects to auction off the project this year.  

As for Quellaveco, investments stand at US$5 billion, with an annual production forecast of 225,000 FMT of copper. 

Regarding Mina Justa, investments are valued at US$1.272 billion and its estimated annual production is 110,000 FMT of copper. 

First year

On the other hand, the private-run body underlined the Kuczynski administration has focused on the development of an investment-boosting regulatory framework during its first year in office. 

In this respect, ComexPeru noted this is the time to consolidate new projects.

"A mining investment recovery in the next 12-18 months will translate into a real confidence boost to the business sphere and the population, along with a subsequent impact on growth."

Lastly, the foreign trade guild underscored these major ventures bring along a series of positive impacts not only for the sector and related industries, but also for the State through mining taxes, canon and royalties. 

"Opposing mining development in the country means denying a chance for a better future to those who need it most," ComexPeru concluded.

(END) MDV/MDV/DHT/MVB

Published: 7/24/2017