Andina

Peru: Mining investment to reach US$4.6 bn in 2018, US$5.4 bn in 2019

10:42 | Lima, Mar. 26.

Peru's mining investment is expected to amount to US$4.6 billion in 2018 and US$5.4 billion next year, driven by companies' increased interest in developing projects in the country, Central Reserve Bank (BCR) Governor Julio Velarde said Monday.

Velarde stressed that mining investment is slated to grow 13.2% this year and 17.9% in 2019, taking into account the 12.3% gain reported in 2017, after falling three years in a row by a cumulative 70%.

"Mining companies have shown great interest in new projects at the Prospectors & Developers Association of Canada's [PDAC] 2018 Convention, held two weeks ago in Toronto [Canada]," he said.

Exploration

The BCR head noted that investors' interest in mining exploration is reawakening as the sector expanded during the four quarters of 2017: 16% in the first quarter, 33% in the second, 36% in the third, and 27% in the fourth.

"Exploration investment saw a recovery with four consecutive quarters of growth after a period of decline when metal prices were low," he stated.

In addition to the reduced interest of investors, Velarde noted the struggle to find financing for mining exploration units at times when prices were low.

"Fortunately, it [investors' interest] is reviving. In fact, there is a lot of interest in countries with abundant mineral wealth, such as Peru, and we hope that many projects will materialize," he said.

(END) CNA/RMB/MVB

Published: 3/26/2018