Peru is entering a new mining investments cycle thanks to the construction of new projects —currently at an advanced stage of implementation— and a better global outlook for this industry, Economy and Finance Ministry (MEF) underlined.
"2017 was a solid year for the
mining industry," MEF remarked in its 2018-2021 Macroeconomic Outlook Update Report.
It must be noted the market capitalization of the world's top 25 mining firms expanded 35% in 2017, its second year of consecutive growth.
Given this higher profitability and lower indebtedness, mining companies have begun to increase their investments.
In this regard, global investment in mining exploration projects grew 15.1% in 2017. Also, it might increase between 15% and 20% in 2018, according to S&P Global Market Intelligence's forecast.
"Within the framework of a better global outlook for the mining sector,
Peru will enter a new
mining investment cycle thanks to the start of construction of new projects, which are at an advanced stage," MEF pointed out.
From this total, US$11.518 billion (20% of total mining investment) are in the detailed-engineering stage, namely a phase prior to project execution.
It must be noted an important set of these projects —worth nearly US$10 billion— may start construction in 2018.
For instance,
Anglo American is currently carrying out early works in Quellaveco (US$4.882 billion) such as the construction of mining camps, the main access road, and an 8-kilometer tunnel that will surround the mine pit.
Similarly,
Marcobre is in the process of obtaining permits to begin construction of its Mina Justa project (total investment of US$1.348 billion).
Finally,
Chinalco is managing access to some lands to implement the Toromocho expansion project (US$1.300 billion).
(END) MDV/MDV/JAA/MVB