Peru announces start of US$11.357 billion mining projects in 2018

Explotación minera. Foto: ANDINA/ archivo.

Explotación minera. Foto: ANDINA/ archivo.

12:33 | Lima, Mar. 7.

Peru's Energy and Mines Minister Angela Grossheim announced that nine mining projects worth US$11.357 billion will be put into operation in the Andean country this year.

Grossheim told El Peruano official gazette that approving the regulation to replace Urgent Decree DU-003 is key to provide predictability to such investments, considering envisaged plans will increase the output of copper, molybdenum, iron, silver, and zinc.

Portfolio of mining projects 

Nine mining projects will enter the construction phase this year with an investment cost of US$11.357 billion. 

These projects include Quellaveco (Moquegua), Mina Justa (Ica), Pampa de Pongo (Arequipa), Corani (Puno), Ariana (Junin), Toromocho expansion (Junin), Pachapaqui expansion (Ancash), B2 tailings in San Rafael (Puno), and Quecher Main (Cajamarca). Toromocho is believed to start this month.

Upon completion, projects are expected to increase production of copper (+18%), molybdenum (+12%), iron (+170%), silver (+7%), and zinc (+5%). 

Of the projects, whose construction will begin this year, Quecher Main is scheduled to start up in 2019. 

Likewise, the construction of three projects is slated to be completed in 2020, while other three will be finished in 2021, and the remaining two in 2022.

Hence the importance to pass the bill to replace Urgent Decree DU-003, as it will provide greater predictability to investments.

It must be noted three mining projects —expansions at Toquepala, Shahuindo, and Marcona mines— will commence production this year, thus involving an investment of US$2.664 billion. 

This way, iron production is projected to grow over 50%, while copper's and gold's 4% and 1%, respectively.


Published: 3/7/2018