Since Inca times, Peru's main economic activity has been mining; however, the implementation of new mining projects has been lagging in recent years due to external (low mineral prices) and domestic (corporate distrust) factors, but that situation is changing.
As is known, commodities prices crashed between 2012 and 2016.
Added to this is entrepreneurs' dissatisfaction with ex-President Ollanta Humala's administration (2011-2016) following an attempt to buy all Repsol gas stations in order to control fuel price on the local market.
As a result, long-term mining investment decisions in the Inca country were blocked, and the last tender was awarded in April 2011, when
Milpo company won the bidding process involving Ancash region's Minero Magistral project.
This new scenario —which puts Peru in the international spotlight— has been reinforced thanks to higher prices and a slight change in entrepreneurs' sentiment.
In this sense,
mining investments in Peru have been recovering since 2017 (12.3%) after continuous declines of -50.8% (2016), -11.2% (2015), and -8.4% (2014).
Mining portfolios
It is worth mentioning the Andean nation relies on a
mining exploration investment portfolio containing 54 projects worth US$306.5 million.
Regarding mining exploitation, the country also presents a favorable scenario.
Within this context, Peru has a portfolio consisting of 49 mine construction projects worth US$58.507 billion.
Quellaveco
Operated by
Anglo American-
Mitsubishi consortium, this project —whose investment reaches US$5.3 billion— will produce about 300,000 tons of
copper per year and create nearly 10,000 direct jobs.
(END) RGP/JJN/JAA/MVB