due to the quality of its mining projects and the mining growth potential that remains untapped in the country, CRU Group Copper and Zinc Markets Chief Erik Heimlich stated.
During his presentation at the Symposium – 16th International Mining Meeting, organized by the National Society of Mining, Oil, and Energy (SNMPE), the specialist analyzed global copper demand prospects and the challenges involved in developing new mining supply.
Likewise, the executive addressed Peru's competitive position amid growing competition for capital and investment.
Heimlich explained that the copper market is undergoing a period of strong growth driven by factors linked to the electrification of economies, the expansion of electric vehicles, renewable energy, and electrical infrastructure development.
"We are seeing copper demand growth rates that are not normal for this market and that respond to more strategic and geopolitical factors," he noted.
Strength
The CRU Group Copper and Zinc Markets chief indicated that this strength is also reflected in prices and incentives to develop new mining projects.
However, Heimlich warned that the supply response has been slower than expected because projects are becoming increasingly complex, capital-intensive, and difficult to execute.
"Today, building mines is very different from what it was a few years ago. Projects are deeper, more costly, and take longer to develop," he explained.
The specialist added that the industry needs to approve new projects to meet expected growth in global copper demand over the coming years.
Competitive advantages
In that context, the CRU Group Copper and Zinc Markets chief said Peru retains significant competitive advantages over other mining jurisdictions.
Heimlich highlighted that the country has efficient projects, accumulated mining expertise, and a developed industry that give it a favorable position within the global copper investment portfolio.
"Peru's projects tend to rank among the most efficient along the cost curve and, in economic terms, should be developed. Nevertheless, the main challenge remains accelerating the execution of projects that have gone years without significant progress," he indicated.
According to the specialist, the country has enormous production potential tied to greenfield projects that remain stalled or are moving forward slowly.
"That is where a tremendous opportunity lies for Peru," he emphasized.