Andina

Standard & Poor's: Mining investment to be one of Peru's pillars in 2020

10:56 | Lima, Jan. 20.

Peru's mining investment —despite the volatility in copper prices and social conflicts— will continue to be one of the Peruvian economy's pillars this year, Standard & Poor's (S&P) Analyst Livia Honsel has forecast.

Within this framework, mining investment —after reaching US$8.864 billion in 2013 and falling to US$3.334 billion in 2016— returned to the path of economic growth thus registering US$3.928 billion in 2017 and recording US$4.947 billion in 2018.

According to the latest Statistical Mining Bulletin produced by Peru's Energy and Mines Ministry (Minem), between January and November 2019, mining investment totaled US$5.319 billion —an amount 26.6% higher over the same period in 2018.

Honsel said that such investment has been the driving force behind both: private investment and the country's growth in recent years. 

Also, she noted that although there is some uncertainty about the sector —which is linked to the behavior of international copper prices and social conflicts— mining investment will remain important for the Inca country.

"We think that mining investment will continue to be one of the pillars of the economy," Honsel told Andina news agency. 

Finally, the price of copper —after reaching a minimum of US$1.94 per pound and a maximum of US$3.30 over the last five years— currently stands at level of US$2.84.

(END) MDV/MTS/MVB

Published: 1/20/2020
Most read