Mining in Peru is capable of handling another crisis of low metal prices, mainly of copper, given that production levels can be increased, affirmed Bruce Alway, manager of base metals mining at Thomson Reuters GFMS.
During the Thomson Reuters GFMS conference Mining Sector Outlook and Cooper Survey 2016, which provided a detailed analysis of prospects for base metals market in 2016-2017, Alway said the study analyzes the information forwards (making projections for the following year) and backwards (examining the cause of, for instance, the copper price drop for nearly seven years).
According to Alway, experts say the world copper price is expected to average at US$4.850/ton by the end of the year, 11.7% down from last year.
“However, the copper price is projected to be US$5.100 per ton in 2017. In this sense, Peruvian copper mining related prices are so low that the sector is capable of increasing its production even more and withstand the price crisis period,” the executive stated.
The study also specified that one of Peru’s challenges is to eradicate illegal mining.
According to Thomson Reuters Account Director Antonio Sanchez, illegal mining has seen a significant increase and about 60 firms were engaged in illegal exports.
Thomson Reuters stressed the importance of mining to Peru, since the activity contributes to the country's gross domestic product (GDP).
(END) VLA/JCC/RMB/MVB
Published: 5/6/2016