Peru: Higher metal prices accelerate mining projects

Yanacocha is owned by Denver-based Newmont Mining Company

Yanacocha is owned by Denver-based Newmont Mining Company

13:16 | Lima, Jul. 21.

Energy and Mines Minister Gonzalo Tamayo said that higher metals prices, such as those of copper and zinc, encourage investors to accelerate the execution of mining projects, thus a rebound in investments is expected in 2018.

"We are seeing that commodity prices have improved. Copper costs just over US$2.70 per pound. Zinc price has also improved, and that is fueling investors' interest in accelerating projects," Tamayo expressed.

"Thus, we expect mining investment to start to rebound in 2018," he added.

He pointed out mining investment recovery is a goal set by the Kuczynski administration.

Tamayo also said that Peru is "in a mining investment reactivation process," mainly because of better prices on international markets. 

Mining investment continued to recover in May for the third successive month.


The government hopes Peru will —in 2018— be able to see increased mining investment through decisions about mining projects such as Justa (US$744 million), Quellaveco (US$5.00 billion), Michiquillay (US$1.00 billion) and Magistral (US$300 million). 

"That will obviously be positive for the whole economy," he said.

Tamayo also reiterated that the Michiquillay Project should be awarded via ProInversion on November 15.

"So, what we are managing is a mining project portfolio whose barriers have been identified, and we are helping them move forward according to the timetable in order to expand copper production by 30% by 2021," he added.

The portfolio estimated by the Ministry of Energy and Mines in 2021 amounts to a total of US$46.411 billion, and 60% of the total correspond to copper mines.

"We are currently the world's second-largest copper producing country, after Chile, and also the second-largest silver producer. However, we have been considered as the first destination for mining investment in Latin America", the minister highlighted.

"We have to work so the mining projects are developed in a friendly atmosphere for the environment and, above all, for the communities," he said.


Published: 7/21/2017
Most read