Peru is a mining country by nature and produces the largest quantity of metals and minerals worldwide. The abundance of Peruvian mineral resources has created opportunities for national and international investments that contribute to the economic development of the country and its’ people.
Currently, the way to mining in Peru seeks to go beyond trade; with high social and environmental standards throughout the mining cycle, and taking into account the impact generated on communities and their environment, in order to improve the quality of life of the inhabitants of the areas where the mining takes place.
Importance of the mining sector for Peru
Mining in Peru accounts for over 50% of foreign currency, 20% of tax revenues, 11% of gross domestic product, most of the foreign investment, among other major macroeconomic factors.
The Minister of Economy and Finance of Peru (MEF); Alonso Segura, stated that in Peru, there are mining projects that are entering the operational phase and mine production, especially of copper, will continue to drive growth in the Peruvian economy over the next two years.
Las Bambas (Apurimac) is a mining project that will contribute to economic recovery. Production within this project began in December 2015 and over the next months, will increase its operating capacity to reach a full production of 450,000 metric tons of fine copper per year. Segura emphasized that Las Bambas is not the only project of interest, with Constancia (Cusco), Cerro Verde (Arequipa), Antamina (Ancash) plus Toromocho (Junín) being new projects that are expanding.
Another important growth indicator is that, according to the latest report from the Ministry of Energy and Mines (MEM), Peru has an investment portfolio in mining composed of 47 major projects, amounting to USD$ 56,413,000.
General economic outlook of Peru
Economic growth in Peru in December 2015 was 6.39% and was led by the primary sectors that grew 18.5%. Mine production expanded to 30.7%, the highest monthly growth since June 2002. Mostly copper extraction (+68.0%), iron (+40.8%), molybdenum (+22.8%), silver (+19.1%) and lead (+14.6%), contributed to this performance.
These results maintain Peru as being an attractive economy to international markets. The Peruvian economy ended 2015 in the top rank, confirming what the Economy Ministry had indicated; that the recovery process had been consolidating month by month.