Make Kitco Your Homepage

Peru's $56B mine construction portfolio helps to boost local economy

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Monday, the Peruvian delegation at the Prospectors & Developers Association of Canada (PDAC) 2021 virtual conference reported that the local economy is expected to grow by two digits in 2021 and that Peru is and will continue being a mining country. Peruvian mining sector and its portfolio of 46 projects with an expected US$ 56.1 billion aggregate investment should be one of the main engines of that recovery.

The Ministry of Energy and Mines of Peru (MINEM) said that in 2020, mine construction projects portfolio is comprised by 46 projects with a total investment amount of US$ 56,158 million. It includes greenfield (to build new mine sites) and brownfield (to expand or replace existing mines) projects.

MINEM pointed out that the construction portfolio has 5 projects in construction stage and a joint investment of US$ 8,501 million, 4 projects in detail engineering stage with a joint investment of US$ 4,219 million, 17 projects in feasibility stage with a joint investment of US$ 16,590 million and 20 projects in pre-feasibility stage with a joint investment estimated in US$ 26,847 million.

Also, according to the type of mine, there are 28 projects with open pit mining method, 12 underground and 3 projects that are considering to use both methods (open pit and underground). In addition, the portfolio has 1 reuse tailings project, 1 refinery project and 1 project that has not defined mining method yet.

With respect to the type of ore to extract, copper projects are the majority within the portfolio (25 out of 46 projects), representing 67.7% of global investment share. Copper projects are followed by 6 gold projects, representing 9.3% of the portfolio. Also, the portfolio has 3 iron projects, as well as 3 phosphate, 6 zinc, 1 uranium and 2 silver projects.

The United Kingdom is the country with the largest share in Peru’s global investment mine construction portfolio, with an estimate joint investment of US$ 12,066 million contained in 6 projects, which translated in 21.5% of the total share.

Investments from China, amounting US$ 10,425 million, are represented in 7 projects, which puts this country in second place.

Investments from Canada ranked third with a joint investment of US$ 8,574 million and 11 projects in total, representing 15.3% from global investment and maintaining itself as the country with the largest number of projects in the portfolio by the origin of investments.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.