Mining in Peru 2024: Opportunities and Facts
Mining in Peru is a crucial economic pillar, with an investment portfolio that includes 51 projects totaling US$54,556 million. In 2024, seven projects representing 5.5% of the overall investment portfolio are expected to be executed, reaching a total of US$3,011 million. This investment potential highlights the importance of the sector in the country’s economy.
The Minister of Energy and Mines highlighted that Peru has an important part of the world's copper reserves. The Peruvian mining sector presents significant opportunities, because Peru has, among others, 31 copper projects in its portfolio, with potential investment of US$ 39,795 million. Prominent projects such as La Granja and Michiquillay underline the country's potential to become world leader in copper production, an essential mineral for the transition to clean energy.
The Peruvian portfolio of mining exploration projects includes several initiatives covering key minerals, including copper, gold, zinc, silver, lithium, iron, antimuonium, nickel and lead. This focus on exploration, aimed at discovery of new deposits, highlights Peru's potential as a proactive country in identifying new resources, above the world average.
The production of minerals such as gold, silver, tin, lead, iron and molybdenum during the first half of the year has shown significant growth compared to the previous year, which evidences the dynamism of the sector.
As of July 2024, it was reported that several departments across the country received important revenues from mining activity, including the Mining Canon and Mining Royalties. These transfers are fundamental for regional and local development.
Considering the regulatory framework in Perú, timely compliance with regulations at the permit level is essential from the beginning, guaranteeing responsible mining activity.
The comprehensive mining formalization process, through REINFO (Registro Integral de Formalización Minera), is an important program, which seeks to regularize informal and artisanal miners. This procedure provides access to benefits such as legal security and financing, being evidence of Peru as a formal and legal country worldwide. Formalization is essential not only to improve the conditions of these miners, but also to contribute to a more sustainable environment.
The interaction between mining concessions holders and landowners is very important. Legal and business experience demonstrate that a relationship based on respect, empathy and trust with landowners, allows the concession holder company to achieve a correct negotiation, after having analyzed the possible effects of the mining project on the community and the environment, to finally gain access to surface land.
A more dynamic Prior Consultation Process and the preventive work of the State to avoid mining conflicts is and must be a transcendent issue on the government agenda.
The government is working on regulatory simplification to reduce permitting timelines, which is essential to stimulate further investment, as well as to promote sustainable mining. In addition, projects such as Zafranal and Pampa de Pongo are expected to be developed soon, which will involve significant investment.
In conclusion, with a focus on transparency, respect and communication, Peru is moving towards a world class mining model that not only generates wealth, but also promotes sustainable development for all stakeholders.