Peru: A mining country full of opportunities

Its geological wealth, the availability of quality cadastral and geological information, the supply of top-tier suppliers and the legal framework that promotes private investment in force in the country, make Peru one of the most attractive destinations for mining investment in the world.

Peru: Mining Country

Peru is a country with an ancient mining tradition, a tradition that it maintains and cultivates thanks to the presence of leading international companies. We have an enormous geological potential, the presence of the Andes Mountain Range throughout the territory, constitutes our main source of mineral resources.

At a global and Latin American level, Peru is among the leading producers of various metals (gold, silver, copper, lead, zinc, iron, tin, molybdenum, tellurium, among others), which is a reflection not only of the abundance of resources and the production capacity of the Peruvian mining activity, but of the stability of the economic policies in our country.

The minerals produced in Peru are in great demand in today’s world market, whose development is based on production and industry. The United States, China, Switzerland, Japan, Canada and the European Union are the main applicants.

Economic Strength and Reliable Investment Climate

Peru is one of the fastest growing economies in Latin America, which is complemented by macroeconomic strength: low inflation rates, fiscal and trade surpluses, and strong net international reserves.

International recognition

Peru has signed various bilateral agreements, including Free Trade Agreements (FTAs) with the United States, Canada, China, Singapore, South Korea and Mexico, and is currently negotiating FTAs ​​with Japan, Thailand and the European Union.

Likewise, Peru is a member of the Asia Pacific Economic Cooperation (APEC) and the Andean Community of Nations (CAN). Peru offers better economic opportunities for investors in those markets.

Investment Opportunities

The opportunities offered by our country have made us one of the countries in the region with the highest investment in mining, with outstanding results and the presence of leading global mining companies.

Projected investments for the coming years in exploration, exploitation and mining expansion exceed US$ 56,158 billion. The estimated portfolio of these mining projects highlights very important investments in Cuzco, Cajamarca, Moquegua, Tacna, Ica, Lima, Arequipa, Junín, Piura, Ancash, Huancavelica and Lambayeque.

Effective Investor Protection

Peru has signed 32 International Investment Agreements that support its liberalization policy, with countries in the Pacific, Europe and Latin America. With a view to consolidating a stable and predictable investment climate, Peru has improved its standards in the negotiation of International Investment Agreements. Similarly, Peru has signed the OPIC agreement that facilitates operations, providing coverage for United States investments carried out in Peru.

Peru is also a member of MIGA and a signatory to the Constitutive Convention of the ICSID (International Center for Settlement of Investment Disputes), as well as the New York Convention of the Recognition and Enforcement of Foreign Arbitral Awards.

Mining Industry Highlights

Peru is the second largest producer of silver, copper and zinc worldwide. Likewise, it is the first producer of gold, zinc, tin, lead and molybdenum in Latin America. The Andes Mountains are the backbone of Peru and the main source of mineral deposits in the world.

Peru has an important geological potential. It is the first country in the world in silver reserves and is among the first places in other basic and precious metals (US Geological Survey – USGS).

In addition, the supplies and services that the mining industry needs are widely available in the local market, making Peru a privileged place for mining in South America.

Non-Metallic Potential

Peru also has great potential in non-metallic minerals also known as Industrial Minerals, such as travertine marble, diatomite (first producer in South America), bentonite and borates. Indeed, Peru is among the few countries in the world where large deposits of these minerals can be found.

Minerales Andinos Pacífico S.A.C., strategically located in the port of Chimbote – Ancash – Peru, reliably extracts and supplies high quality multigrade coal products on a consistent basis. And very close to the main ports such as Salaverry and Chimbote and transportation centers of the Pacific Coast, we offer the advantages of efficient national and international delivery solutions.

Anthracite coal is a high carbon, low sulfur, low volatility energy source used for metallurgical refining and processing and various manufacturing industries, fuel for electric power plants, commercial filtration/purification applications and municipal and residential, commercial and institutional heating.

Consistent Demand for Steel to Boost Global Mined Anthracite Coal Market

Global steel production stood at approximately 1,800 million tons in 2018; of this, India, China, Brazil, Mexico, and Iran accounted for prominent share. Consumption of steel has been rising at a rapid pace, especially in infrastructure projects such as highways, commercial and residential buildings, airports, and railways. The manufacturing sector also acts as a major demand center for the steel industry. Rapid industrialization and urbanization, especially in developing economies such as India, China, and Brazil, is likely to boost the demand for iron and steel across the globe.

High and ultra-high grade anthracite coal are primarily used in steel manufacturing due to their high carbon and low ash content. Demand for these grades of coal has increased consistently in the steel manufacturing sector over the last few years. Rise in demand for steel is expected to encourage steel manufacturers to increase their production. This, in turn, is anticipated to open new growth frontiers for mined anthracite coal market.

Rise in Power Consumption to Propel Standard Grade Segment

In terms of grade, the global mined anthracite coal market has been segregated into standard grade, high grade, and ultra-high grade. The standard grade segment held major share of 91.4% of the global market in 2021. It is estimated to dominate the market during the forecast period. Standard grade anthracite coal has carbon content of around 86% to 92% and volatile matter (VM) content in the range of 8% to 14%. Standard grade anthracite coal is primarily used for power generation applications due to its lower purity among the three grades. This is the lowest grade of anthracite and is also known as semi-anthracite coal. There are large reserves of standard grade anthracite coal vis-à-vis other grades. It is also an extensively mined grade of coal. Increase in demand for coal in the power generation sector to cater to the rise in power consumption is projected to be a major driver of the standard grade segment.

Peru began this year producing a total of 199,255 fine metric tons of copper; level 12.7% above the 176,737 TMF of January 2021.

The Ministry of Energy and Mines (MINEM) reported that in 2022, the production of four of the main minerals that are extracted from Peruvian soil registered an increase, compared to the same period in 2021.

 According to the Mining Statistics Bulletin, metallic mining production reported increases in the levels produced in 4 minerals: copper (12.7%), gold (+4.5%), tin (+14.7%) and molybdenum (+0.2%).

The MINEM points out that continuous growth in Peruvian metal production is due to the solidity of the mining that takes place in our country, as well as the progressive and safe reactivation of the operations of all strata of the mining industry at the national level.