Mining
From The Report: Peru 2017
View in Online Reader

The mining sector can be described as one of the main engines of the Peruvian economy as it accounts for 12% of total GDP. It creates direct employment for 174,000 workers and indirectly accounts for another 1.5m jobs. In 2016 mining exports totalled $23.8bn – consisting of 65% of the country’s total merchandise exports. The medium-term outlook is certainly positive, with a range of new mines set to be developed, including Quellaveco in the Moquegua region, where work could start late in 2017. Projects that could come to fruition in 2018 include the Mina Justa and Marcona mines in Ica, the Ollachea gold mine in Puno and expansion works for the Toromocho project in Junín. Work on the Pampa de Pongo iron reserve in Arequipa is expected to start in 2020, and at the Laguna Norte gold mine in La Libertad in 2021.

This chapter contains interviews with Carlos Gálvez Pinillos, Vice-President and CFO, Minas Buenaventura, and Luis Rivera, Vice-President, Gold Fields Las Americas.

Articles from this Chapter

Overview

Excavating efficiency: Removing red tape to maximise potential
OBG
plus

The mining sector can be described as one of the main engines of the Peruvian economy as it accounts for 12% of total GDP. It creates direct employment for 174,000 workers and indirectly accounts for another 1.5m jobs. In 2016 mining exports totalled $23.8bn – 65% of the country’s total merchandise exports. Mining generates almost half the government’s revenues from corporate taxation and royalties – approximately $42.8bn over the last decade. Investment in mining has totalled over…

Analysis

Edging up the ranks: Peru aims to be the primary copper supplier in Latin America
OBG
plus

Copper production in Peru is on an upward trend. As a result of a big expansion in output in 2015, Peru overtook China to become the world’s second-largest copper producer. That increase was mainly due to new capacity at the Las Bambas project, owned by Chinese-Australian company MMG, and at the Cerro Verde mine, controlled by Freeport-McMoRan of the US. Gonzalo Tamayo, the minister of energy and mines, has said he expects production to rise from 2.4m tonnes in 2016 to close to 3.1m tonnes…

Interview

Mining for solutions: Carlos Gálvez Pinillos, Vice-President and CFO, Minas Buenaventura, on overcoming project challenges
OBG
plus

Interview: Carlos Gálvez Pinillos How could the Ministry of Energy and Mining’s upcoming development projects be impacted? CARLOS GÁLVEZ PINILLOS: The first factor is the length of time it takes to obtain licences in Peru, as the waiting period takes an average of four to six years. Reducing these times will certainly determine the ability to meet the government’s goal of attracting $60bn in mining investments by 2021. Four fundamental pillars are needed for the success of any project: it…

Interview

Working together: Luis Rivera, Vice-President, Gold Fields Las Americas, on sustainable projects and prospects for growth
OBG
plus

Interview:Luis Rivera How can government, local communities and the private sector work together to guarantee sustainable mining projects? LUIS RIVERA: One of the main factors causing social and environmental conflicts is the historical absence of public institutions and law enforcement in many parts of the country, especially in the more remote regions. That absence, combined with mining companies’ strong logistics structures, are the reasons why they are often regarded by communities…

Analysis

Homegrown: The industry weighs up basing refineries in Peru
OBG
plus

One of President Pedro Pablo Kuczynski’s election campaign themes was that Peru’s mining sector should increase its involvement in higher value-added activities, moving beyond simple ore extraction into more smelting and refining. “Pedro Pablo is very clear on this. Today we export a lot of rocks with our raw materials and some of those minerals should be refined in Peru,” said Alfredo Thorne, just weeks before he was sworn in as the minister of economy and finance alongside the rest…