Mining
From The Report: Peru 2014
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The mining sector has seen its revenues increase significantly as Peru continues to ride the wave of a commodities “super-cycle”, bringing foreign reserves to an all-time high and sparking large-scale transportation and energy projects as production increases. As of June 2013, the Ministry of Energy and Mines reported an investment portfolio of $57.4bn. With the rich, polymetallic Andes as a source, Peru has an abundance of copper, gold, silver, tin, and zinc, among other deposits. Copper has attracted the majority of new investment in the sector, at some $36.37bn, or 63.36% of the country’s investment portfolio. Gold came a distant second at $7.18bn, or 12.51%, with iron ore close behind at $7.06bn. Long-term sustainable growth will depend on the stability of global commodity prices as well as the effectiveness of government strategies to address social conflict surround mining projects, illegal mining and a large infrastructure gap. This chapter contains an interview with Oscar Gonzalez Rocha, President and CEO of the Southern Copper Corporation.

Articles from this Chapter

Overview

Balancing act: A profitable sector faces numerous challenges
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The billions of dollars generated by the mining sector have been a principal driver of wider economic growth in Peru over the course of the past decade. Revenues from the sector have increased several times over as Peru continues to ride the wave of a commodities “super-cycle”. This has not only filled government coffers, bringing foreign reserves to an all-time high, but has also sparked large-scale transportation and energy projects as both the private and public sector attempt to keep up with…

Interview

OBG talks to Oscar González Rocha, President and CEO, Southern Copper Corporation (SCC)
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Interview:Oscar González Rocha How easy is it to implement the new regulations on community relations and environmental studies? OSCAR GONZÁLEZ ROCHA: The private sector’s response to the country’s regulatory environment has always been the same. We will abide by the regulations, but the government needs to ensure they are clear in the way they are written and the way they are enforced. It is only with a stable regulatory regime that the country will continue attracting investment in…

Analysis

Buried treasure: Production reaches far beyond the traditional high-revenue earners
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Though best known for its copper and gold, Peru’s rich, polymetallic geology supports the production of a wide assortment of minerals. Peru has the third-largest reserves in the world of gold, copper, zinc and silver, according to the US Geological Survey. Indeed, data from the Ministry of Energy and Mining (Ministerio de Energías y Minas, MINEM) shows the mining sector’s investment portfolio of new and existing projects as totalling roughly $57.4bn. Rankings Within Latin America, Peru has…

Analysis

Fortune favours the brave: Stability proves key to significant growth in foreign investment
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In recent years mining companies from around the world have come to Peru in search of precious minerals and driven by demand for raw materials in emerging giants such as China, Brazil and India. The improved political and economic foundations that have been established following the tumultuous 1980s and 1990s have also played a key part in assuring the long-term stability of investments. Nevertheless, the sector still faces several challenges to sustain investor confidence, most notably strong anti-mining…