Mining
From The Report: Peru 2015
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The growth of the mining sector, driven by a sharp rise in commodity prices, spurred Peru’s economy to the fastest sustained growth rate in Latin America during much of the past decade. The recent fall in commodity prices, however, has led to a significant drop in the value of Peru’s mining exports, and consequently, a slowing of GDP growth in 2014. The central bank lowered its outlook on mining growth for 2015 from an estimate of 9% to 6.5%. The sector is not expected to get an immediate boost in the form of rising production or commodity prices; however, in 2016 and beyond, several large-scale copper projects are expected to come on-line that could double Peru’s production of the mineral and add as much as 1-2% to the country’s GDP growth. The sector is also set to get a boost from zinc, silver and tin, other metals of which Peru has substantial reserves and for which global demand is expected to grow.

This chapter contains an interview with José Picasso, Chairman, Volcan Compañía Minera.

Articles from this Chapter

Overview

Beyond obstacles: Despite the reduced growth outlook, the sector remains promising
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The growth of the mining sector, driven by a sharp rise in commodity prices, spurred Peru’s economy to the fastest sustained growth rate in Latin America during much of the past decade. The sector drew in billions of dollars in investment and drove the emergence of a new middle class with levels of disposable income that had never been achieved in Peru. In recent years mineral extraction itself has accounted for around 5% of Peru’s GDP, according to official statistics. However, some outlets…

Interview

José Picasso, Chairman, Volcan Compañía Minera: Interview
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Interview:José Picasso How much is Peru dependent on Chinese demand for minerals? Is boosting added value the answer? JOSÉPICASSO: In the short and medium term, dependence on Asian markets will continue and there is very little that Peru can do about it. China is the biggest importer of copper, zinc and lead, and with projected growth of at least 7% over the next few years, Chinese demand for minerals will continue. Peru is not alone, as this question can be asked of all major mining…

Analysis

Several planned large-scale copper projects could double production
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At a time when miners around the world are pulling back capital expenditures, which is in turn limiting production growth, investment is pouring into Peru and fuelling what may become a copper boom. Several large-scale copper projects – often called megaproyectos in Peru – are due to begin production between 2015 and 2017. These projects have the potential to transform the industry and greatly impact the Peruvian economy by roughly doubling domestic copper production. The scenario of 100% production…