Mining
From The Report: Peru 2018
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Contributing around 10% to GDP in 2017, the mining sector is fundamental to Peru’s economy, accounting for significant levels of foreign exchange and tax revenues, as well as the creation of direct and indirect jobs. Supportive legal and tax regimes, low production costs and an abundance of natural resources all contribute to increasing investor appetite, together with a relatively stable macroeconomic and political environment, which has given rise to favourable mining policies. However, the sector is not without its challenges; growth is only just now returning after a period of low commodities prices, while conflicts in mining regions in some parts of the country have made it clear that mining companies need to work more closely with local communities. Still, the recommencement of key projects, rising mineral prices and the pro-business policies of the new administration of President Martín Vizcarra all bode well for the sector. This chapter contains interviews with Luis Marchese, President, National Society of Mining, Petroleum and Energy; and Country Manager, AngloAmerican; and Mariela García, CEO, Ferreycorp.

 

 

Articles from this Chapter

Overview

On the up: Exploration and production increase on the back of rising commodity prices
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Contributing around 10% to GDP in 2017, the mining sector is fundamental to Peru’s economy, accounting for significant levels of foreign exchange and tax revenues, as well as the creation of direct and indirect jobs. Favourable legal and tax regimes, low production costs and an abundance of natural resources all contribute to increasing investor appetite, together with a relatively stable macroeconomic and political environment, which has given rise to favourable mining policies. However, the…

Analysis

Ready to launch: Industry players seek simplified procedures to support a large project pipeline
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After a period of relative stagnation that ended with a pickup in metals prices in 2016, investment in mining is growing, with nine projects to begin construction in 2018. Efforts to streamline procedures and a strong performance in international rankings will likely help support the image and competitiveness of the sector as works move ahead. Project Portfolio The nine new projects breaking ground will amount to an investment of $11.5bn, according to the Ministry of Energy and Mines (Ministerio…

Interview

Enhanced efforts: Luis Marchese, President, National Society of Mining, Petroleum and Energy; and Country Manager, AngloAmerican, on the regulatory framework and prospects for investment
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Interview :Luis Marchese What are the principal regulatory obstacles faced by the mining sector, and what measures could help facilitate the licensing process? LUIS MARCHESE: According to the central bank, the number of laws and regulations for the mining sector has increased from 28 a decade ago to 265 today. Thus, an overregulated framework is certainly a challenge for the development of mining projects. Furthermore, the number of institutions involved in the regulation of the sector has…

Interview

Nuts and bolts: Mariela García, CEO, Ferreycorp, on optimising operations, and enhancing innovation and internationalisation
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Interview :Mariela García How can heavy machinery help optimise mining? MARIELA GARCÍA: While the sector awaits large-scale tenders, heavy machinery and vehicles are being used at full capacity in almost all mining operations. The Cat portfolio, which includes a 400-tonne mining truck, is leading the domestic market. The role of heavy machinery does not end, but rather starts, with its sale and continues throughout the machine’s life cycle. As occurred in the 2015-17 period, suppliers…

Analysis

Many irons in the fire: Two major iron projects are under way in the Arequipa region
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While investors have typically been drawn to Peru by the fact that it is the world’s second-largest copper, silver and zinc producer, as well as the third-largest for tin, the country’s iron ore reserves have recently attracted China’s attention. Foreign Interest In the winter of 2017 China imposed restrictions on steel production to combat pollution in Tangshan – the city that makes the most of the building material – in a measure that initially boosted demand for higher grade ore. As…