In the midst of a presidential election, Peru mining sector reports mixed results
As Peru goes through yet another presidential election, with 18 candidates running, six likely making it to June’s second round and no defined favorite, the Ministry of Energy and Mines (Minem) made public its most recent dataset, which shows that copper production rose by 0.7% in February 2021, compared to the previous year.
According to the report, Peru produced 170,989 tonnes of
copper in the second month of the year, which is more than what was produced
during the same period last year but which represents a 3.1% fall compared to
January 2021.
The improved y-o-y performance was led by Antamina, which is
owned by BHP, Glencore, Teck and Mitsubishi and was responsible for 22% of the
production; Aluminum Corporation of China’s Chinalco Peru, with 12.4% of the
production; and Glencore’s Compañía Minera Antapaccay, with 0.4%.
Copper makes up for 4% of the South American country’s GDP.
Thus, by year-end, the Minem expects copper production to reach 2.5 million
tonnes, which would be a 16% increase compared to 2020.
When it comes to exports, copper grew by 21% in the first
month of 2021 compared to the previous year. But the red metal wasn’t even
close to being the best performer, as iron ore exports shot up by 132.4%, molybdenum
by 76.4%, lead by 58%, and silver by 49.7%.
Overall, mining exports filled Peru’s coffers with $2.5
billion in January 2021, an 8% increase year-on-year.
Gold, on the other hand, fell both in exports and
production. Exports dropped by 14.2% in January, while output was 25.5% below
in February than what was registered in the same month last year.
According to the Ministry, lower production rates were the
consequence of lower grades at Minera Yanacocha; covid-19-related restrictions
for Minera Poderosa’s personnel, and lower volumes for Minera Aurífera Retamas.
Together, these three companies are responsible for over 25% of Peru’s total
gold production.
The Ministry of Energy and Mines also reported that, in
February, 607 metallic and non-metallic mines were active, while 327 were in
the exploration phase. Together, these operations occupy over 1.6 million
hectares or 1.26% of Peru’s landmass.
In terms of mining projects, the Minem said 60 greenfield
and brownfield mostly gold, copper, silver and zinc projects are in the
exploration, phase with total investments adding up to $506 million.
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