PUBLICATION

Global Business Reports

AUTHORS

Alfonso Tejerina, Ben Cherrington, Margarita Todorova, Mariolga Guyon

Peru Mining 2020 Pre-Release II

May 12, 2020

In 2019, investment into Peru’s mining industry to the tune of US$6.15 billion, an increase of over 21% from 2018 and the highest mark since 2015, had created a climate of cautious optimism moving into 2020, despite the sector wrestling with cumbersome bureaucracy. However, the COVID-19 wrecking ball and ensuing lockdown sent the sector into disarray, as the unprecedented pandemic decimated commodity prices and reduced operations to a bare minimum.

While the challenge of how to respond to the crisis is a global one, investment dollars will migrate to jurisdictions perceived to be more stable. Peruvian president Martín Vizcarra was able to act quickly due to Peru’s fiscal strength, with the Andean country having accumulated savings in the past decade equal to about 15% of GDP, or US$34.4 billion (figures from Bloomberg). However, for Peru to bounce back quickly, creating a more favorable climate for mining investment must now be paramount, as social tensions and lengthy permitting times have derailed the country’s competitiveness and threatened its robust project pipeline.

RELATED INTERVIEWS MORE INTERVIEWS

Tembo Power is developing hydropower projects across Africa with a focus on DRC.
Chesser Resources is upbeat about its Diamba Sud gold resource in Eastern Senegal.
After cementing its position as a logistics industry leader in the DRC for over six decades, Comexas Afrique is launching into a new phase of existence and undergoing a rebrand, which will introduce the world to a new name, ConnexAfrica.
Buenaventura outlines progress at its diverse portfolio of Peruvian assets.

MACIG

Stratum International explains the shifts in the mining industry recruitment patterns.

SUBSCRIBE TO OUR NEWSLETTER