The challenges faced by Peru in 2020 were unprecedented. As the country with the largest GDP contraction in Latin America, and highest Covid-19 mortality rate per capita, tragedy was felt on a personal, collective and economic level. In parallel to the health crisis, political turbulence saw three presidents and five mining ministers change in less than 12 months.
However, the second half of the year breathed new life into the mining sector, as rising metals prices and operations restarting saw producers look to make up for lost time. The junior community also reignited, illustrated by a 100% increase in mining financings on the TSXV for companies active in Peru, and a 329% increase in capital raised.
2021 started on a positive note, as copper soared past the US$4/lb mark, but ironing out social issues which have delayed a number of high-profile projects is vital for Peru to take advantage of this momentum. With a pivotal general election looming, the hope is that Peru can foster an investor-friendly environment to match its world-class geological potential.