Investment in Mining Exploration in Peru Plummets by Half

Investment in Mining Exploration in Peru Plummets by Half

Investment in mining exploration has drastically declined over the past decade, according to Victor Gobitz, the president of the National Society of Mining, Petroleum and Energy (SNMPE) of Peru. Disbursements in this area by mining companies have plummeted from US$950 million in 2012 to just US$428 million in 2022.

During the presentation of the Symposium – XV International Mining Meeting, Gobitz emphasized the urgent need to harness the full potential of mining to support the country’s development and reverse the current economic recession.

Copper production is expected to experience a modest increase in 2023, estimated to reach between 2.6 and 2.7 million tons. If social conflicts can be avoided, projections indicate a further rise to 2.8 million tons by the following year.

Gobitz pointed out that several projects, such as Tia Maria, Zafranal, and significant road extensions like Toromocho and Antamina, are contributing to this growth.

However, Gobitz also raised concerns about the escalating issue of illegal mining in the country. This illicit activity results in substantial losses, amounting to approximately 2.5% of the national GDP. These losses encompass fiscal, environmental, productivity, and salary costs, among others. Additionally, the mining sector has been plagued by conflicts that have generated losses of S/7,000 million between 2021 and 2023.

Peru’s Mining Challenge

Victor Gobitz emphasized that Peru faces the challenge of executing a portfolio of 43 mining projects. Gonzalo Quijandría, president of the symposium’s organizing committee, highlighted the objective of identifying the opportunities that mining presents.

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