Year of Grau’s Sea Consolidation
"Despite the changes to the fiscal contribution of the mining sector introduced by the Humala administration, Peru could receive significant investments in the mining sector and double its copper production by 2014," the agency said.
However, Fitch warned that social conflicts and potential bottlenecks in the energy and regulatory structure could pose some delays in the implementation of the project pipeline.
For example, the US$4.8bn Minas Conga gold-copper project in the northern region of Cajamarca has been temporarily suspended following months of local protests.
Earlier this week, Environment Minister Manuel Pulgar Vidal said the government is looking to restart talks with opponents of the controversial project, majority-owned by Newmont Mining Corp.
Last week, Fitch Ratings affirmed Peru's foreign currency issuer default rating (IDR) at 'BBB' and its local currency IDR at 'BBB+', with a stable outlook.
According to the credit agency, progress on social indicators as well as deepening of political institutions would further increase the durability of the current economic model and benefit Peru's creditworthiness over the medium term.