Peru is improving its investment climate towards a new mining boom as various studies hint at a considerable rise in copper prices —one of Peru's main exports— in coming years, Energy and Mines Minister Gonzalo Tamayo affirmed.
"The international environment is favorable; it points to better metal prices that will boost a series of major mining projects in the country," he said.
In this line, Deputy Mines Minister Ricardo Labo explained such outlook is underpinned by studies on mineral prices behavior worldwide.
"These projections estimate a steady increase in China's demand for different minerals like copper, one of our main export products," he told El Peruano official gazette.
It is worth noting China accounts for 50% of global copper consumption. The total demand for this mineral stands at around 25 million fine tons.
Technologies
The government official added the growing international demand for copper —and consequent better prices— is driven by new technologies.
In this respect, the increasing use of electric cars, which require copper cables, also contribute to the positive forecast.
Copper prices are expected to exceed US$3 per pound starting in 2021.
Opportunity
Such projection allows for plenty of time to promote investments.
According to Labo, the idea is to be ready with a greater production capacity when the wave of high prices hits.
To this end, the Mines Ministry's strategy in coming years will include modifying regulations as required to create an investment-friendly environment.
"[…] the idea is to expedite processes through better conditions," he observed.
Likewise, he stressed the government seeks to attract more mining exploration investments that will lead to the discovery of new ore deposits, which will in turn result in new future projects.
In this sense, the Ministry will soon release new environmental regulations for mining exploration activities.
Overall, the deputy minister affirmed national and international investors are highly interested in the Andean country.
Goals
The government's 2021 target is to attract US$37 billion in mining investment through a series of measures.
One of these involves increasing Peru's share in the global mining exploration budget from 6% to 8% thru 2021.
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