PERU: A country of mining opportunities - JAIME GÁLVEZ DELGADO Minister of Energy and Mines Marzo, 2021 - MINEM
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PERU: A country of mining opportunities JAIME GÁLVEZ DELGADO Minister of Energy and Mines Marzo, 2021
Peru is consolidating as an attractive place for mining investments, despite the pandemic. In a “new normal” scenario, the mining sector shows its social commitment, resilience and adaptation for the future.
MINISTERIAL GOALS Enable execution of 7 mining projects in 2021 (Total Investment: US$ 3.6 billion) Ensure continuity of operations and accompaniment of projects under construction Strengthen management of social conflicts and implement the Social Advancement Fund Consolidate RIMAY: Second phase of multi-stakeholder dialogue process Promote remediation of environmental liabilities: Continuity of projects and new assignments Develop policy for small-scale mining and artisanal mining
Geological Potential
National territory: 1 285 215 Km2
Concession areas: 19 101 446 Ha*
(*) Equivalent to 191 014.46 Km2
(14.86% of the national territory)
% of the
Concessions N° Ha national
territory
Exploration 322 278 344 0.22
Exploitation 671 1 304 499 1.02
Mining activity 1.23
Source: INGEMMET, Monthly Statistical Statement (ESTAMIN) - Ministry of
Energy and Mines. Consultation date: January 20, 2021. Ha: Corresponds to
Ha per unit, without repetition of mining owner
PERU: COMPETITIVE COSTS
Competitive costs that characterize Peruvian mining stay in the long run. Accordingly,
by 2025 continues with an attractive position on the cost curve.
Consultation date: February 1, 2021. Source: Wood Mackenzie, cost model as of the third quarter of 2020. Elaboration:
Economic Studies - General Directorate of Mining Promotion and Sustainability
RESULTS 2020: Sustained recovery of main indicators
LEADERSHIP IN COOPER PRODUCTION
Peru is recognized as the second largest copper
producer worldwide.
3.0
By 2025, national copper production would reach 3.0
million FMT; as a result of the operation of projects
such as:
2.1
Mina Justa (Ica) 1.7
Ampliación Toromocho (Junín) 1.2
Quellaveco (Moquegua)
Preliminary data. Consultation date: January 28, 2021. Source: Monthly Statistical Statement (ESTAMIN) and Mine Construction Portfolio
2020 - Ministry of Energy and Mines (MINEM). Elaboration: Economic Studies - General Directorate of Mining Promotion and Sustainability
MINING PRODUCTION
2020: During the pandemic, Peruvian metal mining production has shown a quick and
significant recovery in its main minerals.
Quarterly copper production Quarterly gold production (FMT) Quarterly zinc production Quarterly silver production (FMT)
(thousand FMT) (thousand FMT)
902
635 435 837
27.5 380 786
564 24.4
515 348
435 20.2
15.2 467
166
I II III IV I II III IV I II III IV I II III IV
Quarterly tin production Quarterly lead Production Quarterly iron production Quarterly Molybdenum Production
(thousand FMT) (thousand FMT) (thousand FMT) (thousand FMT)
6.72 69.7 70.8 8.97
6.27 66.2 3,259 8.81
2,803 7.12 7.28
4.98 2,438
34.0
2.68
394
I II III IV I II III IV I II III IV I II III IV
Preliminary data. Consultation date: January 28, 2021. Source: Monthly Statistical Statement (ESTAMIN) - Ministry of Energy
and Mines (MINEM). Elaboration: Economic Studies - General Directorate of Mining Promotion and Sustainability.
MINING INVESTMENT
2020: Mining investment totaled US $ 4.3 billion, surpassing the goal of US $ 4.2 billion.
Likewise, there is a significant recovery of 66.8% from the second to the fourth quarter of the year,
even exceeding that registered in the first quarter.
Quarterly evolution of mining investments (US$ millions)
1,500 1,431
70
1,200
+66.8%
1,056
989 497
65 45
858
900 Investment
Inversión in exploration
en exploración
42
474 New projects
Nuevos Proyectos
493
600 Base Investment
Inversión Base
555
TOTAL
TOTAL
863
300
517 450
261
-
IITRIMESTRE
QUARTER IIIITRIMESTRE
QUARTER III III
TRIMESTRE
QUARTER IV TRIMESTRE
IV QUARTER
Preliminary data. Consultation date: January 28, 2021. Source: Monthly Statistical NOTE: Base Investment: Based on the declared investment in sustainability that includes investment in infrastructure,
Statement (ESTAMIN) - Ministry of Energy and Mines (MINEM). Elaboration: Economic mining equipment, among others. Investment in Exploration: Based on the investment declared in exploration.
Studies - General Directorate of Mining Promotion and Sustainability. Investment in New Projects: Based on the global investment of projects of the 2020 Mine Construction PortfolioMINING EMPLOYMENT
2020: At the end of 2020, 177 692 people were directly employed on average
showing a continuous recovery since the end of the second quarter.
This achievement meant a positive variation of 42.0% between the second and
the last quarter of 2020.
Quartely evolution of employment in mining (thousands of jobs)
250,000
+42.0%
205,646
196,142
200,000
170,888
150,000 138,090 CONTRACTORS
CONTRATISTAS
137,497
133,674
110,133 COMPANY
COMPAÑÍA
100,000 80,998
TOTAL
TOTAL
50,000
68,149 57,092 60,755 62,468
-
IITRIMESTRE
QUARTER II QUARTER
II TRIMESTRE IIIIIITRIMESTRE
QUARTER IVIV QUARTER
TRIMESTRE
Preliminary data. Consultation date: February 3, 2021. Source: Monthly Statistical Statement (ESTAMIN) - Ministry of
Energy and Mines (MINEM). Elaboration: Economic Studies - General Directorate of Mining Promotion and SustainabilityPRESENT & FUTURE OF THE MINIG SECTOR 2020 - 2029
2020 -2029 MINING CONSTRUCTION PROJECT PORTFOLIO
Investment in Peru according to the country of origin of main investor
46
Projects
21.5% 18.6%
UK CHINA
US$ 12 066 million US$ 10 425 million
6 projects 7 projects
US$ 56 158 15.3%
billion CANADA 2.3%
global US$ 8574 million
11 projects JAPAN
investment 12.8% 1.1% US$ 1290 million
1 project
USA SWITZERLAND
US$ 7200 million US$ 590 million
3 projects 1 project
11.6% 0.2%
11 MEXICO KOREA
Countries US$ 6500 million
3 projects
US$ 117 million
1 project
(origin of 7.7%
investment) PERU
3.6%
5.5%
US$ 4297 million BRAZIL
6 projects US$ 2035 million AUSTRALIA
5 projects US$ 3065 million
Consultation date: January 22, 2021. Source: Portfolio of Mine Construction Projects 2020.
Preparation: Economic Studies - General Directorate of Mining Promotion and Sustainability. 2 projects2020 Pipeline
PROJECT dePIPELINE
proyectos
By 2025, the construction of 13 mining projects is expected (US$ 11.7 billion).
2021 2022 2023 2024 2025
US$ 3577 MM
•Ampliación Shouxin
•Chalcobamba Fase I
•Corani
•Opt. Inmaculada
•Pampacancha
•San Gabriel
•Yanacocha Sulfuros
US$ 840 MM
•Magistral
•Planta de Cobre Río Seco
US$ 1263 MM
•Zafranal
US$ 3573 MM
•Los Chancas
•Trapiche
US$ 2500 MM
•Michiquillay
Consultation date: January 22, 2021. Source: Portfolio of Mine Construction Projects 2020.
Preparation: Economic Studies - General Directorate of Mining Promotion and Sustainability.MINING INVESTMENT PROJECTION TO 2025
• By 2021, it is estimated that with the start of construction of new projects, the annual investment will amount
to US$ 5.2 billion, representing a growth of 21% compared to the amount registered in 2020.
• Likewise, this positive trend is expected to continue towards year 2022 with an approximate investment of US$
6 billion, representing an increase of 16% compared to the previous year.
• For the period 2023-2025, it is estimated that investment execution levels will remain above US$ 5 billion.
Projection of mining investments (US$ billion)
7.0
6.0
6.0 5.4 5.6
5.2 5.0
Investment in new
5.0 4.3 Inversión en nuevos
2.7 1.9 projects
1.6 1.8 proyectos
4.0 2.3 Estimated base
Inversión base estimada
3.0 6.1 2.0 investment
4.9 Investmentejecutada
Inversión executed
2.0 3.6 3.8
2.9 3.4 3.5
1.0 2.3
- - - -
2018 2019 2020 2021 2022 2023 2024 2025
NOTE: Investment executed: Monthly Statistical Statement (ESTAMIN). Estimated base investment: Estimate
Preliminary data Consultation date: January 22, 2021. Source: Monthly Statistical Statement
based on the investment declared in support in the Monthly Statistical Declaration (ESTAMIN). Investment in
(ESTAMIN) - Ministry of Energy and Mines (MINEM). Preparation: Economic Studies - General
new projects: Estimate based on the global investment of projects of the 2020 Mine Construction Portfoli
Directorate of Mining Promotion and Sustainability.EXPLORATION BUDGET WORLDWIDE
Word exploration budget
(US$ MM)
9625
9285
8773 610
549 8328
502 8045
364 Perú
515
6990
Rusia
429
México
Chile
USA
Canadá
Australia
Otros
2015
1 2016
2 2017
3 2018
4 2019
5 2020
6
Peru in the
world ranking (6°) (5°) (5°) (4°) (5°) (7°)
Consultation date: January 28, 2021. Source: S&P Market Intelligence, 2021. Amounts at current
prices. Preparation: Economic Studies - General Directorate of Mining Promotion and Sustainability2021 MINING EXPLORATION PROJECT PORTFOLIO
Investment in Peru according to the country of origin of main investor
60
Projects
6.4%
UK
US$ 32.3 million
7 projects
US$ 506 26.2%
Billion CANADA 1.6%
global US$ 132.4 million
JAPAN
20 projects
investment
4.7% 9.3% US$ 8.0 million
1 project
USA SWITZERLAND
6.2% US$ 23.9 million US$ 46.8 million
6 projects 4 projects
MEXICO
9 US$ 31.3 million
3 projects
Countries
(origin of 30.0% 12.6%
investment) 3.1%
PERU BRAZIL
US$ 151.8 million US$ 63.5 million AUSTRALIA
11 projects 5 projects US$ 15.9 million
* Preliminary data. Consultation date: February 03, 2021. Source: Online 3 projects
Environmental Assessment System (SEAL - MINEM Intranet). Preparation: Economic
Studies - General Directorate of Mining Promotion and Sustainability2021 MINING EXPLORATION PROJECT PIPELINE
Shahuindo
Tantahuatay 4 Bongará
Cerro Negro
Malpaso II In exploration or to be
Huiñac Punta
La Quinua explored
San José 1 Colquipucro
Colorado Loma Linda
San Pedro
In evaluation of
Tumbes
Loreto
El Porvenir exploration authorization
Eposuyay (Fase I) Piura Yumpag
Llaguén
Las Defensas
Amazona
s In evaluation of EA*
Lambayequ Alta Victoria
e Cajamarc San Sierra Nevada y Manuelita
Azulmina
a Martín Zoraida II
Pucajirca
La Libertad Carhuacayán
Soledad (Fase 1)
Áncas Apacheta
ORO
Coloso h Huánuco
Mina Marta 24 proyectos
Ucayali
Illari Pasco
Quehuincha
Palma
Yauricocha Junín COBRE
Lima Madre Tumipampa Sur
Anamaray de
Huacullo
17 proyectos
Dios
Santander Huancavelica San Antonio
Romina 2 Cusco
Santo Domingo
Apurímac Amauta ZINC
8 proyectos
Ica
Cochaloma Ayacucho
Berenguela Arcata
Puno
Lourdes Quenamari Chapitos
*Environmental Assessment Pablo Sur Coasa Iluminadora
Consultation date: February 03,
Palca
Arequipa
Cochacucho y Mylagros Mayra Otros
2021. Source: Online Environmental
Assessment System (SEAL - MINEM Scorpius
Moquegu
Paraiso 11 proyectos
Intranet). Preparation: Economic Sombrero Elisa Sur a
Candado
Studies - General Directorate of Pampa Negra Suyawi
Yanacochita II Tacna Caylloma
Mining Promotion and SustainabilitySUSTAINABILITY
SOCIALde
Criterios de priorización PEACE
zonas de intervención
"Build a social peace climate through dialogue in order to
reach consensus aimed at the sustainable development of
the energy and mining sector and the well-being of the
population in the areas of influence"
INITIATIVES
Strengthening of the General Mining-Energy Participatory
Office of Social Management Management Committee Environmental Monitoring
of the MinistryStrengthening of the General Office of Social Management • Creation of an ad hoc team for the Prior Consultation processes. • Territorial approach to conflict management and fulfillment of commitments. • Incorporation of preventive actions with greater articulation of the Government. • Strengthening of governance and monitoring of social investment. • Launch of the Social Advancement Fund.
Installed Committees:
Mining-Energy Loreto
Management
Committe
Space for dialogue and coordination among the Cajamarca
government, companies and citizens.
• Build consensus and promote sustainable
investments.
• Early attention to concerns and demands.
• Provide capacity training for authorities and citizens
Apurímac
in the efficient and transparent use of resources
generated by the energy and mining sector.
• Promote a permanent presence of the government
in the regions.
ArequipaRIMAY*
Mining-Energy Goals:
Government
Convergence and
• Share and promote good practices. Civil
Good Practices Society
Centre (RIMAY) Participants: Private
• Reach consensus among stakeholder for sector
a better use of energy-mining resources.
Academy
Vision of Mining to 2030: Prioritized activities
“By 2030, mining in Peru is inclusive, it is 1. Strengthening the capacities of regional and local governments.
socially, environmentally and territorially 2. Best practices in water resources management.
integrated, within a framework of good 3. Promotion of R&D+i throughout the mining value chain.
1st. Stage governance and sustainable
4. Modern and innovative legal framework, maintaining high
environmental and social standards.
development. It has been established as 5. Eradication of illegal mining.
a competitive and innovative activity and 6. Promotion of clusters, linkages and productive diversification.
enjoys the appreciation of the society ” 7. Territorial articulation pilot plan for productive development.
* Quechua word for conversation or dialogue.2nd. Stage
(2021)
It will be first implemented in
two regions:
Spaces for dialogue
adapted to the reality
and needs of each
region.
Regional Cajamarca
multi- (May-Jul)
stakeholder Goal:
dialogues Generate consensus
among stakeholders
regarding the
contribution of mining
in the development of
the region.
Moquegua
(Feb - Apr)Technical Group
of the Mining Technical Group
Suppliers for the
Technology Management of
Roadmap Water Resources
in Mining
Technical
Goal: Promote productive innovation
working and competitiveness in the mining
Goal: Promote the implementation of
value chain at a national level.
groups best practices in water management.
Prioritized initiatives:
- Piloting and extensionism center Topics to be addressed:
Goal: Develop a specific action plan for - Boost to open innovation - Definition and identification of
the implementation of each prioritized - Innovation Observatory best practices.
activity. - Provider associativity - Policy proposals.
- Demonstration project profile.
Made up of experts from the each of the
categories of participants of RIMAY.PARTICIPATORY ENVIRONMENTAL MONITORING AND SURVEILLANCE
Participatory Environmental
Mechanism that promotes, in an
Monitoring and Surveillance is
organized manner, the
carried out in various mining
participation of the population
operations in Peru.
in the access and generation of
information related to
environmental aspects of Currently, the MINEM has been
mining activities. * promoting this mechanism in:
Citizens actively participate in the • Moquegua: (Quellaveco Project
monitoring processes of Implementation of this – Mariscal Nieto province)
environmental impacts and in
process requires an
monitoring compliance with the
commitments derived from organized, committed and • Ayacucho: (Lucanas,
environmental studies informed citizenry. Parinacochas and Páucar del
Sara Sara provinces).
*Ministerial Resolution N° 304-2008-ME-DMCriteriosENVIRONMENTAL
de priorización deREMEDIATION
zonas de intervención
Excélsior Remediation Project MINEM carries out actions to manage the remediation of mining
(Pasco province and region) environmental liabilities in order to reduce their impact on the
environment, protect health and prevent social conflicts.
Goal: Strengthen sustainability and acceptance of the mining sector,
and the trust of the population that coexist with it.
Transferred Budget
BEFORE
Year Budget
2018 US$ 51,671,733
2019 US$ 23,952,096
2020 US$ 32,014,798
IN REMEDIATION PROCESSREGULATORY OPTIMIZATION: Medium and long-term policies
SMALL-SCALE AND ARTISANAL
Estructura funcional MINING
VISION “The government has achieved the formalization, improvement of environmental
performance, working conditions, and competitiveness of small-scale and
2030 artisanal mining; as well as the eradication of illegal mining”.
Ministerial Goals
1 Promote a National Policy for 2 Design of the Mining Fund
SmallScale and Artisanal Mining
Promote the development and business growth of
Consolidate a "country vision" for the sustainable formal Small-Scale and Artisanal Mining.
development of Small-Scale and Artisanal Mining
3 Gold traceability 4 Sustainability of operations
Build confidence in the gold produced by Small-Scale Provide capacity training to formalized miners and
and Artisanal Mining regional authorities (Technical Assistance and
Capacity Building) on the sustainability of the
activity.ATTRACTIVE MARKET FOR MINING:
Recognized geological potential
Mining tradition
Legal stability
PERU, Competitive energy prices
Government accompaniment
A COUNTRY Resilience in the face of the pandemic
PREPARED
CHALLENGES
FOR THE
Government
NEW Companies
Commitment to Greater articulation
CHALLENGES sustainable and presence in
development mining regions
OF THE
MINING Sustainable investment and
INDUSTRY social viability for its executionThank you
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