The Peruvian economy reflected one of the highest growth rates in Latin America in 2015, making it a clear and attractive option for international investment. According to figures published by the Pacific Credit Rating (PCR) in its 2015 Sovereign Report1 , “despite the difficulties presented at international level, Peru grew by 3.26%, being the second highest rate”. According to the analysis carried out by this institution (PCR), this difference was the result, not only of the measures to increase economic growth implemented by the Ministry of Economy and Finance (MEF) and the Central Reserve Bank of Peru (CRBP), but was largely due to the development and growth of the mining sector, especially the metal mining sector, which allowed the sector to recover by 15.48% compared to 2014.
However, according to figures published by the Ministry of Energy and Mines (MINEM), the mining sector, together with the hydrocarbons sector, represented 13.5% of the national economy, 1.3% higher than in the previous quarter registered in the same period of the year 2015. It is thus that the metallic mineral Gross Domestic Product (GDP) grew 25.0% due to a greater production of copper, gold, silver and lead, among other metals. It therefore follows that, and according to information from the National Society of Mining Oil and Energy (NSMOE), worldwide, Peru ranks second in the world for production of silver, third for copper and zinc, fourth for lead, fifth for tin and sixth in gold2.
For its part, the National Institute of Statistics and Informatics (NISI) indicated in July that the production of the Mining and Hydrocarbons sector increased by 14.27%, when compared with similar month of the previous year; a result that is explained by the higher production of the metallic mining subsector by 16.19% and of the hydrocarbons subsector by 5.24%. In this sense, with the result of July, this sector accumulated 17 months of continuous growth.
However, the growth of the mining sector is not only supported by the potential and production of metallic minerals, but also by its nonmetallic mining, which is reflected in
Torres Valencia, Julio C. "Información Económica y financiera al 31 de diciembre de 2015" – Pacific Credit Rating – PCR
National Society of Mining Oil and Energy - Peru Mining Country.
the first position Peru occupies as diatomite producers in Latin America, without forgetting that Peru also extracts bentonite and borates; minerals difficult to find in other countries.
The growth of the Mining Sector is also due to the export of mining production. According to MEM figures, in 2015, mining exports accounted for 62% of the country’s total exports, and this due to certain relevant factors3, among which can be highlighted as: (i) the high demand for concentrates and metals; (ii) marketing contracts between domestic and foreign companies, signed in anticipation of the start of production; and (iii) tax benefits on exports through the determination of prices in the international market.
According to projections made by Dr. César Peñaranda Castañeda4, by 2017, GDP growth is projected to be around 3.9%, ranging from 3.7% to 4.5%, with a more diversified growth but still led by the growth of the mining sector by 7.2%. This growth, which can be considered the highest since 2013, is also due to the improvement in the international environment and the continued implementation of infrastructure megaprojects.
Growth is expected in the relevant mining sector, mainly due to projects such as Constancia, Toromocho, Cerro Verde Expansion and Las Bambas, which are expected to reach optimum production levels5.
Finally, we cannot fail to mention that in the framework of the XXIV Summit of Leaders, Asia-Pacific Economic Cooperation Forum (APEC), hosted in Peru last week, Peru and the Republic of China signed promotional agreements and memorandums of understanding, which have as a main objective to allow the growth of the mining sector through investment, and in this way, it is expected that the extractive, productive and/or processing capacity of mining projects such as those of Rio Blanco in Piura, Hierro Pampa of Pongo in Arequipa, among others, will grow.
3 Ministry of Energy and Mines - Mining Yearbook 2015.
4 Peñaranda Castañeda, César "Informe Económico" - Institute of Economy and Business Development
Chamber of Commerce, 2015.
5 Multi-Year Macroeconomic Framework 2017-2019, approved at the Council of Ministers Meeting on
April 27th and published on April 29th, 2016.
We are confident that Peru will continue to be a mining investment destination and, along with adequate policies, the growth of the Peruvian Mining Sector will not stop.
- Banco Central de Reserva del Perú (BCRP), Nitas de Estudios del BCRP: Balance Comercial Diciembre 2015.
- Sociedad Nacional de Minería Petróleo y Energía –JanuaryT,
- Banco Central de Reserva del Perú (BCRP), Memoria Anual 2015.
- Fondo Monetario Internacional (FMI), World Economic Outlook Database April 2016.
- Instituto Nacional de Estadística e Informática (INEI), Producción Nacional
- Enero-Diciembre 2015.
- Ministerio de Economía y Finanzas (MEF), Marco Macroeconómico Multianual 2017-2019.
- Ministerio de Energía y Minas (MEM), Cartera Estimada de Proyectos Mineros, Información a octubre 2015.
- Informes Económicos, Instituto de Economía y Desarrollo Empresarial de la
- Cámara de Comercio de Lima.
- Marco Macroeconómico Multianual 2017-2019, aprobado en Sesión de Consejo de Ministros del 27 de abril y publicado el 29 de abril de 2016.