National copper production could reach three million tons per year.
Peru's Energy and Mines Minister Jorge Montero said copper production in the Andean country could reach three million tons a year, and said the Tia Maria project in Arequipa is progressing well.
To find out the forecasts for the sector, Jorge Montero gave an interview to the newspaper El Peruano .
– What is the outlook for your sector at the end of 2024?
–We closed the year with mining investments of around US$ 4.88 billion, almost US$ 600 million in explorations, generating 230,000 jobs, with the production of 2 million 710,000 tons of fine copper and the export of US$ 43 billion in minerals, as of November of last year. The mining sector is going from strength to strength.
–And what about the electricity and hydrocarbons sectors?
–In the electricity subsector, we have investments of more than 400 million soles (US$ 107.4 million) in rural power lines that connect more than 50,000 people to the electrical grid, which is why we have a rural electrification coefficient rate of 86% until the end of the year.
In terms of hydrocarbons, we had a regular and stable production of natural gas, in addition we have Lot 95 of oil in the Peruvian jungle producing just over 20,000 barrels per day, Lot X in the Continental Zócalo with almost 8,000 barrels per day, in addition to Lot VIII in production.
We also have lots 192 and 64 in the search for strategic partners for Petroperú, and lots I, VI and Z-69 in the bidding process, and the New Talara Refinery is operating with more than 95,000 barrels per day of processing, as is the Conchán plant with 12,000 barrels per day. It is a sector that is recovering, there is a better relationship with the native communities, it is attracting investments, generating employment and foreign currency.
–What are the investment prospects for mining?
–We are promoting a total of 13 mining projects for US$ 10 billion in investments between 2025 and July 28, 2026. This means helping these projects with simplified procedures, supporting them in social issues such as prior consultation, if necessary. We are coordinating with the mining companies in charge of these projects to help them move forward. We want to facilitate exploration; in 2024 we will carry out more than 25 prior consultation projects and we are focused on that.
–How much could copper production in Peru be increased?
–Peru currently has the capacity to produce around 2.8 million tons of fine copper per year. This figure could improve by 10% over the course of this year and the first half of 2026, perhaps exceeding three million metric tons of fine copper. That is the horizon. With work and commitment from the State and private companies, we could reach this goal in the next 16 months.
–Following the expansion of the Comprehensive Mining Formalization Registry (Reinfo), how is the development of the new law for small-scale mining going?
–There is a law passed in December of last year extending the Reinfo for six months, and another six months if the Executive requests it. At this time we are focused on working in coordination with the Energy and Mining Commission of Congress and with the main small-scale mining associations, a law that repeals the current law of 2002, or modifies it, in such a way that we can have, in no more than six months, a new law for small-scale mining and artisanal mining that facilitates and encourages their formalization, and integrates them into the formal money circuits, so that they pay taxes and comply with environmental and labor regulations.
We must find a way to encourage formalization, which is not done at the moment, because with Reinfo we have a formalization of papers, which has no motivating power. This must be complemented with ideas and proposals that improve the business conditions of small miners, for example, credits for productive tasks, technical assistance, channels for safe, clean, transparent and improved marketing, in addition to other tax and administrative incentives.
–And the mining fund for formalization?
–The mining fund is an interesting idea and is intended to be the vehicle of incentives for small-scale and artisanal mining. A mining fund that is capable of organizing, in coordination with the private sector, preferential lines of credit for small miners, marketing channels towards fair and transparent markets, with traceability so that they can improve their sales prices.
A mining fund that could at some point become a market for the purchase of gold produced by small-scale and artisanal mining, that must be designed and sized, would be a very powerful incentive and opportunity.
–What is the current status of the Tía María project?
–Tía María (Arequipa) is moving forward because the company had the ability to realize that we cannot discuss the use of surface and underground water when they are in an agricultural producing valley, so water is a critical issue there because the uses are already given for agricultural purposes.
The Southern company acknowledged that the option was the desalination of sea water, which is stipulated in its environmental impact study. The water for the mining project comes from marine sources with adequate treatment, so that discussion has already disappeared, many problems have been resolved and progress is being made in the process of restarting activities at Tía María.
–What other mining projects are coming this year?
–We have the Yanacocha Sulfuros and Michiquillay projects in Cajamarca; Antamina Replacement (Ancash); Toromocho Expansion (Junín); Cerro Verde, Zafranal and Pampa de Pongo Expansion (Arequipa); Los Chancas (Apurímac), and Los Calatos (Moquegua). There are a number of important copper projects, but also gold and silver projects, considering that Peru is the country with the largest silver reserves in the world. Gold comes from small-scale and artisanal mining, and we have US$10 billion in resources that we must integrate, rescue and recover for the formal sector.
DATA
- The Ministry of Energy and Mines reported that cumulative production from January to November 2024 registered an increase in gold (6.8%), silver (15.1%), lead (6.9%), iron (2.8%), tin (29.6%) and molybdenum (24.6%).
- Peruvian copper production between January and November 2024 registered a drop of 1.1% compared to the same period in 2023.
- At the regional level, the leading producers are: Moquegua with copper and molybdenum. La Libertad with gold. Ancash with zinc. Lima with silver. Pasco with lead. Ica and Puno are the only regions where iron and tin are produced, respectively.