Mining opportunities in Peru

An Expert's View about Wholesale of Metals and Metal Ores in Peru

Posted on: 1 Sep 2010

Latest overview of market potential for the mining sector in Peru.

Sector briefing Mining Opportunities in Peru Why Peru? There are more than 600 active mining sites of which 188 are underground, and a further 1300 sites under exploration. All mining activity is in the hands of private companies operating under long-term licences granted by the central government. Private foreign investment in the sector is encouraged and practically all of the world?s major mining companies are present. Mining is the bedrock of the Peruvian economy and acts as a driver for other sectors such as power, construction, railways and financial services. In 2009, mining exports were ?The Peruvian economy is US$16.3 billion, approximately 62% of the among the top performers in Peru?s total exports. Latin America with average Find general information on the Peruvian 6% GDP growth 2001-9. UK is market conditions on UKTI?s website. The the second largest investor in Doing Business Guide for Peru gives an Peru with a stock of US$3.8bn overview of Peru?s economy, business culture, potential opportunities and an introduction to in 2009 contributing 20% of other relevant issue. total FDI stock. The Peruvian government encourages and protects foreign investment.? UK Trade & Investment Sector briefing: Mining opportunities in Peru copper/molybdenum open cast project located Opportunities at 127 kilometres of Arequipa city with an investment of US$950 million. It is estimated Peru is the leading mining country in Latin that the first stage will start to operate from America based on the 2009 production levels of 2012 to 2024 and the second stage from 2024 12 different minerals: to 2030. The project is aimed to produce during 18 years an average of 120,000 tonnes Mineral Global Latin American of copper cathodes with 99,999% purity per Ranking Ranking year. Silver 1 1 Zinc 2 1 Antamina (copper/zinc and molybdenum/silver Copper 3 2 /lead) project will upgrade their installations Tin 3 1 and producing capacity through an expansion Bismuth 3 1 plan of 38% in their mineral processing, rising Tellurium 3 1 from 94,000 to 130,000 tonnes per day Lead 4 1 approximately, extending the life of the Molibdenum 4 2 project from 2023 to 2029. The works will Gold 6 1 include modifications in the concentrating Selenium 7 2 plant, expansion of the power supply and Indium 8 1 modifications to the port. Iron 17 5 Pan American Silver announced in February Source: U.S. Geological Survey, Silver Institute, Gold 2010 an investment of US$126 million for the Fields Minerals Services, International Copper Study construction of their new concentrating plant. Group, International Lead & Zinc Study Group, The plant located in Morococha, Junin Region International Tin Research Institute, International will have a capacity to process 2,200 tonnes of Molybdenum Association, Latin-American Institute of Iron mineral per day extracted from their six & Steel. producing units. Both Peru?s Ministry of Energy and Mines Xstrata is in the process of constructing a port (MEM) and the National Society of Mining at Ocoña in the Arequipa Region to enable Petroleum and Energy (SNMPE ? a private them to deliver the future copper concentrates sector body) estimate US$ 34.5 billion will be from their projects Las Bambas. This terminal invested in the next 6-7 years in Peru?s mining will have a capacity to attend bulk carrier sector. vessels of up to 250,000 TM dead weight. The port will require a total investment of US$60 Investment in this sector in 2009 totalled more million and should be ready by 2013. than US2.7 billion with almost US$500 million invested directly in mining equipment. There is a large number of companies in Peru dedicated to supplying the mining sector. Amongst the companies that have announced Many act as agents for foreign suppliers. future investments are: Anglo American (UK) Although for historical reasons British products US$2.9 billion, Xstrata Copper (UK/Swiss) do not currently feature strongly in this market US$2.9 billion, Southern Peru Copper they do have a presence, and are supplied both Corporation (Mexico) US$2.1 billion, Chinalco through direct selling and agency or (China) US$2.1 billion, Antamina (JV with representative operations. Consumable items Xstrata and BHP Billiton) US$1.2 billion, Rio like drills and chemicals are preferably sold Tinto (UK) US$1 billion, Minmetals (China) through a local importer, while major capital US$2.2 billion, Zijin Mining (China) US$1.4 items should be marketed and sold directly to billion, Shougang Corp. (China) US$1billion, the logistics departments of the mining Votoramtim Metais (Brazil) US$500 million, companies. Norsemont Mining (Canada) US$500 million, Newmont-Yanacocha (USA-Peru) US$400 If you have any questions on the opportunities million, Bear Breek (USA) US$300 million, Pan above, contact the UKTI contacts named in this Pacific Copper (Japan) US$490 million. report. Business opportunities aimed specifically at UK companies are added daily to Southern Peru Copper Corp. - SPCC will start UKTI?s website. These leads are sourced by our the construction of the Tia Maria staff overseas in British Embassies, High UK Trade & Investment Sector briefing: Mining opportunities in Peru Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website UK Trade & Investment Sector briefing: Mining opportunities in Peru Major events and activities UKTI contacts Perumin Mining Convention and Exhibition Michelle de Rivero Business Development Associate Contact: Michelle de Rivero British Embassy Lima Email: Tel: (00511) 617 3034 Time: September 2011 Email: International Gold Symposium Andrew Morris n/ Trade & Investment Director Contact: N/A British Embassy Lima Email: N/A Tel: (00511) 617 3031 Time: May 2012 Email: International Congress of Women in Mining - WAAIME www.congresodemujeresenmineria2010.o rg Contact: N/A m Time: August 2010 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Mining opportunities in Peru Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Peruvian market are advised to you to meet contacts and promote your undertake as much market research and company in the Peruvian market planning as possible in the UK. UKTI?s team in Peru, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in the Peruvian market. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Peruvian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Mining opportunities in Peru
Posted: 01 September 2010