Mining investments in Peru fell by 29.6pc to $4.33bn in 2020, from $6.15bn in the prior year according to the Peruvian Ministry of Energy and Mines (Minem).
Mining investments in development and preparation, exploration, infrastructure, plants, and mining equipment reduced significantly during the year, Minem indicated in a report. Investments in development and preparation fell by 66.8pc to $381.8mn in 2020, from $1.15bn in the prior year, exploration investments dropped by 37.5pc to $222.7mn from $356.5mn, and infrastructure declined by 34.8pc to $857.8mn from $1.3bn during the same period.
The investments in mining equipment reduced by 28.2pc to $743.5mn last year, from $1.03bn in 2019, while investments in plants fell by 4.8pc to $1.44bn from $1.51bn in the same time frame.
Copper mining budgets lowered
The most significant reductions in investments were observed in copper mining last year, compared to 2019, Minem noted. Marcobre decreased its expenses by 33.2pc to $497.3mn last year, from $744.6mn in 2019, while Minera Chinalco decreased them by 25.6pc to $307.2mn from $412.7mn on an annual basis.
Southern Peru Copper saw a 39.6pc decline in its investments to $240mn last year, from $397.4mn in 2019, Cerro Verde was down by 42.9pc to $152.2mn from $266.8mn, and Las Bambas reduced its expenses 25pc to $205.6mn from $274.4mn.
Peru’s copper production fell by 12.5pc to 2.15mn mt in 2020 on an annual basis.
The mining industry is one of the most important economic activities in Peru, which represents about 9pc of GDP and 60pc of the country’s exports. Copper and gold are the most important metals exported by value.