Fraser Ranking: Peru advances 8 places in the mining competitiveness index

Peru has advanced 8 places in the mining competitiveness ranking that places it on the 34th rung out of 62 countries, while in 2021 we were in 42nd place (out of 84). In addition, we moved Chile, which is now ranked 35th, according to the annual report of Mining Companies 2022 Prepared by the Fraser Institute of Canada.

Despite being a positive result, the economist Epifanio Baca explains that the situation facing mining in Peru is complicated, so there is little reason to celebrate. “Peru advances despite the fact that its absolute measurement drops one or two points, that is, its measurement is not only the same, but also decreases. Despite that, it increases, and that happens because other countries fall, such as Mexico, Chile and Colombia. So, we are in the same thing, ”he commented in dialogue with La República.

Challenging outlook

The document details that all those surveyed expressed their concern about the political stability of Peru, also about the availability of labor skills in the country (+21 points), its tax regime (+18 points) and the uncertainty about disputes and land claims ( +18 points).

“The general lack of respect for property rights and the rule of law makes operating in Peru a very risky proposition,” commented the president of a company for the survey that was carried out between August and December 2022, so it did not cover all perceptions of the change of government.

The specialist points out that despite the fact that the metal price situation is favorable, there are internal factors that will challenge the development of mining activity in the country.

“The social outbreak at the end of December and the first months of this year has left a strong mark in the south that will place more demands on mining. For example, if Las Bambas is operating today it is because there are hundreds of Army soldiers who are controlling that the mineral is transported. That is not sustainable,” Baca noted.

optimistic look

Although fewer countries were evaluated in 2022 than in the previous year, the 62 jurisdictions under the magnifying glass of businessmen have high mining activity, says the former Minister of Energy and Mines Jaime Galvez, and adds that it is likely that this year we will continue to improve, mainly due to the announcement that the La Granja project (Cajamarca) will go ahead, with an investment amount of US$5,000 million.

“That has a great impact on the opinion of the big mining businessmen. It is a very big project. We had our best position in 2018, we reached 14th place, when it was announced that Quellaveco was going to be built”, he highlighted.

For his part, the former Vice Minister of Romulo Mucho Mines He specified that there is relative confidence in the government of the day and that other key projects could continue to promote Peru in this ranking, such as the expansions of Las Bambas and Antapaccay, the Corani and San Gabriel projects. “Permits and bureaucracy must be unlocked to allow more exploration”I note.

It is necessary to remember that the news is received when both the Ministry of Economy and Finance (MEF) and the Central Reserve Bank (BCR) have projected a drop in mining investment of more than 13% for this 2023.

Mining portfolio of US$53,715 million

The 2023 Mining Investment Project Portfolio of the Ministry of Energy and Mines is made up of 47 mining projects that encompass an investment of US$53,715 million located in 18 regions of the national territory.

There are 27 copper projects (US$38,521 million) that add up to 71.7% of the total investment; six of gold (US$6,993 million), three of iron (US$5,384 million), 10 are of zinc and silver (US$2,368 million) and one of phosphate (US$450 million).

The Romina, Corani, Magistral and Antamina Replacement projects will begin this year.