The Department of Economic Studies of Scotiabank estimated that, this year, mining investment in Peru will take off 6% compared to 2023, largely thanks to five large projects that will boost around US$5 billion. What are these projects?
According to the Scotiabank Weekly Report for February, these five projects will be Toromocho Phase II Expansion, Antamina Replenishment, Corani (Bear Creek) and Chalcobamba Phase I (Las Bambas), among others. Furthermore, the continuity of Saint Gabriel (Buenaventura) which is currently under construction.
As recalled, mining investment closed 2023 with an amount of US$4,715 million, 9.9% lower than in 2022, and exceeding our initial expectations—and the consensus—of a double-digit drop. Let’s now look at the situation of five of these large projects, according to Scotiabank.
Chinalco Mining: Toromocho Expansion
The Toromocho mine received approval from the General Directorate of Minem for the development of the second phase of expansion of its copper mine plant, after it was announced in 2018 (official permits and the COVID-19 pandemic delayed its execution).
The second phase includes the expansion of the plant’s processing capacity, which will go from the current 140,000 tons per day to 170,000, an increase of more than 20%.
This is a brownfield project, it has an estimated investment of US$1,355 million according to the Minem portfolio, and would be developed in the next two years. The works began in September 2023.
Antamina replacement and an eight-year extension
Antamina Replacement is a brownfield project aimed at providing continuity to the operations of the Antamina mine and expanding it for eight more years, from 2028 to 2036.
Recently, in February 2024, the National Environmental Certification Service for Sustainable Investments (Senace) approved the MEIA-d of the project, which enables it with an approximate investment of US$2,000 million, well above the estimated US$1,600 million initially.
Scotiabank recalls that, according to the mining company, most of the estimated investment for Antamina Replacement will only be carried out in 2025.
Brear Creek and its Corani mine in Puno
Bear Creek’s Corani, a greenfield project, is located in Puno. According to the company, the project is advancing in a series of early activities and expects to begin preliminary works and construction this year, with an initial investment of US$579 million.
Although it has had all the construction permits since last year, given its location – an area where social conflicts occurred – its start could be postponed more than estimated. Its construction will take a period of three years.
Bear Creek highlighted that the mine will have the capacity to produce close to 10 million ounces of silver per year, well above other regions of the world, where production levels point to 5 or 6 million ounces per year.
Minera Yanacocha and the pending investment in Yanacocha Sulfides
Newmont, operator of Minera Yanacocha, expects its investment to be similar to last year, that is, between US$300 and US$350 million, which will be allocated for the development of advanced engineering, acquisitions, early earthworks and the construction of floors.
In addition, he highlighted that they continue to invest in exploration, mainly in gold and copper. Regarding its Yanacocha Sulfuros project (US$2.5 billion), the mining company announced in July 2023 that the investment planned for the middle of this year was postponed for two more years.
This project seeks to extend its useful life for 20 years, beyond 2040, which would transform it into a copper and gold producing mine.
Antapaccay: Tintaya Expansion-Coroccohuayco Integration
Finally, Scotiabank mentions that Minera Antapaccay presented a new package of modifications for more than US$208 million before Senace.
The changes were incorporated in the second Supporting Technical Report of the Modification of the Detailed Environmental Impact Study (MEIA-d) of the Antapaccay Tintaya Expansion-Coroccohuayco Integration project. The investment would occur once Senace approves the MEIA-d.
Source: Larepublica
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