Peru and Chile would lead the demand for “new oil” in the coming years

As the world advances towards reducing its dependence on fossil fuels, copper emerges as a fundamental resource for electrification and development of Renewable technologiesto the point of being called by Chilean media as the “new oil” of modern economies.

“It is not exactly like that. The energy transition requires copper, molybdenum, lithium and rare earths, which are mainly in Asia. It is a set of resources that is needed, while everything comes out of oil. And remember that in the energy transition When a mineral is missing, another is sought to replace it, “said Erick García, former general director of Hydrocarbons of the Ministry of Energy and Mines (Minem), to the Republic.

Similarly, both Peru and Chile would be the main beneficiaries since they are responsible for 40% of the world production of red metal, the Institute of Mining Engineers of Peru reported (IIMP). However, the region will continue to advance, driven by the incorporation of two new actors: Ecuador and Argentina.

“South America would have 60% of world copper production in the coming years,” said Zetti Gavelán, vice president of the IIMP, during his exhibition within the framework of the Mining Engineering Week.

It should be remembered that in 2023 the International Monetary Fund (IMP) projected that the global copper demand would increase by 66% between 2020 and 2040, from 25.9 million tons in 2023 to 39.1 million in 2040.

Peru as a coupper power

Peru, as the second largest copper producer, reported November 2024 That its production reached 241,883 fine metric tons (TMF), the second highest monthly number of 2024, which represented an increase of 2.1% compared to October of the same year.

Likewise, the IIMP recently reported that there are 60 mining holders dedicated to the copper exploitation. If we talk about regions, Moquegua has a 17.4% participation, while Arequipa 16.8% and Ancash 16.5% of the national cupriferous production.

In contrast, the National Institute of Statistics and Informatics (INEI) reported that as November the copper production decreased (-4.64%) for the third consecutive month, due to the lower production volumes in Antamina, Southern Peru Copper Corporation, Anglo American Quellaveco, Minera Antapaccay and in Nexa Resources Peru.

“All projects have growth and decline growth curves. So that as a country we can lead production is to have new projects, and the advantage of the mining sector is that it has a more extensive portfolio. We must ensure that it is executed,” Erick explained Garcia.

Copper projects in Peru

The portfolio of Minera Exploration Projects in Peru It highlights an accumulated investment of US $ 226 million in copper, gold and silver. This figure represents an estimated total of US $ 644 million for exploration.

Last Friday, Zetti CavaLán dislocated at a conference at the College of Engineers of Lima that the projects in execution total US $ 252.7 million, while environmental authorization slopes amount to US $ 263.2 million. In the environmental evaluation phase, the investment is US $ 128.4 million.

The copper leads with US $ 138.7 million, followed by gold and silver with US $ 87.3 million, reflecting the strong interest in these metals in the country.

Finally, and according to the Mining Statistine of the Ministry of Energy and Mines (Minem), there are 32 Exploration projects in the execution phase today. Of these, copper stands out as the most demanded mineral, with 18 projects, it follows gold with 5 and silver with 4.

At July 2024, President Dina Boluarte reported that mineral exports reached US $ 1,951 million, which represented a growth of 1.4 % compared to the same month of the previous year, and driven both by the price increase as for the increase in international orders.