Mining investments in Peru fell by 10.3pc to $943mn in January and March, from $1.05bn invested in the same period of the prior year, according to a report from the Peruvian Ministry of Energy and Mines (Minem). Investments in equipment, plants, development, and exploration witnessed the most significant reduction during the period under review.
Equipment outlay fell by 45.3pc to $94mn in the first quarter, from $172mn in Q1 2020, while plant investments dropped by 31.2pc to $268mn from $390mn during the same period, Minem indicated.
Investments in development and preparation declined by 9.1pc to $103mn in Q1, from $113mn in the same prior-year period, while exploration outlays declined by 4.8pc to $62mn from $65mn in the same time frame. In March, Peru’s mining investments dropped by 5.9pc to $372mn, from $395mn in March 2020.
Less budget for copper
Copper miners reduced their budgets in the first quarter compared to the same prior-year quarter, Minem noted. Anglo American Quellaveco reduced its investments by 35pc to $62.8mn in Q1, from $96.6mn in the same period last year and Minera Chinalco’s outlay fell by 58.9pc to $28.1mn from $68.5mn in the same timeframe under review.
Marcobre reduced its budget by 65.6pc to $26.3mn in Q1 2021, from $76.5mn in the same period of the prior year while Southern Peru Copper decreased its mining investments by 40.4pc to $14mn from $23.5mn during this timeframe.
Peru’s mining production rose by 15.3pc in March on an annual basis due to higher production of iron ore, zinc, and copper, Minem noted. The mining industry is one of the most important economic activities in Peru, representing about 9pc of GDP and 60pc of the country’s exports. Copper and gold are the most important metals exported by value.