Mining Sustainability in Peru

Mining Sustainability in Peru

Global trends indicate the expansion of mining in these last few months. The mining industry in Peru has registered an increase of +50.0% according to the latest statistics (National Statistics Institute of Peru, INEI) and given the increase in the gold price this brings a strong economic growth in different countries all over the Americas.  

Mining has been a sector in Peru that contributes 14% to the country’s Gross Domestic Product and that provides a significant national economic support.  

The current mining laws promote a balance between the mining activities and the conservation of the natural resources. However, most of the time the lack of responsibility from the state agencies limits the sustainable development of the country.  

The commission for sustainable mining development provides public policies to highlight the benefits of renewable energy within mining activities in Peru and has identified five core components that make a sustainable country: social environment, citizenship, diversity and territory, environmental management, regulatory improvement, tax contribution and use of mining resources, and informal and illegal mining. 

Regarding the environmental impacts and usage of renewable energies there is still some work that can be done. Especially for the carbon footprint that mining leaves behind during mining development. The mining industry consumes already 56% or the national energy production in Peru and the use of these environmentally friendly energies are an attractive option for mining companies in the last few years. 

There have been improvements in the renewable energies sector that have been done mostly in developed countries and mining companies benefit of the new technologies which make mining more sustainable. 

The international council on Mining and Minerals (ICMM) suggests the use of renewable energies and Peru’s renewable energies represent only 4.8% of national production. Peru’s natural renewable resources have not been developed to its maximum potential (solar potential and wind speeds).  

Today’s renewable energies also depends on the impulse of the private sectors that indirectly contribute to energy decarbonization. Some mining companies already incorporated solar and wind solutions to provide energy to their mining activities. The inclusion of this type of clean energy can also bring a community benefit because of the infrastructure developed in the mining areas. 

Mining could have adverse effects on the living conditions of people through the impact on land and water resources. These effects increase the uncertainty of mining concessions, as well as the misinterpretation of information received in the social entities which could obstruct the exploration in remote areas. 

The sustainability of the country highly depends on the social institutions created to manage relationships between mining, natural resources and the communities directly affected. 

Some changes have been generated in different sectors but there are also challenges for local governments mostly related to social conflict. Institutions can be more effective and create progress that will foster the economic growth of the country. 

 

References: 

Institutional Challenges For Mining and Sustainability in Peru 

Anthony Bebbington-Jeffrey Bury – https://www.pnas.org/content/106/41/17296 

A Sustainable Approach To Mining in Peru 

https://fsr.eui.eu/a-sustainable-approach-to-mining-in-peru/ 

Sector Minero De Perú Se Dispara 82% En Mayo – .:: Minería En Línea 

https://mineriaenlinea.com/2021/07/sector-minero-de-peru-se-dispara-82-en-mayo/ 

Episode 6 | Mining Ventures in Peru

Episode 6 | Mining Ventures in Peru

🎙 EPISODE VI | Mining Ventures in Peru

The Mining Experience is a live podcast that invites professionals from the mining industry to discuss new technologies, address challenges, and share work experiences. In this episode, we will have the opportunity to discuss with our guests the different factors that affect mining investment and their implications in the mining industry in Peru.

We have the honor to host two special guests:

✅ Frank Echegaray.
Mining engineer with more than 7 years of experience in open pit mines. Responsible for production rates of 400,000 ton/day as total and 120,000 ton/day of ore. He also has experience in the implementation of autonomous haulage system at Quellaveco mine by digitizing the mine structures in order to allow autonomous trucks work by the guidance of the command control crew and fulfill the production rates of pre striping of the mine.

✅ Juan David Rondinel.
Mining engineer from the National University of San Marcos in Peru, with solid experience in the fields of planning, mining operations, mining projects development, and mine expansion. He has a solid knowledge in mineral reserves estimation, mining design and planning, as well as the long, medium, and short-term mining plans design.

Overview of the mining industry in Peru

Overview of the mining industry in Peru

Peru ranks third in global copper production, second for silver and sixth for gold. Being one of the largest mining sectors worldwide, Peru faced unprecedented economic and social challenges due to COVID-19. In addition to the pandemic, Peru experienced more organizational issues due to politics, as the country saw many changes in the government. However, in the face of adversity, Peru has so much hope to bounce back as its mining industry accounts for 60% of the country’s exports.  

According to MINEM, a total mining investment in December alone reached a total of 664 US$ million, which offers a great opportunity for recovery and to see changes done quicker than ever. Out of many countries, Peru was the first to halt its mining operations after the first COVID-19 wave but then was able to create an almost perfect balance during the second wave. This allowed the country to give Companies the chance to run their operations while making sure health and safety are respected. According to the IMF, Peru is expected to experience 9% of growth in 2021, which is considered the fastest and strongest recovery in Latin America in that year. Currently, junior mining companies are advancing exploration under more favorable market conditions, and multiple large-scale projects remain undeveloped, which offers a great opportunity for more mining investments.  

As Peru ranks third in copper production, the opportunity for copper export is substantial. As Countries are moving towards a more sustainable future, the need for electric vehicles is increasing monthly. This demand requires more copper production to meet the needs of all countries. It is estimated that the average fossil-fuel car requires about 20 kg of copper, whereas an average electric vehicle requires double that amount or even more. Silver also presents itself as a favorable commodity for Peru as the United States expects higher demand for physical silver. This correlates directly to demand for gold, which also increases in response to higher silver demand. 

As we are almost accustomed to remote working and virtual meetings, the need for better work management and better communication is required more than ever. These needs, along with a strong comeback of the mining industry in Peru, will require a significant amount of organization to cope with the fast-paced work environment. This leads to the need for powerful software, able to flawlessly manage mining designs, plans, and other information in one secure location that can be accessed easily by an organization. Promine addresses these needs through the Essential Category, which allows users to share up-to-date drawings using the Filer Module. In addition, this project management tool allows you to connect to a local server, OneDrive or Google Drive, and add unlimited users to your account for managing drawing-level permissions. This invaluable toolkit allows organizations to easily manage their teams during the fast-moving recovery period of the mining industry. 

 

 

References: 

GBR – Peru Mining 2021 Pre-Release. (n.d.). Retrieved from https://www.gbreports.com/publication/peru-mining-2021-pre-release 

Mining – Peru – For Australian exporters. (n.d.). Retrieved from https://www.austrade.gov.au/australian/export/export-markets/countries/peru/industries/mining 

 

 

Peru ranks third in global copper production, second for silver and sixth for gold. Being one of the largest mining sectors worldwide, Peru faced unprecedented economic and social challenges due to COVID-19. In addition to the pandemic, Peru experienced more organizational issues due to politics, as the country saw many changes in the government. However, in the face of adversity, Peru has so much hope to bounce back as its mining industry accounts for 60% of the country’s exports.  

According to MINEM, a total mining investment in December alone reached a total of 664 US$ million, which offers a great opportunity for recovery and to see changes done quicker than ever. Out of many countries, Peru was the first to halt its mining operations after the first COVID-19 wave but then was able to create an almost perfect balance during the second wave. This allowed the country to give Companies the chance to run their operations while making sure health and safety are respected. According to the IMF, Peru is expected to experience 9% of growth in 2021, which is considered the fastest and strongest recovery in Latin America in that year. Currently, junior mining companies are advancing exploration under more favorable market conditions, and multiple large-scale projects remain undeveloped, which offers a great opportunity for more mining investments.  

As Peru ranks third in copper production, the opportunity for copper export is substantial. As Countries are moving towards a more sustainable future, the need for electric vehicles is increasing monthly. This demand requires more copper production to meet the needs of all countries. It is estimated that the average fossil-fuel car requires about 20 kg of copper, whereas an average electric vehicle requires double that amount or even more. Silver also presents itself as a favorable commodity for Peru as the United States expects higher demand for physical silver. This correlates directly to demand for gold, which also increases in response to higher silver demand. 

As we are almost accustomed to remote working and virtual meetings, the need for better work management and better communication is required more than ever. These needs, along with a strong comeback of the mining industry in Peru, will require a significant amount of organization to cope with the fast-paced work environment. This leads to the need for powerful software, able to flawlessly manage mining designs, plans, and other information in one secure location that can be accessed easily by an organization. Promine addresses these needs through the Essential Category, which allows users to share up-to-date drawings using the Filer Module. In addition, this project management tool allows you to connect to a local server, OneDrive or Google Drive, and add unlimited users to your account for managing drawing-level permissions. This invaluable toolkit allows organizations to easily manage their teams during the fast-moving recovery period of the mining industry. 

 

 

References: 

GBR – Peru Mining 2021 Pre-Release. (n.d.). Retrieved from https://www.gbreports.com/publication/peru-mining-2021-pre-release 

Mining – Peru – For Australian exporters. (n.d.). Retrieved from https://www.austrade.gov.au/australian/export/export-markets/countries/peru/industries/mining