Overview of the mining industry in Peru

July 21, 2021
Mohamed Zaki

Mohamed Zaki

Mohamed Zaki is a Marketing specialist at Promine. He has an undergraduate degree in Mining Engineering CO-OP from McGill University. With an opportunity to do 3 research studies with excellent professors from McGill University and experience in open-pit mining, he developed an interest in analyzing data using powerful programs. Upon joining the Promine team, Mohamed worked as a Quality Assurance & Support Specialist, then obtained a position as a Sales Specialist. A few months later, he took the role of a Marketing Specialist in which he currently operates to promote the professional image and products of Promine Company.

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 

 

 

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