Publication reveals mining investment slowdown
31 October 2015
In its latest report on mining investment, Peru Top Publications reveals that of the 47 mining projects that the government hopes to pursue over the next five years, only 24 have a real chance of taking place. Of the total investment estimated at US$61.7 billion dollars, these are valued at US$29 billion. 15.9% of the total relate to existing projects that are being expanded, 23.8% are projects for which their Environmental Impact Assessments (EIAs) have been approved and/or which are under construction, 10.2% relate to projects with approved EIAs but suspended because of environmental conflicts, and the remaining 50.1% are projects which are still at the stage of exploration. Analysing the 24 projects which seem likely to go ahead, 13 are copper mines (or at least mainly so), six gold mines, two phosphates, two iron ore, and one silver.
According to Peru Top Publications, faced with low prices and problems of raising capital, mining companies are seeking to reduce the scale of projects and concentrating on areas of known mineral potential. See for instance, http://www.docdroid.net/aT1GfOV/elcomercio-2015-10-23-04.pdf.html For his part, Carlos Gálvez, president of the powerful Sociedad Nacional de Minería, Petróleo y Energía (SNMPE), the fault lies with the Humala government. He says it is its lack of “governing capacity” that has led to the suspension of ten mining projects worth (between them) US$25 billion. http://larepublica.pe/impresa/economia/713553-solo-50-de-la-cartera-minera-se-ejecutaria-sin-problemas