These are the three most important mining projects for the Peruvian GDP in 2022

This year, Mina Justa, the expansion of Toromocho and Quellaveco will contribute 0.7 percentage points to the Gross Domestic Product (GDP) , as explained by Carlos Prieto, manager of Economic Studies at Banco de Credito (BCP). This, according to data from the Ministry of Economy, would be equivalent to about S / 4,000 million. How does each of these projects operate?

The first mentioned is located in the district of San Juan de Marcona, in Ica, and its average production capacity is 181,000 fine metric tons (FMT) of copper per year.

The portal of the Ministry of Energy and Mines (Minem) reports that this project completed its construction stage in the first half of 2021, managing to execute an investment of more than the US$1.6 billion initially planned. Production began in July of that year.

SIGHT: Southern Copper warns Cuajone mine could temporarily close due to protests

As for the expansion of Toromocho, of Minera Chinalco and located in Junín, it is a work whose investment exceeds US$1,300 million.

In June 2021, the National Environmental Certification Service for Sustainable Investments (Senace) approved the Environmental Impact Study (EIA) for the work that will allow the expansion of production capacity from 140,640 tons per day (tpd) to 170,000 tpd.

And finally, heading the list of these three projects due to their level of investment, is Quellaveco, whose disbursement is US$5.3 billion and is expected to come into operation this year. This mine, located in the Moquegua region, began construction in 2018 and will contribute more than 300,000 TMF of copper per year over a useful life of 30 years, according to Minem.

For the operation stage, it is estimated that it will generate 2,500 jobs and will be the first mine in Peru to operate with 100% renewable energy.

SIGHT: Losses due to stoppage at the Cuajone mine, in Moquegua, already total S/255 million

CONFLICTS

The contribution of these projects could even be greater, but there are still drawbacks, according to Carlos Gálvez, former president of the National Mining, Oil and Energy Society (SNMPE).

“In order for them to contribute more, it is necessary that we do not have the blockades of the roads, which prevent the transfer of the mineral”, he affirmed and said that the Executive has to give conditions so as not to continue scaring away private investment.

For his part, expert in energy law Anthony Laub stressed that this is a good time to take advantage of international prices, and indicated that during the production stage of a mine, income is generated through fees and royalties.

“Today we have practically paralyzed Cuajone (Moquegua) and Las Bambas (Apurímac). With the three mines, what is lost could be replaced in some way, ”he assured.

SIGHT: Quellaveco will start operations this year and will produce 300,000 tons of copper

Keep in mind

• The sector’s portfolio includes 43 mining projects and includes investments of US$53,168 million.
• Mining investment amounted to US$5,238 million in 2021, a figure that meant an advance of 21.2% compared to 2020.
• In January of this year, the disbursement in the sector was US$278 million, that is, 1.3% more than in the same month of 2021.

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