Peru Mining Sector Recovers Thanks to Reactivation Phases

RIO DE JANEIRO, BRAZIL – The Peruvian mining sector’s production has accelerated as a result of the economic activities’ reactivation phases implemented since May this year.

Because of the COVID-19 pandemic, the Peruvian government was forced to adopt a series of measures to avoid a worse impact on the economy.

According to the National Institute of Statistics and Informatics (INEI), Peru’s economy fell in March (-16.25%), April (-39.19%), May (-32.31%), June (-17.85%), July (-11.63%), August (-9.71%), September (-6.95%), and October (-3.79%) due to the circumstances currently faced by the nation.

Concerning the mining sector, it registered declines in March (-22.98%), followed by April (-47.21%), May (-49.90%), June (-13.55%), July (-6.41%), August (-10.22%), September (-10.88%), and October (-1.08%).

“Since June, metallic mining has been experiencing a gradual recovery of its productive operations. In October, it registered the smallest contraction in the last eight months (…),” INEI indicated.

In mid-December, the Ministry of Energy and Mines (Minem) predicted that —by the end of 2020— the mining sector would register a production level close to the one recorded before the pandemic started in Peru last March.

“(…) In October, copper production reached 207,000 tons, exceeding the number registered in the same month last year,” Minem Head Jaime Galvez pointed out.

Likewise, former Deputy Mines Minister Romulo Mucho affirmed that (most) metal prices have improved significantly in recent months.

Furthermore, the good performance of mining production will be underpinned by the start of operations at Mina Justa and the Toromocho expansion project.

According to Central Reserve Bank’s (BCR) latest Inflation Report, the metallic mining sector may register a 14.4% growth in 2021.

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