Newmont mining company to invest at least US$500 million in Peru

RIO DE JANEIRO, BRAZIL – The American company said, in a statement released by local media, that this investment will be used for preparatory activities such as detailed engineering, long-term acquisitions and earthworks.

Given the uncertainty caused by the pandemic, it added that it will make a decision on the project’s total financing, to be developed in the northern region of Cajamarca during the second half of 2022.

Meanwhile, it will continue to work and engage with neighboring communities, local authorities and the government of President Pedro Castillo on issues such as the extension of the project’s financing schedule, the fight against the pandemic and potential regulatory and fiscal changes for the industry. “This will provide greater clarity as it continues to invest in the project,” it noted.

After hearing of the company’s announcement, Peru’s Minister of Economy Pedro Francke stressed that the investment in Yanacocha Sulfides is one of the large-scale projects that will boost private investment in the country and considered in the 2022-2025 Multiannual Macroeconomic Framework (MMM) projections.

“Both public and private investment is key for the reactivation of the country’s economy,” he said before stating that this project confirms projections and supports “the prospect of a sustained recovery of the Peruvian economy.”

“We are sure that this investment will go according to forecasts and will be key to the growth of our economy in the coming years. This major investment confirms investors’ confidence in the Peruvian economy, in its stability and its solid macroeconomic fundamentals,” he added.

The Ministry of Economy and Finance (MEF) recalled that Yanacocha Sulfides is a US$2.1 billion project aimed at enabling the continued operation of the Yanacocha open-pit gold mine.

The project will enable the processing of sulfide ores for the production of gold and copper, extending the life of the mine beyond 2040, which will enable the addition of 500,000 equivalent ounces of gold per year.

According to the MEF, by 2025 the project will represent an increase of over 15% in gold production levels in Peru, which will contribute “to the dynamics of the region’s economy and an increase in income for Peru.”

The 2022-2025 Multiannual Macroeconomic Framework (MMM) projections indicate that the Peruvian economy will maintain its momentum and achieve 4.8% growth in 2022, driven by increased private investment and the advance of exports in an environment of greater pandemic control and mass vaccination of the population.

“The country has an important portfolio of non-mining and mining projects to be developed in the coming years that will help in the economy’s recovery process and, most importantly, in closing gaps and generating quality employment,” the Ministry said.