Chile seeks mining alliance with Peru that would raise the GDP of both countries by 3 points

Press release from the Peruvian Institute of Mining Engineers (IIMP)

This is an automated translation of the press release issued in Spanish

The Chilean Mining Chamber has been promoting a Chilean-Peruvian mining alliance that will boost the development of this industry in both countries and allow them to take advantage of the global context of energy transition, in which the demand for critical metals, such as copper, has increased. This was stated by Manuel Viera, president of said institution, in the Mining Dialogues program of the Institute of Mining Engineers of Peru (IIMP).

“If we have a mining alliance between Chile and Peru, we would have a planetary geological anomaly because practically 40% of the world's copper reserves are here. There are similarities because Chile is the world's leading copper producer, with 5.3 million tons of copper, and Peru with 2.4 million, that is, they produce 40% of the world's copper,” Viera said.

Benefits

According to Viera, this proposal is being discussed with the Peruvian authorities and there is interest on the part of the Chilean authorities as well, since it would bring significant benefits for both parties and could be the first step towards a mining treaty, like the one Chile has with Argentina.

One of the main advantages he mentioned was the sale of finished and semi-finished products through the installation of a foundry and surrounding factories. This would generate quality jobs, foreign currency for the country and many other connections, such as clusters.

“In Latin America, there is no gold refinery and Peru is a major gold producer. Why is a refinery not installed in Peru for all of Latin America, for example? The important thing is that the political will, the technicians and the community come to an agreement, that is the great challenge,” he said in the IIMP program.

Furthermore, from an economic perspective, this would have an impact on the increase in the Gross Domestic Product (GDP), since it would increase the production and efficiency of mining production processes through the transfer of technology and knowledge, which in turn would favor the development of research, development and innovation (R&D&I).

“This alliance will greatly benefit both countries because it is an eminently technical alliance, in which universities, the community, and all professionals will benefit. In our opinion, we believe that it could benefit both countries by up to 1.5 to 3.0 points of GDP,” Viera said.

Another advantage would be that the ecosystem to be formed would attract a lot of foreign investment. “There is an ecosystem that will attract a lot of investment because they will be two countries that are relatively stable and are the two countries that are growing the most in all of Latin America, including the Caribbean. So, regardless of the internal political issue, whatever it may be, there will still be growth and growth thanks to mining,” he emphasized.