IIMP: US$385mn has been invested in exploration, but more work is required by the Government

By the Institute of Mining Engineers of Peru (IIMP)

The vice president of the Institute of Mining Engineers of Peru, Zetti Gavelán, stated that in the first half of 2024, the Executive has already invested approximately US$385 million in exploration, which is positive for the sector. This was said during an exclusive interview with the “Mining Dialogues” program of the Institute of Mining Engineers of Peru (IIMP).

“Approximately US$1.7 billion (investment) has been completed in this first half of the year and of that amount, 22% is dedicated to mining exploration. That figure is more or less US$385 million. This point in particular is very relevant because the activity of explorations is generative. Actually, to replace the reserves that have been consumed, but also for new discoveries,” he declared.

Along these lines, he stated that, although Peru has a portfolio of 51 mining projects, which encompass an investment of US$54,556 million, to date, no new deposits have been discovered, which is why the Government of President Dina Boluarte has a pending challenge to work on more.

New discoveries

“Michiquillay is an old project, it has been known for 50 years. There are copper reserves and they cannot be implemented or developed. Although it is true that these projects that are already known in this portfolio are about things that have already been discovered a long time ago, the generation of new projects is one of the most important parts,” he said.

Under this premise, he indicated that the US$385 million invested by the Executive in exploration have been, essentially, for replacements or expansions, which seek to extend the useful life of the operations, as is the case of Antamina Replacement, for example, but not discoveries of new projects.

In fact, for the vice president of the IIMP, Antamina, the expansion of Toromocho and Chalcobamba Phase I are three initiatives that the Ministry of Energy and Mines should pay attention to and try to unblock during the second half of 2024. If achieved, it would imply an investment of approximately US$2.5 billion, highlighted Zetti Gavelán.