Peru cuts 2024 copper production forecast to no more than 2.9Mt

Peru downgraded its estimate for 2024 copper production from over 3Mt to 2.8-2.9Mt, energy and mines ministry (Minem) head Rómulo Mucho told an event hosted by the American-Peru Chamber of Commerce (AmCham). 

Last year, Peru produced 2.76Mt, according to Minem, and the ministry expects a slight rebound in the second half of the year.

"There have been certain problems due to the reasons I have pointed out – slow progress in simplifying procedures, complexity in addressing social conflicts, among others – but we believe that production in the second half of the year will allow us to reach this goal," said Mucho.

Minem reaffirmed its projection that at least US$5bn will be invested in the sector this year.

"Yes, we will achieve it, but the problem is that – for now – there are no greenfield projects of such significance that can give us an additional push. We always wonder what the next big project will be after [Anglo American’s copper mine] Quellaveco, and we have a long list of initiatives," added Mucho. "What we have to do is prepare the way and the conditions so that at least one of them can get off the ground as soon as possible." 

According to Minem, mining – both exploration and production – only occupies 1.53% of the national territory but the potential is much greater given that up to 15.1% of the country is covered by mining concessions.

GOALS

Mucho expects that in this half construction of seven mining projects involving US$5bn will begin. These are the Antamina replacement, the Raura replacement, the Tantahuatay replacement, Chalcobamba, Romina, Corani and the Huancapetí expansion.

"Antapaccay's Coroccohuayco is yet to be announced, but it was put on hold due to a prior consultation issue. We are already discussing certain points to correct observations. Coroccohuayco will double the company's copper production to 250,000t/y and is an investment of almost US$1.5bn," he said.

Las Bambas’ Chalcobamba pit is expected to start commercial operations at the end of the year. In the case of Volcan’s Romina zinc project, the company indicated at the beginning of August that US$20mn will be invested this year in preliminary work and financing alternatives but construction will officially begin in 2025.

Exploration investment in Peru this year is expected to be more than US$600mn. "There is a major mining discovery that will be announced soon," the minister said.