Peru looking to cut red tape, boost exploration and promote new mining projects

Peru’s energy and mines ministry (Minem) is looking to cut red tape, boost mineral exploration and promote new discoveries driven by optimism after the resumption of work on the US$1.4bn Tía María copper project in Arequipa region.

Since Southern Copper announced the formal restart of Tía María at the beginning of July, Minem has sought to put other projects – pending approval – on the discussion table and hopes to make important progress in the coming months.

BNamericas reviews the latest announcements made by deputy mines minister Henry Luna.

MICHIQUILLAY  

Construction at Michiquillay – Southern Copper's US$2.5bn project – could be brought forward to 2027. According to Luna, Southern is confirming the exploration carried out by former owner Anglo American and the results are good, while community engagement is generating a positive impact.

“We hope that the reserves already identified are ratified and increased to guarantee the investment. We hope that construction can begin in 2027,” Luna said in an interview with Peru’s mining engineers institute IIMP. The decision, however, will depend on the company, whose focus in the short term will be Tía María.

Southern Copper – part of Grupo México – said at the beginning of July that commercial operations at Michiquillay will no longer start in 2032 but in 2029. The project is expected to produce 225,000t/y copper.

DIGITAL ONE-STOP SHOP

The digital one-stop shop VUD – a platform to simplify the processing of mining permits – will complete its third phase in 2025 and today the authorities are waiting for financing from entities interested in promoting the initiative, Luna said.

“We have already completed the first stage, we are advancing with the second, and we hope – with the corresponding financing – to complete the third. We have three international entities that want to collaborate on the latter,” he said.

According to the official, the second stage is focused on reducing legal procedures and involves simplification and regulatory flexibility for activities such as expanding processing plants by up to 10% and mine closures. All the procedures of the 10 entities that make up the VUD are being evaluated and Minem hopes to have the process complete by the end of this year.

The third stage will focus mainly on improving IT aspects and will begin in 2025.

LITHIUM  

Luna also said there are two lithium projects in the stage prior to exploration and there are several companies and entities exploring for the light white metal but still in early stages.

“The geological, mining and metallurgical institute (Ingemmet) requested two 'areas of non-admission of requests' [where concessions are currently not allowed] to carry out investigations for lithium, and we have heard from other investors who have already initiated investigations but have not yet presented their technical files. When they are presented, we will be able to talk about new players in the investment portfolio,” he said.

According to Minem, the only lithium project in the pipeline is Falchani, where construction is expected to begin in 2027, and its updated capex is US$867mn. The project is due to be developed by Macusani Yellowcake, a subsidiary of Canada’s American Lithium.