Snapshot: Peruvian mining investments

Only 10% of Peruvian mining investments are going toward exploration, while 25% are for infrastructure and 24% for processing plants.

Energy and mines ministry figures show that sector investments fell 19.6% between January and July to US$2.24bn compared to the year-ago period. The drop is partially explained by the high comparative base due to the start-up of Anglo American's Quellaveco copper project in Moquegua region, which received US$700mn in the period last year.

But if Quellaveco is excluded, investments still fell 2% to US$2.04bn, as Quellaveco received US$200mn in January-July this year.

BNamericas takes a look at investments in the mining sector.

PROCESSING

January-July processing plant investments contracted 21.3% year-on-year to US$545mn. Quellaveco investments fell from US$208mn to US$58mn, Antamina's 14.7% to US$120mn and Las Bambas' 28% to US$34.5mn.

But Minera Cerro Verde, the main copper producer, increased outlay from US$32.1mn to US$70.9mn, while Southern Copper and Chinalco investments rose 84.7% to US$65.6mn and 19.1% to US$63.6mn.

INFRASTRUCTURE

Investments in infrastructure contracted 20.8% to US$555mn. Excluding Quellaveco, the contraction was 4.7%. Southern Copper reduced outlay 36% to US$62mn and tin producer Minsur from US$108mn to US$27.8mn.

But investments by Antamina, Buenaventura, Las Bambas and Shahuindo increased.

DEVELOPMENT

Mining development and preparation registered a 6.4% fall to US$412mn. Yanacocha's reduction to US$115mn from US$158mn influenced the result.

Shougang Hierro, the main iron ore producer, boosted investments by 23.7% to US$82mn and gold miner Ares 17.9% to US$38mn.

EXPLORATION AND EQUIPMENT

Miners spent US$226mn on exploration, up 0.3%. Gold miner Poderosa spent US$26.3mn, up 28.1%, polymetallic miner Nexa Resources US$18.5mn, up 177%, and Southern Copper US$13.4mn, up 120%.

Equipment investments grew 0.2% to US$346mn. Cerro Verde and Southern Copper spent most, US$47.2mn and US$41.2mn, while Minsur boosted related investment the most, from US$9.3mn to US$35.8mn.