The importance of copper and gold in Peruvian mining: challenges and opportunities

In the competitive world of mining, two precious metals hold a prominent place for Peru: copper and gold. According to figures provided by the Ministry of Energy and Mines, in the year 2023, these two minerals represented 78.2% of the country's total mining exports, reaching an impressive figure of US$34.238 billion out of a total of US$43.733 billion. In the case of copper, Peru has experienced a notable growth in its extraction, producing 2.75 million tons in the last year, more than triple the amount obtained two decades ago in 2003. Mines like Cerro Verde in Arequipa and Antamina in Áncash have positioned themselves among the top 10 largest in the world, demonstrating the country's potential in this sector. However, despite these achievements, Peru is in fierce competition with the Republic of Congo for the second place in global copper production. While in the African country the extraction of this metal has nearly doubled in recent years, in Peru the growth has been 13%, although Chile continues to lead as the main producer globally with five million tons annually. As for gold, the situation is different. Despite being a valuable metal, no Peruvian mine ranks among the top 10 in the world, and the country has regressed in the last decade in its gold production, dropping from 6th to 11th place globally. Gold extraction has decreased from 208 tons in 2005 to 99 tons in 2023, with a cumulative fall of 52%. One of the most concerning aspects in the gold industry in Peru is the exponential growth of illegal extraction and exportation of this metal, which has septupled in the last decade. According to the Peruvian Institute of Economics (IPE), in 2023 alone, 77 tons of illegal gold were exported, while investments aimed at combating illegal mining have been minimal. This situation has created a complex scenario in the country, where the informal and illegal sector has not only grown territorially, but has also gained economic power and political influence. José de Echave, former Deputy Minister of Environmental Management at the Ministry of the Environment of Peru, warns about the negative impacts of this activity, which directly competes with large-scale mining, even in copper extraction. Amidst this landscape, the United Nations Conference on Trade and Development (UNCTAD) projects a significant increase in copper demand by the year 2050, especially in sectors related to sustainability and clean energies. It is estimated that around 50 million tons of copper will be needed in that year, more than double the current global production. Facing this scenario, Juan Carlos Ortiz, vice president of the Peruvian Institute of Mining Engineers, highlights that the country is in a privileged position thanks to its portfolio of new deposits and operational expansions. However, it is crucial to urgently address the issue of illegal mining and promote sustainable practices in the mining industry to ensure responsible and beneficial development for the country as a whole.