LIMA, Feb 27, 2019, ANDINA. Mining investment in Peru might expand 23% in 2019, underpinned by Quellaveco (Moquegua region), Mina Justa (Ica region), and Toromocho Expansion (Junin region) projects, Scotiabank’s Department of Economic Studies said on Tuesday, reported the ANDINA.
“We are revising upwards our growth projections for mining investments from 14% to 23% for 2019,” Scotiabank primary sectors Analyst Katherine Salazar expressed.
According to the officer, this change is due to Quellaveco, Mina Justa, and Toromocho mega-projects which — along with smaller-scale ones — exceed US$6 billion in investments, taking into account that mining investment reached US$4.947 billion in 2018, a 26% rise compared to 2017.
“The recent trend change in mining investment takes place in a context where metal prices have been strengthened (…),” Salazar said.
“The increase in prices has enabled companies to resume their re-investment plans in new projects (greenfield), expansions (brownfield), and new explorations,” she added.
Likewise, Scotiabank indicated the average price of copper in 2018 was US$2.96 per ounce. So far, the price has risen by almost 10%. Thus, investment in exploration could increase this year.
Furthermore, the bank indicated the three mega-projects contributing to mining investment are Quellaveco (US$5.3 billion), Mina Justa (US$1.6 billion), and Toromocho expansion (US$1.3 billion).
Other smaller-scale projects in construction stage are Quecher Main (US$300 million), B2 tailings in San Rafael (US$200 million), and Ariana (US$125 million).