Peru Mining Report

Providing expert analysis, independent forecasts and competitive intelligence on the mining.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Petrochemicals Risk Reward Index, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

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  • Get a full view of the competitive landscape to assess your market position
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Peru Mining Report
Product Price
$1,295.00

BMI View: Peru's mining industry value will see double-digit growth in 2017, driven by improving mineral prices and a strong project pipeline.

Peru Mining Industry Value Forecast (2014-2020)
2014e 2015e 2016f 2017f 2018f 2019f 2020f
e/f = BMI estimate/forecast. Source: National Sources, BMI
Mining Industry Value, USDbn 21.25 20.92 22.33 25.03 27.32 29.36 31.49
Mining Industry Value, USDbn, % y-o-y -9.10 -1.58 6.74 12.09 9.15 7.46 7.26

Latest Updates & Structural Trends

  • Peru's mining industry will experience significant growth over our forecast period to 2020. We forecast the sector's value to climb from USD25.0bn in 2017 to USD31.5bn by 2020, averaging 9.0% annual growth. In particular, we expect copper to outperform in terms of production growth due to a strong project pipeline and continued investment. Silver and gold will also benefit from a number of key projects and improving precious metals prices, while tin and zinc output posts slower growth. The country will remain a top global producer of each of these minerals.

  • Peru's copper production continues to outpace expectations, as key projects come online and help the country overtake China as the world's second largest copper producer. We forecast the country's copper production to increase from 2.5 million tonnes (mnt) in 2017 to 3.2mnt by 2020, averaging 9.5% annual growth.

  • We forecast Peru's gold and silver sectors to post solid production growth, averaging 2.5% and 2.6%, respectively, over our forecast period to 2020 on the back of improving precious metal prices. Over the first three quarters of 2016, domestic firm Minas Buenaventura reported gold production of 483koz and remains on track to produce between 630-660koz over the year. This will account for approximately 12-13% of the country's total output.

  • Anti-mining protests, and illegal mining will remain key challenges to Peru's mining industry. While these factors may result in project delays, Peru's low operating costs, supportive political environment and significant project pipeline will offset any production declines.

  • President Pedro Pablo Kuczynski will support policy continuity and push an agenda that aims to boost investment in the mining-driven economy ( see 'Kuczynski Will Solidify Peru's Business-Friendly Reputation', July 28). In July, Kuczynski proposed relaxing regulations on air quality to encourage investment in copper smelting.

BMI Industry View
7
Table: Peru Mining Industry Value Forecast (2014-2020)
7
Latest Updates & Structural Trends
7
SWOT
8
Industry Forecast
10
Copper: Rapid Growth Rate To Continue
10
Table: Copper Production Forecast (Peru 2014-2020)
10
Table: Peru - Key Copper Projects
10
Structural Trends
11
Gold: Project Pipeline To Bolster Output
15
Table: Gold Production Forecast (Peru 2014-2020)
15
Table: Peru - Key Gold Projects
15
Structural Trends
16
Hochschild and Buenaventura To Dominate Sector
16
Protests To Continue Against The Sector
18
Lead: Growth To Plod On
19
Table: Lead Production Forecast (Peru 2014-2020)
19
Table: Peru - Key Lead Projects
19
Structural Trends
20
Silver: Solid Growth Ahead
22
Table: Silver Production Forecast (Peru 2014-2020)
22
Structural Trends
22
Table: Peru - Key Silver Projects
24
Tin: Slow Return To Growth
25
Table: Tin Production Forecast (Peru 2014-2020)
25
Minsur To Scale Back Investment
26
Zinc: Brief Dip In 2016
28
Latest Developments
28
Table: Zinc Production Forecast (Peru 2014-2020)
28
Table: Peru - Key Zinc Projects
29
Structural Trends
29
Industry Risk Reward Ratings
32
Peru Risk/Reward Index
32
Rewards
32
Industry Rewards
32
Country Rewards
32
Risks
32
Industry Risks
32
Country Risks
33
Americas: Risk/Reward Index
34
Key Takeaways
34
Latest Revisions
35
Table: Americas - Mining Risk/Reward Index
36
Regulatory Development
37
Trade & Investment Risk Analysis
37
Commodities Forecast
41
Commodities Outlook
41
Table: BMI Commodities Price Forecasts
41
Competitive Landscape
42
Table: Peru - Largest Listed Mining Firms Financial Data, 2015
43
Company Profile
44
Buenaventura - Q3 2016
44
Latest Results
46
Table: Cia de Minas Buenaventura - Key Financial Data
46
Company Profile - Grupo M-xico - Q3 2016
47
Table: Grupo Mexico - Key Financial Data
49
First Quantum - Q3 2016
49
Latest Results
52
Table: First Quantum - Key Financial Data
53
Regional Overview
54
Methodology
59
Industry Forecast Methodology
59
Sources
60
Risk/Reward Index Methodology
61
Table: Weighting Of Indicators
62

The Peru Mining Report has been researched at source and features BMI Research's mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, production, exports and values. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment.

BMI's Peru Mining Report provides industry strategists, service companies, company analysts and consultants, government departments, trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in Peru.

Key Benefits

  • Use BMI's independent industry forecasts on Peru to test other views - a key input for successful budgeting and planning in this mining market.
  • Target business opportunities and risks in Peru's mining sector through our reviews of latest mining industry trends, regulatory changes and major deals, projects and investments in Peru.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity), Key Projects Tables and Competitive Landscape Tables.

Coverage

BMI Industry View

Summary of BMI’s key forecasts and industry analysis, covering mining reserves, supply, demand and prices, plus analysis of landmark company developments and key changes in the regulatory environment.

Industry SWOT analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the mining sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Mining industry: Industry size (USDmn), real growth (%), % of GDP, employment (‘000), workforce as % of total workforce, average wage (USD).
  • Output: Production volumes (‘000 tonnes, carats etc.) for all major metals, minerals, ores and gems mined in each state, including bauxite, copper, gold, coal, lead, silver, tin, titanium, uranium, zinc etc.
  • Exports: Value of exports (USDmn) for all major metals, minerals, ores and gems mined in each state.
  • Commodity markets: Global demand, supply, stocks and benchmark prices (USD) for aluminium, copper, lead, nickel, tin, zinc, gold and steel.

BMI’s Mining Risk Reward Index

BMI’s Risk Reward Indices provide investors (mining companies and support service providers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Competitive Landscape Tables & Analysis

Comparative company analyses and tables detailing USD sales, % share of total sales, number of employees, year established, market cap/NAV, ownership structure, production and % market share.

Key Projects

Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by metal/ore.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Mining reports are based on an extensive network of primary sources, such as multilateral organisations (UN, WB, IMF), national chambers of commerce and industry, national statistical offices, government ministries and central banks, and multinational companies.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.