BMI View: Peru's mining industry will be supported by both a strong project pipeline, from both domestic and international firms and the country's positive regulatory framework for miners. However, increasing public protests regarding Peru's mining sector will delay new projects from coming online.
Peru's mining production growth will be supported by the country's vast untapped reserves and open investment framework. Peru will still remain a significant global producer of several base and precious metals and we expect continued diversification as miners explore and develop new deposits. Copper projects account for the largest proportion of new mine projects and expansions. The Peruvian government estimates that the country's current mining projects pipeline totals over USD75bn. The sector is dominated by global copper mining majors including Southern Copper (a division of Grupo Mexico), Freeport McMoRan and Glencore Xstrata, which are boosting output by both expanding existing operations and undertaking new investment projects.
Continued friction between the public and mining corporations, concerning the environmental and social impact of the mining industry, will delay new projects from coming online. The Peruvian government estimates that the country's current mining projects pipeline totals over USD75bn, meaning that continued unrest will have considerable effects within the country. Nevertheless, Peru will remain a significant global producer of several base and precious metals and we forecast the value of Peru's mining industry will grow from USD23.2bn in 2015 to 27.2bn in 2019. This would represent average growth of 3.4% y-o-y over 2015-2019, significantly slower than 14.9% y-o-y over 2010-2014.
|Growth To Be Modest|
|Peru - Mining Industry Value (USDbn) & Growth y-o-y (%)|
|e/f = BMI estimate/forecast. Source: National Sources, BMI|
Policy Moderation To Accommodate Miners
Despite the rising tide of unrest, President Ollanta Humala will...
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.
- 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.
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.
Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by metal/ore.
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.
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.