Peru is a country of ancient mining tradition, a tradition that remains thanks to the presence of leading global companies. Peru is the largest producer of gold, zinc, tin and lead in Latin America and second in Silver, Copper and Molybdenum. Peru also has great potential in non-metallic minerals also known as industrial minerals, such as travertine marble, silica (producer of South America), bentonite and borates. In fact, Peru is among the few countries in the world where you can find deposits of these minerals.
The investment opportunities offered by Peru, together with its large mineral reserves, got the attention of global investors with outstanding results. The FDI in this sector has been growing exponentially in the last decade, with a record of US$ 9,400 million in 2013, particularly in the areas of exploration and mining infrastructure. This trend is expected to remain high in the coming years with projects in exploration, development and mining expansions exceeding US$ 63,000 million.
Although the contribution of the mining sector to the GDP has dropped from 12% in 2007 to nearly 10% in 2014, this is the result of a GDP growth rate above the sectorial growth rate estimated at an average of 1.6% in the last ten years. Nonetheless, exports from the mining sector have more than doubled in the same period, accounting for more than 50% of the growth rate of total Peruvian exports between 2005 and 2014, showing the real contribution of the mining sector to the Peruvian economy. If you want to have more detailed information you can find a presentation from the Ministry of Enery and Mining here or download the Mining Yearbook 2014.
Sustainable development is a cornerstone in modern Peruvian mining activities. New mining companies are requested to submit an affidavit according to which the company commits itself to the following:
Additionally, Peru was the first country in Latin America to incorporate International Labour Organization Convention 169 (ILO 169) into its national legislation (in 2011), by the entry into force of the Law of the Right to Prior Consultation for Indigenous and Native Peoples. In 2013, Peruvian authorities carried out the first formal process of prior consultation within that framework with the Maijuna and Kichwa peoples of the Amazonian province of Loreto, to create a conservation area on their ancestral lands.
The oil and gas sector in Peru has gone through a liberalization process in the 90s, turning the industry more competitive. As a result of regulatory changes and sounding macroeconomic policies, the investment flow in this sector has grown tenfold in the last 15 years, going from 120 million in 2000 to nearly 1.2 billion in 2014. As a result, the production of liquid hydrocarbons has gone from 34 barrels per year between in 2004 to 63 million barrels per year between in 2004 (85% increase), whilst the beginning of operations of Camisea led to an expansion of 1520% in the production of gas natural from 30 billion cubic feet to 456 billion cubic feet in the same period.