Copper production in Peru has returned to normal

Published: Sep 9, 2020 11:28

Source: Ministry of Natural Resources of the people's Republic of China

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SMM News: Peru's main export copper has actually returned to the level before COVID-19, mainly reflected in the electricity demand of the country's large mining companies.

"electricity consumption by large mining companies is a very good indicator of production," said Jaime G á lvez, deputy minister in charge of mining at Peru's Ministry of Energy and Mines. Although electricity consumption fell 4.4% in August from a year earlier, electricity consumption in Copper Mine Mountain fell by only 0.4%. It can be said that mining production has reached the level before the epidemic. "

Unlike August, electricity consumption fell 39.2 per cent in April and 30.6 per cent in May.

Peru's copper production fell 2 per cent year-on-year to 199000 tonnes in July, according to (SNMPE), Peru's national mining and energy association.

However, gold production has not yet recovered. Mr. Garvitz revealed that gold production fell 45% in July from normal levels, but he believes it will return to normal in the coming months.

However, tin production rose 39 per cent in July from a year earlier, while molybdenum (31 per cent) and zinc (5.7 per cent) also increased.

Garvitz believes that the current price of copper and gold will stimulate investment in new mining projects in Peru.

According to the 2021-2024 macroeconomic plan released by the Ministry of economy and Finance (2021-2024 Multiannual Macroeconomic Framework),) mining output fell 37 per cent in the second quarter of this year compared with the same period a year earlier, in part because of the suspension of mines by companies such as Minsur (Minsur), Shougang Meitie and Chinalco, which account for about 90 per cent of Peru's mining GDP.

Peruvian President Martin í n Vizcarra hopes mining investment will reach 4.8 billion yuan by 2020. In the first seven months, Peruvian mining investment totaled $2.27 billion, down 25 per cent from a year earlier. In this regard, Gavitz said that given the difficulties suffered by the Peruvian economy this year, this is a good result.

After taking measures to prevent and control the COVID-19 epidemic, more than 95% of the mining enterprises returned to normal production in July.

As business activities return to normal and new projects are put into production in the second half of the year, Peruvian mining output will grow by 15.1 per cent in 2021.

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