Key facts
- Peru expects to add 1 million tons of copper production annually within 5-6 years.
- Current annual copper output is projected to be 2.5-2.7 million tons in 2024.
- Peru's government plans to cut around 100 mining permits to attract investment.
- Chinese and US firms are actively seeking to invest in Peruvian copper projects.
- Approximately 70% of Peru's mining project pipeline is related to copper.
Peru aims to significantly boost its annual copper production by approximately 1 million metric tons within the next five to six years, driven by new mining projects and a government initiative to streamline regulatory processes. The country's current copper output is expected to remain stable between 2.5 million and 2.7 million tons this year, similar to 2023 levels, due to declining ore grades and social conflicts.
Peru's Energy and Mines Minister, Guillermo Shinno, told Reuters that the newly elected conservative government of President Keiko Fujimori is actively working to reverse this stagnation by cutting red tape. Since the administration took office two months ago, mining companies have increased their engagement with the ministry to revive stalled projects. Both Chinese and US companies have expressed strong interest, reflecting broader competition for critical minerals in South America. Shinno noted that expectations for new investments are "enormous."
The government plans to reduce about 100 permitting requirements across the mining sector, with 27 specific permits identified for elimination. Shinno emphasized that this effort is focused on clarity and rigor, not on lowering environmental standards. Approximately 70% of Peru's $64 billion mining project pipeline is related to copper. While about $7 billion in mining investment is anticipated in 2026, much of it is aimed at sustaining existing operations rather than adding new output.
Among the approximately 20 companies that have met with the new administration are Chinese firms like MMG (owner of Las Bambas), Chinalco, and Shougang, as well as US miners Newmont and Freeport-McMoRan, and global players such as First Quantum, Barrick, Anglo American, and Glencore. First Quantum is looking to advance its La Granja copper project, while Chinalco acquired the Los Calatos project in July. The government estimates investments of $2.4 billion for La Granja and $655 million for Los Calatos. The Toromocho mine, operated by Chinalco, and Las Bambas are among Peru's six largest copper mines.
Shinno also anticipates increased US mining investment as Washington seeks to counter Chinese influence in strategic minerals. A critical minerals cooperation agreement signed between the US and Peru in February was highlighted by US Secretary of State Marco Rubio during a recent visit to Peru as an opportunity to capitalize on new developments in the sector.