Mining Industry Report: Peru – March 2024

Production and Prices:

• Copper production: 219,011 metric tons (down 0.1% YoY, up 1% MoM). YTD production up 3%.
• Gold production: 8.4 metric tons (up 8% YoY, down 7% MoM). YTD production up 22%.
• Silver production: 232 metric tons (down 5% YoY, down 12% MoM). YTD production up 9%.
• Zinc output: 100,485 metric tons (up 9% YoY, down 10% MoM). YTD production up 5%.
• Lead production: 20,443 metric tons (down 3% YoY, down 14% MoM). YTD production up 13%.
• Iron ore extraction: 1,220,980 metric tons (up 7% YoY, up 3% MoM). YTD production up 6%.
• Tin production: 3,014 metric tons (up 147% YoY, up 17% MoM). YTD production up 280%.
• Molybdenum output: 3,480 metric tons (up 17% YoY, up 2% MoM). YTD production up 26%.

Prices for most metals showed increases compared to February 2024:

• Copper: $3.94/lb (up 4%)
• Gold: $2,167/oz (up 7%)
• Silver: $25/oz (up 8%)
• Zinc: $1.12/lb (up 4%)
• Lead: $0.93/lb (down 1%)
• Tin: $12/lb (up 5%)
• Molybdenum: $19.99/lb (no change)
• Iron ore: $110/MT (down 12%)

Economic Indicators:

• Mining GDP: Grew by 4% in March 2024 compared to March 2023. YTD growth of 8% compared to the same period in 2023.
• Mining investments: $342 million in March 2024 (up 10% YoY, down 6% MoM). YTD investment (Jan-Mar 2024): $995 million (up 17% YoY).
• Mining exports: $10.296 billion in Q1 2024 (up 8% YoY).

Key Factors:

• Copper production decline: Lower output from Antapaccay, Chinalco, and Las Bambas; partially offset by increased production from Antamina, Southern, and Anglo American Quellaveco.
• Gold production increase: Driven by higher volumes from Boroo, Poderosa, and Hudbay.
• Silver production decrease: Lower output from Volcan and Ares due to temporary mine closures.
• Zinc production growth: Higher output from Antamina, Nexa Perú, and Shouxin, offsetting lower production from Volcan and Chungar.
• Tin production surge: Normalization of Minsur’s operations after social protests in early 2023.
• Overall positive performance: Growth in GDP, investments, and exports indicate a robust recovery and expansion in the Peruvian mining industry, despite some challenges in specific metals.

Notable Events:

• Antapaccay’s plant underwent maintenance, affecting copper production.
• Three mining units of Volcan were temporarily closed for permit adjustments, impacting zinc, silver, and lead production.
• Minsur’s tin production normalized after social protests in early 2023, leading to a significant year-over-year increase.
• Anglo American Quellaveco reported molybdenum production for the eleventh consecutive month.

Export Performance:

In Q1 2024, mining exports accounted for 63% of Peru’s total exports. The breakdown of mining exports by value was:

• Copper: 50%
• Gold: 31%
• Iron ore: 5%
• Other metals: 14%

Conclusion:

The Peruvian mining sector showed overall growth in March 2024, with increases in production for most metals, rising investments, and higher export values. However, challenges remain in some areas, particularly for copper, silver, and lead production. The sector’s resilience is evident in the face of various operational and market challenges, contributing significantly to Peru’s economic performance.