Mining in Peru grows 7.3% in the first four months of the year, but investments fall

Mineral production continues to be heated in 2023, having registered an increase of 20.8% in April, compared to a growth of 0.31% in the domestic economy in the same month

Between January and April this year, mining was one of the sectors with the greatest dynamism in the national GDP; however, total investment in this item is showing a setback in relation to previous periods. While mining activity grew 20.8% in April and accumulated 7.3% in the first four months compared to the same period last year, new investments in this period totaled $1.17 billion, an amount lower by almost 19.2% compared to the first four months of 2022.

Some factors may be related to this retraction in investments. According to data from Peru’s National Institute of Statistics and Informatics (INEI) released on Bloomberg Line, Peru’s economy grew by only 0.31% in the month of April this year, although primary domestic production increased by 5.2% driven by mineral production and manufactured goods, especially additional refining of non-ferrous metals and oil.

Mining and hydrocarbons sector has a weight of 11.3% in Peru’s total domestic production, growing in April due to higher production of most minerals, with the exception of gold, molybdenum, tin, and natural gas liquids, according to data collected by the Peru’s Central Reserve Bank (BCR).

With these results, the sector accumulated significant growth in the first four months of the year, also driven by higher production of copper, iron, and natural gas. Published figures indicate that in April alone, copper production grew 31.4% compared to the same month in 2022, due to the start-up of the Quellaveco Mine.

By: Santelmo Camilo