Peru’s mines minister said Friday that high copper prices and optimistic prospects for further copper price rises are helping to revive investor interest in the mining sector after years of political turmoil in that country. Andean.
“The price of copper is a big draw,” Romulo Mucho told Reuters in an interview at his office, referring to prices that hit two-year highs of $10,208 per metric ton this week, near the record $10,845 in March 2022.
Earlier in the day, Goldman Sachs raised its year-end price target to $12,000 per tonne from $10,000 previously, citing the copper market’s path to shortage and expectations of a deficit most important of the key metal needed for electrification.
Mucho said the trend was helping to ease caution among mining companies in the country, the world’s second-largest exporter, which has struggled to find markets for its products. 2 global exporter, which has had to fight against the challenge posed by its rival, Congo, due to the decrease in incoming mining investments.
The minister added that he had met with executives from Newmont, Teck Resources, Hudbay Minerals, Antofagasta Minerals and others in recent months, who had expressed interest in new ventures and operational mines.
“Most CEOs I spoke to asked what projects were underway and how they could get involved,” Mr Mucho said, blaming political uncertainty from previous governments for hurting the sector . Peru has had half a dozen presidents in the past six years.
“Confidence is being restored.
Peru plans to produce some 3 million tonnes of copper this year, up from 2.75 million last year, a target Mucho maintained, although he added that production at Las Bambas, owned by the Chinese company MMG Ltd, hit by the protests, was key to achieving the target. (Reporting by Marco Aquino; Editing by Adam Jourdan and Marguerita Choy)
