Peru is unlikely to meet its 3 million tons copper target this year

The chairman of a significant mining business said that Peru is expected to produce between 2.7 million and 2.8 million metric tons of copper this year, falling short of the government's target of 3 million tons.

Victor Gobitz, head of SNMPE's mining, oil, and energy group, provided the copper production forecast.

Due to its exceptional conductivity, Peru is the world's third-largest producer of this important industrial metal, which is extensively utilized in construction and automobiles, particularly for electrical wiring. Gobitz, the chief executive of Peru's Antamina project, the nation's second-largest producer of red metal, gave the output estimate outside of an economic meeting in the nation's capital, Lima.

According to official figures, the amount of copper produced in the first half of 2024 was 1.29 million tons, which represents a 2% decrease from the same time in 2023. 2.76 million tons of copper were produced by Peruvian miners last year. Due in part to the decline in copper output, the Andean nation's economy has recently slowed down; in June, it increased by just 0.2%, compared to more than 5% in April and May.

According to government data, the planned two-week halt of Chinalco's Toromocho copper mine caused the mining and oil sectors in Peru to decline by roughly 7.5% in June, marking their worst performance since early 2021. Gobitz pointed out that mining investments ranging from $2.5 billion to $3.0 billion are required to sustain copper output levels.

The executive went on to say that Antamina invested about $250 million in the first half of 2024, with output expected to remain consistent at about 435,000 tons this year. According to him, the project is expected to require $700 million in investment by year's end. With an estimated $2 billion in investment, Antamina plans to maintain production from 2028 through 2036. The Peruvian government has approved an environmental study for the company.