On March 6, Mercedes Araoz, Vice President of Peru, joined Guillaume Legare, Head, South America, Capital Formation, TMX Group, to open the market. Currently, there are 56 mining companies in Peru, with 130 properties listed on Toronto Stock Exchange and TSX Venture Exchange. In 2018, these companies raised approximately $211 million in equity capital.
The President of Peru, Martín Vizcarra, affirmed that this initiative is a space for the State, the private sector and civil society to dialogue with respect to the activities carried out in the mining-energy sector.
"This conversation is important. We require convergence of good practices. We have seen mining projects that have ended successfully, but not all have finished the same. There are some projects that have been trapped in the process because there has been a lack of space to analyze them, and thus support them with knowledge of them, "said Vizcarra.
Mrs. Patricia Fortier is a Canadian former diplomat and the Past Canadian Ambassador in Peru (2011-2015). She will be sharing from her experience the direct exposure to the risks and opportunities to invest in the mining sector in Peru.
Also meet and greet our Guest Panelists :
David Harquail, Chief Executive Officer of Franco-Nevada
Dean McPherson, Head, Global Mining of Toronto Stock Exchange & TSX Venture Exchange
"Labor market's dynamism is seen as positive when major mining —or other types of— projects generate formal employment. This is what everybody expects for 2019," he told El Peruano official gazette.
He said that although transitory shocks have been seen in the prices of raw materials, and the most sensitive is the price of copper, which came down to 2.50 dollars per pound, Peru has advantages to attract capital in this sector.
"The favorable thing that Peru has is that its mines, especially in copper are quite competitive, the cash-cost of operating them is quite low, and even with relatively moderate prices of commodities you can operate with profits and this generates taxes and income. prosecutors, "he said.
According to MEM's Statistical Mining Bulletin, Beneficiation Plant investment totaled US$690 million, a 358.2% rise in the first seven months of this year, compared to the same period in 2017 (US$151 million).
However, Infrastructure allocations decreased 6.2% (US$573 million) from the similar period last year (US$611 million).
The bank Scotiabank raised its forecast of growth of mining investment in Peru from 14% to 17% by 2018 and from 9% to 13% by 2019, and estimated that the investment would reach some US $ 4,600 million in 2018 and about US $ 5.2 billion in 2019.
The main change in this estimate is the incorporation of the Quellaveco project, from Anglo American, to the Scotiabank projections. Previously, it considered marginal flows for both 2018 and 2019, said the senior analyst at the bank's Economic Studies Department, Erika Manchego.
"With a copper price of US$3 per pound, (investing in) any Peruvian mine is profitable; even with the current price levels of US$2.80 most mining exploration activities are profitable," BCR Economic Studies Manager Jorge Estrella remarked.
According to MEM's 2017 Annual Mining Report, Peru is predominantly a mining country which relies on a huge geological potential, hosting some of the most important projects and mines in the world.