September 9, 2016 |
It’s a dilemma: Mining accounts for well more than half of total Peruvian exports, bringing in $9.4 billion out of total export earnings of $15.9 billion in the first six months of 2016. But not a single new large-scale mining project is currently in development. Given the sector’s challenges, almost no-one wants to spend cash to boost capacity.
Investors spent just $1.6 billion to buoy mining through May, down 44.7% from the same period last year. The relatively meager $5 billion investment forecast for all of 2016 reflects the third consecutive annual decline since sponsors splurged a record
$10 billion in 2013, according to the Energy and Mines Ministry (MEM).
To be sure, declining miner
The mining industry, the engine of Peru’s economic growth for more than a decade, is at a difficult crossroads. A new president vows to make the industry shine again