Peru's Runoff Presidential Election Could Impact $45 Billion in Mining Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--The next round of Peru's presidential election could have a significant impact on the nation's mining projects.

On April 11, Pedro Castillo of the Peru Libre Party won the first round, with 19% of the vote, followed by Keiko Fujimori of the Popular Force Party.

The two candidates will face off in the runoff election scheduled for June 6. The mining sector was surprised and alarmed by Castillo's first-round results. Castillo, a socialist, has said he would increase taxes on mining companies in order to increase revenue, and even is evaluating the potential nationalization of the mining industry. This could put a damper on foreign investment in the second largest copper producing nation in the world, after Chile.

Mining accounts for about 10% of Peru's GDP, making it an important part of the economy. Industrial Info is tracking 271 capital mining projects in Peru, worth about $45.3 billion. The spending is dominated by copper and gold projects. If you are subscribed to Industrial Info's project database for Metals & Minerals, click here for project details.

Click on the image at right for a map showing mining project activity in Peru.

Peru's mining industry has been impacted by pandemic-related production slowdowns and mine shutdowns, as well as environmental/social conflicts, which have delayed projects. The $1.4 billion Tia Maria copper project owned by Grupo Mexico is one such project that has been delayed due to social conflicts.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.