The Peruvian government’s 2024 copper production goal of 3 million metric tons is realistic, according to senior industry executives in the country. This comes as Peru seeks to boost mining investments to help lift the economy out of recession.
Peru produced 2.76 million tons of copper last year, dropping its rank from first to second for global production of the red metal. However, it still ranks first globally for export volumes.
“The 3 million ton projection is realistic,” said Carlos Castro, manager of corporate affairs and business development at Minera Las Bambas, a major copper mine owned by China’s MMG Ltd. Raul Jacob, vice president of finance at Southern Copper, the country’s third-largest copper producer, also described the target as “a reasonable projection.”
Peru’s Mining and Energy Minister Romulo Mucho announced the 3-million-ton goal in March, stating that the country is on track to break the production record this year. Victor Gobitz, president of Antamina, Peru’s second-largest copper producer, said the forecast is “very optimistic,” but still achievable, estimating production will land in the 2.8 to 3 million tons range.
The mining executives’ confidence comes as copper prices have hit two-year highs, providing an incentive for companies to invest in new projects and expansions. Over the past year, Peru has granted environmental permits for the expansion of some key projects and expects the construction of others, such as Southern Copper’s long-stalled $1.4 billion Tia Maria project, which is set to break ground by the end of this year or in the first half of 2025.
Mining is a crucial component of Peru’s economy, which fell into a recession in 2023 due to adverse climate effects, social conflicts, and a drop in investments. The government’s efforts to boost mining investments are seen as a key strategy to help lift the country out of the economic downturn.