Strong copper price revives Peru’s mining mojo, minister says

Goldman Sachs earlier in the day raised its year-end price target to $12,000 a tonne, up from $10,000 previously, citing the copper market’s trajectory toward scarcity and expectations of a wider shortage of the key metal needed for electrification.

Mucho said the trend helped ease the caution of mining companies in the country, the world’s No. 1. 2 exporter that has struggled to meet a challenge from rival producer Congo as inward mining investment has declined.

The minister added that in recent months he had met with executives from Newmont (NYSE:NEM), Teck Resources (TSX: TECKB), Hudbay Minerals (TSX: HBM), Antofagasta Minerals (LON:ANTO) and others, who had shown interest in new ventures and operating mines.

“Most CEOs I spoke to asked what projects are out there and how to get involved,” Mucho said, blaming political uncertainty under former governments for the damage to the sector. Peru has had six presidents in the past six years.

“Confidence is recovering.”

Peru expects to produce some 3 million tons of copper this year, up from 2.75 million last year, a target Mucho stuck to, although he added that production from protest-hit Las Bambas, owned by China’s MMG Ltd 1208.HK, was the key to achieving this goal. the target.

(Reporting by Marco Aquino; Editing by Adam Jourdan and Marguerita Choy)