Uranium Mining Market in North America to 2020 - Higher Production Driven by New Projects, Improved Mining Methods and Price Increases
- Published: June 2012
- Region: North America, United States
Business Monitor International's Peru Mining Report provides industry professionals and strategists, corporate analysts, mining associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Peru's mining industry.
The Peruvian mining sector is expected to grow by 8.3% in real terms to reach US$19bn in 2011, a slowdown in growth from 15.7% in 2010. This can be attributed to declining grades in the country's largest mines due to underinvestment, which explains BMI's modest growth production forecasts for mined copper, tin, silver and gold in 2011.
Despite falling grades across Peru's mining sector in 2011, BMI forecasts the value of the Peruvian mining industry will grow by an average of 8.5% a year from 2011 to 2015, in light of major expansions across the sector.
Despite growing challenges to Peru's business environment in recent months, mainly the possible imposition of a mining tax, BMI expects that Peru will remain business friendly to ensure continuing investment in the sector.
Given that many other mineral rich countries, such as Australia, Chile and Brazil, have implemented or suggested tax increases on the mining sector, its competitive advantage is unlikely to be damaged should it decide to go through with the tax. That said, BMI notes the looming threat of strikes and the government's recent efforts to tackle longstanding environmental issues.
Peru's mining sector has been amenable to foreign investment since the 1990s as successive governments have taken a pro-business stance. At present, the vast majority of mining companies operating in Peru are foreign-owned and there has been little indication that the government is seeking to reverse this trend. Peru's mineral royalty tax is relatively low at between 1% and 3%.
However, many large-scale ongoing operations remain unaffected by the royalty due to previous contracts with the government, although the government's new tax proposal is seeking change this.
Peru's mining industry is dominated by foreign-owned companies, with private domestic entities owning most of the small and medium-sized mining operations. Mined zinc, gold, copper and tin production is highly consolidated, while silver production is more fragmented.
Peru's mining industry is expected to continue to be dominated by foreign-owned companies given the government's pro-business outlook, with little indication that the government is seeking more control over the industry. SHOW LESS READ MORE >
Peru Political SWOT
Peru Economic SWOT
Peru Business Environment SWOT
Global Mining Outlook
Table: Recent Tax Increases
Table: Largest Coal Projects
Table: Frontier Mining Projects
Industry Trends And Developments
Table: Peru’s Key Expansion Plans
Table: Peru’s Mining Industry Value, 2008-2015
Table: Americas Mining Business Environment Ratings
Peru’s Business Environment
Table: BMI’s Business And Operation Risk Ratings
Table: BMI’s Legal Framework Rating
Table: Labour Force Quality
Table: Foreign Direct Investment Inflows Into Latin America, 2006-2008
Table: BMI’s Trade And Investment Ratings
Table: Peru’s Top Export Destinations, 2003-2009 (US$mn)
Domestic Political Outlook
Long-Term Political Outlook
Industry Forecasts Scenario
Table: Main Projects
Table: Tin Production, 2008-2015
Table: Key Expansion Plans
Table: Zinc Production, 2008-2015
Table: Peru's Silver Production, 2008-2015
Table: Planned New Projects
Table: Peru's Mineral Output, 2008-2015
Table: Selected Mining Companies’ Operating Statistics, 2010 (US$mn)
Table: Minsur Key Company Data, Fiscal Years Ended December 2005-2010 (US$mn)
Table: Grupo México's Key Company Data (consolidated group), Fiscal Years Ending December 2006-2010 (US$mn)
Commodity Strategy – Metals Update
Global Assumptions, Q4 2011
Table: Global Assumptions, 2009-2015
Table: Global And Regional Real GDP Growth, 2010-2013 (% change y-o-y)
Table: Developed Market Exchange Rates, 2010-2013 (average)
Table: Emerging Market Exchange Rates, 2010-2013 (average)
Table: Developed States’ Real GDP Growth, 2010-2013 (% change y-o-y)
Table: Emerging Markets’ Real GDP Growth Forecasts, 2010-2013 (% change y-o-y)
Business Environment Ratings Methodology
Table: Mining Business Environment Indicators
Table: Weighting Of Components
- Minsur SA
- Grupo México