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Peru Mining Report 2009Published by: Business Monitor International Published: Jul. 22, 2009 - 50 Pages Table of Contents
AbstractPeruvian mining continues to be a strong growth sector, even though 2008-2009 has been hit by joblosses, related labour unrest and some mine closures, all related to the global economic downturn andfalling metal prices. In BMI’s newly-released Peru Mining Report 2009, we expect the mining industry tocontinue to grow, with high levels of foreign investment, although at a slightly slower rate in the nearterm.The country still has potential to become the Latin American mining leader.Industrial and other forms of unrest have dominated the year, with numerous mines facing temporaryproduction delays or stoppages due to strikes, blockades and protests. Many relate to efforts by workers togain a greater share of the profits of Peru’s mining boom and were spurred by substantial job losses -reported to be as high as 10,000 since November - across the sector. At the time of writing, an indefinitenationwide strike was being planned for mid-June by Peru’s leading mining union, although thegovernment was making efforts to mediate with union representatives. While a number of mines have faced closure or a temporary halt to operations, with lead and zincproducers amongst those particularly affected, major investment projects are being pushed forward. Somemultinational firms, and those based in China, seem most well placed for capital expenditure at this point.In addition, the flight to gold has helped bolster an already strong sector in Peru; the country remains thelargest producer of silver in the world. There are around 10 local companies in Peru’s mining and minerals sector, but almost all of the largeprojects are controlled by the local subsidiaries of multinationals, sometimes in alliances with local firms.The competitive landscape is changing rapidly as traditionally family-run local companies seek closer tieswith international firms. The sector is still relatively young, having only begun to grow in the 1990s as aproduct of legal and structural reforms. Peru’s mining/minerals sector is consequently becoming increasingly important relative to exports andGDP, although not yet in terms of employment. While the sector receives strong support from thenational government, there are signs of growing hostility from local interest groups to some projects onenvironmental and land rights concerns. Overall, though, the business environment in Peru is lesschallenging than it is for many developing countries where major mining companies are active. Get Full Details About This Report >> |
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