Why Peru

Peru is the third largest country in South America, bounded on the north by Ecuador and Colombia, to the east by Brazil and Bolivia, to the south by Chile and to the west by the Pacific Ocean. Peru lies entirely within the Tropics between the Equator and 18° south. Geographically, Peru is divided into three major regions, a narrow coastal belt separated from the Amazon rain forest by the northern extension of the Andes mountain range. This narrow coastal belt is mainly desert and contains Peru’s major cities and its best highway, the Pan-American, which runs the entire length of the country. The eastern slopes of the Andes receive much more rainfall than the western slopes and form part of the rain forest of the Amazon Basin.

Peru has a strong resource base (mining, forest products, fish products, natural gas) with growing non-traditional exports. The country is one of the most extensively mineralised regions of the world and has a long history of mining activities dating back to pre-Columbian times. Peru plays host to some of the largest and lowest cost precious and base-metal mines in the world, including Alto Chicama, Yanacocha and Antamina. Many of the world's major mining companies, including BHP-Billiton, Newmont, Phelps Dodge and Barrick have operations in the country. Peru is a leading producer of copper, zinc, silver and gold, and also produces molybdenum, tin, iron ore and a number of industrial minerals. Peru has a well-developed domestic mining service industry which supports virtually all mining activities over the mining life-cycle. The system of mining tenure is well-conceived and operates efficiently and predictably. Where carried out responsibly and respectfully, mining is an accepted part of the Peruvian social fabric.

The Peruvian economy has grown strongly throughout the last decade, with a stable exchange rate and low inflation. The government’s pursuit of sound trade and macroeconomic policies has seen the country enter into numerous free trade agreements and taxation treaties. Peru offers a favourable legal and regulatory framework for foreign investment and Peru’s Country credit rating was upgraded to Investment Grade by Standard and Poors in 2008.