Peru is a mineral rich country and top Latin producer of gold, silver, tin, lead and molybdenum, and 2nd top producer of copper and zinc.
The Peruvian economy has grown strongly through 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.
The Peruvian economy has grown at an average rate of 6.5% over the past decade, with GDP increasing 8.8% and 6.9% in 2010 and 2011, respectively. Growth is largely due to the mining industry, particularly in silver, zinc and copper, which provides an attractive investment environment. The political system in Peru has been relatively stable over the last decade. The country’s legal framework is well established with comprehensive mining and environmental laws and regulations in place.
Peru offers a favourable legal and regulatory framework for foreign investment and the country has an Investment Grade credit rating from Standard & Poor’s. Foreign investment is encouraged with laws that prohibit discrimination between local and foreign entities. Foreign Direct Investment has increased substantially over the last 10 years, largely due to investment in the mining industry. China is a leading investor in Peru’s mining industry accounting for 21.9% of investments in new projects, followed by US (18.3%), Canada (15%) and Australia (11.3%).
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. In 2011, BHP Billiton was the most active petitioner for mining claim applications.
The increase in mining interest in Peru has result in a significant increase to the country’s export value. The Export Value index has grown almost five times from 2002 to 2012. Mining exports have consistently accounted for a significant portion of export revenues, with mining exports in 2010 accounting for 60% of Peru’s export revenue.