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1、PERU MINING 2024 Pre-Release Edition IIIn February 2024,Peruvian President Dina Boluarte appointed Jos Arista as the new Minister of Economy and Rmulo Mucho as the new Minister of Energy and Mines.However,these changes in the cabinet were not the only ones since 2024 began.While the Peruvian delegat

2、ion was at-tending PDAC in March 2024,Perus Prime Minister was flown back to Lima from To-ronto.He subsequently resigned over al-legations of using his influence to assist a woman in obtaining lucrative government contracts.Gustavo Adrianzn was then designated as the new Premier.As March unfolded,on

3、 Saturday 30,Pe-ruvian Police raided President Boluartes home as part of a preliminary corruption case,searching for Rolex and other luxury watches.This prompted the resignation of some ministers and led her former party,Per Libre,to sign a petition for her remov-al from office,citing“permanent mora

4、l incapacity.”In less than two months,Bolu-arte again reshuffled the cabinet,appoint-ing new ministers for key sectors,including Interior,Education,Agrarian Development,Production,Foreign Trade and Tourism,and Women and Vulnerable Populations.Finally,on April 3,the new Premier,Adrianzn,received a vo

5、te of confidence from Peruvian lawmakers.During his speech,he outlined the Governments commitment to facilitating mining invest-ments in the order of US$4.6 billion and strengthening the national mining indus-try by prioritizing projects like Tantahua-tay,Huancapet,Romina,and the expan-sion of Antam

6、ina and Raura.Recent events have undermined Perus efforts during the second half of 2023 to regain investors confidence and attract more capital.On April 25,S&P Global Rat-ings downgraded Perus long-term foreign currency sovereign credit rating from“BBB”to“BBB-”(It must be noted that Fitch Ratings a

7、nd Moodys opted to main-tain a BBB rating).“Peru urgently requires a comprehensive national strategy and policy for the mining sector to offer clarity to investors and communities.The lack of government cohesion leads to uncertainty in stakeholders,”commented Steve Botts,president of consultancy fir

8、m Santa Bar-bara Consultants.Critical times call for critical measures,and Peru has no time to waste:“It is cru-cial to convey this message to the public as we continue to grapple with a global challenge in shaping a positive perception of mining,”commented Rmulo Mucho,Minister of Energy and Mines,t

9、o GBR.But how can Peru develop a cohesive national strategy for the mining sector when ministerial changes occur almost every month?“The inconsistency in gov-ernmental policies disrupts continuity and negatively affects the entire eco-nomic landscape,”added Marcial Garca,partner at EY.The goal is 3

10、million t/y of copper“Congo has already surpassed us.Congos reserves are small compared to Perus.We have almost 10%of the worlds reserves.In time,we will be-come even richer in copper,”stated cur-rent Minister of Mines,Rmulo Mucho,during an interview with the Peruvian media outlet RPP Noticias.Accor

11、ding to more recent figures from the Central Bank of the Democratic Re-public of Congo(DRC),the African country surpassed Peru as the second-largest cop-per producer in 2023,having produced around 2.84 million t/y,while Perus out-put was 2.75 million t/y.Does this mean that everything is lost for Pe

12、ru?Not at all.There is a window of opportunity for Peru to get back on track and regain that second position.Between late 2023 and early 2024,the Ministry of Energy and Mines(MINEM)appeared to have listened to the indus-try and,after working with the Executive Branch,who launched the“Plan Unidos”to

13、reactivate the economy and boost the productive sectors,managed to include within the 25 measures a release of min-ing projects worth US$4.64 billion for 2025 and US$4.65 billion for 2026.Among these projects,we find the short-term extensions of Antamina and Toromocho(US$2.41 bil-lion),Yumpag,Romina

14、,Corani,and Chal-cobamba(US$964 million),and Zafranal(US$1.26 billion).Some of these projects have already obtained their respective permits.For example,Zafranal has received approval for its Environmental Impact Assessment(EIA),Antamina has been granted an ex-tension for its Modification of the Env

15、i-ronmental Impact Study(MEIA),and Bue-naventura has obtained approval for the EIA for its Yumpag project.However,oth-ers,such as Corani and Romina,require their respective companies to address fi-nancial concerns before progressing with the projects.Minister Mucho made two interesting announcements

16、 during his speech at the“ProExplo 2025”launch in March 21.First,he stated that by 2024,Peru aims to sur-pass 3 million mt/y of copper production.Second,he proclaimed:“I can announce that in the last few days.we have ar-ranged,with just a ministerial mining regulation,to increase production capac-it

17、y by 10%.”Days later,the MINEM presented a draft of Ministerial Resolution No.125-2024-MI-NEM/DM,which amended Article 3 of Supreme Decree No.030-2016-EM.This amendment indeed explains the reasons behind Peruvian production turnover,stating that“it is technically viable and op-The Copper Gambit:Peru

18、,Politics,and CongoWhat image does Peru project?3PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONRmulo MuchoWhat happened in Panama should serve as a warning to Peru.If we do not manage our laws,regulations,and modern mining projects adequately,we could fac

19、e similar situations.Minister of Energy and Mines,Government of Peruportune to increase installed capacity by up to 10%.”As the first half of 2024 approaches,mining is at a crossroads.On the one hand,there is the opportunity to increase production,but this must be balanced with maintaining positive

20、relationships with local communities,which can often be fragile.On the other hand,the Peruvian government needs to demonstrate unity,transparency,and efficiency to attract for-eign investors for exploration.Simultane-ously,it must expedite mining permits to overcome the bottleneck hindering the deve

21、lopment of new projects.Illegal mining vs artisanal mining Based on information from the Financial Intelligence Reports(IIF)by the Superin-tendence of Banking and Insurance(SBS),in their Financial Intelligence Unit(UIF)report of June 2023,illegal mining is the crime worth the highest accumulated amo

22、unt,reaching US$8.2 billion,surpass-ing drug trafficking,which amounted to US$640 million.Addressing illegal mining is a com-plex challenge.According to Marcial Gar-ca,partner at EY,when informal mining emerges,there is no clear response,es-pecially from specific leftist sectors that oppose formal m

23、ining activities due to environmental risks:“The lack of control has allowed these illegal activities to grow,even infiltrating certain power structures,backed by lobbyists who hinder necessary legislative changes,”he explained.The most delicate aspect of illegal min-ing is its impact on Artisanal a

24、nd Small-Scale Gold Mining(ASGM),particularly regarding public perception.Unlike ille-gal mining,ASGM is legal and adheres to environmental standards.According to the World Gold Council,ASGM is among the fastest-growing rural livelihoods in numerous developing countries.Various reports from the UN E

25、nvironment Pro-gramme and the World Gold Council sug-gest that ASGM contributes between 15%and 25%of the worlds gold.However,this practice is often overshadowed by the prevailing perception of environmen-tally unsound extraction methods and the association of such activities with il-legal mining.Dyn

26、acor Group is one of the few compa-nies in Peru focusing on ASGM.To ensure that the gold that it exports to Switzerland does not originate from illegal mining,the Peruvian government requires the com-pany to guarantee the traceability of gold to its origin commented Jean Martineau,president and CEO

27、of the company.Peru has been trying to formalize sev-eral informal mining operations through the Reinfo(Integral Mining Formaliza-tion Registry).However,for Vctor Gobitz,president of the SNMPE,the Reinfo is not enough:“The solution does not lie solely in the Reinfo but in designing a broader and dee

28、per strategy in collaboration with the government.It is necessary to under-stand the entire production chain and find ways to formalize it gradually,recognizing the complexity of the problem and avoid-ing social upheaval,”he said.Energy mix:The final test?How will we find enough clean energy to over

29、come our dependency on fossil fuels,and can we achieve this before 2050?With just over 25 years remaining until 2050,these questions have become central to the debate surrounding the transition to a green economy.If this transition is a test,what roles do non-conventional energy sources like Peru co

30、uld be in a better situation.If the authorities inform us that we can start developing our projects tomorrow,rest assured that we will assemble teams with the best professionals to achieve benefits for all.scar Gonzlez Rocha,Executive President,Southern Copper CorporationCould you provide an overvie

31、w of the current state of the mining industry?In 2023,mining maintained positive results.Despite Perus overall economic growth dipping to-0.55%,mining contributed approximately 1.5%growth,miti-gating what could have been a more severe downturn.It is crucial to convey this message to the public as we

32、 continue to grapple with a global challenge in shaping a positive perception of mining.We anticipate 3%growth in 2024,and mining will play a key role.To achieve this growth,mining must take decisive steps forward.The current government recognizes the importance of mining,which I believe is the reas

33、on for my appointment.Peru must intensify exploration and efforts to attract investors and meet the growing demand for metals.We aim to exceed US$500 million in exploration in-vestments,building upon last years closing figure of US$481 million.Peru has more political stability than a year ago,an att

34、ractive legal framework for invest-ments,and abundant local talent and capital.How are mining projects in Perus pipeline progressing?The Zafranal project,scheduled for 2026,could move forward if there is a favorable disposition and surface land issues are resolved.Meanwhile,San Gabriel is actively u

35、ndergoing construction.Corani has all the necessary elements in place and is awaiting the resumption of financing.Conversely,the Magistral project is currently not on Nexa Groups immediate agenda,mainly due to its complex logistics,includ-ing access challenges.Romina,a medium-sized project,is progre

36、ssing.Regarding Newmonts Yanacocha Sulfuros project,although it was ready for development,it was indefinitely postponed during Castillos government.What is the status of the projects stalled due to social issues?We expect the start of operations at Las Bambas second pit,Chalcobamba,this 2024.The int

37、egration of Coroccohuayco at Antapaccay also holds promise for a significant increase in copper production.Has the forced closure of First Quantums mine in Panama increased the perceived risk of investing in Latin America?Yes,investors often group all of Latin America into a single category.In Panam

38、a,the focus on ESG and communication was insufficient to avoid the populations opposition to the project.Following the events in Panama,First Quantum has decided to focus on Peru.The Panama incident should serve as a warning to Peru,as it demonstrates that if we do not handle our laws and regulation

39、s properly and manage modern mining projects adequately,we could face similar situations.Do you have a final message?Peru remains an attractive country for investments.The general perception that we only sell raw materials must change,so we must gradually modernize our conditions and refineries.The

40、population needs to see mining as a solution,not a problem.54PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONwind,solar,and the currently trending green hydrogen play

41、?Furthermore,what synergies can the mining industry lever-age with the energy sector?According to a report published by the Institute of Mining Engineers of Peru in December 2023,the Peruvian mining sector consumes 9%of Perus energy and accounts for 2.5%of the CO2 emis-sions,far behind other sectors

42、,such as transportation and fishing.There are several alternative solutions in this journey to a green economy,but discussing these initiatives lacks signifi-cance without considering a comprehen-sive green energy mix.So,how“green”is the Peruvian energy mix?According to fig-ures from the National So

43、ciety of Mining,Petroleum,and Energy(SNMPE),in 2023,hydroelectric generation accounted for 48%of Perus energy mix,while thermal generation accounted for 47%(gas ac-counted for 45%of thermal generation,with the remaining 2%shared between diesel,coal,biomass,and biogas).Eolic energy represented 4%,whi

44、le solar gen-eration 2%.The balance between hydro-electric and natural gas the“cleanest”fossil fuel share is almost equal,making Peru a“greener”country,at least from a generation perspective.Rosa Mara Flores-Araoz,CEO of Kallpa,one of the Peruvian energy power gen-eration companies,said the challeng

45、e for Peru does not lie in generation but rather in emissions:“Unlike many other coun-tries,the main challenge does not lie in the power generation sector,but in other sectors such as transportation,”to which she added that Peru has an ideal mix from both conventional renewable energies and non-conv

46、entional ones,all backed by the security and efficiency of natural gas.The fact that the mining industry only represents 2.5%of CO2 emissions in Peru is not a valid excuse for mining companies not to allocate efforts to reduce them.Additionally,companies have a growing incentive to reduce consumptio

47、n by inte-grating cheaper energy sources such as solar or wind power.The problem?Avail-ability:“Finding the balance between a clean system that uses renewable ener-gies and security of supply is crucial.Re-newable energy sources like solar or wind are not permanent and,thus,not 100%re-liable,so the

48、mining industry,as a large energy consumer,must incorporate other sources into its energy mix,finding the right balance between a cleaner supply without losing the reliability essential to the business,”expanded Flores-Araoz.Worley is an Australian firm offering sustainability-focused services in Pe

49、ru.In discussions with Marcello Pirri,Perus coun-try director,and Andrew Roy,president for Latin America,they explained that Worley possesses the expertise to develop energy projects,including green hydrogen and converting vehicles and mining units to electric power.They shared two interesting in-si

50、ghts on the costs associated with energy.For Pirri,new technologies are critical for the long-term sustainability of the mining industry because challenges are more significant from a geological,infrastructure,sup-ply chain,and regulatory perspective:“An innovation that enables cleaner,more efficien

51、t,and lower-cost copper min-ing and refining could help increase supply directly.One of the challenges we see may arise in achieving the balance between the speed of development of these technologies versus the cost of implementing them in mining projects,”he added.On the other hand,according to Roy

52、,there will likely be a premium for companies that adopt decarbonization solutions:“Companies embracing such technologies and prioritizing sus-tainability are positioned for better pricing advantages than their counterparts,”he concluded.Renewable energy sources like solar or wind are not permanent,

53、so the mining industry must incorporate other sources to their energy mix,finding the right balance between a cleaner supply without losing the reliability essential to the business.Rosa Mara Flores-Araoz,CEO,KallpaProjects that are technically sound,prioritize safety and innovation,adhere to a sust

54、ainable approach,and promote circular economy principles will be well received by stakeholders and gain a competitive advantage.Marcello Pirri,Peru Country Director,WorleyThe main challenge is ensuring an adequate supply of green hydrogen.Some hydrogen production methods may be equally or more pollu

55、ting than conventional energy sources,primarily due to energy availability.Luciano Macas,General Manager,Terpel PeruRenewable energies regulation is well-established but constantly evolving.Environmental standards change as new practices emerge and projects progress,potentially leading to stricter r

56、equirements in some areas and more flexibility in others.Gonzalo Morante,General Manager,Walsh PeruA paradigm shift is underway,with initiatives gaining traction and major mining companies formally requesting their suppliers to submit carbon-neutralization plans.This approach is particularly relevan

57、t for larger mining companies.Kai Rothgiesser,General Manager,Bosch RexrothBalancing Reliability with Renewables76PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONOne-

58、size-does-NOT-fit-allThe mining industry has undergone significant changes,and today,a broad spectrum of trends,opportunities,and chal-lenges are transversal and intersect more frequently.Within this intersectionality,one factor stands out as the convergence point:society and,consequently,community

59、relations.Soci-etal needs drive the demand for minerals like copper,while lo-cal communities approval is,in most cases,the key to a new mine.Mining and society share an intrinsic and mutually influ-ential relationship.In this context,it is crucial to recognize that understanding so-cial phenomena is

60、 not solely the responsibility of the State but also falls within minings responsibility.From exploration,where high expectations of mineral potential and economic benefits arise,throughout production,and ultimately during closure when companies should leave a positive legacy in their area of influe

61、nce for future generations,community relations are in-tegral to mining operations.“It is essential to gain and maintain the trust of communities,which involves solid commitments and timely execution of concrete objectives to establish long-term Meet the mining leaders and economists from Peru and th

62、e world who will be at the XV SIMPOSIOSimon MorrisHead of Base&Batery Metals,CRURohitesh DhawanPresident&CEO,International Council on Mining and Metals-ICMMPaul RomerNobel Prize in Economics 2018Troy HeyExecutive General Manager-Corporate Relations,MMG LimitedHillary AmsterChief Operating Officer,Th

63、e Copper MarkTom PalmerPresident and CEO,NewmontPhillips BakerChairman,The Silver InstituteJuan Ignacio DazPresident and CEO,The International Copper Association-ICAMximo PachecoChairman of the Board,CodelcoPeter KnightsProfessor,School of Mechanical and Mining Engineering,The University of Queensla

64、ndJulio VelardePresident,Central Reserve Bank,PeruWerner SalcedoPresident,National Assembly of Regional GovernmentsMara Julia AybarCountry Manager,Hunt Oil CompanyClaudia CooperVice President for Sustainability and External Affairs,AntaminaSuina ChahunUnder Secretary of Mining,Ministry of Mining,Chi

65、leLIMA,PERU 21-23 MAY 2024 JW MARRIOTT HOTEL|WWW.SIMPOSIO.PEPARTNERSASSOCIATESACKNOWLEDGMENTSSTRATEGIC PARTNERSMAIN PARTNERSANNIVERSARY PARTNERSSPECIAL SUPPORTOFFICIALIZED BYINSTITUTIONAL SUPPORTcredibility,”commented Gonzalo Morante,general manager of Walsh Peru.Mining-community relations in Peru a

66、re often fragile.There are many examples of projects in the pipeline that are not yet mining,and many examples of operations halted due to social issues,es-pecially in 2023.This makes one wonder:Have Peruvian mining companies learned valuable lessons from these experiences over the years?According t

67、o Gonzalo Delgado,director of the Center for Stud-ies in Mining and Sustainability(CEMS)at the Universidad del Pacfico,there has been a notable evolution among companies in understanding social issues.However,there seems to be a reluctance to showcase positive results in the face of criticisms:“Crit

68、icism is important and necessary.But it is equally important to acknowledge progress and positive outcomes.We still have a long way to go in this regard,”he stated.Delgado also highlighted the complexity of Peru,emphasizing the need to analyze it through clusters.He explained:“The mining context in

69、Cajamarca,for instance,differs significantly from that in the south of Peru.Therefore,solutions cannot be one-size-fits-all”.A regulatory gap has created an environment akin to the law of the jungle,enabling the unchecked proliferation of informal mining and processing facilities masquerading as sma

70、ll-scale operations.While high gold prices are advantageous,they also act as a double-edged sword by incentivizing informal and illegal mining activities.We need to emphasize the importance of collaboration across all sectors to fully seize this unique moment in the history of the mining industry.Vc

71、tor Gobitz,President,SNMPEMarcelo Santillana,General Manager,Minera Poderosa Gonzalo Quijandra,President,XV SimposioThe surplus of studentsParadoxically,while jurisdictions like Canada,Australia,and the USA are dealing with a talent shortage in the mining industry,and universities are striving to at

72、tract fresh young talent,Peru finds itself at the opposite end of this spectrum.At a forum organized by the Institute of Mining Engineers of Peru in 2023,Mario Cedrn,a professor at PUCP,UNMSM,and UPC,highlighted that Peru had 16,650 mining students in 2023.He anticipated that around 1,000 would have

73、 graduated in 2024 and approximately 1,500 from 2025 onward.However,the Peru-vian mining industry will only be able to hire around 150 of these graduates,representing a mere 10%.To address this issue,Ce-drn suggests equipping young people with additional skills to enable them to thrive beyond the co

74、nfines of traditional mining.In discussions with GBR,Pedro Grados,director of the Graduate School at the University of Lima,revealed that the university had previously offered a metallurgical and steel engineering degree.However,this program was discontinued due to a lack of student interest.Nonethe

75、less,Grados acknowledges the presence of nu-merous alternative career paths within the industry:“In addition to the technical aspect,which encompasses water management,sys-tems,and plant operations,it is crucial to comprehend the sector as a whole.This includes management roles specialized in human

76、resources within the mining industry.Since Perus primary export product is minerals,international business students are likely to find employment opportunities as traders,”he commented.From a purely mathematical perspective,whether the surplus of students is male or female is irrelevant.However,unde

77、rstand-ing this information could be interesting,particularly consider-ing Perus relatively low female workforce rate and the mining industrys efforts to increase female representation:“We expect to reach 30%of female participation by 2030.In Latin America,we are already very close to that,with 26%i

78、n Chile and 25%in Peru.In Peru,only 7%of students with mining-related degrees are female,and only 11%in Chile.So,we need to promote fe-male talent not just internally,but externally,”commented Luis Rivera,executive vice president at Gold Fields.98PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-R

79、ELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONIn 2023,Cerro Verde grabbed the lead as the primary copper producer in Peru,expe-riencing a 1.6%increase in output(466,463 t/y compared to the 459,100 t/y produced in 2022

80、).In contrast,Antamina,which held the top position in 2022,saw a 7%decrease,from almost 468,000 t/y to 435,378 t/y.Southern Peru(Southern)maintains its third-place position,showing a sig-nificant 9.4%increase to 374,189 t/y from the 341,898 t/y produced in 2022.Accord-ing to scar Gonzlez Rocha,execu

81、tive president of Southern,the company con-tinuously strives to enhance efficiency and productivity at Toquepala and Cuajone,the companys assets in the Andean coun-try.“In the specific case of Cuajone,we want to expand our operations to achieve the necessary volume to justify the con-struction of an

82、 additional smelter to the current one with a processing capacity of 1 million t/y of concentrates,along with an expansion of the copper refinery in Ilo.This will also represent a new logistical challenge for transporting over 500,000 tons of copper concentrate to the new smelter in Ilo,”commented G

83、onzlez.Southern has several projects in the pipeline in Peru,including Ta Mara,Los Chancas,and Michiquillay,which collec-tively amount an investment of US$6.5 billion,according to Gonzlez.However,these projects have been in the pipeline for decades,with Ta Mara being the most contentious.The project

84、 was initiated in 1994,and over the past three decades,it has faced opposition from various au-thorities.Under Boluartes administration,there have been mixed messages from key leaders.For instance,former Peruvian Prime Minister Otrola stated:“Ta Mara is not within the Governments agenda.”However,the

85、 current Prime Minister,Gustavo Adrianzn,expressed a different stance during an interview with Peruvian media outlet RRP Noticias,stating:“We have turned our attention to Ta Mara.We have high expectations there.”.Jos Aris-ta,the newest economy chief,expressed“optimism”about the projects progress und

86、er Boluartes administration when asked if the project was going to move for-ward,stating:“We hope so.We hope that will be achieved.”Gonzlez Rocha acknowledges that the attitude of the current government has improved.He stated:“As a result of the pandemic and uncertainties regarding es-tablishing an

87、investment-promoting poli-cy,Peru has experienced a recession that needs to be reversed as soon as possible.The country could be in a better situation,and Southern Peru has always been will-ing to work throughout Peru.”Continuing with the top copper pro-ducers,Anglo Americans Quellaveco pre-sented a

88、 219.9%increase,becoming the fourth-largest copper producer in Peru,having produced 319,061 t/y of copper.The mine was brought online in late 2022,so this uptick in production is logical,though crucial for Peru.Las Bambas demonstrated an 18.5%increase following a challenging first half of 2023,with

89、operations picking up swiftly.The mine,operated by the Chinese MMG,produced 302,039 t/y of copper in 2023(vs 254,712 t/y in 2022).On the contrary,Chinalco experienced an 18.1%decrease(200,317 t/y in 2023 compared to 244,712 t/y in 2022).The remaining companies in the top 10,namely Antapaccay,Marcobr

90、e,Hudbay,and Sociedad Minera El Brocal,also showcased positive variations.In 2023,there was a surge in copper prices,particularly towards the years end.Concerns arose about declining produc-Mining Production OverviewPursuit of efficiency10PRE-RELEASE II|PERU MINING 2024Global Business Reports|PERU M

91、INING 2024 PRE-RELEASE EDITIONtion due to lower grades and the suspension of activities at First Quantum Minerals Cobre Panama mine,among other factors.Consequently,2023 concluded with the average copper price at US$3.89/lb.As 2024 began,the copper price increased by 10%,reaching its highest since 2

92、022.Another contributing factor to this uptick was when giant BHP,the worlds largest miner,offered an unsolicited bid for Anglo American valued at US$39 billion,which Anglo American rejected.This contributed to the red metal trading at around US$4.70/lb.Despite current favorable prices,which should

93、encourage in-creased production and allocation of capital in exploration to replace depleting reserves,mining companies have struggled in the past months with costs and inflation,which seems to be eat-ing up profit margins.Javier del Ro,Hudbays vice president South America and USA,highlighted that t

94、he interplay between a looming supply deficit and challenges related to declining grades and depleting resources globally exerts pressure on prices.Rising costs further contribute to narrower profit margins despite the positive out-look for copper.“In this environment of heightened operational compl

95、exity and rising costs,it is imperative to streamline pro-cesses and enhance operational efficiency to safeguard profit-ability,”he said.The copper company invested in Magnetic Aggregation equip-ment for ultrafine particle filtration and a system to accelerate bubble discharge to enhance copper and

96、molybdenum recovery.It also explored the implementation of ore sorting technologies,which not only improve copper output but also help to reduce energy consumption:“We have invested in new technologies,such as ore sorting,following the experience of Copper Moun-tain(British Columbia),which we want t

97、o implement it in Peru.At Constancia,we employ machine learning in throughput model-ing,achieving over 90%effectiveness in predicting mill events.This allows optimized metallurgical responses by anticipat-ing mineral behavior from crusher discharge to the processing plant,”concluded Del Ro.Adolfo Ve

98、ra,president and CEO of Southern Peaks Mining(SPM),emphasized the need to improve process efficiency and renegotiate terms with suppliers.In 2023,SPM encountered challenges in meeting the projected budget for Condestables production ramp-up,causing missed opportunities with the higher copper price.H

99、owever,it recovered throughout 2023 to successfully meet the annual target:“As part of the renewal pro-cess of our EIA,we are including,among a few changes in some components,a production increase to 10,000 t/d.We are finaliz-ing the technical details and drafting of the EIA for Condestable,”explain

100、ed Vera.In line with enhanced mining efficiency,SPM transitioned to a global approach,consolidating mineralized blocks into a single reserve block.“While this integration may lead to a loss of ore grade in some areas,the gained efficiency outweighs the draw-backs.This has boosted our in-situ resourc

101、es to over 120 million tons of copper,narrowing them down to 70 million tons of re-sources and 40 million tons of reserves.This represents a sub-stantial 25%increase from our previous reserves of 32 million tons,”concluded Vera.Precious metals The closing average price for gold in 2023 was US$2,033.

102、31/oz.As 2024 progressed,golds value increased even further.Geopo-litical tensions continue to escalate,and growing expectations of Federal Reserve interest rate cuts in the second half of the year have fueled a rally in gold prices with a bullish momentum.This has resulted in the gold spot price hi

103、tting another record high of US$2,313.50/oz on April 3,2024.Gold production in Peru demonstrated a strong performance,with a 2.8%increase(3.4 million oz produced in 2022 vs 3.5 mil-lion oz in 2023).In contrast,the silver segment experienced a slight dip of 1.3%,though less severe than the decline ob

104、served in 2022(108 million oz in 2022 vs 107 million oz in 2023).The top performers in gold production for 2023 included Minera Yanacocha,leading the rank with a production of 275,681 oz/y,marking a significant 13.1%increase compared to 2022.Compaa Minera Poderosa followed closely,producing 269,518

105、oz/y,but experienced a slight decrease of 11.1%in its production.Poderosa has been subjected to attacks by illegal miners.For ex-ample,on December 2,2023,a group of illegal miners attempted to seize control of Minera Poderosas operations in Pataz,killing nine security agents by detonating multiple c

106、harges of ANFO(high-powered explosive)in one of the underground galleries of the mine.More recently,in January 2023,illegal miners brought down a high-tension tower that supplies power to the operations.During a conversation with GBR,Marcelo Santillana,Minera Poderosas general manager,explained that

107、 the combination of these events and road blockades that interrupted mineral transportation to the companys plant led to the companys fail-ure to meet its production expectations.“Despite our efforts to maintain production,we had a setback resulting in a reduction of 28,000 oz of gold output for the

108、 year,below our estimated pro-duction of over 290,000 oz,”he added.While it is true that gold prices have been flirting with historic records,Santillana,like his copper counterparts,pointed out that while prices have increased,so have costs.Furthermore,the cur-rent prices add another layer of comple

109、xity for Poderosa:they could further incentivize informal and illegal mining activities.Consorcio Minero Horizonte exhibited notable growth,with a gold output of 203,108 oz for 2023,representing an 8.3%YoY increase.On the other hand,Minera Aurfera Retamas saw a modest decline of 5.5%in gold output,y

110、ielding 196,503 oz for 2023.Meanwhile,Minera Boroo Misquichilca demonstrated a remarkable surge,achieving a 68.7%increase in production,totaling 175,649 oz/y.Lastly,Hoch-schilds Compaa Minera Ares faced a downturn,with a 13%de-crease in production,reaching an output of 144,323 oz/y for 2023.Despite

111、facing challenges in early 2023 due to disruptions,Eduardo Landin,the new CEO of Hochschild Mining,commented that the company surpassed the reviewed production target,achieving a production of 300,749 oz of gold equivalent.A sig-nificant milestone for the company was securing approval for the Modifi

112、ed Environmental Impact Assessment(MEIA)for Inmacu-lada,enabling another 20 years of production with 262 hectares and 558 km of underground development.Given the uncertain nature of gold price fluctuations,the com-pany is preparing for both high and low-price scenarios:“To address this,the company i

113、mplemented a Zero Cost Collar,placing 100,000 oz of gold at a price range of between US$2,000 and US$2,252.If the price stays within this range,we receive the market price.If it falls below US$2,000,we receive this guaranteed figure;if it ex-ceeds US$2,252,we receive the latter price.Although common

114、 in trading,this strategy is novel for the company and represents a pro-active measure to manage exposure to the gold price,providing security in a fluctuating environment,”explained Landin.Buenaventura ranked as the 10th larg-est gold producer in Peru and experienced a 3.9%increase in production,al

115、igning with the projected guidelines for 2023,according to Leandro Garca,Buenaven-turas CEO.Focused on the San Gabriel project,continuous efforts have resulted in noteworthy progress:“At San Gabriel,we concluded 2023 with engineering reaching 90%,procurement at 89%,and construction at 14%,contributi

116、ng to an overall advancement of 28%by year-end.Additionally,we accomplished a CapEx of approximately US$140 million in 2023,with expectations to invest around US$200 million in 2024,”Garca commented.Buenaventura aims to complete con-struction at San Gabriel in 2025 and secure the first gold bar by t

117、he end of that year.Looking at the broader scenario,Peru has been showing a declining trend in gold production since 2005,when it reached its peak with a total output of 6.68 million oz/y.This might be a sign that the Peruvian gold segment has been ma-turing;thus,companies must replenish reserves wi

118、th exploration.Tailings management could be another indication of the mining industrys matu-rity.Cerro Corona represents the Peruvian operation of the international mining com-pany Gold Fields.Luis Rivera,executive vice president of Americas,reported that Gold Fields Peruvian assets produced 238,000

119、 gold equivalent ounces and generated free cash flow of around US$70 million.Rivera further mentioned that,in 2023,the compa-ny initiated the minelife extension program:“The basis of this extension is using the old Cerro Corona pit,where mining will stop to-wards the end of 2025,as a tailings storag

120、e facility.So,we will be extracting ore until 2025,stockpiling it on the side,and that ore will be processed until 2030 The techno-logical challenge is to be able to accelerate the natural process that makes tailings con-solidate and become more compact,thus making more space.The real limitation to

121、another minelife extension at Cerro Corona is the tailings storage capacity,not reserves or resources,”he added.Prices rush,investors dontDespite the current uptick in precious metals prices,there appears to be a dis-crepancy between the actual price of gold and the stocks of gold miners,a trend tha

122、t several global asset managers have analyzed.For instance,Sprott suggested in April 2024 that gold mining stocks are historically undervalued,citing the ratio of GDX/GLD as a metric.Similarly,Incre-mentum AG,an independent investment and asset management company based in Liechtenstein,compared the

123、gold price with the HUI(NYSE Arca Gold BUGS Index)and,according to them,miners are trad-ing 170%lower than their highs in 2011.There seems to be a prevailing sentiment among companies,particularly in the junior segment and small producers,that there is a disconnect between investors and reality.For

124、example,Graham Speirs,general man-ager of Sierra Sun Group,had previously expressed intentions to list the company on the London Stock Exchange during an inter-view with GBR in 2022.However,his plans have changed,and during our interview in the first quarter of 2024,Speirs shared that after securing

125、 assistance from a local bank,the company may circumvent seeking eq-uity through the stock markets.“In Canada,despite demonstrating operational excel-lence,including robust safety measures and strong community engagement,investors typically require reserves spanning 15 to 20 years.Although we replen

126、ish reserves an-nually for a three-year period,we are hesi-tant to allocate capital towards drilling to showcase a 15-year reserve life to potential investors,”he concluded.John Thomas,PPX Minings interim CEO,observed:“Golds recent surge in price has not sparked the same rush to invest in gold minin

127、g as it has in the past.It is a bit per-plexing.Despite the favorable gold prices 1312PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITION.peStriving for excellence in op

128、erations,while prioritizing the safety of our workers.Highly skilled and experienced personnel in drilling the main mining deposits of Peru.Cutting-edge technology in drilling equipment at your service.SGSISO 9001SYSTEM CERTIFICATIONSGSISO 14001SYSTEM CERTIFICATIONSGSISO 45001SYSTEM CERTIFICATIONTHE

129、RE IS NO PLACEWE CANNOT REACHWe have signed a JV with Antofagasta to explore prospective copper zones located on the same trend as Toromocho.The agreement entails significant investments in the coming years that could change Volcans exposure to different metals.Luis Herrera,CEO,VolcanThe Antofagasta

130、-Buenaventura transaction may result in further investment around our Cerro Corona mine,while we are very active in Titn rabe,an adjacent property.It is likely that the different actors in the province will sit down to explore synergies,such as sharing tailings facilities or processing plants.Luis R

131、ivera,Executive VP Americas,Gold Fields We are considering integrating a copper project in southern Peru into our portfolio,similar to Condestable in operational terms.Our plan also includes using seawater,creating another milestone in modern mid-sized mining.Adolfo Vera,President and CEO,Southern P

132、eaks MiningAntofagastas share purchase signals the markets confidence in us.We trust their expertise in copper projects will enhance our value.Leandro Garca,CEO,BuenaventuraOur aim is to acquire a third asset for the company through M&A.The ideal asset profile includes being in the production or nea

133、r-production stage,preferably in Peru,Mexico,or the broader Americas.Ernesto Balarezo,CEO,Sierra MetalsMining Producers Focus on GrowthOut of a global exploration budget of US$33 million,the majority will be allocated to Peru,leveraging off the new permit at Inmaculada.Eduardo Landin,CEO,Hochschild

134、MiningWe are looking for investors for our green play to allow us focus our capital on our precious metal division.Graham Speirs,General Manager,Sierra Sun GroupA mix of organic expansion and M&AIn Peru,we emphasize that Constancia is not the endpoint but the starting point.We have a significant int

135、erest in the development of Maria Reyna and Caballito.Javier del Ro,Vice President South America and USA,Hudbay Minerals14PRE-RELEASE II|PERU MINING 2024Global Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONJunior ExplorationCopper has psychedelic pricesgrowth in both cash flow and metal pro-d

136、uction,reinforcing its position in the industry:“Romina has a forecasted mine life of 14 years with a production rate of 50,000 to 70,000 t/y of zinc equivalent,”commented Herrera,Volcan CEO.Romina requires US$150 million CapEx,but frist the company must ensure it has the necessary resources to exec

137、ute the project on time.While Romina remains the companys priority,Volcan has signed a JV with Antofagasta to explore prospec-tive copper zones on the same trend as Toromocho:“The agreement has much potential,but there is a lot of work ahead of us,and it entails significant investments in the coming

138、 years that could change Vol-cans exposure to the metals it produces.We have a large package of almost 350,000 hectares in mining concessions that are highly prospective,”added Herrera.This joint venture represents the sec-ond strategic move by Chilean company Antofagasta in Peru.In December 2023,th

139、e gold producer Buenaventura revealed that Antofagasta had acquired an approxi-mate 19%equity stake in the company.Another player in the Peruvian zinc pro-duction segment is Sierra Metals,a mid-sized producer with polymetallic assets across Mexico and Peru.In Peru,Sierra Met-als owns the Yauricocha

140、underground mine,which has been in operation for 75 years and has had a historical production capacity of 3,600 t/d.Due to the sparsely distributed mineral deposit,Yauricocha has faced chal-lenges maintaining this production level,leading Sierra Metals to transition to a cut-and-fill mining method.B

141、y the end of 2023,the mine was operating at around 2,500 t/d.To address this issue,the company initiated the permitting process last year to extend mining operations below level 1120 level.This permit,obtained in February 2024,will enable Sierra Metals to transition from cut-and-fill to sublevel cav

142、ing,a more efficient and extensive mining method and achieve its full capacity:“By Q4 of 2024,we anticipate ramping up production to 3,600 t/d,match-ing our historical production levels.This rep-resents a 40%increase in production,rees-tablishing Yauricocha as a highly profitable asset for Sierra Me

143、tals,generating significant EBITDA,and reducing costs to comparable levels in 2020 and 2021,”highlighted Ernesto Balarezo,Sierra Metals CEO.The Peruvian exploration portfolio has remained relatively stag-nant over the past few years,and the latest document published by the MINEM in early 2024 includ

144、es 75 projects with a combined investment of US$644 million.Despite the millions of dollars in the pipeline,the total exploration budget executed in 2023 reached US$433 million,indicating a modest 2.4%increase com-pared to the figures from 2022.As reported by the MINEM,2023 saw the highest explorati

145、on figures of the last five years,representing the third consecutive year of growth.Meanwhile,data from S&P indicates that in 2023 majors increased their exploration budgets by 1.2%for their exist-ing assets,while intermediates and juniors reported a decrease of 4.5%in their budgets compared to 2022

146、.This has resulted in the grassroots share of exploration falling to an all-time low of 23.4%.The lack of liquidity in the market and limited equity financ-ing opportunities have placed financial strain on junior min-ing companies.However,despite unfavorable market condi-tions,a company that made st

147、rides was Camino Corporation.In June 2023,Camino welcomed Nittetsu Mining as a partner for its Los Chapitos project,an IOCG(iron oxide-copper-gold)deposit.Nittetsu,a Japanese company,has invested CAD$10 million over three years,which,according to Jay Chmelauskas,CEO and president of Camino Corporati

148、on,will propel the com-panys progress towards resource delineation and potentially a feasibility study.“We aim to establish multiple pits feeding a central processing plant for a prospective SX-EW copper oxide mine,”commented Chmelauskas.In March 2024,the company carried out a step-out drilling camp

149、aign and intends to proceed with a follow-up drilling pro-gram in the latter half of the year.Additionally,regarding another project,Mara Cecilia,a copper porphyry,Camino began con-structing drill pads in April 2024 in preparation for an upcoming drilling campaign:“With an emphasis on discovery dril

150、ling,we aim to uncover a substantial deposit and achieve success in de-lineating a new porphyry center,”emphasized Chmelauskas.From a global perspective,the insufficient focus on exploration exacerbates the shortage of new projects essential for the energy transition.McKinsey&Company forecasts that

151、the demand for copper is projected to reach 36.6 million t/y by 2031.A substan-Photo courtesy of Forte Minerals there has not been a notable uptick in inves-tor interest,particularly in smaller gold min-ing companies like ours,”he commented.In the development segment,Bear Creek has all the permits i

152、n place to bring Corani,a silver project,online.Bear Creeks CEO,Eric Caba,elaborated that the company is primarily focusing on infill drilling and additional metallurgical test-ing to reinforce the companys projections and strengthen investor sentiment toward the project:“We are evaluating test resu

153、lts and preparing to restart the financing pro-cess for the project,”said Caba.With another asset in Mexico,the Mer-cedes mine,Bear Creek Mining has been re-structuring the companys agreement with Sandstorm and retiring the Nomad Gold Stream.This effort has reduced the“stream burden”by close to 80%,

154、significantly im-proving Bear Creeks financial status:“This reduction in stream burden has provided us with increased cash flow,which we are utilizing to ramp up exploration efforts,stabilize our financial books,and align our operations with our long-term goals.These Juniors are more important in th

155、e present day for exploration than in the past.Moving forward,I believe we will see a lot more discoveries being made by juniors.Majors are going to rely on juniors as their exploration arm.Ian Gendall,President and CEO,DLP Resourcesmeasures have significantly improved Bear Creeks financial standing

156、 and positioned us more favorably to progress with projects like Corani,”concluded Caba.Base metals Regarding base metals,Perus zinc produc-tion reached 1.47 million t/y in 2023,mark-ing a substantial 7.2%increase compared to 2022 figures.Antamina continued to lead in zinc production,reaching an ann

157、u-al output of 527,979 t,followed by Volcan at 171,117 t and Nexa Resources at 84,710 t.Antamina and Volcan both showed posi-tive trends,with a 5.6%and 13.2%increase in production,respectively.However,Nexa Resources experienced a 6%decrease in its zinc production.Lead also demonstrated a robust 6.9%

158、rebound in 2023,with Volcan,Nexa,and Compaa Minera El Porvenir emerging as the primary producers.Volcan has achieved remarkable silver production of nearly 15 million oz/y and 250,000 fine t/y of zinc.With the ambi-tious Romina project in the pipeline for Peru,the company anticipates significant 171

159、6PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONtial gap of 5.1 million t/y exists compared with the projected sup-ply.According to David Kelley,president and CEO of

160、 Chakana Copper,there was already a supply gap for copper before the clean energy transition became a prominent topic.Chakana owns the Soledad project in the ncash region.In June 2023,Chakana received a permit to drill on the southern half of the project,enabling it to explore different types of min

161、-eralization,which include a porphyry target,referred to as Mega-Gold,and a high-sulfidation epithermal style of mineralization called La Joya.Despite the political instability,Kelley maintains an optimistic outlook regarding investors and Peru:“I think in-vestor confidence is returning.We could not

162、 have raised CAD$3 million if investors did not have confidence in Peru.I hope more foreign investment is coming into Peru in 2024,”he commented.In April 2024,Chakana started a 3,000 m exploration drilling campaign at the Mega-Gold porphyry target.DLP Resources is another junior company with its fla

163、gship proj-ect in the Miocene belt.The Aurora copper-porphyry project is at an advanced stage and was initially drilled by Bear Creek Mining in 2001.DLP acquired the project in 2021 and conducted deep drill-ing down to 1,000 m.“We commenced the current drill program in August 2022 with three drill h

164、oles.In 2023,we completed 10 holes in the project.In total,we have performed 9,910 m of drilling.We have a program in place for 2024 to drill 10 holes and 10,000 m,”commented Ian Gendall,president and CEO of DLP Resources.“We must go through a financing round to raise CAD$4-5 million The mining indu

165、stry in Peru is defined by its giant copper and gold deposits;we are on the doorstep of discovering the next one.David Kelley,President and CEO,Chakana Copperto complete the proposed drilling campaign to advance it to the point where it has a defined mineral resource by 2025”.In April,DLP Resources

166、announced that it had entered into an agreement with Paradigm Capital to raise US$6 million through a private placement.While the offer has yet to be closed,DLP has been making progress with its other asset in Arequipa,the Esperanza project,a porphyry copper-molybdenum project with promising rock sa

167、mple results:“The program intends to bring Esperanza to the point of being drill-ready by the end of 2024,”commented Gendall.Are investors biased?In 2023,there was a prevailing perception that Peru was losing its opportunity in the energy transition,leading investors to explore alternatives in other

168、 jurisdictions.Interest was heading north to countries like Canada and the US,known for their robust rule of law and policies promoting the development of critical minerals such as copper.Others seemed to look for stability in more re-gional options,such as Panama and Ecuador.Interestingly,due to tw

169、ists of fate and socio-political changes,it appears that the opposite scenario is unfolding:There is a war against narcoter-rorism in Ecuador,and protests in Panama shut down a mine from First Quantum Minerals.While potentially favorable for Peru in the short term,these events in Latin America may r

170、aise concerns among investors about the possibility of a long-term contagious effect.Luquman Shaheen,president and CEO of Panoro Minerals,pointed out that Peru often faces misjudgments due to broader regional percep-tions.North American investors tend to generalize their views of Latin American coun

171、tries based on isolated incidents.“The stigma of being painted with the same brush as Panama poses difficulties for us to overcome.However,many investors under-stand the nuanced nature of the exploration story in Peru and Latin America,”said Shaheen.During PDAC 2024,GBR interviewed the new Minister

172、of Energy and Mines,Rmulo Mucho,who echoed Shaheens concerns and emphasized the need for Peru to take heed of the situation:“The Panama incident should serve as a warning to Peru,as it demon-strates that if we do not handle our laws and regulations properly and manage modern mining projects adequate

173、ly,we could face similar situations,”said Mucho.What happened in Panama was a hard blow for the whole in-dustry,especially for First Quantum Minerals(FQM).This raises questions about how the Canadian producer will approach its two projects in Peru:Haquira and La Granja,a project in Caja-marca to be

174、developed in a joint venture with Rio Tinto.Jorge Benavides,legal and corporate affairs manager South America at FQM,explained that Haquira marked FQMs initial en-try into LATAM.However,the company prioritized Cobre Pana-ma,allowing Haquira to progress cautiously.After a suspension period,FQM secure

175、d an access agreement with communities in the direct influence area by mid-2023.Since September 2023,the company has been drilling at the Haquira East deposit to en-hance understanding of the deposit and to increase its volume.According to Benavides,La Granja boasts resources of 4.32 bil-lion t at 0

176、.51%copper and has significant expansion potential:“Our current focus is on an extensive two-year drilling campaign initiated in October 2023.This drilling campaign,geared towards improving geological,metallurgical,and geotechnical knowledge,will enable the upgrading of inferred resources and their

177、eventual conversion into reserves to allow the design of a mine plan,”he added.Reflecting on the looming copper shortage,Benavides com-mented:“Copper deposits are few and far between,and any easy projects are already in operation.In order to deliver the increas-ing amounts of copper that the world n

178、eeds,we need to oper-ate in increasingly complex environments that require more ad-vanced technologies and techniques with consequently higher costs,”posited Benavides.Regardless of their size,mining companies have plenty to risk,from reputation to millions of dollars in investments.Perhaps be-cause

179、 of the complexity and intricacies of developing new mines,such as navigating complex jurisdictions and more difficult ter-rain,we are witnessing more partnerships in various forms for developing future mines in Peru,exemplified by the JV between FQM and Rio Tinto.The paradox of the energy transitio

180、n without capital We cannot rely on new mines coming online merely on the sheer strength of commodity prices.Different pieces of the puzzle are required to stimulate this.Regulatory environments,enthusiastic investor support,technological advancements,and geopolitical stability,as well as high price

181、s are all equally required to incentiv-ize more exploration.But,how“high”is high?How much higher must prices go to incentivize new mines and exploration?Indeed,the saying“ask three different people,and youll get three different answers”seems fitting here.Goldman Sachs suggested that a long-term copp

182、er price near US$10,000/t(US$4.53/lb)is necessary,while Olivia Markham of BlackRock commented that copper would need to reach US$12,000/t(US$5.43/lb)to spur such investments.On the other hand,Robert Friedland,founder of Ivanhoe Mines,stated that cop-per should reach US$15,000/t(US$6.79)and remain at

183、 that level for the long term to activate new mines.The market appears to be mov-ing in that direction,or at least getting closer to those price levels.In this context,what do Peruvian juniors C-executives think?For Graham Carman,president and CEO of Tinka Resources,there is a“glaring disparity”betw

184、een the energy transition dis-course and the investment trends for junior mining firms.“This highlights the need for increased investment in new mine devel-opment.While the current market conditions may seem bleak,I believe we are at the bottom,and there is a promising outlook for the future,”predic

185、ted Carman.Patrick Elliott,president and CEO of Forte Minerals,a company focusing on copper and gold projects at an earlier stage in the value chain with its Pucarini,Esperanza,and Don Gregorio proj-ects,believes that the mining industry can uncover new reserves and bring them into production by exp

186、anding exploration budgets and investing in new technology:“While higher copper prices may incentivize the development of certain lower-grade deposits,sus-tained exploration and resource development efforts are essential to ensuring long-term supply stability,”commented Elliot.Forte obtained the DIA

187、 for Pucarini in September 2023,and later,the DIA for Esperanza,while still working on acquiring a third per-mit;an FTA for Don Gregorio.“We anticipate commencing drilling activities sometime in 2024,aligning with our strategic planning and commitment to responsible resource development,”stated Elli

188、ot.The company more recently acquired the Alto Ruri,a high sul-fidation epithermal gold prospect in central Peru,along with the Cerro Quillo porphyry gold-copper-molybdenum prospect from GlobeTrotters Resources,a strategic project-generation partner.Within the same strategic partnership umbrella und

189、er Glo-beTrotters,we find Element29,a company positioned as more advanced than Forte.Richard Osmond,chairman and CEO of El-ement29,shed light on the market dynamics in Peru,noting that while the company once boasted a market cap of CAD$50 million during favorable times,shifts in market conditions ha

190、ve led to a drop in the market cap to between CAD$15-20 million.This un-derscores the necessity to cut costs and safeguard capital.“With GlobeTrotters in place,we identified an opportunity to consoli-date our infrastructure,allowing us to share the same administra-tive team.This consolidation aims t

191、o reduce costs by a factor of three,targeting a decrease in our monthly burn rate from nearly US$200,000 to less than US$100,000,”explained Osmond.Lithium and uraniumIn LATAM,the lithium focus is on the Lithium Triangle,an area shared by Bolivia,Argentina,and Chile,which,according to dif-ferent sour

192、ces quoting the USGS,is thought to hold more than 50%of the worlds lithium resources.Due to its hard rock nature,lithium in Peru differs from the brines found in Bolivia,Argentina,and Chile.However,Perus lith-ium story is unfolding with the publication of a 2024 Preliminary Economic Assessment(PEA)f

193、or the Falchani project by American Lithium.The PEA,released in January 2024,increased the mea-sured and indicated categories by 476%.According to this economic analysis,Falchani is projected to produce over 85,000 t/y of lithium carbonate.“We saw a tripling in NPV from the prior economic analysis;i

194、t grew from US$1.5 bil-lion to US$5.1 billion,showing the scale and purity of the project.Operating cost will be approximately US$5,100/t,placing it in the lower quartile of the global cost curve,”commented Simon Clarke,CEO of American Lithium.Following President Bidens passage of the Inflation Redu

195、c-tion Act(IRA),several reports indicate that lithium demand for the US energy transition will be 15%higher by 2035 than initially 1918PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PR

196、E-RELEASE EDITIONMike Parker,COO,Aftermath SilverPatrick Elliott,President and CEO,Forte Mineralsprojected previous to the IRA.Despite the US trying to achieve lithium self-sufficiency with projects on the brink of production,it is suggested that the US will need to rely on allies.This holds particu

197、lar significance for Peru,as both countries share a free trade agreement,and the type of rock mined in Peru will not be shipped to China.“This makes it unique among hard rock deposits.Battery-grade lithium products will be produced onsite at Falchani without the need for beneficiation overseas and r

198、educing reliance on China for processing,”explained Clarke.In addition to Falchani,American Lithium also owns the Mac-usani uranium project,another mineral not commonly found in Peru.Clark suggested that the escalating tensions between Russia and the West and a tightening supply from Kazakhstan,coup

199、led with the worlds shift towards the green transition,further empha-019921990199419961998200020022004200620082010201220142016201820202022202420406080100120140160Copper in major discoveries(Mt)Budget($M)0612210841416Copper in reserves,resources&past productionThe threshold of copper prices required

200、to incentivize the development of new minesCurrentt prices(Q2 2024)are approaching the thresholdCopper in recent initial resourcesCopper exploration budgetAverage Closing Price(USD/ton)By fostering transparency and accountability,we enhance trust and credibility with investors,regulatory authorities

201、,and local communities,safeguarding our social license to operate and ensuring the long-term sustainability of our business.Copper discoveries still trending down despite higher budgets and pricesSource:Sources:S&P Global Market Intelligence,London Metals Exchange,GBRsizes the increasing demand for

202、uranium,which Macusani is poised to meet.“Our Macusani uranium project has a relatively simple flowsheet and low CapEx at US$300 million.With the ability to pro-duce 6-7 million lb/y of U3O8.Tthis is a top tier asset that will signifi-cantly contribute to annual global uranium supply,”said Falchani.

203、Silver and manganeseSilver serves both as a haven during an economic crisis,and also plays a crucial role as an industrial metal.However,it does not re-ceive the same attention as copper,particularly in energy transition.When discussing this with Peter Dembicki,president and CEO of Tier One Silver,h

204、e complained about silver being thought of only as a byproduct of copper production,adding that there are very few true silver producers:“Silver has outperformed gold by a large margin in the eight previous bull markets.When it is silvers time,it shines brighter and moves higher and faster than gold

205、,”he emphasized.Silver Mountain Resources is a more recent entrant into the Peruvian exploration segment,capitalizing on silvers fundamen-tals.Since going public in 2021,the company has been focused on rehabilitating the Reliquias mine in the Castrovirreyna district,with over 35,000 m drilled.“It wi

206、ll be an underground mine,and we are in the first phase of a two-stage strategy to revive Reliquias and commence operations at the Caudalosa plant,where we aim to achieve a daily production of 2,000 t,”commented lvaro Espi-noza,CEO of the company.The Spanish saying“Vine buscando cobre y encontr oro”

207、translates to“I came looking for copper and found gold.”While Aftermath Silver was searching for copper and silver in its Beren-guela project,it did not come across gold;instead,it discovered manganese.Ralph Rushton(president and CEO)and Mike Parker(CEO)explained to GBR that the potential for recove

208、ring silver and copper from Berenguela has been widely recognized for the past two decades.Thus,in the last months,the company has shifted its attention intensely towards the manganese side of the story.Their goal now is to produce high-purity manganese sulfate.They have successfully tested this pro

209、cess in a small-scale labo-ratory setting and are now looking to upscale it to the pilot plant level.“The goal is to develop the metallurgical flow sheet into a basic process design,enabling engineering work for cost estima-tion and preliminary project economics.We aim to achieve this by the fourth

210、quarter of this year,although industry uncertainties make setting precise dates challenging,”commented Rushton.During discussions on the significance of manganese in todays era,particularly in the context of the electric vehicle(EV)transi-tion and increased demand,alongside Perus potential in copper

211、 and lithium production from the previously mentioned Falchani project,Parker emphasized the strategic importance of produc-ing manganese sulfate.Doing so could establish Berenguela as a critical player in the global manganese sulfate market outside of Asia and further solidify Perus pivotal role in

212、 the industry.“The nexus between Perus manganese production and lithium projects could pave the way for a focused battery industry.Such a development would be highly beneficial,aligning with Perus strategic position in the battery metals market and contributing to the countrys economic growth,”concl

213、uded Parker.Battery-grade lithium products will be produced onsite at Falchani without the need for beneficiation overseas and reducing reliance on China for processing.The nexus between Perus manganeseproduction and lithium projects could pave the way for a focused battery industry.Such a developme

214、nt would be highly beneficial,aligning with Perusstrategic position in the battery metals market and contributing to the economic growth.Simon Clarke,CEO,American Lithium2120PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlob

215、al Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONMiners must now anticipate and plan for the increasing influence of climate-related events on their daily productivity and the health and safety of their work-force.In this context,consultancies and engineering firms are valuable allies for min

216、ing companies.When addressing the implications of climate change and the El Nio phenomenon,Guillermo Barreda,the general manager of Knight Pisold Peru,emphasized that relying solely on reactive measures is not enough:“In northern projects,it is crucial to factor in the impact of the El Nio phenomeno

217、n.This phenomenon,unique to this region,leads to excess water,a factor that all mining projects must incorporate into their planning.Addressing the El Nio ef-fects should be a priority from the proj-ects outset”.Considering the potential negative im-pacts on production,mining companies cannot afford

218、 to postpone addressing the effects of climate change on their opera-tions.As highlighted by Barreda,the chal-lenge lies in the industrys recognition that the environmental aspect of operations goes beyond permit acquisition.A com-prehensive risk assessment is necessary,along with the implementation

219、 of actions supported by the development of corre-sponding models and designs.“Instead of reactive measures,like determining the lo-cation of the main mine infrastructure,it is Focused on thefuture of miningMinings future will look very different from what we see today.We combine our mining experien

220、ce with our expertise across digital,sustainability and new energyto help our customers find the most economic solutions to reduce CO2emissions while unlocking new supply.advisable to adopt preventive solutions,”Barreda concluded.Comprehensive risk assessments and forward-thinking strategies are par

221、a-mount,requiring the integration of a ho-listic vision.WSP has been working on this through its Future Ready Program,a meth-odology that analyzes diverse trends and variables like climate change,society,and technology,emphasizing their impact on projects.“Our focus extends beyond green energies to

222、include aspects like construc-tability,the complete lifecycle of assets,closure plans,and mining infrastructure,ensuring a holistic and sustainable vision,”commented Gonzalo Covarrubias,man-aging director for Peru and Mexico of WSP.Crusade for water stewardship While northern Peruvian mining opera-t

223、ions may have to cope with challenges related to excess water,climate change is also expected to cause droughts.In January 2024,the Centro Nacional de Estimacin,Prevencin y Reduccin del Riesgo de Desastres(CENEPRED)identi-fied 277 districts at very high risk of water stress.Notably,most of these dis

224、tricts are key hubs for mineral production in Peru.Considering a less optimistic future for water,mining companies are actively reduc-ing water consumption,particularly in tail-ings,by shifting from traditional methods to drier alternatives to achieve enhanced risk management and decreased water usa

225、ge.Additionally,companies worldwide are aligning with the Global Industry Standard on Tailings Management(GISTM),intro-duced in 2020,and following recommenda-tions from the Canadian Dam Association.Maria de Lourdes Bahia,the minerals&metals VP for Latin America at AtkinsRalis,noted that following di

226、sasters worldwide,the awareness regarding the impacts of tail-ings on the environment and society has increased,and involves focused attention and innovative solutions:“Stringent legisla-tion now focuses on concerns about water contamination and community welfare,leading to a global reevaluation of

227、tailings management practices,”she commented.AtkinsRalis is researching the applica-tion of“geotubes”,a technology in which tailings are contained within geotextile tubes,allowing water to drain out and re-sulting in drier tailings suitable for stacking.Mining companies must find a delicate equilibr

228、ium between profitability and maintaining impeccable environmental standards.This balance is essential for fostering positive relationships with local communities and ensuring access to capi-tal allocation.Gustavo Bravo,the mining director for Latin America and the Caribbean-WSP,highlighted that tec

229、hnological advance-ments have made new solutions more cost-effective and explained that WSP is introducing Hydraulic Dewatered Stacking(HDS)for tailings disposal,a technology that efficiently reduces water content by layering tailings and naturally generated sands in mining.“Beyond addressing res-er

230、voir volume reduction,this technology Engineering,Consultancies and Contractors Adapting to climate change positively impacts capital costs by lever-aging existing mine material:sand.This approach provides a notable economic advantage compared to conventional tech-nologies like press filters,”explai

231、ned Bravo.While many companies focus on maxi-mizing space and minimizing tailings dis-posal,others take a different approach by exploring reprocessing methods to extract minerals.GEMIN Associates is one such company.Marco Zavala,the general man-ager,revealed to GBR that they are collabo-rating with

232、Sierra Sun to develop new meth-ods for reprocessing the tailings of Sumaq Rumi:“The initial process involves rigorous agitation and cleaning equipment,followed by chemical agents for mineral recovery and flotation or gravity-based equipment for mineral separation,”he explained.On another note,but al

233、so related to water,scar Navas,the business devel-opment director of the Andean Region at Techint Engineering&Construction,mentioned the possibility of Peru follow-ing Chiles example in the use of desali-nated seawater and pumping systems for mining projects in mountainous regions.“While the CapEx i

234、ncreases,the value lies in social and community engagement,en-abling projects to progress.This embodies the concept of ESG applied to these initia-tives.Rather than viewing it as an add-on,we should consider it an integral part of the business,”said Navas.When will all these changes take place?The m

235、ining industry,on a broader scale,seems resistant to change.“The culture in the mining industry can be characterized by the phrase“I want to be first to be sec-ond.”The industry tends to avoid risk and remains somewhat resistant to unproven initiatives,”commented Paul Murphy,Min-ing Plus South Ameri

236、can office manager.Murphy noted,however,that this trend is gradually changing,and mining com-panies exhibit a growing appetite for re-search and development:“In some cases,there are signs of a more flexible contracts and procurement process that accom-modates innovators who may not align perfectly w

237、ith traditional procurement re-quirements,”he said.2322PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONAbove-expectation metal prices predict a promising year.However

238、,challenges are expected in talent attraction and retention,as well as in developing new technologies for maximum positive impact on our clients.Assessing air quality in the early stages,even before project development,is crucial for preventing pollution.Computational modeling can suggest adjustment

239、s to construction planning,minimizing environmental impacts.Guillermo Barreda,General Manager,Knight Pisold PeruGustavo Bravo,Mining Director Latin America and the Caribbean;Gonzalo Covarrubias,Managing Director Peru&Mexico,WSPWhile new solutions may offer cost-social-effective benefits in the long

240、term,and there is an increasing appetite for re-search and development,are there specific barriers to over-come by the entire industry?At least in tailings management,Alberto Coya,Stantecs country manager for Peru and regional lead for Latin America,highlighted that there is still a techno-logical g

241、ap to bridge:“The current production rates of dry tail-ings do not meet the treatment volumes required for a large mine in Peru or globally.The systems still operate at smaller scales than mines generating wet tailings due to space,tech-nology,and energy demand,making them economically unvi-able yet

242、.”Harnessing technology for safety In Peru,a significant portion of mineral extraction is mined through open-pit operations.However,there is an imminent transition to-wards underground mining,primarily driven by two key factors:declining ore grades and the environmental impact of open-pit operations

243、.Society is increasingly scrutinizing mining activities,prompting a shift towards less invasive mining practices.For ex-Our goal is to automate data collection to better understand equipment performance and optimize its operation.This data gathering will allow us to develop metrics and analyze data

244、to improve productivity and safety standards.Guillermo San Miguel,CEO,AESAWe are launching an open innovation program,allowing participants in the mining industry worldwide to collaborate with us to address safety and productivity gaps in the industry through technology.Eduardo Cossio,CEO,INCIMMETOu

245、r action plans include regular training,enhancements to PPEs and technological advancements,like anti-drowsiness and anti-fatigue systems in our dump trucks and equipment.These measures enhance our safety controls and ensure an optimal level of operational alertness.Luis Flores,General Manager,MurDa

246、ta-Driven Contractors:Transforming SafetyGBGCample,Antamina,the leading silver and zinc producer and the second-largest copper producer in Peru,is poised to transition to underground mining in 2031,start production in 2036,and reach full capacity by 2039.On the other hand,current underground op-erat

247、ions are going deeper;for instance,the case of Sierra Metals Yauricocha mine,which now plans to mine below the 1120 level.AESA,a Peruvian underground contractor,achieved a 15%rev-enue growth in 2023 compared to 2022 despite the intense com-petition in the segment.Guillermo San Miguel,AESAs new CEO,a

248、ttributes this success to the companys close relationships with its clients,which enabled it to renew its contract with Chungar for another four years in July 2023.When asked about the value of automation,San Miguel re-sponded that while they are currently observing trends in this area,including rem

249、ote operations,their primary focus is on au-tomating the management of data generated by mining equip-ment:“Our goal,in the near future,is to automate data collection to better understand equipment performance and optimize its operation.Once this process is established,we can identify im-provement o

250、pportunities and develop business cases with our clients,”concluded San Miguel.Another established underground contractor is INCIMMET.Eduardo Cossio,INCIMMETs CEO,informed GBR that in February 2023,it closed another contract to provide Compaa Minera Rau-ra with comprehensive services for Cemented Ro

251、ck Fill(CRF).Re-garding safety,INCIMMET has won an acceleration process for the FreeRocks technology in Chile:“FreeRocks is a system that utilizes a drone,a thermal camera,and an advanced intelligent algorithm to predict and prevent rockfalls in underground mines.Our tech-2524PRE-RELEASE II|PERU MIN

252、ING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONAt Trafiguras Catalina Huanca mine,weidentified the opportunity to recover up to 2%of the mineral from the tailings.We could help accomplish

253、this by enhancing comminution with a higher capacity mill,to process ultrafine particles more effectively.Jordan Barja,General Manager,ByV IESEMINnological developments,made in-house,are in the process of obtaining patents to make them available to the entire industry across various countries,”said

254、Cossio.JRC is another underground contractor that has established ties with a Chilean technology development firm to lever-age technological disruptions within the mining industry.By integrating innova-tive technologies into its operations,JRC seeks to persuade clients to centralize or streamline th

255、eir processes under a single contractor:“Every company must seek out unique differentiators to stay ahead in todays competitive landscape,and tech-nology has become indispensable,”com-mented Manuel Ruiz-Conejo,executive president,JRC Ingeniera y Construccin.Raise boring As the low-hanging fruit for

256、open-pit op-erations and“not-so-deep”underground mines become depleted,a growing re-quirement exists to enhance technologi-cal adoption in the underground mining segment.Furthermore,these challenges are exacerbated by the current escalating costs within the industry.In this context,Belisario Tijero,

257、Perus general manager at Master Drilling,com-mented that automation is the elixir to the above-mentioned challenges:“Elevating automation levels is not just about techno-logical advancement;it is a proactive mea-sure to improve reliability and efficiency,providing robust support to cope with mar-ket

258、 fluctuations,”he explained.In 2023,Master Drilling Peru introduced the LP 200,which utilizes the blind hole drilling method,capable of creating vertical ascending holes of 1.5 m in diameter:“The optimized layout of the LP 200 requires less mine infrastructure,resulting in reduced ex-penses for the

259、mine in terms of the space it allocates.In every aspect,it contributes to minimizing costs for the mine,”he added.For his part,Marc Blattner,CEO of Tumi Raise Boring,a company that transitioned from mere contractors to manufacturers of raise boring mining equipment,agrees with Tijero in the sense th

260、at there is no added value in automation just for the sake of technology development:“If these in-novations fail to translate into drilling more meters,they serve no practical purpose despite their sophistication,”he cautioned.We are evaluating projects requiring substantial investments.Should there

261、 be a demand for open-pit mining equipment,such as large trucks and machinery,we have the financial strength to make such acquisitions.What does Peru have to offer?Peru is a mature mining jurisdiction,boasting mines with years of operational history and a diverse array of local contractors capa-ble

262、of servicing large-scale projects such as Quellaveco,Las Bam-bas,Antamina,and Minsur.With few greenfield projects on the horizon,one might wonder why a company would establish itself in Peru.However,despite the competitiveness of the local mar-ket,a few companies still see potential in the Andean co

263、untry.Construplan,a Mexican contractor,placed its bet on Peru:“Construplan has made a long-term commitment to Peru,as re-Rafael Ros,Country Manager,Construplanflected by our investment in our Peruvian branch.This commit-ment remains steadfast regardless of macroeconomic and politi-cal situations som

264、ewhat beyond our control,”commented Rafael Ros,Construplans country manager.The company secured its first contract in Peru in 2023 with Nexa Resources El Porvenir mining unit.Furthermore,Constru-plan obtained a contract for a 1.5 km crest channel in Atacocha as part of Nexas Integracin Project,which

265、 integrates both opera-tions into one cohesive initiative.It proved the right call to bet on Peru,considering Construplans specialization in open-pit min-2726PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Repo

266、rts|PERU MINING 2024 PRE-RELEASE EDITION+51(1)630-6222/0800-00560+51 982504661 years building trust,growing together Mining Equipment and Technology Going from“greener”to greenThe Peruvian mining industry boasts a diverse range of local and international OEMs in the equipment segment.These OEMs,from

267、 smaller firms with regional footprints to multinational cor-porations,have been actively developing new technologies that align with global trends such as automation and electrification.2023 proved to be transformative for the leading OEMs in Peru.With Alfredo Bertrand appointed the new general man

268、ager of the Andean region,Epiroc entered a period of reassessment:“Upon returning to Peru,I encountered a mining sector amid modern-ization,with a growing demand for cutting-edge equipment.Several mines are contemplating the automation of their hauling fleets.If this transition is successful,the pot

269、ential for suppliers like us will double overnight,”he said.Automation not only enhances safety but also has the poten-tial to broaden access to the female talent pool.In Peru,females currently represent only 7.1%of the mining workforce.“Geotec and Las Bambas announced the creation of the first all-

270、female drilling team,made possible by Epirocs equipment.Several ex-ploration companies want to introduce new automated equip-ment to form female work teams,”commented Bertrand.On the other hand,battery-powered equipment is a hot topic,primarily due to its notable benefits in energy efficiency and im

271、-proving workers health conditions,particularly in underground operations.McKinsey&Company suggests that mining compa-nies could reduce their energy costs by at least 40%by adopting electric vehicles and equipment.However,Sandviks general manager,Armando Sugobono,noted that no Peruvian clients have

272、adopted Sandviks bat-tery-powered equipment.The smaller size of underground mines in Peru,around is cited as a critical factor:“There are only two mines in Peru Cerro Lindo and El Brocal that can fit this size of equipment.Sandvik is working to complement its technology and battery-powered equipment

273、 portfolio across the entire size range and market,but it is a gradual pro-cess,”he explained.Like Epiroc,in 2023,Komatsu-Mitsui Maquinarias del Per(KMMP)underwent a leadership change,with Julio Molina ap-pointed the new CEO.The company achieved notable sales of US$650 million,attributing a portion

274、to a substantial contract with Antamina.Under this multi-million-dollar,year-long agree-ment,KMMP will supply 20 Komatsu 980E-5SE trucks with Cum-mins QSK95 engines.The initial order of 10 trucks will be deliv-ered in Q1 2024,with the remaining eight scheduled for delivery in the second half of 2024

275、.Molina noted that brownfield projects drive demand,focus-ing on the energy transition,fleet automation,and digitalization:“The energy transition and mineral demand drive brownfield expansions.Key clients such as Cerro Verde,Southern Peru,and Las Bambas focus on increasing production and exploring n

276、ew technologies.The current mining landscape is defining its future,addressing decarbonization goals,and meeting the global aim of carbon neutrality by 2050,”concluded Molina.When GBR met with Erick Ruiz,Cummins Perus general man-ager,he commented that while the new QSK95 engines(like the ones used

277、by KMPP in Antaminas order)count now with the Conversations once centered around production and costs now encompass energy transition,fleet automation and digitization,highlighting significant challenges for the Peruvian and global mining industry.Julio Molina,CEO,Komatsu-Mitsui Maquinarias del Peri

278、ng.In February 2024,Mexican President Andrs Manuel Lpez Obrador introduced a series of constitutional reforms to the parliament,including a proposal to amend Article 27 to prohibit open-pit mining.In 2022,Milicic,an Argentinian contractor,ventured into Peru.Mara de los ngeles Milicic,the companys ge

279、neral manager,told GBR that Milicic engaged in its first contract in Peru with the Be-salco-Stracon consortium and the Authority for Reconstruction with Changes(ARCC).The contract is aimed to execute public works and fortify infrastructure against the impact of El Nio-induced weather anomalies.Mara

280、de los ngeles emphasized:“We aim to bolster our presence in Peru and prepare for forth-coming projects.Some of these may not be immediately execut-able but hold promise for the medium term,including greenfield projects requiring significant capabilities.This journey has been enlightening,revealing a

281、 more mature and developed market than its Argentine counterpart.The insights gained serve our Pe-ruvian operations and enrich our approach in Argentina,leverag-ing differences to enhance efficiency.”Milicics statement raises questions about what Peru has to offer.Undoubtedly,every company seeks gro

282、wth through new bids and contracts.However,what if companies could harness the maturity of the Peruvian market to enhance their capabilities back home?Consider,for example,the statement from Rafael Ros,Construplans country manager,regarding safety:“Safety legislation in Mexico may not be as stringen

283、t as in Peru.”Indeed,Perus pipeline of projects presents opportunities for contractors to expand their portfolios and expertise and acquire valuable knowledge and skills that can be applied globally.Local players focus on communities and diversification Julio Cesar,general manager of JCI Ingeniera&S

284、ervicios Ambi-entales,highlighted the importance of fostering positive relation-ships between operators and local communities.This is particu-larly crucial,considering Perus experience of social disruptions.“Communities often see mines as an employment opportunity,while others face tensions due to c

285、ontentious relationships driv-en by environmental concerns.It is crucial to balance the inter-ests of communities and the needs of mining operations,closely involving communities in control processes and transparently disclosing environmental results,”explained Cesar.Luis Flores,the general manager

286、at MUR,a Peruvian contractor focused on open-pit operations,also acknowledged the substantial challenge in the industry concerning social responsibility.In response,MUR has implemented an outreach plan,integrating communities into its operations:“We strongly advocate for close collaboration between

287、mining companies and contractors as a pragmatic and streamlined method to foster positive relationships with local com-munities.Contractors are now recognized as vital stakeholders com-mitted to efficient operations and the sustainable development of impacted communities,”said Flores.Despite special

288、izing in open-pit mining,Flores does not rule out venturing underground.2928PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONA mine opting for an all-battery approach

289、must be prepared for the considerable expenses of employing battery-powered equipment.It must be an exceptionally rich mine with high grades that justify the elevated costs associated.James Valenzuela,CEO,ReseminModular Common Rail System(MCRS),Cummins is focusing on progressively upgrading the HPI

290、technology from the QSK60 and QSK78 engines with the MCRS:“The HPI technology operates via mechanical fuel injection,while the MCRS offers distinct advan-tages,including an extended engine lifespan of nearly 10%and reduced fuel consumption”he explained.Specializing in hydraulics,Bosch Rexroth recogn

291、ized a niche in electromobility with its eLION portfolio.General manager Kai Rothgiesser noted that Bosch Rexroth is collaborating with two Peruvian manufacturers on building two prototypes:“We remain hopeful of announcing the systems operation during Expomina if all plans proceed as expected,”he co

292、mmented.In 2023,Bosch Rexroth acquired HydraForce,a global manu-facturer of insertable cartridge valves.This acquisition enabled Bosch Rexroth to expand into a niche market where HydraForce previously lacked a national presence,a move that,according to Rothgiesser,is gaining momentum:“While mounted

293、valves are standard,the compact and insertable versions have generated significant interest across a broad market,”he concluded.Narrow veins,narrow market Resemin,a local OEM,exemplifies the maturity and innovation of the Peruvian mining industry,showcasing the countrys capacity to ex-port talent an

294、d technology.In 2023,Resemin expanded its horizons by exploring potential opportunities in Ankara,Turkey,to establish a manufacturing facility to produce equipment tailored for the African and Asian markets while maintaining Peru as a hub for the Ameri-cas:“A decision is anticipated in 2024,and if a

295、ffirmativegiven the required investmentwe plan to execute the project in 2025,”said James Valenzuela,Resemins CEO.“The challenge stems from being the“new kid on the block”in a well-established and conservative segment.Although we measure up,convincing customers about this particular product proves t

296、o be an uphill task,”he concluded.Luis del Solar,the general manager of Overprime Manufac-turing,another local manufacturer of narrow vein equipment,highlighted that major brands such as Epiroc or Sandvik often overlook this niche market because the demand for narrow vein equipment primarily concent

297、rates in specific regions like Peru,Bolivia,and certain mines in Mexico and Chile,resulting in lower overall demand than larger-scale mining equipment.However,Overprime faces tough competition in Peru,particularly from Chinese equipment manufacturers.“The Chinese often enter the market at considerab

298、ly lower prices,possibly through dumping practices Competing with them is challenging as their prices are typically one-third of ours,undermining fair competition.”Construction and Auxiliary Equipment During separate interviews,both Scanias managing director,Eronildo Barros,and Volvo Perus general m

299、anager,Jorge Masas,agreed that despite having electric alternative trucks in other Lat-in American countries,they could not introduce them in Peru due to operational parameters that do not align well with the condi-tions of Peruvian mining.In the meantime,both companies have been developing differen

300、t configurations,demonstrating their commitment to supporting the mining industry in Peru despite the limitations posed by current technology constraints.For instance,Scanias flagship truck is the Heavy Tipper,with 6X4,8X4,and 10X4 configurations:“This model stands out for its 20%higher payload capa

301、city than conventional ones.Among the options,the Heavy Tipper G540 8X4 leads to preferences due to its versatility,efficiency,and lower fuel consumption,making it the most sought-after choice.59%of our sales of this model are destined for mining,”commented Barros.For its part,Volvos growth in the m

302、ining sector was driven by the FMX Max:“Our FMX Max stands out as the heaviest mining dumper in our lineup,demonstrating exceptional performance and earning strong market recognition.The FMX Max,compared to the traditionally sold FMX,boasts an additional 6-ton load ca-pacity and is utilized by clien

303、ts with a 24m3 hopper instead of the standard 20m3,”added Masas.Lubricants for energy optimization While the transition toward BEVs in large-mining Peruvian opera-tions is still not feasible due to the operations geographical and altitudinal nature,many solutions fall between BEVs and tradi-tional d

304、iesel engines to reduce GHG emissions.“Well-lubricated equipment can profoundly impact energy efficiency,whether in terms of electricity or fuel.An adequately lubricated component consumes less energy,showcasing lubrications pivotal role in energy optimization,”commented Daniel Rochon,deputy gen-era

305、l manager at TotalEnergies Peru.Terpel,with ExxonMobil,developed the Mobil Delvac Modern line of lubricants,which is tailor-made for the Chilean and Peru-vian mining industry.According to Luciano Macas,general man-ager at Terpel Peru,with this line,there is no need for equipment downtime for oil cha

306、nges,extending working periods up to 1,000 hours:“The significant impact will manifest in three to four years as equipment engines,typically maxing out at 20,000 hours,will exceed 25,000 hours,”he claimed.Material handling and flotation Conveyors are crucial in carrying materials from the mine to th

307、e processing plant,and downtime can result in significant finan-cial losses.In this context,conveyor belt providers are focusing on preventive and predictive maintenance.Fernando Barrio,general manager of Tecnomina,commented:“Clients recognize investment in predictive solutions as an effective means

308、 to avoid unplanned shutdowns,shifting the focus from corrective to pre-dictive and preventive measures and anticipating potential is-sues in the medium and long term.”Tecnomina offers dynamic radiography for steel cable convey-or belts and electromagnetic scanning.Both methods eliminate the need fo

309、r traditional inspections with operators near the belt.While the second option is more economical,it provides slightly less detail.“Clients can choose the machine based on their bud-get and schedule the scanning frequency,whether periodically or twice a week,”explained Barrio.Roxana Burgos,the gener

310、al manager at Movitecnica,sees op-portunity in the industrys growing receptiveness to such tech-nologies.Although Movitecnica was initially renowned for its crane services,it has significantly expanded its presence in the conveyor belt segment over the past few years:“We have a pres-ence in most min

311、ing units,including large-scale and medium-scale mining operations.The conveyor belt business units repre-sent 35%of our business,and we represent top-tier brands such as Fenner-Dunlop and,more recently,Yokohama,”said Burgos.Unpredicted shutdowns are a mining companys worst night-mare,while energy c

312、onsumption poses another concern.Javier Schmal,Latin America vice president for Martin Engineering,ex-plained:“Material that escapes or adheres to the belt and begins to spill and stick to the idlers and pulleys results in increased energy consumption.Similarly,when chutes become filled with materia

313、l due to moisture or special characteristics,failure to pre-vent material buildup at the transfer point can also result in ex-cessive consumption,damage,or a plant shutdown.”After being transported via conveyor belts,the ore undergoes a milling process before the mineral is extracted using various r

314、e-covery methods to get the mineral.Companies want to optimize mineral recovery to extract every last milligram of minerals and reduce tailings as much as possible.For instance,Anglo American is constructing a Coarse Particle Recovery(CPR)plant at Quellaveco.This will allow the company to recover mo

315、re copper without additional water since it would be recycled from the same tailings.While CPR has garnered recognition for its efficacy,the flip side of this involves the intricate challenge posed by ultra-fine particles.Metso has been leading the way in this regard.One of the companys recent innov

316、ations is the Concorde Cell Technol-Several mines are contemplating the automation of their hauling fleets.If this transition is successful,the potential for suppliers like us will double overnight.We move materialsWe move the industryWe move Latin America years ofexperience+43services performed(in

317、the last 3 years)+4,000projects completed(in the last 3 years)+1,000 Stationary cranes Hoists and trolleys Conveyor belts Industrial and commercial Elevators Fishing ropes Technical serviceMOVITECNICAwww.movitecnica.cl+56 9 7760 0996The industrys growing receptiveness to technology mirrors a paradig

318、m driven by safety,efficiency,and smart decisions.Quick belt changes are crucialevery hour of plant shutdown can mean$50,000 in losses.Roxana Burgos,General Manager,MovitecnicaAlfredo Bertrand,General Manager Andean Region,EpirocBy optimizing equipment for faster loading,and moving larger volumes in

319、 less time,there is a notable reduction in energy consumption during the mining process.Daniel Bacigalupo,Managing Director Spanish Speaking Latin America,Weir ESCO3130PRE-RELEASE II|PERU MINING 2024PERU MINING 2024|PRE-RELEASE IIGlobal Business Reports|PERU MINING 2024 PRE-RELEASE EDITIONGlobal Bus

320、iness Reports|PERU MINING 2024 PRE-RELEASE EDITIONPeruvian drilling contractors demonstrated remarkable resilience throughout 2023.They actively embraced new technologies,ex-panded their equipment inventory,and dedicated resources to training new talent,all in anticipation of the new cycle in copper

321、 and gold.Such is the case of Explomin,where Boris Quimper,Explomins general manager,commented that the company observed a growing interest from companies eager to engage in exploration projects:“This shift does not involve the immediate initiation of greenfield projects but focuses on laying the gr

322、oundwork and foundation for potential future greenfield projects.”In anticipation of such a scenario,in Peru Explomin is set to in-vest more than US$6 million in 2024 in infrastructure and drilling equipment,surpassing the average investment of US$5 million in the last three years,added Quimper.MDH

323、was awarded a contract from First Quantum Minerals to conduct a 50,000 m drilling campaign at the La Granja greenfield project.Daniel Santa Mara,MDHs general manager,comment-ed:“2024 so far has seen significant growth in exploration activ-ity,presenting the challenge of securing sufficient equipment

324、 and personnel to meet increasing demand.With our entire fleet assigned to projects,we have acquired two new long-range rigs from Boart Longyear to reinforce our operational capacity.”Reflecting on the competitiveness of the Peruvian market,Santa Mara exposed that while material costs and salaries h

325、ave risen over the years,the prices of services have followed a con-trasting trend.This disconnect has resulted in a consistent ero-sion of profit margins.“Local competition in Peru is intense,with numerous medium-sized and large companies,which has led global players to withdraw from the Peruvian m

326、arket,”he added.While MDH focuses on large-scale mining,the same applies to smaller companies focusing on junior exploration.Edgardo Laura,Energold Drilling Perus general manager,echoed Santa Maras observations and emphasized the importance of maintaining low prices when working with junior companie

327、s.“Even a slight increase in costs per meter drilled could have a considerable impact on their operations.We work closely with juniors,negotiating prices and subsequent exploration phases,as drilling is divided into mul-tiple stages that require progressive financing,”he explained.Jorge Granda,COO o

328、f AK Drilling,a company whose drilling share is around 70%in brownfield exploration,expressed regret over the decline in junior greenfield exploration in Peru due to Photo courtesy of Explomin ogy,specifically designed for the flotation of fine particles:“Challenges arise with tiny clay minerals,suc

329、h as those measur-ing 5 microns,which are difficult to float without applying fine and ultra-fine flota-tion.This becomes particularly valuable in recovering minerals previously lost in tailings,potentially resulting in a 3-4%increase in production with significant economic value,”explained Fernando

330、 Sa-manez,VP and head of minerals sales in South America at Metso.Another strategy to enhance flotation efficiency involves implementing multiple flotation cells.This approach ensures effi-ciency and speed in the recovery process,facilitating almost instantaneous results.Jordan Barja,the general man

331、ager at ByV IESEMIN,noted that along with Minsurs San Rafael operation,they are currently conducting a feasibility study to install an SK-80 flotation cell:“This cell will allow for quick mineral recovery,eliminating the need to pass through multiple circuits and directing it straight to concentrati

332、on,”he concluded.Clients see predictive solutions as a smart investment,preventing unplanned shutdowns by focusing on anticipation rather than correction,and addressing issues before they escalate in the medium to long term.Fernando Barrio,General Manager,TecnominaDigital tools for wear parts and cu

333、s-tomized service plans Whether it is the shovels at the beginning of the process or the milling equipment at the end,all equipment requires durable wear parts to ensure an extended lifespan.In this segment,we find Weir ESCO,which is part of the global Weir Group.Daniel Bacigalupo,managing director Spanish speaking Latin America at Weir ESCO,ex-plained Motion Metrics,an AI system ap-plied to machi