Chinese, US firms line up for Peru copper projects as government cuts red tape
FCX•Peru expects to add about 1 million metric tons of annual copper output within five to six years, while 20 mining companies have approached the new administration. The government has identified 27 permits that could be eliminated and expects output of 2.5 million to 2.7 million tons this year.
1. Output expansion target
Peru aims to add about 1 million metric tons of annual copper production within five to six years through new projects, Energy and Mines Minister Guillermo Shinno said. Output is expected to remain between 2.5 million and 2.7 million tons this year, roughly unchanged from 2023, as ore grades decline and social conflicts recur.
2. Permit changes proposed
The government is seeking to reduce roughly 100 mining-sector permitting requirements and has identified 27 permits that could be eliminated, Shinno said. He said the changes would not lower environmental standards. About 70% of Peru’s $64 billion mining project pipeline is tied to copper, and most of the roughly $7 billion in mining investment expected in 2026 is aimed at sustaining or extending existing operations.
3. Companies eye projects
Around 20 companies have met with the administration since it took office, including Chinese firms and US miners Newmont and Freeport-McMoRan. Shinno said First Quantum wants to advance its La Granja project, for which the government estimates $2.4 billion in investment; it estimates $655 million for Chinalco’s Los Calatos project. The US and Peru signed a critical minerals cooperation agreement in February.
