Peru's mining industry

Peru's mining industry contributes significantly to the country's economy (6.5% of the GDP). It is a major producer of gold (largest producer in Latin America), silver, tin, copper, lead and zinc. Peru's mineral production is based on the growth of its gold sector as well as expansion into hydrometallurgical projects.

Peru experienced a 3-.6% growth in GDP during 2003 with the value of all Peruvian exports increaseing by 11% to US$8.2 billiion. Amomng the most important news in 2003 was Barrick Gold's decision to start construction of the Alto Chicama gold project.In 2003 the value of Peru's mine production grew by 21% to US$5.6 billion as the output of most minerals increased. The biggest increases were recorded for cadmium (16%), zinc (12%), and gold (9%). The value of mining products exported during the year rose to US$4.25 billion. Together with oil export revenues, mining revenues made up 60% of the country's total export revenues.

Peru is embarking on a privatisation programme that has seen the piece meal privatisation of Peru's largest mining company, Empresa Minera del Centro del Perú S.A. (Centromin). Foreign investment in Peru has resulted in the development of several world class deposits, including Yanacocha and Pierina Gold Mines and the massive Antamina copper-zinc mine.To date Peru has experienced a 2,5% decline in copper production in 2005