Peru Approves $2 Billion Expansion for Copper Mine Project

Peru's environmental regulatory authority has given the green light to Antamina, the largest copper-zinc mine in the country, for a substantial $2 billion (equivalent to 7.64 billion new sol) expansion. This pivotal move allows the mine, co-owned by industry giants Glencore, Teck Resources, BHP, and Mitsubishi, to extend its production operations from 2028 to 2036. The approval is granted through the Modification of the Environmental Impact Study (MEIA), empowering Antamina to make modifications to existing components, including the expansion of the open pit, and optimizing the mine's dumps and tailings dam.

Victor Gobitz, the Chief Executive of Antamina, expressed the significance of the MEIA as a milestone for both the company and the Peruvian mining industry. Gobitz emphasized that this approval broadens their operational horizon, enabling continued collaboration with authorities and local communities.

As part of the expansion plan, Antamina's open pit will be deepened by 150 meters, increasing the mine area by 25%. This strategic move allows for the extraction of up to 173,000 tonnes of ore per day, accompanied by a daily waste movement of approximately 742,000 tonnes. Notably, the primary ore crusher station will undergo an upgrade, with a new rock crusher replacing the existing setup. Furthermore, the dam storage capacity is set to increase from the current 1.1 billion tonnes to an impressive 1.57 billion tonnes.

This approval follows a recent meeting between representatives of Peru's major mining companies and the Minister of Energy and Mines, Oscar Vera. The discussions centered around a new digital initiative aimed at expediting the permitting process for mining projects. The mining sector plays a crucial role in Peru's economic landscape, contributing 8.5% to the country's gross domestic product (GDP). Copper and gold, as the most valuable mineral exports, are instrumental in sustaining Peru's mining industry.

Peru held the position of the world's second-largest producer of copper in 2022, with an expected compound annual growth rate of 6% in production between 2022 and 2026. While the mining sector continues to expand, Peru's overall economy has experienced substantial growth, recording a remarkable 13.6% GDP growth in 2021. Projections for 2023 anticipate a further growth of around 2.9%, indicating a robust economic performance.

However, the expansion of open-pit mining in Peru stands in contrast to the stance taken by Mexican President Andrés Manuel López Obrador, who has advocated for a ban on open-pit mining in Mexico due to environmental concerns. This divergence in approaches highlights the diverse perspectives and challenges within the South American region regarding mining practices and their environmental implications.