INVESTMENT PROJECTS IN THE PERUVIAN MINING

Transcription

1 INVESTMENT PROJECTS IN THE PERUVIAN MINING ROMULO MUCHO Rio de Janeiro, October 21st, 2016

2 PERU'S GEOGRAPHIC INFORMATION

3 COUNTRY OVERVIEW

4 ECONOMIC GROWTH RATES Latinamerica projections: (Anual average variation %) GDP AND GDP PER CAPITA (PURCHASING POWER PARITY PPP) OF MAIN ECONOMIES OF LATIN AMERICA ( 2015 and 2020)

5 PERU'S ECONOMIC OVERVIEW

6 PEOPLE OVERVIEW

7 PERU: MINING EXPORTS (US$ million) EXPORT VALUE BY PRICE INCREASE VALUE OF EXPORTS AT CONSTANT PRICE 2004 Sources: BCR

8 PERU EXPORTS (US$ million) Source: BCRP

9 Source: BCRP PERUVIAN TRADE BALANCE, (Millions of US$)

10 MAIN ECONOMIC ACTIVITIES BY REGION

11 GDP BY INDUSTRY ANNUAL % CHANGE

12 GDP VARIATIONS

13 DEVALUATION AND INFLATION

14 COUNTRY RISK INDICATOR

15 PERU'S INVESTMENT GRADE RATING (Long term debt in Foreign Currency) Source: Bloomberg

16 FOREING INVESTMENT BY INDUSTRY (2015) Source: Proinversion

17 DIRECT FOREIGN INVESTMENT FLOW (MILLIONS OF US$) Source: BCRP

18 MACROECONOMIC INDICATORS FOR NEW GOVERNMENT GDP

19 WHY INVEST IN PERU?

20 MACROECONOMIC SOUNDNESS and continues leading regional growth allowing the GDP per capita to exceed the global average by 2020

21 MACROECONOMIC SOUNDNESS Peruvian economy grew rapidly in the last decade

22 DOING BUSINESS (Presenting Latin America countries FORBES (Presenting Latin America countries)

23 MACROECONOMIC SOUNDNESS Economic growth has been driven by an increase in private investment

24 MACROECONOMIC SOUNDNESS which today represents almost 20% of GDP

25 FRIENDLY INVESTMENT ENVIRONMENT Peru offers a favorable legal framework for foreign investment:

26 FRIENDLY INVESTMENT ENVIRONMENT Special Regimes: Legal Stability Agreements Regime whereby the Peruvian Government guarantees:

27 MINING SECTOR

28 MINING PRODUCTION Copper Gold Silver Lead Zinc Molybdenum Tin Iron

29 ESTIMATED GLOBAL NONFERROUS EXPLORATION BUGDET TOTALS, Estimated Exploration Total Nonferrous Exploration Budget Total SNL Annual Indexed Metals Price 24 4,0 Nonferrous Exploration Budget (US$B) ,5 3,0 2,5 US$8.8bn in ,0 1,5 1,0 0,5 Indexed Metals Price (1996=1) ,0 Source: SNL Metals & Mining, information as of end-april 2016.

30 Source: MINEM PERU S MINING EXPLORATION EXPENDITURE

31 Source: MINEM MINING INVESTMENT (US$millions)

32 EVOLUTION OF MINING INVESTMENT

33 MINING INVESTORS BY COUNTRY PAIS INVERSIONISTA INVERSIÓN MILLONES US$ PARTICIPACIÓN China 19,189 34% Canada 8,937 16% EE.UU. 5,335 9% EE.UU. / PERU 4,800 8% Mexico 4,160 7% PERU 3,775 7% UK 3,300 6% Australia 3,135 6% Brazil 2,034 4% UK / Australia 1,000 2% PERU / Korea / Japan 744 1% Japan 490 1% TOTAL 56, % Source: MINEM

34 MINING INVESTMENT PORTFOLIO 2015 PROJECTS STAGE US$ Million % Expansion 9, % Construction 23, % EIS % Production 22, % Total Investment 56, % Source: MINEM

35 TIPO DE INVERSION STAGE MINING PROJECTS SELECTED EMPRESA / INVERSIONISTA PROYECTO / REGIÓN METAL AÑO PRODUCCIÓN INVERSIÓN (US$ MM) Expansion In construction Soc. Min. CERRO VERDE (EEUU) Cerro Verde/ Arequipa Cu ,200 Expansion In construction Shougang Corporation (China) Marcona / Ica Fe ,480 Expansion EIS (approved) Southern Perú Copper (México) Toquepala / Tacna Cu ,200 Expansion Studies Minera Chinalco (China) Toromocho / Junin Cu ,320 Production In construction Xstrata Las Bambas ( Suiza) Las Bambas / Apurímac Cu ,500 Production In construction Hochschild Mining ( Perú) Inmaculada/ Ayacucho Au-Ag Production EIS (approved) Cía. de Minas Buenaventura (Perú) Tambomayo/ Arequipa Au-Ag Production EIS (approved) Tahoe Resources ( Canadá) Shahuindo / Cajamarca Au Production EIS (approved) Anglo American ( UK) Quellaveco/ Moquegua Cu n.d 3,300 Production EIS (approved) Jinzhao (China) Pampa de Pongo/ Arequipa Fe n.d 1,500 Production EIS (approved) Southern Perú Copper ( México) Tía María / Arequipa Cu n.d 1,400 Production EIS (approved) Cía. Minera Milpo ( Brasil) Pukaqaqa/ Huancavelica Cu n.d 706 Production EIS (approved) Bear Creek ( Canadá) Corani / Cusco Ag n.d 574 Production EIS (approved) IRL Minera ( Canadá) Ollachea / Puno Au n.d 178 Source: MINEM

36 COPPER CONTINUES TO SEE LONGER TERM PRICE SUPPORT Source: Wood Mackenzie

37 RELATIONSHIP BETWEEN METAL PRICES WITH PERUVIAN ECONOMY Source: COMEX / BCR

38 MAIN DIFFICULTIES THAT FACES THE PERUVIAN MINING INDUSTRY External Factors: Dropping of the international metal prices and changes in the demand and supply. Internal Factors: Government does not explain the benefits of the Mining Industry to the communities Lack of environmental regulations in the past which has contributed to present mining environmental liabilities Lack of information by the local population regarding the water use and consumption Uncontrolled wish of the communities to get larger economic benefits from the mining activities Mistrust of the communities in the mining companies. Government offices are too slow and bureaucratic

39 RELATIVE IMPORTANCE OF THE FACTORS THAT CONTRIBUTE TO THE COMPETITIVENESS OF THE PERUVIAN MINING INDUSTRY PwC

40 THANKS