Peru Clings To Copper No. 2 Spot But Investment Pipeline Stalls

• Peru is clinging to its spot as the world's No. 2 copper producer and supplier, with a bounce in mining activity helping the Andean country stay just ahead this year of rival producer Democratic Republic of Congo (DRC), which is hot on its heels.
• The South American nation has seen output of the red metal rise some 20% in the first half of 2023, government data show, though that's been tempered by red tape and flagging mining investment after a period of political turmoil and protest.
• Peru produced 2.45 million metric tons of copper in 2022. DRC copper output meanwhile, just behind Peru at 2.40 million metric tons last year climbed 3% in the first quarter, the latest central bank data show, keeping it a close third place. Chile remains by far the top global producer and exporter.
• The data suggest the DRC could soon topple Peru from its second spot, especially with mining investment in Peru estimated by authorities to drop 16% this year and 7% next year given that the absence of world-class projects has led to the nation being unable to attract new large investments.
• Additionally, Ivan Merino, former mining minister in the government of ousted former President Pedro Castillo in 2021, said the lack of "predictability" in Peru and regular protests was scaring away or delaying investment. "If you do not have social stability, the viability of projects is going to be difficult; not impossible, but difficult," he said.
• Gonzalo Tamayo, former Peruvian mining minister in 2016-2017, added that Peru needed to take action to spur new investment - or risk being overtaken by rival producers.

(Source: Reuters)