Peru’s mining and logistics sectors may soon see a significant boost. Anglo American and DP World have shown interest in expanding their operations in the country. This news came from the Peruvian government after meetings at the World Economic Forum in Davos.
DP World, the Dubai-based port operator, is considering a $1 billion investment to expand Peru’s port infrastructure. This move could strengthen Peru’s position as a regional logistics hub and potentially increase its agro-exports.
Meanwhile, Anglo American aims to broaden its investment in the Quellaveco copper project. Quellaveco, which began commercial production in 2022, already produced 319,000 tonnes of copper in 2023.
This output represents more than 10% of Peru’s total copper production. Peru’s mining sector is a crucial economic driver, accounting for about 10% of GDP and over 60% of exports.
The country ranks as the world’s second-largest copper producer, contributing around 10% of global copper output. In 2023, Peru’s copper production hit a record high of 2.8 million tonnes, a 13% increase from the previous year.
This growth was largely due to Quellaveco’s ramp-up. However, production is expected to plateau in the coming years due to declining ore grades and a lack of new major projects.
Despite challenges such as social conflicts and regulatory hurdles, Peru‘s mining industry continues to attract significant foreign investment. In 2024, $3.8 billion was invested in the sector, primarily for concentrator plants and equipment.
The potential expansions by Anglo American and DP World signal ongoing confidence in Peru’s economic potential. These investments could bring substantial benefits to the country’s economy and local communities, reinforcing Peru’s position in the global mining and logistics landscapes.
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