Peruvian mining investments totaled US$4 billion in the first seven months of this year, according to the National Mining, Oil and Energy Society (SNMPE).
The investments, which are a key driver of Peru’s economy, are largely due to spending at the Las Bambas copper project and an expansion at the Cerro Verde mine, both in southern Peru, the SNMPE told state news agency Andina.
The projects, which will help to double Peru’s copper production, are almost complete, raising questions about where future mining investments will come from.
The SNMPE estimates that mining investments will reach $7.5 billion this year, and in 2016 they will come in at $5 billion. Mining investments in Peru have reached approximately $10 billion in recent years, during the peak of the global commodities boom that saw an uptick in new projects.
Mining companies have been cutting down on expenditures, however, since demand from China has eased, sending copper, zinc and lead prices lower. This week’s financial crisis in China will make iron ore prices even more volatile.
Peru is a top global producer of minerals, which account for about 50% of the country’s total exports.