Peru is mineral-rich and the country ranks number one in silver production, number two in zinc, three in copper, four in lead, and six in gold. Exports of minerals represent a significant amount of the export revenue for the country. In 2009, these exports accounted for 61 percent of Peru’s export revenue. During that year, copper production in the country was 1,260,000 metric tons.
Though many minerals exist within its boundaries, getting to them is not easy. The central Andes, characterized by high relief and elevation, is home to several of the richest deposits. While it is relatively easy to mine the minerals on an artisanal scale, it is another story for full-scale operations, requiring advanced mining equipment and techniques. Miners are currently using these to identify new resources, resulting in a large amount of exploration and development.
Current government supports mining and foreign investment. Since 1993, over 250 “Stability and Guarantee” contracts have been signed. Ninety percent of the governmental mining assets were privatized by 2001. Though this was not always the case, the government now has a limited role in overseeing the Peruvian mining industry.
Antamina is one of the largest copper producers in the country. Based on operating volume, it is one of the ten largest mines on the planet. A July 2008 estimate placed minable reserves at 745 million tons, 1.06 percent of which was copper. Antamina operates all day, every day and removes an average of 430,000 tons of material daily. In January 2010, a 16-year lifespan was reported for the mine.
An initial $2.3 billion investment and $1.2 billion invested in operational expansion make investment in Antamina the highest in Peruvian mining history. The incorporated company is called Compania Minera Antamina SA. It is a joint venture between the four worldwide mining leaders Xstrata, Mitsubishi Corporation, Teck Resources, and BHP Billiton.
