Peru - Mining Equipment and Machinery Peru-Mining-Minerals
Peru’s mining industry has been an essential component of the country’s economic development. The mining industry accounts for 10 percent of Peru’s gross domestic product and 60% of its exports which make it Peru’s top export sector. The country is the world’s second largest producer of silver and copper and Latin America’s largest producer of gold. The country also boasts an large potential lithium resources.
According to Energy and Mines Ministry, Peru has 49 current mining projects worth a total of $58 billion in investment, including 3 major projects owned by US companies:
- Yanacocha: Newmont 51.35%; Minas Buenaventura 43.65%; International Finance Corp. 5%. Located in Cajamarca, Yanacocha in the largest gold mine in South America. Newmont, based in Denver, CO, anticipates completing a $250 million expansion project of its gold mining operations in 2019 and is in the permitting process for an additional $2.2 billion sulfide expansion to be completed in 2023.
- Cerro Verde: Freeport McMoRan (FCX) 53.56%; SMM Cerro Verde Netherlands B.V. (a subsidiary of Sumitomo Metal Mining Company Ltd.) 21%; Compañia de Minas Buenaventura S.A.A. 19.58%; and other shareholders whose shares are publicly traded on the Lima Stock Exchange 5.86%. Cerro Verde is a large copper mine in the south of Peru (Arequipa). FCX, based in Phoenix, Arizona, completed a $5.5 billion expansion in 2016.
- Miski Mayo: Mosaic 75%; Mitsui 25%. Minnesota-based Mosaic Co. owns the controlling share in the Miski Mayo phosphate mine in northwest Peru (Sechura, Piura).
Peru remains an attractive destination for mining investments, with large mineral and metal reserves, including major undiscovered deposits. Despite the social and political risks that are part of Latin America and recent downward trend in commodity prices (following higher levels registered in 2017), the positive outlook of 2018 has maintained investor confidence in the region. According to the National Society of Mining, Petroleum and Energy, the main investments in 2019 are focused in three projects: Quellaveco (investment of $5 billion), Mina Justa (investment of $1.6 billion) and Toromocho expansion (investment of $1.3 billion).
Peru offers mining investors significant commercial advantages and ample freedom to import machinery, equipment, and services that they require for their mining activities at a lower cost and with less bureaucratic requirements than ever before. Peruvian laws, regulations, and practices do not discriminate between national and foreign companies. The Peruvian government guarantees foreign investors legal stability on income tax regulations and dividend distributions. A favorable legal framework, readily available cadastral and geological information, and a stable economy have motivated foreign investment from the United States, Canada, the U.K., Australia, Mexico, Brazil, and China. The U.S. is the fifth largest investor in the mining sector. Over the past three years, U.S. Companies sold an average of $614 million annually in mining equipment to Peru.
We recommend that U.S. exporters of capital goods and potential investors entering the Peruvian market establish a local branch office or appoint a local representative, and legal counsel knowledgeable of the Peruvian market, mining sector legal framework, and Spanish language. If U.S. exporters of smaller goods prefer to work with local distributors, they should clarify the expertise and track records of those companies with whom they choose to work.
When selling mining equipment to Peru, it is important to offer post-sale services. Mining companies require assembly, maintenance, parts, and operational training.
2018 Import Market Share (% for U.S. and major competitors): US 24.1; China 18.4; Brazil 10.4; Germany 6.16; Japan 3.88.
| 2016 | 2017 | 2018 | 2019 estimated | |
| Total Local Production | n/a | n/a | n/a | n/a |
| Total Exports | 133.1 | 184.2 | 198.2 | 204.1 |
| Total Imports | 2,169.9 | 2,275.8 | 2,493.7 | 2,568.5 |
| Imports from the US | 626.2 | 552.4 | 601.9 | 620.0 |
| Total Market Size | 2,036.8 | 2,091.6 | 2,295.5 | 2,364.4 |
| Exchange Rates | 3.38 | 3.26 | 3.29 | 3.40 |
Total Market Size = (Total Local Production + Imports) - Exports
Source: Global Trade Atlas
Leading Sub-Sectors
The figures below represent each product’s share of Peru’s 2017 total imports in this sector.
| HTS Code | Description | % |
| 847490 | Parts Of Mach For Sorting Etc Earth Stone Ores Etc | 8.3 |
| 842952 | Mech Shovels Excavators Etc W 360 Degree Sprstruc | 8.0 |
| 870423 | Truck, Diesel Eng, Gvw > 20 Metric Tons | 6.8 |
| 842951 | Mech Front-End Shovel Loaders, Self-Propelled | 5.8 |
| 843149 | Parts And Attachments Nesoi For Derricks Etc. | 5.0 |
| 840999 | Spark-Ignition Reciprocating Int Com Pistn Eng Pts | 4.2 |
| 842199 | Filter/Purify Machine & Apparatus Parts | 3.3 |
| 842959 | Mech Shovels, Excavators And Shovel Loaders Nesoi | 3.1 |
| 841480 | Air/Gas Pumps, Compressors And Fans Etc, Nesoi | 2.9 |
| 842911 | Bulldozers And Angeldozers, Self-Prop, Track Lay | 2.9 |
| 870410 | Dumpers Designed For Off-Highway Use | 2.8 |
Perumin, 34th Mining Convention, September 16-20, 2019
Universidad Nacional de San Agustin, Arequipa
Organizer: Institute of Mining Engineers of Peru (IIMP)
U.S. Pavilion organizer: Kallman Worldwide, Inc.
ExpoMina Peru 2020, September 16-18, 2020
Jockey Exhibitions Center, Lima
Organizer: Grupo DIGAMMA
U.S. Pavilion organizer: Kallman Worldwide, Inc.
Web Resources
Sociedad Nacional de Minería, Petróleo y Energía - SNMPE
(National Mining, Oil, and Energy Society)
Francisco Graña 671, Magdalena del Mar. Lima 17
Tel.: (511) 215-9250
Energy and Mining Regulatory Agency – Osinergmin (Spanish)
(Supervising Agency for Investment in Energy and Mining)
Jr. Bernardo Monteagudo 222, Magdalena del Mar. Lima 17
Tel.: (511) 219-3410
Ministry of Energy and Mines (limited English content)
Av. Las Artes 260, San Borja. Lima 41
Tel.: (511) 411-1100
Instituto de Ingenieros de Minas del Peru - IIMP (Spanish)
Calle Los Canarios155, La Molina. Lima 12
Tel: (511) 313-4160
Environmental Assessment and Control Agency - OEFA (Spanish)
Prepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.