INGEMMET CONTRIBUTES TO THE “MINING COUNTRY WITH GEOLOGICAL POTENTIAL” VARIABLE

The geological potential of Peru is based on its complex geological history. In this regard, it jointly with its unbeatable geographical location created a favorable context for the generation of more than one type of world-class deposit. For instance, elements like gold, base metals such as cooper and other commodities are all found there. This geological history is enhanced by a system, which allows open access to clear and updated geoscientific information. Besides, this data together with a safe, accessible and reliable mining cadastral geographic guide for people with a transparent policy on socio-environmental issues make our country an attractive place for mining investment.

Likewise, the Mining Competitiveness Indicator (ICM, its initials in Spanish) produced by Macroconsult, Philippi Prietocarrizosa, Ferrero DU & Uria law firm and a team of researchers put Peru in third place with respect to Geological Potential. The ICM is based on the following five topics: Geological Potential, Tax Policies, Infrastructure, Institutions and Regulation, and finally, the Social Environment.

Then, the ICM defines the Geological potential based on the following data:

- Production and reserves of the 10 main commodities (gold, copper, zinc, silver, lead, iron, aluminum (bauxite), coal, platinum, nickel and cobalt). Peru stands out in the first six elements.

- Years to exhaustion. It is based on the ratio between reserves and production that approximates the temporary sustainability of current production.

- Índice Fraser, herramienta cuyo objetivo es mostrar un ranking de nivel de atracción de inversión para los destinos mineros en función de la percepción de los principales actores del ámbito minero mundial, en la que Perú, Chile y México encabezan la lista.

- Fraser Index. This tool aims to show a ranking of the investment attraction level for mining destinations according to the perception of the main players in the world-mining sector. Peru, Chile and Mexico head the list.

- Investment in exploration. It was given by the world percentage of investment in exploration that each country invested, in accordance with the S&P Global Market Intelligence. In this context, Canada and Australia are the receiver countries with the highest percentage of exploration budget, doubling what they invested in countries like Peru and Chile.

Furthermore, Peru is the first gold producer in South America and the sixth one in the world with a production of 128.41 fine metric tons (TMF, its initials in Spanish) and gets second place in reserves worldwide with 2,456 TMF. Then, which concerns silver, Peru ranks second in production worldwide and first one in Latin America, in reserves with a production of 3,860 TMF and a reserve of 83,077 TMF silver. Next, in regards to copper, production was 2.46 million tons and its reserves reach 92 million tons. On one hand, Peru is placed second in production and reserves worldwide. On the other hand, the annual production of zinc for 2019 was 1.40 MTMF and reserves of 20 MTMF. All these facts made Peru reach second place in the world and first in Latin America, in production and also second place in reserves in Latin America.

Concerning exploration, INGEMMET main role is to administer the mining cadastre, to generate and to provide quality geoscientific information for the public, mining companies and national institutions. Thus, it aims to encourage mining investment in the country with transparency, promptness and legal security. To fulfill this, there are the System of Mining Rights and Cadastre (SIDEMCAT) and the GEOCATMIN platform for the processing and dissemination of geoscientific information.