“Promoción y resurgimiento de las exploraciones mineras” M. Cardozo July 21, 2016
Jueves Minero Instituto de Ingenieros de Minas del Perú
Discussion topics • Global economic crisis
• Mining cycles and exploration • Anti-cyclical policies • Country risk
• Promotion of investment • Social and environmental issues vs. polical agendas • Financing • Ups and downs of Junior companies • Future, long-term developments
Mineral Production • Gold production decreasing. Extracted resources are not being replaced. Very few significant discoveries lately. • Silver will increase production levels if copper porphyries are developed. • Zinc and lead will continue increasing moderately. New projects required to accelerate development • Porphyry copper producers contribute significantly to Au, Ag and Mo production • Copper potential is one of the largest in the world • Copper developments are being delayed due to social and political issues. From 1.3Mt to 2.6Mt annual copper production is a great achievement. • Uncertainty increasing, can we really get up to 5 million tonnes of Cu production in the next 8-10 years? • Chile taking advantage: Long-term view and policy, sustained technical and commercial/market research • Peru + Chile could produce 57% (>13 tons) of world’s copper
Exploration Investment % of Worldwide Investment
4.9% 7.7% 4.9% 4.5% 5.0% 5.0% 7.0% 4.9% 4.2% 4.8% 4.5% 4.9%
6
1,200
1,025 1,000
Peru
800
6
600 400 200
6
5
6
4
5
293
257
6
720
570
3
5
588
591
7
757
683
Peru WW Ranking
7 559
Investment US$ Million
357
7
120
Position of Peru in the worldwide ranking
0 2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
25,000 21,500
20,000
18,158
Worldwide 15,000
12,100
11,330
10,000
Investment US$ Million
15,200
14,474
11,400
8,400
7,930 5,290
5,000
3,790 2,440
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: SNL Metals Economics Group, 2012
Mining & Exploration Challenges • Urgently adopt a long-term approach to the mining industry • Mining will still be for several decades a solid base for the economic development of the country • Guarantee the implementation of future copper producers in Peru • Increase investment in mineral exploration to expand reserves and resources and discovery of new deposits. • Promoting mineral exploration is essential to increase both metal production and long-term resources • Ensure that initial exploration projects can become mining operations • Both financial and technical incentives are required • Excessive social-environmental barriers have to be removed to allow the development of a modern, competitive, responsible and sustainable mining industry • Despite of the effort of the government and the MINEM to reduce unnecessary environmental bureaucracy, other environmental instances have not changed their anti-mining attitude.
Mining & Exploration Challenges • Companies, INGEMMET and academia urgently need to joint efforts for a sound scientific and technical development of the mining industry • Technical improvements are needed to promote exploration: – INGEMMET offers 1:100,000 and 1:50,000 scale regional maps covering the whole of the country and most of the territory is also covered by drainage geochemical sampling. – Regional geophysical surveys (magnetic and radiometric) are insufficient. – As exploration matures, the need to improve, innovate and implement new geophysical exploration methods will increase. – Radiometric age data is extensive, but still needs to be expanded. – Isotopic studies useful to distinguish most productive mineralized systems and to identify mineralization sources are still very limited. – Studies of magmatic arcs related to mineralized systems are insufficient.
Concepto Integral de Promoción
Atraer
$ $ $ S/.S/.S/.
Promoción agresiva Incentivos técnicos Exploracion local
Mejorar
Retener
Riesgo País
Muro de Contención
Marco jurídico Tributación Competitividad
Evitar fuga
Aceptable Mejorar “Benchmarking”
Integración Social Estabilidad Eliminar conflictos
Promoción de la Inversión en Minería
Congresos y Conferencias
• Promover al Perú como destino de Inversiones • Resaltar potencial minero • PDAC, ProExplo, Perumin • Otras
Información Geológica de Calidad • Foco de acción: INGEMMET, Base de Datos • Programas de cooperación • Transferencia de tecnología e información
Financiamiento de la exploración minera • Generar nueva dinámica de exploración complementaria pero independiente de empresas tradicionales • Promover la formación de empresas juniors • Promover la excelencia en el trabajo y reporte geológico
