Mining production fell by 7% due to metal production and social conflicts

The Mineral Production Index fell 6.62% in May this year compared to what was recorded in the same month of 2021, the National Statistical and Informatics Institute (INEI) said.

According to the report, the drop was due to the low level of metal production, which fell by 10.69%, which affected the production of copper, zinc, silver, lead, gold and iron.

In terms of metal production, INEI reported that copper production decreased by 12.61%, zinc production by 17.94%, silver production by 11.11%, lead production by 15.89%, gold by 2. 01%, and iron – by 3.72%.

Why has mining production fallen?

According to INEI, the lower volume recorded in May 2022 was due to lower processing volumes at concentrators and lower grade ore processed, exacerbated by recurring cases.

Performance mining of metal in May 2022 reflects lower volume processed at concentrators and lower grade of ore processed, exacerbated by repetition and continuity social conflicts socio-ecological type.

These social conflicts were characterized by various acts of violence, such as the seizure of structures and blockades of roads by communities in the zones of influence of mining, mainly in different areas. Southern road corridor, including the Apurimac and Cusco regions., a road that is used to transport minerals, in addition to other regions of the country. According to the Report on Social Conflicts of the Office of the Ombudsman, in May 2022 there were 64 active conflicts related to mining activities, which is 4 cases more than in May 2021.

Companies most affected

At the company level, in activitiese metal mining Los Quenuales, Antamina, Minera Shouxin Peru, Sociedad Minera Corona and Nexa Resources Peru are showing sharp declines in zinc production; In copper production, the Southern Peru Copper Corporation, Minera Las Bambas, Minera Antapaccay, Los Quenuales and Pan American Silver Huarón posted declines; Silver production includes Buenaventura, Sociedad Minera El Brocal, Southern Peru Copper Corporation, Los Quenuales and Minera Chungar. On the other hand, among the metals with the highest cumulative production, molybdenum stands out due to growth in Cerro Verde and Minera Chinalco Peru; helped increase the production of tin by Minsur.

Subsector of hydrocarbons restored

Meanwhile, the hydrocarbon subsector recorded a cumulative expansion of 16.05% based on increases in exploitation levels of its constituent products, natural gas by 32.11%, liquefied natural gas by 9.33% and crude oil by 13.27%, with a total contribution of 2.18%. points.