How are things with mining during the first semester?

The production of the mining and hydrocarbon sector in the first half of this year fell by 0.11%. although it posted a 2.99% recovery in June, according to National GDP Report from the National Informatics Institute (INEI).

According to the INEI report, June’s recovery was driven by favorable production of fuels such as natural gas, crude oil and natural gas liquids, after the entire represented sector fell for three consecutive months from March to May this year.

The hydrocarbon sector in June 2022 registered an increase of 14.19%.maintaining an upward trend for seven consecutive months, driven by an increase in natural gas production by 36.66%, crude oil by 17.75% and liquefied natural gas by 0.88%, with a total contribution of 2.0 percentage points to the overall result sectors. .

mining production

As of June, mining metals rose by 1.14% due to increased production of copper, molybdenum, iron and tin.

If a copper production increased by 7.99%, after a continuous decline in the previous four months, thanks to the contribution of Marcobre, which has been reporting production since July 2021, and the strong results of production operations in Antamina, Cerro Verde, Minera Chinalco Peru, Minera Shawsin Peru, Hoodbay Peru, Nexa Resources Peru and Gold Fields La Cima; however, Minera Las Bambas reported less volume.

Recall that this sub-sector has seen negative trends since February, as copper mining was halted due to social conflicts that affected the main mining companies.

As I remembered Mining company Las Bambas is the main producer of copper and after 50 days of paralysis pDue to the conflict with the peasant communities, she resumed her productive activities on June 11, having previously agreed with the population on the start of a dialogue process from the 15th of the same month.

Danger of social conflicts

On the other hand, social conflicts persist in areas of mining influence, according to the Report on Social Conflicts. Ombudsman, of 131 active and latent social and environmental conflicts registered in June 2022, 67.2% (88 cases) are conflicts related to mining6 cases more than in June 2021, which are concentrated in the departments of Cusco and Apurimac.

What was the price of minerals on the international market in June 2022?

According to INEI, there was a downward trend that began in May last year compared to the same month in 2021., with the exception of zinc (24.30%), which has been rising since November 2020, and the price of gold (0.01%), which recorded a slight increase after falling in the previous month. The price of copper (-5.63%) fell for the second month in a row, as did lead (-5.29%). In the same sense, the price of tin (-1.88%) has reversed its momentum after maintaining momentum since August 2020, while the price of silver (-20.15%) has been on a downward trend for seven consecutive months.