Kurt Burneo: Mineral production will fall in 5-7 years without investment in exploration

booty in Peru, it could face a sharp drop in 7 years if there is no big investment, economy and finance minister Curt Burneo has warned.

During a presentation at the Congressional Commission on Energy and Mining, the head FEM He noted that if there is no progress in exploration, it will be difficult for us to think about any sustainability of mining activities in the future.

“If we manage to continue exploration, then, obviously, we will think about a number of fields that will be developed in the future. made investments in the exploration part,” the minister said.

Berneo argued that it was important to encourage investment in study “which is risky” because of the problems faced by the sector, which is 10.9% of GDP.

The head of the Ministry of Economy pointed out that Peru has lost its attractiveness for investment in recent years and that until the first seven months of the year, the level of production in the sector still did not exceed the pre-pandemic level.

In addition to this, the minister indicated that reserves levels are being depleted as proven reserves copper are 16 years, and zinc, gold and tin – from 4 to 5 years.

With this in mind, Burneo has supported a bill in Congress that seeks to extend until December 31, 2027, laws providing for the reimbursement of general sales tax (IGV) and municipal tax for the promotion of holders of mining activities during exploration.

“To the extent that, through a set of benefits or elements of promotion, other countries become much more effective economists in stimulating mineral exploration, we must take them into account (…) This follows the logic of maintaining the attractiveness of the place. for investment in these industries. We have lost competitiveness, we need to restore it,” he explained.

The Minister added that these measures reduce the cost of investments in exploration, which provides liquidity for the investor and reduces financial costs.