Peru Targets 1 Million Ton Copper Output Boost with Regulatory Cuts, Courting US and Chinese Miners

Peru plans to boost its annual copper production by approximately 1 million metric tons within the next five to six years by fast-tracking new mining projects, according to the country's Energy and Mines Minister. The new government is actively cutting regulations to attract investment from major international players, including firms from China and the United States, amid rising geopolitical competition for critical minerals.

Reversing Stagnation with Deregulation

Energy and Mines Minister Guillermo Shinno told Reuters that Peru, the world's third-largest copper producer, expects output to hold steady between 2.5 million and 2.7 million tons this year, a level similar to 2023. This stagnation is attributed to declining ore grades and persistent social conflicts.

To counter this, the new administration of President Keiko Fujimori is streamlining the permitting process. Shinno stated that the government has identified 27 of roughly 100 permits that could be eliminated to attract investment. "This is not about lowering environmental standards, but about being rigorous and very clear," the minister said. Copper projects represent about 70% of Peru's $64 billion mining project pipeline.

US and Chinese Firms Express Interest

The government's pro-investment stance has drawn significant interest from global mining giants. According to ministry records, officials have met with representatives from roughly 20 companies since taking office two months ago. These include:

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• Chinese firms: MMG (owner of Las Bambas), Chinalco, Shougang, and Jinzhao.
• US-based miners: Newmont and Freeport-McMoRan.
• Global majors: First Quantum, Barrick, Anglo American, and Glencore.

Specific projects are already moving forward. Minister Shinno noted that First Quantum is seeking to advance its $2.4 billion La Granja copper project, while Chinalco acquired the Los Calatos project in July, which is now undergoing environmental studies for a planned $655 million investment.

Geopolitical and Market Implications

The push for investment comes as Washington seeks to counter China's dominance in strategic mineral supply chains. The US and Peru signed a critical minerals cooperation agreement in February, a move Shinno hopes will encourage more American companies to invest. China is currently Peru's largest copper customer.

While the long-term outlook for new projects is improving, most of the approximately $7 billion in mining investment expected in 2026 is aimed at sustaining current operations or extending mine life, rather than adding significant new output. The government's new policies are therefore critical for unlocking the next phase of production growth in the country's vital copper sector.