Thus, the gross domestic product (GDP) fell 16.3% in March, 40.49% in April, 32.75% in May, 18.06% in June, 11.7% in July, 9.82% in August, 6.95% in September and 3.79% in October due to the current situation affecting our country.

Meanwhile, mining activity decreased 22.98% in March, 47.21% in April, 49.90 in May, 13.55% in June, 6.41% in July, 10.22% in August, 10.88% in September, 1.08% in October, according to information from the National Institute of Statistics and Information (INEI).

"In mid-December 2020, the Ministry of Energy and Mines (MINEM) predicted that the mining sector would close the year with a level of production close to that recorded before the onset of the coronavirus pandemic.

"The good news is that, for the first time this year, in October the production of copper was 207,000 tons, higher than what was reported in the same month last year," said the head of MINEM, Jaime Galvez.

Outlook 2021

For his part, the former Deputy Minister of Mines, Romulo Mucho, said that the prices of (most) metals have significantly improved in recent months and that this will contribute to the annual result.

“For next year, the good performance of mining production will be encouraged by the start of operations at Mina Justa and the expansion of Toromocho. These projects will contribute to the growth of mining in 2021", said Mr. Mucho.

According to the recent inflation report of the Central Reserve Bank (BCR), metal mining will register an improvement of 14.4% in 2021, explained by the normalization of mining production and the start of operations of Mina Justa and the expansion of Toromocho.

"In addition, the growth of the Chinese economy, which demands 53% of the world's copper production, will contribute to the progress of mining activity in 2021," said the specialist.

Similarly, according to the latest Inflation Report of the Central Reserve Bank (BCR), the Chinese economy would register a growth of 1.7% this 2020 and 8.1% in 2021.

On the other hand, the Minister of Energy and Mines maintained that the mining deposits would not stop their operations, in case confinement returns in case of an eventual resurgence of the COVID-19.

Meanwhile, mining activity decreased 22.98% in March, 47.21% in April, 49.90 in May, 13.55% in June, 6.41% in July, 10.22% in August, 10.88% in September, 1.08% in October, according to information from the National Institute of Statistics and Information (INEI).

"This considering that the companies that develop this productive activity have in place the respective biosafety protocols for their workers," said Galvez.

In this regard, Romulo Mucho, considered that the mining activity is well prepared to face an eventual new wave of coronavirus.

"For example, mining companies have invested in the expansion of their camps. So, in the spaces where before two people slept, now only one does, among other things," he said.

Mining Projects 2021

According to MINEM, next year, about seven mining projects will initiate construction works with a promised investment of US$ 3.577 billion.

The most important of this group is Yanacocha Sulfuros (Cajamarca), which will commit investments of US$ 2.1 billion.

Work is also expected to begin on the Corani (Puno) scientific project, which will require an investment of US$ 579 million.

Another important initiative is the San Gabriel gold project, located in the Moquegua region, which will require an investment of US$ 422 million, and finally the expansion in Ica of Minera Shouxing Peru, an iron producer, for US$ 140 million.

Sources: El Peruano