Peru is still on the radar of mining investors, including those involved in exploration, an activity considered high risk due to the uncertainty of results.

In view of this, for the director and general manager of Global Business Reports (GBR), Alfonso Tejerina, the country must overcome a series of challenges to guarantee the continuity of capital inflows.

The first challenge, he said, is the permits that have multiplied exponentially and have delayed the time of activities for the companies.

"Without the permits, this lack of activity has ended up affecting the share prices of junior companies, which have found it difficult to obtain funds. This causes a paralysis that is difficult to maintain", he said.

Similarly, Alfonso Tejerina pointed out that the political instability that Peru has experienced in recent years, which has forced five ministers to head the Ministry of Energy and Mines in just five months, has affected the entire sector and, especially, the exploration sector.

"So, in view of this, we perceive that risk investment, at a time when raising funds becomes more difficult, migrates to more predictable jurisdictions such as Canada or Australia," he emphasized.

During his speech: “GBR Presentation. Mining in Times of COVID: Trends, Challenges and Opportunities in Peru,” held in the Virtual Mining Thursdays, the director of GBR, on the other hand, highlighted that the current head of the Ministry of Energy and Mines (Minem) seeks to speed up the prior consultation process.

In addition, he pointed out that throughout 2020 there were junior companies that managed to enter the various stock markets and announced news about their projects in Peru.

One example was KuyaSilver, which began to list its shares on the OTCQB Venture Market and obtained the approval of the semi-detailed Environmental Impact Assessment (EIAsd) for the construction of a beneficiation plant at the Bethania silver mine, located in Huancavelica.

“Also, Pucará Gold has managed to position itself in the market with a market capitalization of 50 million Canadian dollars; and E29 with the Elida and Flor de Cobre projects, which are located in southern Peru, has entered the Toronto Stock Exchange,” commented Alfonso Tejerina.