- August 22, 2024
69% of exploration companies in Peru are medium-sized and junior companies
With a strong focus on copper projects and 46% of investment led by medium-sized domestic companies, Peru faces the challenge of attracting more junior capital, says Walter Tejada.
Lima, August 22, 2024. In a recent Jueves Minero (Mining Thursday), organized by the Peruvian Institute of Mining Engineers (IIMP), Walter Tejada, president of proEXPLO 2025, indicated that 69% of the companies that carry out exploration activities in the country are medium-sized and juniors.
In terms of investment, Tejada noted that 46% of exploration investment comes from medium-sized domestic companies, while juniors contribute 23%. However, the latter percentage is below the world average of 42%. “There is a gap for several reasons, but that we as a country must improve so that more companies can operate,” he said.
It is important to note that medium-sized companies are those with the most capital and many are Peruvian, according to Tejada. While junior companies are in a development phase and are smaller.
On the other hand, he commented that one of the most important aspects is that more than half of these projects are greenfield, which implies exploration in previously unexplored areas. This fact is of great importance for the future of the sector, as it opens the door to new discoveries and the development of mineral resources in the country.
Record figures
Tejada stated that, although investment in exploration has shown a recent improvement, it has not reached historical levels. According to figures from the Ministry of Energy and Mines, US$ 433 million of exploration investment was executed in 2023, the highest figure in the last six years and comparable to 2018.
On the other hand, the president of proEXPLO pointed out that it is worrying that Peru's participation in global exploration budgets has decreased. Traditionally, the country has maintained a share of close to 6% of the global amount, but it has now fallen below 4%.
Meanwhile, other countries in the region, such as Argentina and Chile, have significantly increased their participation. “This is especially notable in the case of Chile, which historically had shown a mirror curve to that of Peru, but in recent years has experienced a remarkable growth in its investment in exploration,” he concluded.
