Peru’s Ministry of Energy and Mines (Minem) is actively working to streamline regulations, enhance mineral exploration, and stimulate new mining projects, buoyed by the recent resumption of the US$1.4 billion Tía María copper project in the Arequipa region
Following Southern Copper’s announcement in early July about restarting Tía María, Minem is pushing to advance other pending projects and anticipates making significant progress in the coming months.
Deputy Mines Minister Henry Luna recently shared updates on key initiatives:
Michiquillay Project
Southern Copper’s US$2.5 billion Michiquillay project might see its construction timeline moved up to 2027. According to Luna, Southern is validating exploration data from former owner Anglo American, and preliminary results are promising. Community engagement efforts are also having a positive effect.
Luna noted, “We are hopeful that the identified reserves will be confirmed and expanded to secure the investment. We aim to commence construction in 2027.” However, the timeline will ultimately depend on the company’s focus, which is currently centered on Tía María.
Southern Copper, part of Grupo México, has adjusted its schedule, with commercial operations at Michiquillay now anticipated to begin in 2029, up from the previously planned 2032. The project is expected to produce 225,000 tons of copper annually.
Digital One-Stop Shop
The VUD digital one-stop shop platform, designed to streamline mining permit processing, is set to complete its third phase by 2025. Authorities are currently seeking funding from interested parties to advance this initiative. Luna reported, “We have completed the first stage, are progressing with the second, and with the necessary financing, we aim to finalize the third stage. We have three international entities interested in supporting this effort.”
The second phase focuses on reducing legal procedures, including simplifying regulatory requirements for expanding processing plants and mine closures. Minem expects this phase to conclude by year-end.
The third phase will concentrate on enhancing IT infrastructure and is scheduled to begin in 2025.
Lithium Projects
Luna also highlighted two lithium projects currently in the pre-exploration stage. Although several companies are investigating lithium opportunities, they are still in the preliminary stages.
“Ingemmet has requested two ‘areas of non-admission of requests’ for lithium exploration, and we have received interest from investors who have initiated investigations but have yet to submit technical documentation. Once submitted, we can consider new entrants in the investment landscape,” Luna explained.
Currently, the only lithium project in the pipeline is Falchani, which is slated to begin construction in 2027 with an updated capex of US$867 million. The project will be developed by Macusani Yellowcake, a subsidiary of Canada’s American Lithium.
