MOU BETWEEN THE U.S. AND PERU PROVIDES A STEPPING STONE FOR MINING COMPANIES AT MINEXPO 2024 The largest Peruvian business delegation ever in the U.S. attends mining conference to expand opportunities for U.S. companies
LAS VEGAS
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October 08, 2024 09:00 AM Pacific Daylight Time
With the new memorandum of understanding (MOU) signed between the United States of America (U.S.) and Peru, over 300 delegates -- the largest Peruvian business delegation ever – showed up in force at MINEXPO 2024, the premiere mining conference for the industry. Sponsored by the National Mining Association, it was held recently in Las Vegas.
This underscores the importance of the relationship between the U.S. and Peru, a top producer of crucial minerals such as copper, lithium, silver and rare earth elements, essential for manufacturing a range of products, including cell phones, computers, and renewable energy technologies. As the U.S. transitions to green energy, these minerals are vital for producing batteries, electric vehicles, and other clean technologies, potentially saving the country billions in energy costs and enhancing energy independence.
“Expanding the supply access to crucial minerals including copper and lithium, both of which are required for green energy technology, is essential,” emphasized Alvaro Silva-Santisteban, the Executive Director of PROMPERU in the U.S., which is the Investment, Trade and Tourism Commission of Peru. “As a result, Peru fortifies its world leadership as a natural location for mining companies seeking to expand production.”
The MOU, which was finalized last August, opens the door to more mining opportunities for Foreign Direct Investment (FDI) and clears the way for the U.S. and Peru to partner on the extraction of a small portion of Peruvian green technologies.
“Peru, with its vast reserves of copper, zinc, lithium, and other important minerals, is an invaluable partner for the U.S. as they strive to meet this immense growth in demand,” said José W. Fernández, U.S. Undersecretary for Economic Growth, Energy, and the Environment, after the signing.
The cooperative effort strengthens international investment in strategic resources essential to not only product manufacturing, but green technology as well.
“Almost every electric car and smartphone use these minerals, and in Peru, the vast majority of these crucial metals are yet to be mined,” Silva-Santisteban added. “This is a boon for our planet’s future and the Peruvian economy.”
According to the Ministry of Energy and Mines, Peru is the world’s second-largest exporter of copper, ranks third for silver, and holds massive reserves of gold, zinc, and lead. Peru holds more than six tons of lithium reserves and the production of eight crucial ‘green minerals,’ minerals that are needed to support the transition to clean energy technologies, such as iron, lead, molybdenum, indium and graphite.
“With the MOU and our participation in MINEXPO, bringing together knowledgeable exporters of services, minerals and machinery, the synergies will create an opportunity that will strengthen foreign investment in strategic resources for green technology, which will lead to even greater international developments,” said Silva-Santisteban.
Peru, holding the second-largest ore reserves for both silver and copper in the world, also accounts for substantial global reserves of gold (5.6%), zinc (8%), lead (6.2%), and other metals.
Peru has 31 copper projects across 14 regions, representing a potential investment of nearly $39.8 billion. Minister of Energy and Mines, Rómulo Mucho Mamani, highlighted that Peru holds 11% of the world's copper reserves and that these projects could yield an additional two million tons of copper.
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For more information please visit: www.PROMPERU.gob.pe
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