What allowed Poderosa to have a less severe drop in gold production in 2020 compared to other gold producers in Peru?

Poderosa had a challenging year in 2020 due to the pandemic, but the company had good results relative to other production companies in Peru. Poderosa has a rotation system where workers spend 28 days in the mine and 14 days off, but this system was stopped for about four months to avoid contagion, which affected projections, especially in terms of exploration. The company normally does 54,000m of drilling each year, but in 2020, they only achieved 48% of this goal. Additionally, the company had to reduce the number of people in the same room, from two or three to one person, to prevent the spread of the virus. However, Poderosa accelerated the construction of new camps with portable houses (“igloos”) to house workers and isolate infected people, which are expected to be completed by the end of May 2021.

Why did Poderosa spend more on exploration in 2020 than any other mining company in Peru?

Poderosa invests in exploration every year to replenish the mineral resources that they process, as the useful life of a mine is typically estimated at three years. This investment typically represents around US$60 million per year, but in 2020, the company invested US$32 million. Despite this, Poderosa was still the company with the highest investment in exploration in Peru, with grades of 18 grams per ton (g t), which demonstrates the profitability of the company. The company is also investing US$8-10 million per year in greenfield and brownfield exploration to find new deposits. Furthermore, Poderosa is currently preparing environmental impact studies for the Las Defensas brownfield project in La Libertad, where an investment of US$68 million will be made to explore an area of 7,000 hectares once the case studies and procedures have been completed. The company estimates that operations will start in four to five years.

How can the private sector change the negative perception of mining in Peru?

The mining sector in Peru is often associated with illegal mining activities, which creates a negative perception of the industry. As a sector, there is a need to communicate better and educate the population about the positive impact that the industry has for the country and its communities. The pandemic has highlighted many things that the mining sector has done to support the economy, but there is still room for improvement. Therefore, companies in the private sector need to improve their communication strategies and work with local communities to address their concerns and provide information about the benefits of mining.