Peru’s copper production experienced significant growth in the past year, solidifying its position as one of the world’s leading copper producers. With the completion of Cerro Verde’s expansion and the commencement of commercial production at Las Bambas, Peru achieved a remarkable 38% increase in total copper output in 2016, reaching 2.35 million metric tons. This substantial growth represents a 70% increase compared to the figures recorded in 2014, firmly establishing Peru as the second-largest copper producer globally, trailing only Chile. In contrast, China’s copper production grew modestly by 11% to 1.85 million metric tons per year.

According to data from the Ministry of Energy and Mines, Cerro Verde emerged as the largest contributor to Peru’s copper production, producing 522,100 metric tons per year, marking an impressive 104% increase. Following closely behind, Antamina contributed 443,600 metric tons per year, reflecting an 8% growth. Las Bambas and Southern Copper also played significant roles, contributing 329,400 metric tons per year and 312,900 metric tons per year, respectively, despite a slight decrease in Southern Copper’s output due to the Toquepala and Cuajone operations.

Southern Copper is set to expand its Toquepala operations through a substantial investment of $1.25 billion. This expansion aims to double the milling capacity to 120,000 metric tons per day, effectively adding an additional 100,000 metric tons of copper production annually, starting next year. To further strengthen its operations, Southern Copper plans to expand the smelter and refinery in Ilo. The smelter’s processing capacity will increase from 1.2 million metric tons per year to 1.8 million metric tons per year, and the refinery’s capacity will rise from 280,000 metric tons per year to 320,000 metric tons per year. Southern Copper anticipates investing between $800 million and $1 billion for these expansions, with the potential to reach $2.6 billion if other projects, such as the Cuajone expansion and the Tía María project, proceed as planned.

Southern Copper has also expressed interest in acquiring a stake in Anglo American’s Quellaveco project. Situated between Toquepala and Cuajone, Quellaveco presents an appealing opportunity for Southern Copper. However, the decision on participation and potential partnership remains uncertain. Despite this, market conditions for copper appear favorable, prompting El Brocal, a poly-metallic operation, to shift its focus towards copper production. El Brocal plans to increase mining in the underground section from 7,500 metric tons per day to 13,000 metric tons per day, investing $14 million in direct capital and accelerating its flotation process.

While zinc production in Peru experienced a 6% decline, reaching 1.34 million metric tons per year, several zinc operators capitalized on improved metal prices. Volcan became the largest zinc producer in the country, surpassing Antamina, which faced a 12% decrease in zinc output. In terms of lead, production remained stable at 314,100 metric tons per year. Gold output declined at Yanacocha and Barrick’s Lagunas Norte mine, but overall gold production in Peru increased by 4% to 4.92 million ounces per year. Hochschild Mining and Minera Poderosa were significant contributors to this growth. Furthermore, Peru.