Peruvian copper production to increase by 7% year-on-year to 2.3 million tons in 2021

Peru, the world's second-biggest copper producer after Chile, produced 2.3 million tonnes of copper in 2021, up about 7 percent from a year earlier, despite several protests that temporarily paralyzed some of the country's main businesses.

         Precious metal production also rose last year, with gold production up 9.7% in 2021 and silver production up 21.5%, according to the latest report from Peru’s Ministry of Energy and Mines (MINEM).

         About 80% of Peru's copper production comes from Antamina (20%), Southern Copper (17.3%), Cerro Verde (18.2%), Las Bambas (12.6%) and Chinalco (10.3%).

         Protests against mining companies have surged since President Pedro Castillo took office in July. The Peruvian government is trying to strike a new deal with the copper industry and redistribute profits to Andean communities such as those around Antamina, MMG's Las Bambas and Glencore's Antapaccay.

         The country's national mining, oil and energy association said most protesters demanded measures to limit mining at the headwaters of the watershed, ignoring that the areas are already protected by water laws.

         Social unrest in the country's mining areas has deepened global concerns about an impending shortage of copper, considered a key metal in the world's transition to green technologies. According to CRU Group estimates, the copper industry will need to spend more than $100 billion by 2030 to address a potential annual shortage of 4.7 million tonnes.

         Used in everything from building materials to batteries and engines, copper is both an economic bellwether and a key ingredient driving the development of renewable energy and electric vehicles.

If producers fail to address shortages, prices will continue to rise and challenge countries around the world that rely on the global energy transition to combat climate change.