🇵🇪 China’s investment in Peru’s mining sector has become a pivotal element of bilateral economic relations and a key part of China’s global strategy to secure essential minerals. By 2025, Chinese companies dominate significant portions of Peru’s mining industry, with investments totaling tens of billions of dollars, particularly in copper, a metal vital for both countries’ industries and green energy development.
Chinese direct investment stock in Peru reached approximately US$27.9 billion by the end of 2023, with mining accounting for about US$13 billion (47%) of this total foreign direct investment. Leading Chinese mining projects include the Las Bambas copper mine operated by China Minmetals, one of the world’s largest copper mines aiming to expand output significantly by 2026-2027; the Toromocho copper mine developed by Chinalco, producing over 200,000 tons of copper annually and backed by nearly $3.9 billion in Chinese state bank loans; and the Shougang Hierro PerĂş iron ore project. Additional projects under development such as Galeno, RĂo Blanco, and Pampa de Pongo represent billions more in investment and production potential.
Chinese-operated mines contribute about 23% of Peru’s copper production and 100% of its iron ore production. Peru supplies China with around 27% of its copper concentrate demand and 19% of its zinc concentrates, underscoring the strategic importance of this trade relationship.
Beyond mining, Chinese investments extend into energy, oil and gas, fisheries, finance, construction, logistics, and real estate. A flagship infrastructure project is the $3.6 billion Chancay deepwater port developed by COSCO Shipping Ports, which will reduce shipping times to China by up to 20 days and logistics costs by over 20%, expected to generate $4.5 billion annually for Peru’s economy and create 8,000 jobs.
The Free Trade Agreement signed in 2010 has dramatically boosted Peru’s mineral exports to China, though diversification beyond minerals remains limited. Peru plays a critical role in China’s global supply chain strategy for strategic minerals essential to high-tech and green energy industries, forming part of Beijing’s broader Latin America strategy and the Belt and Road Initiative.
However, Chinese mining projects have faced local opposition due to environmental, labor, and indigenous land concerns, with social conflicts sometimes disrupting operations, notably at Las Bambas. Critics argue the relationship is unequal, prioritizing China’s resource needs over local benefits, raising concerns about environmental impacts, social unrest, and Peru’s growing economic dependence on China. Transparency issues and geopolitical concerns also surround infrastructure like the Chancay port.
Looking ahead, Chinese firms plan to expand production capacities and develop new projects, with Las Bambas targeting 400,000 tons of copper annually by 2026-2027. Opportunities exist for green energy cooperation leveraging Peru’s renewable resources and for expanding agricultural trade and technology partnerships.
This growing relationship offers significant economic growth and investment opportunities in Peru’s mining and related sectors but requires careful management of social, environmental, and geopolitical risks to ensure sustainable and equitable outcomes.
Source(s): https://www.china-briefing.com/news/china-peru-economic-cooperation-future-prospects/, https://www.riotimesonline.com/china-strengthens-its-role-as-a-leading-investor-in-peru/, https://www.aiddata.org/blog/chasing-copper-and-cobalt-chinas-mining-operations-in-peru-and-the-drc
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