Peru courts Australian capital with $92 billion trade opportunity
Peru is making a direct play to attract $92 billion in untapped Australian investment, technology and critical minerals partnerships as it moves to strengthen commercial ties between the two nations.
The country’s Deputy Minister of Mines Mayra Figueroa will make the pitch in Sydney as she addresses the International Mining and Resources Conference (IMARC) backed by a 60-strong delegation. The strategy is to attract long term capital and pursue opportunities across copper and critical minerals projects, mining technology, engineering and industrial supply.
“As we forge deeper, long-term economic partnerships, we want Australian investors to see Peru as more than a source of minerals, but as an opportunity to deploy capital, build businesses and establish long-term commercial partnerships,” said PROMPERÚ Senior Trade Commissioner in Australia, Soledad Campos de Parry.
“Peru has the resources, infrastructure, strategic Pacific connectivity and a strong pipeline of projects attracting growing interest from Australian investors. Australian companies are increasingly looking to Latin America for opportunities to accelerate global mineral supply chains and Peru is the key as we also move beyond raw mineral exports into processing plants and higher-value manufacturing.”
More than 300 Australian companies now operate in Latin America, with one in three in the mining, mining equipment, technology, and services (METS), infrastructure and energy sectors.
Recent moves by Australian mining and resources companies highlight the growing commercial ties between the two countries:
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BiFox: The phosphate company headquartered in Sydney, acquired Fospac's Bayóvar project in northern Peru in June, expanding its international footprint and positioning the business to supply growing phosphate demand across the US, Latin America and Asia.
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Dyno Nobel: The Queensland-based explosives and blasting company is expanding its South American operations, opening a new $17m plant in southern Peru this month to supply major copper mines in Southern Peru.
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Fortescue: earlier this year the Perth-based mining giant acquired Alta Copper through its wholly owned subsidiary, Nascent Exploration, expanding its critical minerals footprint with the Cañariaco Copper Project, in the porphyry copper corridor in northern Peru as it moves to diversify away from iron ore.
As Peru sends a high level delegation to Australia, Queensland is also targeting Latin America, with a government trade mission to Peru focused on critical minerals collaboration and new opportunities for mining equipment, technology and services companies.
“We are seeing a growing two-way commercial relationship with Australian businesses seeking new markets for their technology, engineering and services and Peru seeking capital and expertise to advance its resources sector,” Ms Campos de Parry said.
Data from the Australian Foreign Affairs and Trade shows trade with Latin America has grown almost 40 per cent over the last five years with total two-way trade between Australia and Latin America now almost $20 billion per year.
Peru has also just announced a target to unlock a further $92 billion in mining investment over the next five years across 66 projects.
“For Australian mining technology and engineering companies, Peru offers opportunities beyond mineral extraction, particularly in automation, water management, mineral processing and technologies that improve mine productivity.
“We want to see more Australian businesses take their expertise into Peru, establish local partnerships and become part of the country's growing mining supply chain.
“We invite Australian companies to also explore new investment opportunities in Marcona in the country’s south which has the potential to become a strategic hub for mineral processing and value-added mining activities.”
Peru is targeting investment in value-added manufacturing and down-stream industries, supported by its network of 25 trade agreements, including the Peru-Australia Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The new Port of Chancay is further strengthening Peru’s trade connections with Asia-Pacific markets, opening up additional opportunities for businesses operating in the country. While a technical assistance programme has been launched to support Peruvian METS companies breaking into the Australian market.
Peru’s delegation will participate in IMARC from 27-29 October, with the event bringing together 12,000 participants, more than 700 investors and representatives from more than 120 countries.
About PROMPERÚ, Peru's Commission for the Promotion of Exports and Tourism
PROMPERÚ is a specialised public agency attached to Peru's Ministry of Foreign Trade and Tourism (MINCETUR). It is responsible for promoting Peru's image internationally, as well as the country's tourism destinations and exportable goods and services. Through its international commercial offices, PROMPERÚ supports Peru's engagement with international markets and the development of commercial opportunities.
