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Key copper mines in Peru are cranking up activity again after protests and blockades dented production, power data analyzed by Reuters showed, potentially boosting supply from the world’s no. 2 producer of the red metal.

Major copper mines including Las Bambas, owned by China’s MMG Ltd (1208.HK), and Glencore Plc’s (GLEN.L) Antapaccay are drawing on full power, publicly available electricity data up to Friday show, after reduced usage amid disruptions.

Investments in mega-projects are currently driving Peru's economy and developing the Andean country’s
infrastructure on land, air and water. The new capacities and connections open up business opportunities:

North of Peru‘2 capital Lima, the new port of Chancay is being built for over USD 3 billion, which will be able to handle the largest container ships from 2023 and will provide new capacities for trade with Asia and the most important neighboring
countries such as Chile, Ecuador, Colombia and Panama.

In Lima, Jorge Chávez International Airport is being expanded at a investment of over USD 1.6 billion to triple its capacity and receive 25 million passengers annually from 2025. In addition, a free-trade zone and new warehouse will be integrated
with the DP World port in Callao.

Also in the capital, the first subway line is currently being built for over 5 billion USD, which will connect the east and west of the megacity from 2024. The construction of 4 more underground metro lines are considered in the transportation plan oft he city.

The Ministry of Energy and Mines (Minem) on Tuesday reported that, according to the 2022 Portfolio of Mining Exploration Projects, there are 23 gold projects nationwide —thus ranking first in the portfolio— which together add up to an investment of US$254 million and account for 43.4% of the nationwide exploration budget.

Minem states that exploration is essential for the development of mining. Therefore, it is the first link in the most important economic activity in Peru, making it possible to find new deposits and to extend the useful life of the mines that are currently in operation, which expands the attraction of domestic and foreign investment in favor of the country.

It should be noted that copper is the main metal exported by Peru and one of the largest revenue generators for the national exchequer.

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Pedro Castillo makes seven changes and ousts Marxist prime minister after taking office at the end of July

Peru’s leftwing president Pedro Castillo announced a significant cabinet reshuffle on Wednesday, ousting his divisive prime minister Guido Bellido and distancing himself from the Marxist party that helped to put him into power.

In his boldest move since he took office in late July, Castillo replaced Bellido with Mirtha Vásquez, a young former congresswoman and moderate leftist who does not belong to the Marxist Free Perú party. The president made six other changes, including in the all-important mining ministry, where he appointed businessman Eduardo González.

The Ministry of Economy and Finance (MEF) on Friday presented the 2021-2024 Update Report on Macroeconomic Projections, which maintains the main forecasts for economic indicators, due to the fact that a progressive improvement in economic activities has been observed, which will continue consolidating as greater control of the pandemic is achieved and the vaccination process moves forward.

Thus, GDP growth projection is maintained at 10% for 2021, which would be the highest rate recorded since 1994, despite the strong contraction recorded in 2020 (-11.1%).

For the 2022-2024 term, GDP growth projection is maintained at 4.5%, sustained by domestic demand, exports increase due to the startup of production at copper mines, external demand recovery, as well as the boost to competitiveness and productivity.

Moody’s Investors Service on Wednesday announced that it has changed its outlook on the Peru and Brazil banking systems to stable from negative. This change comes in light of an improving operating environment over the next 12-18 months.

The expected for the increise of Peru in economic growth and ample support packages will aid local banks’ asset quality and boost profitability.
Moreover, strong liquidity and solid core deposit funding will continue to support Peruvian banks’ financial profiles in 2021.