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Peru mining keeping country out of deeper recession, minister says

Published 29/11/2023, 02:52 am
© Reuters. FILE PHOTO: Peru's Economy Minister Alex Contreras talks with Reuters, in Lima, Peru October 26, 2023. REUTERS/Marco Aquino/File Photo
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By Kylie Madry

(Reuters) -Peru's mining sector is keeping the economy from sinking deeper into repression, Economy Minister Alex Contreras said on Tuesday, adding that progress kick-starting projects was a priority in the near term.

"If it weren't for mining, we would probably be facing a larger recession this year," Contreras said at a conference. Peru has been preparing to launch a package of economic stimulus measures.

Contreras said the first three measures, out of more than two dozen aimed at attracting mining investment and boosting production, would be published later in the day.

Peru, the world's No. 2 copper producer, fell into a recession this year due to the El Nino weather phenomenon, lower private investment and lingering effects from anti-government protests late 2022 and early this year.

Contreras said the mining nation was aiming to consolidate an industry "hub" in Peru's south, highlighting existing projects such as copper mines Las Bambas, Antapaccay and Cerro Verde.

Peru is betting on a boost from public-private partnerships, eyeing $7.98 billion in the partnerships next year, Contreras said. "In 2024, we want to at least triple the amount awarded to projects by public-private partnerships from this year."

Contreras highlighted a port "hub" project "to make Peru the international trade center of South America."

A megaport project outside of Lima is set to open next year, but Peru is still working "against the clock" to make sure supporting infrastructure is ready in time.

© Reuters. FILE PHOTO: Peru's Economy Minister Alex Contreras talks with Reuters, in Lima, Peru October 26, 2023. REUTERS/Marco Aquino/File Photo

Contreras also said the Ancon industrial park developed by the state, near the port, would be a guinea pig for the special economic zones set to be proposed to Congress soon.

"These will be special economic zones administrated by private organizations, on either public or private land," said Contreras, underscoring expectations for added tax revenues and greater investment in exports.

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