Latin America could attract $239B in mining investments by 2033
A PwC study forecasts $239 billion in mining investments for Latin America by 2033, with Chile, Brazil, Argentina, and Peru set to be the primary beneficiaries, though many of the projects are not new.
"It's a large and strategic figure in absolute terms and competitive compared with other resource-rich regions. Latin America maintains a leading position in transition minerals such as copper and lithium, as well as base minerals like iron," Carlos Rivas, senior manager for PwC Chile's mining sector consulting division, told UPI, News.Az reports.
Rivas said much of the projected investment is needed for companies to maintain production levels amid declining ore grades and increasing environmental, social and governance requirements.
"New capital investment is required to address issues such as environmental permits, water, energy and logistics needs, and to diversify supply in the face of global concentration risks," Rivas said.
Chile, which accounts for 22% of global copper production and 17% of lithium output, will receive the largest share of investments -- about $83.2 billion -- of which only 20% is earmarked for new projects.
"The predominance of brownfield projects [those developed on existing sites or infrastructure] at 80% reflects the maturity of Chile's mining assets and a rational strategy," Germán Millán, a partner in PwC Chile's mining sector consulting division, told UPI.
"These projects generally carry lower financial risk and involve faster permitting processes. Exploration continues, but it competes for capital with emerging hubs such as Argentina and faces longer development cycles," he said.
Millán said expansion projects include a significant component of technology investment that is highly relevant to the industry.
Brazil is projected to attract about $68.5 billion in mining investments, while Peru is expected to receive roughly $54.6 billion over the next eight years, with 60% of those projects focused on new developments.
Millán cited Argentina, where investments of about $33 billion are projected, with 70% of the total earmarked for new projects.
Similar news
