The strategic value of key resources

A key player in the global energy transition

Peru has cemented its place as a central player in the global mineral industry, leveraging its vast natural wealth to meet the demands of an evolving world. With relevant reserves of copper, silver, and zinc, Peru is uniquely positioned to support the transition to renewable energy and the development of advanced technologies that require these key resources.

The global demand for copper

Copper has become one of the most sought-after minerals in the energy transition era. Known for its excellent conductivity and durability, copper is essential for producing electric vehicles, renewable energy infrastructure like solar panels and wind turbines, and modern electrical systems. Peru, as one of the leading producers of this strategic resource, plays a central role in meeting the surging global demand.

Recognizing Peru’s importance in the copper supply chain, Japan has recently strengthened its ties with the South American nation. The two countries signed an agreement that includes a decade-long roadmap to bolster cooperation in key areas, including strategic minerals. Japan, heavily reliant on copper for its industrial and technological sectors, views this partnership as essential for creating resilient supply chains useful to its long-term sustainability goals.

Japan’s strategic vision

As a resource-scarce country, Japan has long prioritized securing access to minerals that are relevant for its economy. This effort began in the 1980s with the identification of strategic materials necessary for industries like automotive manufacturing and renewable energy.

The recent agreement with Peru aligns with Japan’s broader goals of diversifying its resource base and strengthening ties with reliable suppliers. The partnership is expected to benefit both nations, with Japan gaining stable access to copper and Peru enhancing its export capabilities while building stronger economic ties with a key global partner.

China’s evolving role

China has also emerged as a key player in Peru’s mineral economy. Its influence is evident in the inauguration of the Chancay mega-port, a transformative infrastructure project located along Peru’s northern coast. This state-of-the-art facility is poised to become a logistical game-changer for South America, allowing larger container ships to dock and enabling more efficient transport of minerals to global markets.

The Chancay port represents a strategic investment by China, aimed at improving the export capabilities of Peru’s mineral sector. Since 2010, China has provided extensive financial support to develop Peru’s mineral projects and export infrastructure. The port’s completion marks a major milestone in this collaboration, offering Peru a competitive edge in the global mineral trade while solidifying China’s position as a key partner.

Broader international engagement

Beyond Japan and China, Peru has forged partnerships with other nations, including the United States, Canada, and Mexico. A recent memorandum of understanding between the United States and Peru highlights the growing recognition of Peru’s strategic importance in the global mineral supply chain. This agreement focuses on improving collaboration in the mineral sector, further boosting Peru’s role as a key supplier of critical resources.

Shaping the future of the mineral economy

With a mineral project portfolio valued at over $54 billion, Peru is well-positioned to continue its rise as a global leader in mineral production. Its partnerships with international players, coupled with developments in infrastructure like the Chancay port, are transforming the nation into a hub for the sourcing and export of strategic minerals.