MINING IN SOUTH AMERICA
The mining sector is, and has always been the key to the national economies of many South American countries, home to some of the world’s largest producers of base and precious metals.
Gold Mining in Peru
Within South America, Peru has one of the greatest untapped potential for new discoveries and production. Peru’s clear and simple mining law and excellent geological potential has helped the country to attract one of the largest budgets for minerals exploration and development in the world. It is believed that Peru has the capacity to double or triple current level of output, especially in base metals with continuing exploration.
Peru benefits from political and macroeconomic stability. It has the highest GDP growth in the region, largely driven by the mining industry which accounts for nearly 60% of the country’s exports.
The government is encouraging responsible mining activities. The high rates of mineral production have attracted a large amount of inbound investment. An estimated US$46.4 billion is expected to flow into Peru in the coming years.
Artisanal Gold Mining in Peru
Government data show that there are in excess of 200,000 small or artisanal miners working across Peru, accounting for at least 20% of gold production in Peru which equates to US$3 billion per year. This type of gold mining has become a dynamic growth sector generating a unique and significant business opportunity.
The government is actively encouraging responsible artisanal mining activities. They began the “formalisation” process in 2012 to put an end to the extraction of illegal gold, and this process was extended in 2017 to encourage more artisanal miners to become formalised.
Currently there are not enough mineral processing plants in place to service the regulated mining community. VI Mining intends to provide a solution that will significantly address this issue.
Artisanal Gold Mining in Brazil
The diversity of geological environments gives Brazil the greatest mineral potential in the world. The Government is seeking external investment in to the mining industry for developing a wide range of geological resources. The mining sector earns a considerable amount of revenue for the state and also provides a large number of jobs. Many leading global mining groups have invested in Brazil.
In Brazil, artisanal and small-scale gold mining produces in the range of 6 tonnes of gold (Au) per annum, and employs approximately 200,000 people.