Peru Seeks to Cash In on Global Copper Boom Amid US-China Rivalry

Peru is poised to benefit from the global shift towards clean energy and digital technology, thanks to its large copper reserves. The country is the world's third-largest copper producer, mining around 2.7 million tonnes each year.

The price of copper has reached record highs, driven by demand for electric vehicles, power grids, data centres, and defence systems. Peru's central bank estimates that output could double if new mining projects come on stream as planned.

However, despite the favourable global environment, Peru's economy is growing at around 3% a year, roughly half the pace during the previous commodity boom between 2004 and 2013.

The country has institutional constraints that deter investment, including social conflicts and disputes over land and water. These issues regularly halt operations once they begin, and high-altitude mines depend on long transport corridors to the coast.