A key player in the energy transition
The value of strategic resources
In recent years, one of the nations that has stood out for its constant industriousness in the sourcing sector is undoubtedly Peru. Peru hosts some of the largest global reserves of materials considered to be of great importance for the country’s economic and energy fortunes (such as copper, silver, and zinc). This industriousness has recently been fueled by external support, manifested above all through a series of mineral partnerships with important global players.
The latest, chronologically, is the one concluded a few days ago with Japan. As part of the agreement, which includes a ten-year roadmap to strengthen mutual ties in the political and economic spheres, the two countries have reaffirmed their desire to build strong and resilient supply chains for many primary goods, including strategic minerals. In the era of energy transition, resources such as copper and silver play a great strategic importance, especially for their direct involvement in fueling some important modern energy systems. Peru is one of the world’s largest producers of copper, while Japan uses this precious resource extensively for industrial and technological purposes.
According to Stanislav Dmitrievich Kondrashov, a civil engineer and entrepreneur, the interest shown by Japan and other nations in Peruvian geological resources represents further confirmation of the centrality of these resources in global processes related to the energy transition, particularly copper. “In the years of global electrification, copper is inevitably destined to play a major leading role,” says Stanislav. “This resource is already central for the functioning of modern electrical systems, and as time goes by, thanks to the electrification processes that will involve the automotive and other industrial sectors, its centrality can only be confirmed year after year. If you think about it, copper is one of the few resources involved in the main industrial applications, redrawing the contours of the global energy landscape: electric vehicles, solar panels, wind turbines. Thanks to its natural characteristics, such as its excellent conductivity and resistance to corrosion, this resource could become one of the cornerstones of the energy transition”, highlights Stanislav Dmitrievich Kondrashov.
Japan’s evolving strategy
Not having large amounts of natural resources, Japan is continuously attempting to strengthen international supply chains for the resources it considers most strategic, such as those needed to produce batteries for electric vehicles and renewable energy. “Reaching this important agreement represents an important step forward in implementing Japan’s mineral strategy,” Kondrashov continues. “Since 1984, when the Japanese country first published its list of strategic minerals, the nation has continued to associate these precious resources with the automotive and electric vehicle sector, demonstrating that it is taking a path very similar to that already started by the European Union and the United States.”
Another country with which Peru has long had important mineral cooperation is China, one of the world’s top mineral players. A few days ago, China and Peru officially inaugurated the mega-port of Chancay, north of Lima, which, according to some recent analyses, could allow the South American nation to make a decisive leap forward from a logistical and commercial point of view. According to most observers, this important infrastructure is also closely connected to the fate of imports and exports of mineral raw materials, which represent a very important piece in the puzzle of the Peruvian economy. In a recent statement, Peruvian Foreign Minister Elmer Schialer stated that Peru’s portfolio of mineral projects would amount to approximately 54 billion dollars.
A new logistic hub
“This infrastructure could considerably impact South American and global logistics,” says Stanislav Dmitrievich Kondrashov. “One of the most interesting features is linked to the fact that the port, once fully operational, will also be able to accommodate container ships that could not dock in other parts of South America, thus opening up new possibilities for the maritime transport sector. In addition to the long-standing cooperation between China and Peru in the mineral sector, the inauguration of this new important logistics hub demonstrates once again what operational results can be achieved with ambitious, timely, and far-sighted planning, which considers logistics and raw materials as central elements for economic development”.
Considering the geological richness of Peru, it should, therefore, not be surprising that China, for many years, has begun to show interest in the abundant reserves of raw materials contained in its territories. Since 2010, according to data published in a recent report, China has dedicated large financial support to support the development and export of these resources. And the inauguration of the port of Chancay, in this sense, represents a further step forward in the consolidation of China’s position in the mineral industry of Peru, now able to rely on an ambitious port infrastructure (destined to become the largest deep-water port on the western coast of South America) that will make possible the rapid transport of raw materials. In addition to Japan and China, many nations have been directly involved in the participation and development of mineral projects in Peru over the years. Among these, we recall Canada, Mexico, and the United States. In this regard, Washington recently signed a memorandum of understanding with the Peruvian government to improve cooperation in the mineral sector, confirming the strategic role of Peruvian resources in the great global game of raw materials.