Peru’s mining industry has continued to recover from the crisis caused by the COVID-19 pandemic. During the Prospectors & Developers Association of Canada (PDAC 2021) conference, Jaime Gálvez, Minister for Energy and Mines, forecast that investments in the sector this year will increase by 21% compared to 2020.
Achilles, together with the Canadian Chamber of Commerce in Peru, was part of the Peruvian delegation at this PDAC event. For the first time ever, the world’s biggest mining convention was held virtually. The conferences, presentations and workshops on the main projects, trends and opportunities for the Peruvian mining sector can still be accessed on PDAC’s Peru platform.
In this article we will share key industry data and a perspective on the importance of sound supplier management and contractor oversight in ensuring the success of projects, the continuity of business and increased resilience in the supply chain.
Mining in Peru, supply chain trends
This sector is a pillar of the Peruvian economy and it is considered to be one of the main drivers of future growth and economic recovery for the country, given the many companies that depend on and participate in the mining supply chain. In addition to directly employing more than 200,000 people, it is estimated that each directly-employed individual generates 6.25 additional jobs in the wider economy, as confirmed by the Ministry of Energy and Mines (MINEM) in its Outlook and employment trends report.
Measures to contain the spread of coronavirus meant a strict quarantine was introduced in Peru in the second half of March 2020, which had a huge impact on the industry’s economic indicators. Operations ground to a halt until May 2020, when they gradually started again. At Achilles, through our mining community: Regic, we saw how the pandemic put purchasing professionals to the test placing them right at the centre of tackling the emergency to ensure continuity of operations and accelerate the restart of operations.
Purchasing professionals have tackled the crisis by continuously evaluating their supply chain, checking the status of their key suppliers and, in some cases, finding alternatives to ensure the flow of goods and services needed for strategic operations.
Companies involved in the mining sector have had to adapt and transform their processes and information flows to new technology platforms providing them with: access to information, supply chain analysis, process optimisation, finding alternative supply sources and mitigating disruptions. Digital transformation was accelerated and is now here to stay.
Secure and resilient supply chains
92% of companies involved in the mining supply chain sector are micro-, small- or medium-sized enterprises, according to data from the Achilles Regic community. Carrying out a supplier assessment is critical to knowing whether they meet industry standards and your company-specific requirements. You will therefore be able to mitigate disruption risks and increase the resilience of your operations.
At Achilles we have more than 20 years’ experience of being strategic partners to major mining companies operating in Peru and Latin America, helping them to increase transparency in their supply chains, provide a level playing field for their suppliers, mitigate risks and have access to a single source of information on suppliers. 15 mining companies belong to our Regic community and we assess more than 4,000 suppliers operating in that sector.
Contact us to find out more about our experience in the mining sector and which solutions we have available for your organisation.