Peru miners clearing investment hurdles, industrial group says

Peru's economic growth is slated to accelerate in 2014 as mining companies overcome bureaucratic obstacles to investment, according to the country's main industrial group, the national industries society.

The local metal and mechanical industry is growing alongside the mining sector amid signs of economic recovery in China, the U.S. and Europe, state news agency Andina cited the group's president Luis Salazar as saying.

The government's efforts to eliminate bureaucratic snags "should bring more investment in industry," Salazar said. "In general all the companies are continuing to invest, as there's positive in growth machinery imports."

Peru's manufacturing industry, including the country's three steelworks and four smelters, will also benefit from the country's young workforce, he said at a U.N. industrial conference held in Lima. Manufacturing accounts for about 14% of Peru's US$200bn gross domestic product, Salazar said.

"We have a major advantage as we have a large number of young people who will start producing over the next 20 years, compared with European countries and the U.S., which will have an older population," he said. "We have to ensure Peru's is the most attractive destination for any investment, wherever the capital comes from."

Peru, the world's third-largest copper and zinc producer, has lined up about US$57bn in mining investment projects over the next decade, according to the energy and mines ministry (MEM).

Peru's finance ministry earlier this year set up a commissionto eliminate obstacles to about US$22bn in delayed investment projects, mostly mining.