As a Canadian junior exploration and development company Sunset Cove Mining believes it is its duty to go where it can best drive shareholder value by economically assembling, piece by piece, a rich pipeline of projects. The best place to do that for the foreseeable future is in Peru because of the richness of its mineral deposits and a business climate that is one of the best in Latin America.
All the signs are there. As a global producer of precious and base metals Peru ranks first in the world for silver, third for copper and fifth for gold. Peru is ranked third in the world in terms of gold, silver, copper and zinc reserves. It has an established mining culture that dates back thousands of years. From a mining standpoint only 15% of the country has been explored leaving immense potential for future development.
Barrick Gold, BHP Billiton, Rio Tinto, Xstrata and Chinese state owned miner Chinalco all have world class operations in Peru.
While Peru is a developing country, which offers its own economic benefits in terms of the cost of doing business, it is a stable country with a democratic government which over several different administrations has consistently seen foreign investment as good for the country. It is one of the friendliest mining jurisdictions in the world with one of the world’s fastest growing economies. Between 2006 and 2009 the GDP grew on average 9%.
It actively seeks foreign investment in all sectors of the economy. Credit rating agencies Standard & Poor’s, DBRS, Moody’s and Fitch have all given the country Investment Grade status. The government looks favourably on foreign investment in mining as a method of helping to finance the country’s development. In 2009 mineral exports made up 61% of export revenue. Peru has signed Free Trade Agreements with Canada, China, the USA and other countries and has signed 32 international investor agreements which effectively protect the investor.