For two decades the South American country of Peru has seen a generally growing economy. This growth has been built upon increasing use of the country’s natural resources, combined with increasing global prices for those resources.

Arguably the most important natural resources of Peru are three metals, Copper, Silver and Gold; with Peru being one of the main global producers of each.

In 2009 Peru extracted 1.26m tonnes of copper, making it the third biggest producer of copper in that year (behind the United States and Chile); and the producer of about 8% of all extracted copper. Similarly in 2011 Peru ranked joint second, with China, and just behind Mexico in terms of silver production with 4000 tonnes produced in that year. Also in 2011 Peru produced 1500 tonnes of gold, making it the sixth biggest producer of the metal globally.

A by-product of the extractive industries has seen the development of a small timber industry. The industry is slowly growing, and the fact that a part of the Amazon rainforest is to be found within the country’s borders suggests that wood, as a natural resource of Peru, might be another area of growth. All these natural resources are extracted to a greater or lesser degree, and this has raised environmental issues, which have proved extremely controversial over the years.

Peru’s natural resources are not only minerals though and a large proportion of the economy is based upon the fishing industry. In terms of weight caught from the ocean, Peru ranks second, only behind China; with almost ten million tonnes of fish caught each year. Fish meal, alongside copper, zinc, silver, gold and textiles, is one of the major export commodities of Peru.

Other natural resources of Peru include phosphate and potash, whilst there are also some reserves of coal, petroleum and natural gas. Petroleum and natural gas in particularly have proven to be growth areas for the country.

One greatly underutilised natural resource of Peru though is hydropower, and although Peru as a whole is not over-endowed with water, large amounts are available in the eastern Amazon areas, and the potential within the Andes is great.  

For the imminent future the natural resources of Peru will ensure economic stability within the South American country. It should be mentioned that the natural resources of the country have not brought prosperity to all, and there is an increasing disparity between the rich and the poor of the country, with the environmental consequences of the exploitation of Peru’s natural resources also impacting hardest on the poorest of the country.