Peru will likely produce between 2.7-million and 2.8-million metric tons of copper this year, the head of a major mining group told Reuters on Tuesday, with estimated output falling below the government's three-million-ton goal.

The copper production forecast was provided by Victor Gobitz, head of the SNMPE mining, oil and energy association.

Peru is the world's No. 3 producer of the key industrial metal, used widely in vehicles and construction, especially for electrical wiring due to its ability to conduct current.

Gobitz, who provided the output estimate on the sidelines of an economic forum in the capital Lima, is also the top executive at Peru's Antamina project, the country's second-biggest producer of the red metal.

Antamina is controlled by Glencore, BHP, Teck and Mitsubishi.

Copper production during the first half of 2024 totaled 1.29-million tons, according to official data, coming in about 2% lower than during the same period in 2023.

Last year, Peru's mines produced 2.76-million tones of copper.

The Andean country's slide in copper output has factored into a recent economic slowdown, as the local economy only grew by about 0.2% in June after expanding by more than 5% in both April and May.

Peru's mining and oil sectors dipped by about 7.5% in June - their poorest performance since early 2021, hurt by the scheduled two-week stoppage of the Toromocho copper mine operated by Chinalco, according to government data.

In order to maintain copper production levels, mine investments of between $2.5-billion and $3.0-billion are needed, noted Gobitz.

The executive added that at Antamina, where output this year is seen steady at around 435 000 tons, investment over the first half of 2024 totaled some $250-million. He said the year-end investment figure for the project is seen at $700-million.

Peru's government has approved an environmental study for Antamina aimed at maintaining production from 2028 through 2036 fueled by an expected investment of $2-billion.