The closure of Las Bambas: how will this affect the economy of Apurimac?

Prior to MMG’s announcement of closure bambas In early February, Carlos Díez Canseco, CEO of Peru’s Institute of Mining Engineers, warned that the news could seriously jeopardize Apurímac’s budget and the employment of hundreds of people.

“Las Bambas is not only an important unit for Apurímac and the country, it is an important unit for the whole world… it is 1 or 2% of the national GDP, it is an investment of 11 billion dollars, a more important private investment than was made in the country,” – he said.

Diez Canseco explained that despite not being 100% employed, his contribution to employment is high. “A hugely important economic activity takes place around this production unit, which somehow determines the evolution of the surrounding communities and communities,” he told Economy for All of RPP Noticias.

In addition, he highlighted the economic contribution he makes to Las Bambas, which accounts for 78% of Apurímac’s production. “Half of the income tax paid by this company goes to the Apurimac region, and this amount is divided between the regional government and local governments. This money should be invested in projects that benefit the entire population,” he said.

Higher metal prices create a better environment for metal mining

According to Diez Canseco, the demand for metals is high, so one should take advantage of the situation to exploit the country’s mining resources.

“There is a growing trend for metals and as a consequence of this growing demand there is an increase in prices in the medium and long term, which means that prices are now quite attractive for all copper mining companies around the world. Unfortunately, we are in a situation where we cannot operate according to the capacities we have due to investments,” he clarified.

“When it comes to new investments, investors are looking for areas where there are not necessarily so many. risk and this will obviously affect not only the activities in the field of exploitation, but also exploration and, possibly, future investments, ”he added.