What has the government done to develop mining in Peru?

Mining is one of the most important activities in our country. In the first four months of this year alone, it produced 58.6% of national exports and created more than 2 million direct and indirect jobs. Through these activities, Peru became the second largest copper producer in the world after Chile. Demand for this metal has grown due to the replacement of fossil fuels with renewable energy.

Nonetheless, The National Institute of Statistics and Informatics (INEI) warned of a 10.69% drop in metal production in May alone. According to former Deputy Minister and Cooper-Acción researcher José Echave, this is due to the fact that mining is paralyzed by social conflicts.

“So far this year, metal production shows a cumulative decline of about 1.6%. The latest monthly data shows a decrease of 4%, and this is mainly due to the fact that production processes at important mines had quite long shutdowns,” he explained.

Despite social conflicts, exploration or investment projects were not stopped, but mines were paralyzed for more than 50 days Las Bambas to Apurimac and Cuahone in Moquegua influenced copper production.

The mining industry has lost $770 million this year due to social conflicts, according to the National Society of Mines, Oil and Energy, while Peru stopped receiving $195 million in taxes and royalties money that is equivalent to the minimum wage of almost 4 million Peruvians.

Social conflicts are the first obstacle to mining

until June, Ombudsman’s office reported on 207 social conflicts; however, according to former energy and mining minister Carlos Herrera Descalzi, the executive branch is doing little to reduce conflict in the country or to develop extractive activities.

“He did nothing, he did the opposite, he made very big mistakes, so what I perceived is a discourse that is completely alien to reality. At international forums, he always said that investments in Peru are welcome, but this is completely untrue, ”he clarified.

Both experts agree that the current government is doing little to advance mining, mitigate conflicts, or reactivate major projects like Tia Maria, who was paralyzed four presidential terms ago.

For this, 2022 The Economic Commission for Latin America and the Caribbean (ECLAC) forecast production of more than 2 thousand tons of copper in Peru. The rise of the metal continues, this opportunity should not be missed, said the head of the Institute for Economics and Business Development (IEDEP) of the Lima Chamber of Commerce, Oscar Chavez.

Possibility of being caught

“Mineral prices are already showing a certain drop, but they are still at a high level since mid-2020, and this is an opportunity that needs to be seized because it will mean more exports, more tax collection for Sunat, more resources. for the condition.

2021, metal mining accounted for 8.5% of the national GDP. and in May of this year, he gave 3,799 million soles for canon, royalties and fines. This money will buy fertilizer for more than 900,000 hectares or finance Mi Vivienda housing bonds for more than 95,000 families; however, all indications are that the mining sector is not on the agenda of this government.