Peru mining projects could contribute US$21bn to public coffers

The 43 projects in Peru’s US$54bn mining portfolio have potential to contribute 85bn soles (US$21bn) in taxes and royalties and generate 74bn soles in service sales contracted to third parties over the next decade – if they’re implemented according to schedule.

But the odds are not favorable, Alturas Minerals CEO Miguel Cardozo told a webinar organized by the Institute of Mining Engineers of Peru (IIMP).

"If we manage to execute the portfolio [between now and 2031], we would reduce poverty by 14 percentage points, and GDP will involve accumulated growth of 13%," he said.

“GDP associated with mining suppliers is around 4%, and that of mining is 10%. When we see these figures from a regional perspective, the numbers multiply,” Darío Zegarra, IIMP vice president and executive at Newmont Mining, said.

IIMP calculates that 16.6mn citizens could benefit from the portfolio, or about 38% of the population estimated for 2031. It could also generate 3.9mn jobs.

CHALLENGE

But social conflicts are holding projects up. Protests were reactivated in the southern mining corridor, home to copper projects such as Las Bambas, Constancia and Antapaccay. In Chumbivilcas province in Cusco region, an indefinite strike was declared and roads essential for mineral transport blocked.

The blockade has been lifted, but local authorities expect the central government to resolve water, sanitation and infrastructure demands or the road will be blocked again. Local representatives demand President Pedro Castillo visit the province, and they accuse the government of being inefficient.