Delays in mining projects, together with other structural barriers, are limiting Peru’s ability to leverage its geological potential and the interest of international investors, restricting improvements in its positioning in the global minerals market.
The official portfolio of mining investments includes 67 initiatives for around US$64 billion (bn). According to Carlos Gallardo, general manager of the Instituto Peruano de Economía (IPE), the execution of the portfolio could double copper production and increase gold production by 50%, but most of them still do not have defined schedules.
“The opportunity is great if the projects move forward, especially in the copper portfolio.” However, the country faces a series of barriers that hinder that opportunity, Gallardo warned during a presentation organized by the Instituto de Ingenieros de Minas de Perú.
The difference between copper and gold, the two main minerals produced by Peru, is marked.
While the copper portfolio includes large projects with defined schedules through 2032 — among them San Gabriel (with the start of commercial phase planned for the second half of 2026); Coroccohuayco and Tía María (with start-up planned for 2027); Los Chancas and Trapiche (for 2031)—, in gold the opposite is true, as there are no initiatives capable of significantly increasing production, except for Conga (still without a defined schedule).
According to the IPE, initiatives such as Michiquillay, Los Chancas and Haquira could expand the copper production frontier by up to 18%, but face risks of postponement due to illegal mining.
A study by IPE indicates that in 2023, of the 46 mining projects in the pipeline, 34 were experiencing delays and 23 of them for reasons beyond the companies’ control. That same year, nine of the world’s 29 largest stalled copper projects were in Peru, reflecting an environment where social conflicts, community pressure, and excessive administrative procedures hinder investment.
Illegal mining, including in protected areas, takes advantage of the gaps left by formal mining, while red tape becomes a bottleneck. In 2022, the approval of environmental studies took almost five times longer than the legal deadline, with the National Water Authority (ANA) as the most delayed entity, Gallardo highlighted.
Although social conflict has decreased, the risks remain latent as long as the gaps are not closed, which could lead to new episodes of tension, he added.
Additionally, overlapping State areas that hinder exploration continue to be a problem, compounded by inefficiency in the management of the mining royalty, which limits districts’ ability to transform extractive income into sustainable development.
Peru has a portfolio capable of transforming its position in the global minerals market, but it faces challenges that prevent it from fully seizing this opportunity.
Suggested measures
The IPE manager proposed measures aimed at an institutional and regulatory redesign, including:
• Implement a one-stop window with management based on defined time frames and traceability of files.
• Expand the list of administrative procedures with automatic approval when they are not critical.
• Extend the scope of positive administrative silence, so that the lack of response within the legal time frame implies approval.
• Strengthen Senace, ANA and other entities institutionally, with a redesign of responsibilities that avoids duplication.
(The original version of this content was written in Spanish)