Mining in Peru: a crucial engine for reducing poverty

Mining, a fundamental sector for Peru's economic development, is at a crucial moment that could have a significant impact on poverty reduction in the country. With the execution of the mining portfolio announced for 2024, it is expected that the economy will experience a boost that would lead to a substantial reduction in poverty. In recent years, mining has proven to be an important driver of economic growth, generating significant tax revenues, boosting employment, and contributing to the country's financial stability. Investment in large-scale mining projects has not only increased metal production but also revitalized the economy in times of crisis such as those experienced during the pandemic. Mining revenue has reached record levels in recent years, contributing to strengthening public finances and driving economic recovery. The creation of formal jobs in the mining sector has been notable, with a positive impact on job creation in other sectors of the economy. However, despite high international metal prices, the lack of new investments in the mining sector poses a challenge for the country. Many projects in the 2023 portfolio face significant delays, jeopardizing the potential economic growth and job creation that mining can bring. To fully harness the potential of mining in poverty reduction, it is essential to prioritize the execution of the mining project portfolio for 2024. This would involve overcoming obstacles that have hindered the timely implementation of projects, such as bureaucracy, social conflict, illegal mining, and insecurity. Consistently reducing poverty requires sustained economic growth, and mining has the potential to be a key catalyst in this process. It is crucial for authorities and companies in the sector to work together to ensure that mining continues to be a source of development and progress for Peru, maximizing its capacity to generate wealth and well-being for the population.