Mining in Peru: Economic Engine and Victim of Myths that Limit its Potential

The economic development of a country depends not only on political will but also on the capacity of its natural resources and their proper exploitation. In Peru, mining has historically been one of the most relevant economic activities; however, it faces a context of myths that threaten not only its growth but also the possibility of improving the living conditions of millions of Peruvians. The myths surrounding mining are largely products of misinformation that overlook the advances and regulations governing this industry. Despite being a key sector for the economy, where growth is expected to exceed 4% and poverty is to be reduced, mining is threatened by a series of prejudices that hinder new projects. According to data from Apoyo Consultoría, large-scale mining in Peru is subject to 232 administrative procedures based on 470 regulations, under the supervision of 30 entities. This "bureaucracy" has resulted in 23 mining projects, representing a total investment of 30 billion dollars, being on hold, with some, like the controversial Tía María, delayed for more than ten years. This delay not only affects the economy but also implies a lack of job opportunities for the country. Since 2001, mining has tripled its direct employment generation, reaching 214,000 jobs in 2023. Alarmingly, for every job in this sector, eight others are created in related activities. This means that nearly two million jobs in Peru depend on mining, demonstrating its positive impact on the country’s labor fabric. The development of supplier companies has been another positive aspect of mining in Peru. In the last two decades, more than 5,000 new suppliers have been created, most of them small and micro-enterprises. Currently, the mining supplier sector represents 4% of the country’s Gross Domestic Product (GDP), almost half of the 9% represented by the mining sector as a whole. This highlights how mining benefits not only large corporations but also supports small and medium-sized enterprises. The fiscal contribution of mining to the country is another aspect that deserves attention. According to the International Monetary Fund (IMF), the mining tax burden in Peru ranges from 41% to 43% of profits, a rate higher than that of other sectors that are taxed at 30%. This significant contribution has allowed the mining sector to account for nearly 10% of national tax revenue, which is then reinvested in the most needy regions. In the last decade, this system has enabled the transfer of nearly 47 billion soles in mining royalties to regional governments, municipalities, and public universities. These resources are vital for local development and the improvement of basic services. Therefore, postponing mining projects not only means losing opportunities for growth but also denying millions of Peruvians access to a better future. However, resistance to formal mining often strengthens illegal mining, which operates outside the law and lacks the necessary regulations to ensure sustainability and community well-being. While legal mining faces myths, informal mining seems to navigate through fewer restrictions and continues to expand, putting both the environment and local economies at risk. It is imperative that civil society, the media, and opinion leaders come together to dismantle these myths and provide a more accurate representation of what mining can offer to Peru. Education and transparency are key to changing the narrative and fostering a constructive dialogue that allows for the development of mining projects that benefit everyone. Peru's economic progress is at stake, and it is time to recognize the true potential of mining as a driver of development. Ignoring its contributions and perpetuating unfounded myths only serves to limit growth opportunities and perpetuate poverty in a country that has everything to advance. Mining is not just an economic activity; it is an opportunity for progress, well-being, and the construction of a better future for all Peruvians.