What are the variables that impede the country’s growth?
Regarding economic reactivation in Peru, it is important to note the different variables that are currently impeding the country’s growth. The lack of clear strategies and proposals from those running for President as well as from the institutions related to the mining sector is of concern.
If we look at the data for January 2021, mining production has recorded a 7.12% drop according to INEI, a result obtained due to the drop in gold, lead, silver, copper and zinc production volumes, in addition to a bleak outlook in terms of mining investment and project development.
In addition, as of December 2020, the number of active socio-environmental mining conflicts is growing, and the main projects do not have a social license, as is the case of Tia Maria, Conga, Rio Blanco, among others.
Faced with this situation, what are the real expectations for economic reactivation and copper extraction growth?
Being objective and pragmatic, we must face reality and propose clear and concrete solutions.
Why does it take 18 to 24 months to obtain a drilling permit in Peru in 2021, compared to three months in Chile and two weeks in Canada, according to the newspaper El Financiero?
Chile, unlike Peru, at the beginning of 2021 has begun with 94 mining projects with environmental approval, totaling almost 24,000 million dollars, according to the undersecretary of the Ministry of Mining of the neighboring country.
Indeed, Peru has large mineral reserves, but it also has a reduction in investment, exploration, extraction, processing, commercialization, social license problems and excessive red tape. If this continues, Peru will be left behind, watching how other countries know how to take advantage of the resources in their territory and achieve economic reactivation.
The solution does not lie in being exaggeratedly optimistic about our mining potential. The solution lies in clear policies that must be generated through the government, in a true openness to investment, and in the business community taking strategic measures and ceasing to be a passive element in the face of the current circumstances that our country is going through.
– The editorial “Economic reactivation in Peru. What is needed?” was written by:
César Gallardo Vela, President of the Chamber of Mines of Peru.
