Peru to Boost Public Spending in Mining Regions to Alleviate Social Conflicts, Reports Reuters

Peru plans to boost public spending in mining areas to mitigate the social conflicts that have led to disruptions in mining operations, according to Finance Minister Oscar Graham. As the second-largest producer of minerals globally, mining serves as a vital source of tax revenue for the country.

Recent tensions between mining companies and local communities have prompted two significant copper mines to temporarily suspend their operations this year, representing approximately 1.5% of Peru’s gross domestic product.

At the start of a conference hosted by the Peruvian mining chamber SNMPE, Graham stated, “In light of social conflicts, we are set to implement a decentralized investment package in mining zones,” although he did not specify the amount designated for the public spending initiative.

Mining activities in Peru are predominantly situated in the historically impoverished Andean region, where many local communities, primarily indigenous, have long expressed dissatisfaction over not benefiting from the country’s mineral wealth.

Leftist President Pedro Castillo gained substantial support in mining regions during his election last year.

One notable incident involves MMG Ltd’s Las Bambas copper mine, which suspended operations after two local communities accessed the company’s property on April 20. As of now, operations remain halted. Meanwhile, Southern Copper’s Cuajone mine has recently resumed activities following a 50-day closure.