Cajamarca: challenges and opportunities in the mining sector for sustainable development

The region of Cajamarca is facing a complex reality, marked by high levels of poverty and a portfolio of stalled mining projects that represent a significant economic opportunity. According to the Peruvian Institute of Economics (IPE), Cajamarca is home to five mining projects with an estimated investment of US$15.7 billion, which could transform the social and economic situation of the region if their execution is achieved. Currently, Cajamarca is considered the poorest region in the country, with 44% of its population living in conditions of extreme poverty. The stalled mining projects, such as Michiquillay, Conga, El Galeno, La Granja, and Yanacocha Sulfuros, along with others in the exploration stage, represent an opportunity to generate employment and promote industry and agriculture in the region. Teodoro Crisólogo Grández, senior economist at IPE, has emphasized the importance of these investments for Cajamarca, noting that the lack of institutional capacity to reconcile the interests of the population with investment opportunities has been one of the main obstacles. Projects that were supposed to start operations years ago are now postponed until 2030, reflecting the complexity of the situation. Social conflict surrounding these mining projects has also been mentioned as a relevant factor. The absence of an efficient state that can reach the population with basic services, education, and health has contributed to tensions that hinder the progress of investments. Poor public management and the lack of talent attraction in the state administration also limit the ability to meet the population's needs. Formal mining faces strict demands and regulations to comply with environmental and social standards, while illegal mining operates outside the law, disregarding regulations and basic safety conditions. This situation has led to conflicts and violence in various mining regions, such as La Libertad, highlighting the need for a clear policy to address the increase in illegal mining. In this sense, it is crucial to establish effective mechanisms to ensure that investments in the mining sector are carried out responsibly and sustainably, promoting the well-being of local communities and environmental care. Coordination between the public sector, mining companies, communities, and civil society becomes essential to achieve equitable and sustainable development in Cajamarca and throughout the country. It is necessary to prioritize dialogue and consensus among all stakeholders, seeking solutions that benefit the population and promote inclusive economic growth. Cajamarca has enormous potential in the mining sector, but its exploitation must be accompanied by policies that guarantee respect for the rights of communities and the protection of the natural environment. Only then can truly sustainable and equitable development be promoted in the region.