"Demystifying mining in Peru: key to development and poverty reduction"

The reality of mining in Peru is overshadowed by a series of myths that, rather than helping, hinder the country's economic development and poverty reduction. Despite the fact that mining activities have evolved significantly in recent decades and present an opportunity to increase economic growth above 4%, it is urgent to dismantle these erroneous beliefs that permeate society. One of the most widespread myths is the perception that mining operates under a lax regulatory framework. However, data from Apoyo Consultoría reveals that large-scale mining in Peru is subject to 232 administrative procedures backed by 470 regulations, in addition to the oversight of 30 different entities. This complexity has generated a phenomenon known as "bureaucratic red tape," which has delayed 23 mining projects, accumulating investments of US$ 30 billion. Among these, the Tía María case stands out, with over ten years of waiting for the necessary authorizations. At the same time, responsible production in mining has ceased to be an abstract concept. A study by the Peruvian Institute of Economics (IPE) soon to be published highlights that the ten largest copper mines in Peru have at least two international standards that validate their commitment to the environment and social management. This level of certification, which can take up to three years to obtain, demonstrates that the industry is aligning itself with sustainability and social responsibility practices. Job creation is another critical point in the discussion about mining. Since 2001, the number of direct jobs in this sector has more than tripled, reaching 214,000 in 2023. This growth not only directly impacts mining workers but also generates a chain of indirect employment: for every mining job, it is estimated that eight more are created in related activities. In practical terms, this means that nearly two million Peruvians depend on mining activities. The contribution of the mining sector to the national economy is noteworthy. According to the Center for Competitiveness and Development, in the last 20 years, more than 5,000 new suppliers have been created, most of them small and medium-sized enterprises benefiting from mining activities. Currently, the supplier sector represents 4% of the country's Gross Domestic Product (GDP), underscoring the interconnection between mining and other economic sectors. Despite the importance of mining, its tax burden is significantly high, reaching between 41% and 43% of profits, compared to 30% from other sectors. This high level of contribution makes mining a fundamental pillar for tax revenue, accounting for nearly 10% of the total, which is then redistributed to the regions of the country. The transfer of resources from mining royalties and taxes has been significant, reaching almost S/47 billion in the last decade. These funds have been allocated to regional governments, municipalities, and public universities, demonstrating that mining has a direct impact on the well-being of the population. However, the postponement of mining projects means depriving millions of Peruvians of better economic opportunities and a more prosperous future. It is essential for society to understand that the myths surrounding mining not only harm the industry but also affect the quality of life for all Peruvians. Formal mining, which is governed by strict regulations and standards, is a development engine that could help eradicate poverty and improve the well-being of families. On the other hand, inaction on these projects only benefits illegal mining, which operates outside the law and without the social and environmental commitment that characterizes formal mining. This phenomenon not only undermines the economy but also generates social and environmental conflicts that affect entire communities. In the end, it is imperative that all stakeholders involved, from the government to civil society, work together to demystify mining and highlight its potential as a catalyst for progress and development in Peru. The opportunity is within reach, but it is essential to act decisively and with commitment to fully capitalize on it.