Consulting Support: Contribution of Cerro Verde is equivalent to 40% of the GDP of Arequipa and 2.3% of the National GDP

According to a study prepared by APOYO Consultoría and presented today in perumin 2022, the operations of Cerro Verde Mining Society in 2021 they contributed approximately 6 thousand 419 million dollars to the national economy, taking into account their production, as well as the links with other services and economic activities throughout their value chain. This amount is equivalent to 2.3% of the GDP of Peru in 2021.

In the case of Arequipa, the contribution of SMCV in 2021 generated some 4 thousand 568 million dollars annually, which represents up to 40% of the regional GDP. This contribution to the regional GDP represents a significantly higher percentage than in previous years (21% in 2020 and 22% in 2019), which is mainly explained by the growth in Cerro Verde’s production, the high copper prices and the recovery of the local economic dynamics, after the confinement caused by COVID19.

The study by APOYO Consultoría entitled “Cerro Verde’s contribution to the economic and social dynamics of Arequipa” also shows that the activity of various economic sectors, especially mining, has achieved that the average annual growth of Arequipa reaches 19% in in 2021, exceeding the 13% growth achieved at the national level in the same year. These numbers represent, in practice, a return to pre-pandemic GDP levels.

On this specific topic, Raúl Andrade, project manager at APOYO Consultoría, explained that mining activity today represents 31% of the gross value of total production in Arequipa, followed by manufacturing (12%) and commerce (10%). Likewise, he detailed that, in the year 2021, Arequipa was ranked as the second copper-producing region at the national level.

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tax contribution

Regarding Cerro Verde’s tax contribution, APOYO Consultoría indicates that in 2021, the mining company paid US$724 million in taxes. This amount includes mining canon, income tax, mining royalties and mining tax, among other additional.

In this line, the study indicates that the canon contribution, which in 2021 amounted to US$ 285 million, is equivalent to twice the cost of the expansion and improvement of Hospital III Goyeneche, added to 45% of the financing of the II Stage of the Majes Siguas Project; or is equivalent to the construction of 618 km of highways added to the construction of 9 Bicentennial Schools.

Employment contribution

On the other hand, in 2021, Cerro Verde’s activities have generated 93.7 thousand total jobs, between direct jobs hired by the company and indirect jobs, generated from its linkages with other industries. According to the analysis of APOYO Consultoría, for each direct job position in the mining company, 10.2 indirect jobs are generated in the economy, which are distributed in various sectors such as machinery and vehicles, electricity, gas and water, among others. others.

Investment in social development and aid against the pandemic

The study indicates that during the 2005-2021 period, Cerro Verde channeled, through the Cerro Verde Association, a voluntary contribution of US$161 million. Of this amount, 34% was allocated to infrastructure issues; 28% to the issue of water; 13% to capacity building; and 8% to education (US$ 1 million destined to improve the quality of the teaching staff in Arequipa).

It should be noted that since 2006, Cerro Verde has also invested US$697 million to ensure the “Virtuous Circle of Water” in Arequipa, which has made it possible to decontaminate the Chili River, a source of life for this city, also generating a series of additional benefits. for the population (in health, tourism and agriculture) and also adding 350 thousand new users who can now access water resources.

Similarly, Cerro Verde made supplies, materials and equipment available to the population of Arequipa to deal with the Covid-19 pandemic, adding an economic contribution of 1.4 million dollars.

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