According to the study “Economic and social impact of mining in Peru South – East – Apurímac, Cusco and Puno”, presented by the Institute of Mining Engineers of Peru (IIMP) and the Center for Competitiveness and Development (CCD), the execution of new mining projects would allow the poverty rate in these analyzed regions to decrease by more than 10 percentage points by the year 2031.
In the case of Apurímac, which concentrates a mining investment portfolio valued at more than US$10,199 million, this decrease in poverty would be up to 16 pp, going from 29% (current rate) to 13% in 2031. A significant reduction would also be seen in Puno (with US$1,555 million in mining investment portfolio), where the poverty rate would go from 40% to 26% in the same year.
In the case of Cusco, whose mining investment portfolio currently has a value of US$2,226 million, the poverty rate would fall 10 pp, going from 29% to 19%.
“With a total of 14 projects in the portfolio, the three regions concentrate a total of US$13.98 billion, representing 26% of the projects in Peru’s mining investment portfolio, valued at US$53.168 billion”said Rudy Laguna, director of the CCD during the first day of the virtual event Heading to Perumin.
Employment generation
The study also indicates that, by 2031, and thanks to the execution of these projects in the portfolio, 190,000 new jobs would be generated in these three regions of the country. In this way, the population employed by mining (directly and indirectly) would reach more than 424,000 people.
“This means that only in Apurímac, Cusco and Puno, the mining industry would be able to benefit 1.7 million people, including workers and their direct families”, added the economist.
The main projects that would boost income and jobs in Apurímac would be Hierro Apurímac (US$2.9 billion), Los Chancas (US$2.6 billion) and Haquira (US$1.86 billion). In the case of Cusco, the projects would be Quechua (US$1,290 million), Coroccohuayco Integration (US$590 million) and Achha and Yanque (US$346 million). Finally, Falchani (US$587 million) and Corani (US$579 million) would be the projects in Puno.
It should be noted that from June 16 to July 21, 6 virtual sessions will be held for the analysis and debate around the regions of the Southern Mining Corridor, which involves the regions of Apurímac, Cusco, Puno, Arequipa, Moquegua and Tacna. This in order to identify development opportunities in mining and to generate a greater impact of the extractive industry for the benefit of the populations of these regions.
