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September 26, 2025
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Populism and illegal mining raise political risk in 2026 elections

Populism and illegal mining raise political risk in 2026 elections

Perumin He approached yesterday, on his third day, a crucial issue for the future development of mining: the political risk in Peru, considering that it has been one of the main causes for which investments have been ruled out in the past, and that becomes more relevant in the electoral context. The debate was led by Cecilia Valenzuela, director of Peru21, with the participation of Diana Seminar, journalist and political analyst; Franco Olcese, politicalologist at the Wiñaq Center; and Iván Arenas, social researcher and political analyst.

The first great concern of the table was the influence of illegal mining both in the general and regional elections, taking into account that today there are legislators who defend it and politicians who face the formal in an apparent search for financing and easy applause, without meditating the contribution of formal mining.

“The mining company contributes 47% in the Income Tax. If we put ourselves in colloquial terms, they stop the country’s pot,” Seminar said. He also recalled that Peru has 128.5 million hectares, of which 18.9 million are concessioned to mining, which is equivalent to around 15% of the total.

The exhibitors agreed that another of the main elements of political risk is populism and the narrative of left -wing politicians against formal companies, especially the mining sector. They warned that, if this trend was maintained, “illegal benches” would be incorporated in the next elections, aimed at ending those who do pay taxes and generate employment for the country.

“There are more benefits than costs in supporting formal mining, but politicians are looking at that 8.9% of voters who would bow to a candidate defending informal miners,” he said
Olcese.

In turn, Arenas said that another of the inconveniences that arise is the lack of political leadership to combat the country’s problems, as well as the absence of a national project that integrates all sectors and the population. To this, he added the lack of education and impulse for more people to know the advantages of being formal and the consequences of remaining as illegal.

RACKETEERING

The panelists agreed that illegal mining has a strong impact on citizen insecurity, reflected in the death of workers in Pataz and in attacks against homes and businesses in Trujillo.

In that line, Valenzuela recalled that, according to an Ipsos Peru survey, more than 75% of citizens associate this scourge with criminal networks such as money laundering, organized crime, prostitution, trafficking in persons and smuggling.

For this reason, the table coincided with the importance of formal mining companies more clearly communicating the benefits of having companies of this type in Peru.

TAKE INTO ACCOUNT

  • Formal mining in Peru represents almost 70% of Peruvian exports.
  • According to the National Mining, Petroleum and Energy Society (SNMPE), illegal mining causes losses of S/22.7 billion a year in Peru.

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