This year, the social conflicts mismanaged by the government have hit the country hard and their impact is reflected in the economy. The president of the National Society of Mining, Oil and Energy (SNMPE), Raúl Jacob, revealed that US$1 billion in mining exports had been lost up to October.
It’s not the only thing. The union representative explained to Peru21 that the State stopped collecting S/800 million in taxes due to these problems.
“We are very concerned to see that social conflict is not reduced and that (the authorities) take time to react. We have a new cabinet and we hope that they will help find a solution to solve the problems peacefully, ”he stressed.
Another of the consequences of these conflicts would be reflected in investment in the sector in 2023. Raúl Jacob warned that a drop in investment of around US$2 billion is estimated
“Quellaveco is already in operation and that was the last major project that was under construction, so this stops a dynamic of more than 20 years of having two or three projects under construction at the same time. We do not have greater clarity about what is going to happen in the country”, he stated after the inauguration of the XIII TICAR 2022 – Technology and Innovation Symposium of the mining-energy sector, organized by the SNMPE.
The union president specified that the disbursements expected for 2023 are important but small, and would be related to renewing a fleet of trucks, or a new plant to better use the infrastructure, not new operations.
Although he recognized that this year one of the advantages for the sector was the increase in international metal prices, this was not enough. Jacob recalled that between 2012 and 2016 prices were low, but “as the country offered a good investment environment, mining outlays were higher.”
It should be noted that between January and September mining investments amounted to US$3,514 million, that is, 5.6% more than the same period in 2021. For every S/100 disbursed in Peru, S/22 come from the mining industry- energetic.
INVESTMENTS DRIVE AWAY
For his part, the former vice-minister of Mines, Guillermo Shinno, explained that the conflicts, which this year paralyzed Las Bambas and Cuajone, slow down investments and discourage the intentions of some businessmen to bet on Peru.
“The problem is the social conflicts that prevent Peru from being viewed positively and delay investment. The projects that exist in the country are left aside”, he told Perú21. The country has a portfolio of 43 projects in the sector for US$53.168 million.
He also pointed out that the Executive branch needs to have a better strategy to deal with this problem; otherwise, in addition to investments, production would fall.
So far this year, metals such as gold, zinc, silver, lead and molybdenum have registered figures in the red in their productions. Copper, for its part, registers an advance of only 3%.
Data
-In 2021, foreign direct investment in Peru amounted to US$7,455 million, the highest amount in eight years, according to ECLAC.
-However, this figure was below other countries in the region such as Chile (US$15.252 million) and Colombia (US$97.27 million).
