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| Peru mining projects |
Green Light for 134 Projects May Reshape Latin America’s Copper Supply Chain
The Peru mining projects under review total $6 billion in potential investment, marking a pivotal moment for the global copper market. President Dina Boluarte announced that 134 exploration and exploitation projects await government approval. This initiative could revitalize the country’s mining sector, despite widespread domestic discontent and growing regulatory tensions.
Copper-Rich Peru Seeks Investment While Grappling With Informal Mining Crisis
Peru, the world’s third-largest copper producer, remains vital to global copper supply chains. However, its mining landscape is complicated by informal mining protests and persistent unrest. In June, informal miners blocked transport corridors critical to MMG and Glencore operations. Although protests have paused, tensions persist after over 50,000 miners were excluded from formalization programs.
As a result, the government aims to re-integrate 31,000 miners under new regulations by year-end. Meanwhile, Boluarte proposed a private mining fund to provide small-scale formal miners with financing access. However, police clashed with protesters near Congress even as she delivered this announcement, reflecting the nation’s fraught political climate.
Political Instability and Economic Recovery Drive Policy Shifts
Peru’s current administration faces record-low approval ratings, fluctuating between 2% and 4%, as per recent polls. Yet, it continues to push policies targeting economic recovery. The government also signed a strategic deal with Ecuador’s Petroecuador to link oil production to the Talara refinery via a Peruvian pipeline.
Poverty remains near 30%, despite the economy’s recovery from a recession tied to anti-government protests. With elections set for 2026 and Boluarte under investigation for protest-related deaths, the approval of large-scale Peru mining projects is likely to influence both political stability and foreign investor confidence.
ScrapInsight Commentary
Peru’s mining sector stands at a critical juncture, with copper supply and investor sentiment hanging in the balance. If the $6B project slate advances, expect increased metal throughput and regional competition. However, unresolved informal mining and political risks may delay implementation and pressure global raw material flows.
