Peru's 2015 record against illegal mining

Andina News Agency over the weekend published a very positive report summarizing the Peruvian government’s raids against illegal mining operations in 2015. According to Andina, the various raids carried out by the Peruvian government destroyed 250 illegal mining camps, and more than 20,000 gallons of gasoline and 60 km of tubing, crucial materials for illegal miners.

The report however, did not mention how many illegal miners were captured, or how many pounds of illegally-mined ore was seized. Of course, the Peruvian government wanted to emphasize the metrics and statistics that would put a positive spin on its actions against illegal mining. However, illegal mining remains a massive problem in Peru, and unfortunately, it is also a diffuse and hard-to-fight problem. These raids do not address the fundamental dynamic driving the illegal mining industry.

Overall, the Peruvian mining industry has been growing at an incredible pace. During the first 11 months of 2015, the mining and hydrocarbons sector in Peru grew by 7.35%, led by 22% growth in copper mining. Increasingly, the Peruvian mining industry has been prioritizing massive copper mining projects.

At the same time, the future of the Peruvian oil industry has been imperiled by the collapse in global oil prices. With oil prices hovering at $37 per barrel, the world’s large oil companies have to make deep cuts to their investments, only approving the most lucrative projects in their project pipelines.