Friday, June 19, 2015

Mining makes Arequipa the third-biggest regional economy in Peru

EY, the multinational professional services firm formerly known as Ernst & Young, revealed that, after Lima and Callao, Arequipa is the third largest economy in Peru. EY published its “Guide to Business and Investing in Peru,” in which explained that the mining sector has been key to Arequipa’s economic dynamism, contributing 24.4% of the region’s GDP in 2013.

The report adds that, paralleling the rise of Arequipa as an economic force, investment has similarly increased from $1.1 billion in 2007 to $5.1 billion in 2013, thanks to investments in large-scale mining, energy, and hydrocarbon projects. Looking to the future, EY projects that Arequipa’s economy will grow by approximately 5% in 2015 and again in 2016.

In mining-related news, regional government institutions in Cajamarca have united to combat illegal mining in the region. In recent days, three illegal miners died in a mining accident, and General PNP Hugo Begazo, Regional Director for the Ministry of Energy and Mines Victor Cusquisibán, and representatives of the Public Ministry, the SUNAT, the SUNAFIL, and others, jointly announced that they would crack down on illegal mining operations in the area. 


According to General Begazo, miners in the area of the accident, the province of Cajabamba, are not interested in formalization. He cited work by the local police, who showed that the miners refuse to follow Peruvian laws and regulations on mining activity. The officials expressed hope that, now that all of the different governmental entities are working together, they can jointly tackle the problem of illegal mining.

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