Mining will be key to Peru's economic future

Carlos Gálvez Pinillos, the president of Peru’s National Society of Mining, Petroleum, and Energy (SNMPE), gave a lengthy interview to the Worldfolio about his opinions on the future of the Peruvian mining sector. He explained that though the industry’s rapid expansion has driven Peru’s overall economic growth, it still has a long way to go. Gálvez explained that just 1.38% of the Peruvian territory is currently being used for mining, and the country has a portfolio of $65 billion in mining projects yet to be developed.

The SNMPE president recognized that the key impediment to bringing these projects to fruition is the bottleneck caused by social conflicts over the large-scale mining projects. Gálvez firmly believes that investment in the mining sector will generate employment and economic growth in complementary sectors like industrial metalworking and construction, which will create a rising economic tide that will ultimately help all Peruvians.

Peruvian news agency Andina reported Gálvez as saying that Southern Copper should take its time with the Tía María copper mining project. He stressed, “Those who are thinking short term are confused, because it requires a space of 3 to 4 months, at least, to communicate and explain the project and clear up doubts, without which the project will not be able to advance.”

Peruvian Minister for Energy and Mines, Rosa María Ortiz, agrees with that analysis. She believes that both mining companies and the Peruvian state need to regain the confidence of the country’s rural communities in order to receive their support for proposed mining projects. She explained that the government and the companies need to work hand-in-hand with the local communities to help them understand how these projects will benefit them.