Peru Mulls Green Light for $6 Billion in Mining Projects

Peru Considers Approval of $6 Billion in Mining Projects

Peru plans to approve $6 billion worth of mining projects to boost revenues, President Dina Boluarte announced. The government is reviewing 134 exploration and exploitation proposals. These projects aim to strengthen Peru’s position as the world’s third-largest copper producer. However, ongoing protests by informal miners and political unrest challenge the sector’s stability.

Negotiations continue with informal miners who recently blocked key transport corridors used by major companies like MMG and Glencore. The government paused these protests amid talks about a new mining law. The unrest follows the removal of over 50,000 miners from a formalization program, leaving only 31,000 compliant miners.

Political Instability and Social Unrest Impact Mining Outlook

President Boluarte also announced plans for a private mining fund to help small miners access financing. Meanwhile, police dispersed protests near Congress using tear gas, highlighting the country’s deep political tensions. Boluarte’s approval ratings remain extremely low, ranging between 2% and 4%. Her administration faces criticism over deaths during protests and recent salary increases for officials.

Despite economic rebound after recent turmoil, Peru faces near 30% poverty. Political instability persists, with six presidents since 2018 and general elections due in April 2026. In addition, Peru agreed to link Ecuador’s oil fields to its Talara refinery via pipeline, signaling broader energy sector cooperation.

SuperMetalPrice Commentary:

Peru’s plan to approve $6 billion in mining projects signals strong industry potential amid political volatility. Investors should monitor ongoing informal miner negotiations and government reforms closely. The sector’s future depends on balancing social stability with resource development. Peru’s copper production remains vital for global markets, especially as supply chain security gains focus. Political risks, however, may affect project timelines and investor confidence in the near term.