Peru relies heavily on its mining industry for economic growth. The importance of the mining industry for Peru’s economy cannot be overstated. It accounts for over 14% of the country’s GDP and approximately 60% of exports.[1] Its relative economic weight, compared to other economic sectors such as manufacturing has increased in recent years, increasing the country’s dependence on the extraction of mineral resources.[2] Despite the sector’s importance, mining in Peru has caused social conflict and environmental despoliation. Unresolved questions around sustainable resource management, community consent, land rights, and corruption have thus far impeded the country’s progress towards successful sustainable development.

Peru’s Ministry of Energy and Mines has recently launched the laudable Mining Vision 2030, which sets out goals to align social and environmental sustainability by ensuring economic growth through creating an equitable and socially just mining ecosystem. The Columbia Capstone team approached this report with a two-fold objective:

  • Formulate a comprehensive and workable policy implementation roadmap to achieve Peru’s Mining Vision 2030; 
  • Map relevant indicators and integrate the SDGs into the Mining Vision 2030.
     

To this end, this report built on the essential work of previous Columbia Capstones, examined the regulatory framework, considered the role of government, mining companies and communities, identified key legal, economic, environmental and social issues, as well as proposed best practices in formalizing policies and practical mechanisms such as social licenses. Understanding that any solution for Peru’s development must be formed by Peruvians themselves, the report takes on a multi-stakeholder approach that incorporates the voices of local communities and those most affected by mining activities.

 


[1] OECD, Towards higher economic diversification and productivity in Peru. In OECD. Multi-dimensional Review of Peru. (OECD Publications 2016)

[2]Pablo De la Flor, ‘Mining and Economic Development in Peru’ (2014). ReVista Harvard Review of Latin America <https://revista.drclas.harvard.edu/book/mining-and-economic-development-peru> accessed 18 April 2019