In 2021, mining played a decisive role for the country within the framework of the economic reactivation process. During this year, the region of Cajamarca received income from fiscal redistribution (canon minero) and royalties from the mining activity, up to 37% higher; however, this percentage would still fall short compared to the 62% increase registered in the country.
This information was provided by Diego Macera, General Manager of the Peruvian Institute of Economics (IPE) during the second day of the Keynote Talks in the event Rumbo a PERUMIN, “Generating prosperity for Peruvians”, organized by the Peruvian Institute of Mining Engineers (IIMP).
Mr. Macera indicated that by the end of the third quarter 2021, the region presented a 2.2% contraction of its GDP with respect to the same period of 2019, being mostly supported by the construction sector, with the increased public investment and real estate projects, which had a favorable performance of 24.9%, compared to -32.9% of mining.
As shown by the results of the analyses performed by the IPE, despite the increase of the international metal prices, the sharp fall of the mining production in Cajamarca, specifically, gold, generated this slowdown of 11.9 negative percent points in 2021.
“The fall is still hitting hard, and our results are not yet at pre-pandemic levels. The comparison between the last quarters of last year and the same quarters 2019, tells us we are experiencing a fall of 26% to 38% of the mining production”, pointed out the economist.
Competitiveness and mining
Using the Regional Competitiveness Index (INCORE) of the IPE, which evaluates the capacities of the regions in the country with regard to the Economic Environment, Infrastructure, Health, Education, Work and Institutionality pillars, Cajamarca ranks 21 in national competitiveness, mainly retained by the Economic Environment and Health pillars.
While the public investment budget of the region broke records in 2021, since the Regional Government and the local governments had a concentration of 9 out of each 10 soles budgeted for public investment between 2009 and 2021, the level of execution is low, even compared to the national average.
“It is very important to emphasize the importance of materializing more and new mining projects that may become a driving force for the economy of the region and have an impact on its competitiveness. It is essential to use their leverage, since Cajamarca is the region in the country with the highest number of projects to be developed and it is something that cannot be wasted in a moment of peak prices”, added Mr. Macera.