In 2020, the income from canon and royalties for the development of public investment projects amounted to S/ 1.434 billion

The Apurímac region developed a total of 2,958 public investment projects executed between 2015 and 2020, of which S/ 1.434 billion come from the mining canon and royalties. This was announced by the study “Benefits generated by mining in Apurímac”, presented during the event “Mining for development in Apurímac”, carried out as part of the decentralized competitions of the Heading to PERUMIN program. 

As indicated in the study prepared by the Center for Competitiveness and Development (CCD) in alliance with the Peruvian Institute of Mining Engineers (IIMP), Apurímac is one of the most important copper producing regions in the country; in 2020, 313 fine metric tons (FMT) were produced, which contributed to the development of social and economic projects.

The amount received by the region is destined mainly for local and regional governments and universities. In addition, as shown in the aforementioned study, Apurímac managed to reduce poverty from 78% in 2000 to 33% by 2020.

The most important public investment projects were public services that, comparing the years 2007 and 2017, represented an improvement in public network water from 54.1% to 89.5% in homes; public drainage network from 26.8% to 50%; electric lighting from 56.6% to 80.4%; and mobile or fixed telephony, from 21% to 74.2%.

Cotabambas, an outstanding province

According to the study, one of the outstanding cases in terms of royalties and canon income was the province of Cotabambas, where the Las Bambas project is being developed. This shows that between 2015 and 2020, it was possible to finance the execution of 1,935 projects for an amount of S / 449 million.

Likewise, Cotabambas provides evidence of the positive results of mining activity since it has the most significant reduction in poverty in the region, going from 87% in 2005 to 43.8% in 2018.

According to the study, if mining continues, the province is projected to have an income of S/ 17.892 billion by 2050 and thus be able to reduce the physical gap by 55% with greater access to basic services, road infrastructure, education, health, social programs, irrigation and municipal management.

Apurimac's mining projections for 2031

Currently, mining represents 60% of the region's GDP with close to S/ 4 billion. According to the estimates reflected in the study and provided by the Ministry of Energy and Mines (MINEM) in the Strategic Competitiveness Plan, Apurímac would generate a total of S/ 6 billion in mining canon and royalties by 2031.

“This important activity represents the greatest income for the execution of public investment projects. These projects stimulate the economy in the region, generate employment, family income, etc. However, there are still structural gaps that date back years. Issues such as health, education, road and irrigation infrastructure, for example. Mining activity must go hand in hand with the agricultural and environmental sector, respecting standards of quality and environmental impact in its execution”, said Rainer Valdeiglesias, regional manager of planning, budget and territorial conditioning of Apurímac.

Currently, Apurímac's mining investment portfolio includes projects such as Cotabambas (USD 1.53 billion), Haquira (USD 1.86 billion) and Los Chancas (USD 2.6 billion). However, the execution of these projects is estimated to begin in 2028.