52% of the population in the mining regions of Southern Peru (Arequipa, Apurímac, Cusco, Moquegua, Tacna and Puno) benefit from the development of the mining industry through job creation. This is according to the study "Benefits generated by mining in Southern Peru", prepared by the Center for Competitiveness and Development (CCD) and the Peruvian Institute of Mining Engineers (IIMP), presented at the first session of the decentralized event on the road to PERUMIN, in Arequipa, "Southern mining corridor: Challenges for the development of the regions."
It involves a population of more than 2.6 million people benefited thanks to the development of mining, through the generation of direct jobs (74,000 people), indirect jobs (593,000 people), and considering direct family members of the workers who benefit from this income.
Most of the population benefited through employment comes from businesses (micro, small, medium and large companies) that provide services to the mining industry. It is estimated that there are currently more than 3,130 companies in the southern mining regions that are involved with this industry. Of these, 45% are concentrated in Cusco, 30% in Arequipa, 19% in Apurímac, 3% in Moquegua (where this panorama will improve significantly with the entry into production of Quellaveco), 2% in Puno and 0.5% in Tacna.
Work comes from micro and small businesses
The study also highlights that, in the six mining regions of the South, the largest number of companies that provide services to mining are micro-enterprises. In Apurímac, for example, 79% of the suppliers are in this category, while only 14% are small and medium-sized companies, and the remaining 7% are large companies.
“Mining, with its high demand for services, has the ability to promote the development of production chains, fostering trade, the development of local companies and, therefore, work for the population. This is how development opportunities are generated in the areas where a mining project is being developed”, said the president of Heading to PERUMIN, Miguel Cardozo.
Higher income and poverty reduction
The analysis developed by the CCD and the IIMP also shows that the average GDP per capita in the Southern mining regions is S/ 17,300, higher than the average GDP per capita at the national level, which is currently S/ 11,700. In mining districts and provinces, it is also evident that per capita family income increased considerably with the development of important mining projects. For example, in Challhuahuacho (Apurímac), per capita family income increased fivefold, from S/ 160 in 2012 to S/ 902 in 2018.
This is also evident in the reduction of poverty in mining districts and provinces. In the case of Challhuahuacho (Apurímac), the poverty rate fell from 77% to 39% between 2013 and 2018.