Lima, June 16, 2022. According to the study “Socio-economic impact of mining on southeastern Peru - Apurímac, Cusco, and Puno,” presented by the Peruvian Institute of Mining Engineers (IIMP) and the Center for Competitiveness and Development (CCD), the execution of new mining projects will allow poverty rates in the analyzed regions to drop by more than 10 percentage points by 2031.
In the case of Apurímac, which concentrates a mining investment portfolio worth over $10.199 billion, poverty reduction will be of up to 16 percentage points, going from 29% (current rate) to 13% in 2031. Puno will also see a significant reduction (with a mining investment portfolio worth $1.555 billion), as poverty rates will go down from 40% to 26% by the same year.
As for Cusco, whose mining investment portfolio is currently worth $2.226 billion, poverty rates will fall 10 percentage points, from 29% to 19%.
“With a portfolio of 14 projects in total, the three regions concentrate a total of $13.980 billion, accounting for 26% of the projects in the Peruvian mining investment portfolio, which is worth $53.168 billion,” said Rudy Laguna, economist and director of CCD, during the first day of the virtual event Rumbo a PERUMIN “Socio-economic impact of mining in the Apurímac- Cusco-Puno corridor from both a historical and a future perspective.”
The study also states that, by 2031, and thanks to the execution of the projects in the portfolio, there will be 190,000 new jobs in these three regions. Thus, the number of people employed by mining (directly or indirectly) will be over 424,000. “That means that just in Apurímac, Cusco, and Puno, the mining industry will manage to benefit 1.7 million people, including workers and their nuclear families,” added the economist.
The main projects that will boost income and jobs in Apurímac are Hierro Apurímac ($2.9 billion), Los Chancas ($2.6 billion), and Haquira ($1.86 billion). In Cusco, the projects are Quechua ($1.29 billion), Coroccohuayco integration ($590 million), and Achha and Yanque ($346 million). Finally, in Puno there are the Falchani ($587 million) and Corani ($579 million) projects.
It is worth noting that, from June 16 to July 21, six virtual sessions will be held to analyze and discuss the regions of the southern mining corridor, namely: Apurímac, Cusco, Puno, Arequipa, Moquegua, and Tacna so as to identify development opportunities in mining and help maximize the impact of the extractive industry on the population of these regions.