Currently, mining benefits 60% of the population in Apurímac through the generation of employment and indirect impact, estimated a study presented during the Heading to PERUMIN event.

The start-up of new mining investment projects in Apurímac (valued at about USD 10,243 million) could multiply five times the amount of direct and indirect jobs generated by the extractive industry in the region, benefiting more than 1.3 million people by 2031. 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.

According to the study, prepared by the Center for Competitiveness and Development (CCD) in alliance with the Peruvian Institute of Mining Engineers (IIMP), mining currently benefits 60% of the population of the Apurímac region (270,000 people). This is achieved through direct and indirect employment, which reaches some 67,500 people and their direct beneficiaries (202,500 people, approximately).

“Apurímac is the second region with the greatest potential for mining investment in the country. If we implement this investment in the next 10 years, direct and indirect jobs would reach about 332,000, five times more than those currently generated. This, added to the direct beneficiaries of the workers (approximately 996,000 people), would benefit more than 1.3 million people who constitute an important sector of the population ”, said Rudy Laguna, an economist at the CCD. 

Mining and poverty alleviation

The study also reflects that mining, through employment, investments and economic resources generated for the region, has reduced poverty in Apurímac from 78% in 2000 to 33%, according to 2020 indicators. 

In this regard, a significant improvement was noted in the province of Cotabambas, where the Las Bambas mining project is developed. There, poverty was cut in half, from 87% in 2005 to 43.8%, according to 2018 figures.

“It must be considered that mining is an industry that energizes and strengthens not only the regions in which it is developed, but also the country in general. The generation of employment and the hiring of people in the area of influence, generates income and gives a better quality of life to those involved. Considering the portfolio of projects, the development of this industry should be taken advantage of in a sustainable way," said Miguel Cardozo, president of Heading to PERUMIN.

Taking advantage of the mining potential

It should be noted that mining currently represents 60% of the Apurímac region's GDP, with close to S/ 4,000 million. Similarly, according to the figures compiled by the CCD, the industry has generated revenues for the region of more than S/ 1.3 billion since 2004, through canon and royalties, which have been distributed among the local and regional governments as well as universities.

In light of this, the president of Heading to PERUMIN, Miguel Cardozo, made a call to boost mining investment in the region, in order to continue generating development opportunities for the population. "We need mechanisms to accelerate the start-up of new mining projects, as the country needs this boost to overcome the effects of the current crisis generated by Covid-19," said Cardozo.

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.