• More than 3.7 million persons in the region will benefit from mining with the development of the portfolio of mining investments.
• In addition, new projects would generate income for the region of more than S/ 2,000 million from fiscal redistribution (canon minero) and royalties as of 2031.

Mining in Cajamarca is one of the economic activities that has contributed the most to the region in the past years. It is estimated that the execution of mining projects in the portfolio would help reduce the poverty rate in the region to 17.4% towards the year 2031, 33 percentage points less than the current poverty rate.

This is stated in the study “Economic and social impact of mining in Cajamarca”, prepared by the Peruvian Institute of Mining Engineers (IIMP) and the Center for Competitiveness and Development (CCD) presented during the first day of the decentralized event Rumbo a PERUMIN.

As indicated in the study, it is estimated that more than 3.7 million people will be impacted by mining directly or indirectly considering projected income from the activity of more than S/ 2,000 million soles towards the year 2031 from fiscal redistribution and royalties.

Rudy Laguna, economist and director of the CCD, explained that the exploitation of minerals would take the region to a production level that would benefit other productive sectors of great economic relevance, as mining currently dynamizes the development of transportation, metal working, electricity, gas and refining of oil, textiles, construction and others.

“The mining activity is the second most important activity for the region, accounting for 15.4% of its GDP. With the development of new projects, the benefit in promotion of direct and indirect employment would reach 939,000 persons and would have an impact on 2.8 million corresponding to their families”, commented Laguna.

The economist also highlighted the impact that this activity has been having until today, pointing out that only between 2007 and the beginning of this new decade, poverty decreased from 68.2% to 51%, according to sources from the National Institute of Statistic and Informatics (INEI) and the Ministry of Energy and Mines (MINEM).

An important mining region for Peru

According to the results from the CCD evaluations, 34% of the Cajamarca population is currently being benefited from the mining activity with an impact on approximately 496,000 persons, directly and indirectly. Accumulated mining investments in the region amount to around US$ 7,500 million between 2004 and 2020.

In this regard, the President of Rumbo a PERUMIN, Miguel Cardozo, commented that Cajamarca is one of the regions that has received the most from fiscal redistribution (canon minero) and royalties between 2004 and 2021 of more than S/ 7.9 million.

“It is undeniable that Cajamarca is an important region for the national mining activity and that is evidenced by the income of approximately S/ 32.9 million/month in these past 30 years, through mechanisms, commitments and the successful Programa Minero de Solidaridad con el Pueblo-PMSP (Mining Program of Solidarity with the People), commented the engineer.

It is worth mentioning that Cajamarca is the region that concentrates the highest value of the portfolio of mining investments of Peru, with US$ 17,900 million, with projects such as Yanacocha Sulfides (US$ 2,100 million) Michiquillay (US$ 2,500 million) Conga (US$ 4,800 million) El Galeno (US$ 3,500 million) and La Granja (US$ 5,000).