The former Deputy Minister of Mines argues that the development of new reservoirs will help reduce the demand from 2% to less than 1% of the available water resources in Peru.

During his participation in PERUMIN 36, Augusto Cauti, former Vice-Minister of Mines, suggested that the construction of new dams will make it possible to capture the water that normally flows into the sea and use it for mining, thus reducing the consumption of available water resources by more than half.

"According to the National Water Authority, the mining sector consumes about 2% of the fresh water available in Peru. However, with the construction of dams to store and use water that is usually lost to the sea, the demand would be reduced to 1% or even less, more than half," he concluded.

However, he acknowledged that the construction of dams is the responsibility of the State and that it is crucial to properly plan and execute the public budget for the development of infrastructure projects that are compatible with the real needs of society, a characteristic lacking in the government at its three levels of representation.

“During my tenure as Vice Minister of Mines, S$44 billion was directly transferred to local governments to crystallize public works such as roads, schools and medical centers, but we were surprised to find that only 60% of the budget was spent. With the lack of resources and opportunities, there is no right to have such management,” he lamented.

Regarding the critical elements for the energy transition, Augusto Cauti argued that the declaration of lithium as a national strategic mineral could have unfavorable consequences, as it could create excessive expectations among the inhabitants of the areas affected by the project. Their dissatisfaction could motivate them to halt the progress of the mining project.

“What should be done is to declare exploration as a strategic activity, because without mining there is no transition to a more sustainable and resilient human and industrial activity. Recently, the search for deposits of copper, lithium and nickel, resources produced by countries with great potential such as Peru, Chile and Argentina, has driven this," he noted.

In conclusion, the mining and energy consultant highlighted that Peru outperforms other mining jurisdictions in Latin America in terms of stimulating its economy. The mining sector accounts for 10% of the national GDP, 60% of total exports, 20% of foreign private investment and 15% of tax revenues.

"Our mining industry is a leader in the implementation of best practices such as water recirculation in processes, reuse of tailings, and monitoring of air, soil and water quality. It is necessary to address the various challenges of environmental management and bridging social gaps," said the lawyer.