• Of all the mining transfers to Arequipa in 2022, 79% was allocated to local governments and 21% to regional governments.

Of the total investment budget of local municipalities in Arequipa, 39% is derived from resources generated by mining. In other words, out of the S/. 2.814 billion available to local governments for the development of public works, S/. 1.099 billion come from fiscal redistribution (canon), royalties and rights of use. This data was presented in a study titled “Mining in Arequipa”, conducted by the Peruvian Institute of Mining Engineers (IIMP) in partnership with MACROCONSULT, during the event Rumbo a PERUMIN: “Mining's Contribution to the Arequipa Region.”

MACROCONSULT partner, Gonzalo Tamayo, pointed out that mining transfers have not only boosted the budget of local governments but also that of GORE Arequipa. “In 2022 alone, S/. 1.427 billion have been transferred thanks to mining. This enables the development of public works in sectors such as transport, health, and education, as well as the investment in social prevention, public order and security.”

Another important point the study highlights is that, of the total investment budget of GORE Arequipa (S/. 876 million), 37% (S/. 328 million) come from mining transfers. “Although there is a significant sum going into the government accounts at all regional government levels, the level of budget execution must be reviewed. Today, the percentage is low, especially in the municipalities that are allocated the most funds, reaching only 34%. 

Benefits of Mining to the Region

The study also details that the Mining GDP has accounted for 30% of the region's GDP. Furthermore, between 2012 and 2021, the average annual mining contribution to Arequipa's GDP was S/. 8.4 billion.

“Arequipa is an important region, not only within the Southern Macroregion, but also for the entire country, accounting for 5.5% of the national GDP. It is also worth noting that mining exports make up 87% of the region's total exports. In light of this, it is necessary to work together in order to continue strengthening and promoting development for the people of Arequipa," emphasized Domingo Drago, President of Rumbo a PERUMIN.

Another important point underscored is that mining employs nearly 30,000 people directly and 180,000 people indirectly. This dynamizes the economy of the region and nearby departments by actively using road, railway, port, and air transport infrastructure. 

It is worth mentioning that this study was presented during Rumbo a PERUMIN, an event preceding the PERUMIN 36 Mining Convention, scheduled to take place from September 25 to 29 at the Cerro Juli Convention Center in Arequipa.

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