Based on a concession, mining companies plan long-term work and investment that include license and permit management, exploration and construction work, as well as progressive development of the concession area and social management from an early stage.

Specialists call the preservation of competitiveness in the face of any regulatory attempts concerning concessions.

“The mining concession system in Peru must be an incentive for investment and a key driver for our country’s development,” said Domingo Drago, president of Rumbo a PERUMIN, at the event entitled ‘Mining Concessions and the Challenges for Their Operability,’ held as part of the Mining Thursday series organized by the Peruvian Institute of Mining Engineers (IIMP). In this way, reference was made to regulatory proposals aimed at reducing concession timelines for mining development, highlighting the need for “strategic vision and coherence when legislating on them (mining concessions).”

Drago explained that mining companies plan their work and investments for the long term,  which requires a legal framework that guarantees territorial security for the time needed to develop their projects in a sustainable manner. With these timelines, he said, companies plan periods for procedures and permits, early social engagement that will remain throughout the mine’s lifecycle, exploration activities, construction permits, operational development, while continuing exploration in areas adjacent to the mine, enabling the identification of new expansion projects, which have been critical in recent years.

“Obtaining a mining concession is an important but very preliminary step when discussing the development of a mining project. The timeframes needed to build social relationships and trust with communities near or within the concession, gain access to surface land, explore deposits, size a deposit, design the required infrastructure, and obtain necessary permits often exceed two decades,” said Drago. He also emphasized that there are no inactive concessions and that a company’s immersion in the concessioned territory is progressive.

Risks to competitiveness

The president of Rumbo a PERUMIN also highlighted the importance of considering that mining is a global industry, and that competitiveness must be prioritized before changing the rules governing concessions. He explained that Peru is competing with other countries seeking to attract mining capital and that any changes to the regulations could discourage interest from both national and international investors.

“Authorities must maintain a clear and stable regulatory framework that allows for predictability. Only in this way can companies continue investing in Peru, which will not only boost the growth of the mining sector but also create employment, foster innovation, and strengthen the national economy,” said Domingo Drago.

Call for Dialogue

In this regard, Gustavo De Vinatea, general manager of the IIMP, noted that mining concessions are an essential resource for the future of mining and our country. Therefore, he emphasized the importance of working collaboratively on proposals that ensure their optimal use and valuation, involving national and sub-national authorities, companies, and civil society.

De Vinatea stressed the importance of continuing to create multi-stakeholder meeting platforms. He highlighted the upcoming events such as proEXPLO 2025 in May and PERUMIN 37 in September, which will bring together industry experts as well as sectoral authorities and company representatives.