TASK ABOUT REFLECTIONS OF MINING
ACTIVITY IN SHORT AND LONG TERM IN
PERU
Economic impacts
Dependence on mining exports: Peruvian mining exports account for 60% of the country's total
exports. Copper, gold, and lead make up almost 87% of mining exports, indicating heavy
dependence on mining activities. Any disruptions or problems in the mining sector could have a
direct impact on the economy.
Foreign direct investment: The mining sector is a crucial part of the economy, as evidenced by
the significant amount of foreign direct investment it attracts. However, issues related to mining
activities have the potential to discourage investment and cause a long-term decline in foreign
direct investment.
Social unrest and protests: The presence of 156 large mining companies and the resulting
conflicts with indigenous and peasant communities suggest social unrest and tension
surrounding mining activities. These conflicts may cause production disruptions in the short
term and harm the mining sector's reputation in the long term, potentially impacting investment.
Health issues: The contamination of Peruvian rivers with arsenic, particularly in drinking water
sources, poses a significant threat to public health. This could lead to health crises in the short
term, which would tie up medical resources and impair the population's ability to work. In the
long term, it could result in higher healthcare costs and reduced labor productivity.
Political impact
Diversification of the economy: Diversifying the economy should be explored. In the long term,
by promoting other economic sectors such as agriculture, tourism or renewable energy, the
government could reduce the Peruvian economy's dependence on mining. This would make the
economy more resilient to shocks to the mining industry.
Response to Social Unrest and Protests: The government must react quickly in the event of
social unrest or protests against mining activity. It may be necessary to use security forces to
maintain public order and to negotiate with a ected communities in order to solve conflicts and
keep production interruptions to a minimum.
Emergency Measures to Address Health Issues: To respond to health problems associated with
arsenic contamination, the government would need to take short-term measures. This could
involve providing clean drinking water, healthcare, and educating the population about health
risks. To address the social, environmental and health problems associated with mining
activities, the government should consider a long-term review of the laws and policies governing
the mining sector. This could include strengthening mining regulation, introducing stricter
environmental standards and improving community participation in decision-making.
Investment uncertainty: Mitigating short term investment uncertainties may include actions
aimed at restoring investor confidence in mining. For example, the announcement of measures
to improve social and environmental standards in the mining sector could be considered.
05.04.2024 David Lopez
Source:
Gonzalez Taranco, C. (Year unknown). Peruvian Mining Activity [PDF document].
Mongabay. (2023, 12. Dezember). Peru's crackdown on illegal gold mining a success, but only
briefly, study shows. Mongabay. https://news.mongabay.com/2023/12/perus-crackdown-on-
illegal-gold-mining-a-success-but-only-briefly-study-shows/
Karzanova, I.V. & Cordova, S.D.A. (2022). Actual Problems of Illegal Mining in Peru: Prospects
and Challenges. In E.G. Popkova & I.V. Andronova (Eds.), Current Problems of the World
Economy and International Trade (Research in Economic Anthropology, Vol. 42) (S. 83-91).
Emerald Publishing Limited. https://doi.org/10.1108/S0190-128120220000042009
Reuters. (2023, 4. Dezember). Peru’s deadly gold mine attack highlights growing security risk,
costs. Mining.com. https://www.mining.com/web/perus-deadly-gold-mine-attack-highlights-
growing-security-risk-costs/
05.04.2024 David Lopez
