【Ferro-alloys.com】：The mining industry has been a crucial driver of Peru’s economic development for centuries, evolving into one of the country’s most powerful economic engines. In 2024, mining contributed around 12% to Peruvian gross domestic product (GDP).

The country is rich in strategic minerals, with the US Geological Survey (USGS) noting that in 2024, Peru was ranked first in production of arsenic trioxide (49% of global production), second in production of silver (14%) and zinc (12%), third in production of copper (12%), lead (6%), and tin (11%), and fourth for production of molybdenum (15% of global production).

The country is also rich in other key commodities including andalusite, crude borates, cadmium, diatomite, gold, iron ore, phosphate, and selenium.

Peru and Chile combined are currently the world’s second largest producers of mined copper, accounting for 40% of global output, with China making up an additional 50%.

Peru is a major exporter of commodities, with its mineral exports accounting for 64% of its total exports.

Needless to say, it is clear that Peru’s mining industry is a vital component of its economy and is a rising global player for the green energy transition with its exports of critical minerals.

At present, according to the US International Trade Administration, less than 1% of Peru’s land has been explored, with just above 1% of reserves under development, leaving strong potential for exploration companies.

The administration also notes that major mining projects valued at US$54.6 billion ($78 billion) are currently awaiting development.

Peru’s focus on natural resources is reinforced in its Mining Vision 2030, an initiative from the Ministry of Energy and Mines establishing guidelines for inclusive and sustainable natural resource management and development.

The industry, however, has seen social conflict arising from communities where extractive industries are located, with the government having reported that around 80% of all documented environmental and social conflicts in Peru relate to the mining sector.

The Extractive Industries Transparency Initiative (EITI) notes that the country has put increased focus on community concerns, particularly with social and environmental issues while also strengthening transparency and accountability in the distribution and use of the revenues generated by the extractive industries by local authorities.

Mining and exploration are largely governed by the Organic Law for the Sustainable Use of Natural Resources, with the country’s General Mining Law responsible for mining sector governance and regulation on concessions, authorisations, and the rights and obligations of concessionaires.

This stands alongside the Organic Hydrocarbons Law, regulating the development of hydrocarbon exploration and exploitation activities, providing the country’s Ministry of Energy and Mines the power to elaborate, approve, propose, and implement sector policy.

In late July 2026, Keiko Fujimori will take the seat as President of Peru, continuing a streak of wins by conservative candidates across Latin America. A report by Herbert Smith Freehills Kramer notes that they expect that private and foreign investment is expected to play a key role in this new administration, following a precedent set by Fujimori’s father’s administration in the 1990s.

Fujimori’s father, Alberto Fujimori, while in power established multiple legislative decrees regarding foreign investment in addition to sector-specific laws regarding infrastructure, mining, hydrocarbons, and more.

Fujimori’s new administration proposes a free-market economy and a deregulatory “shock” to the Peruvian economy, with a goal to reduce processing times for investment projects, reduce regulatory burdens, and eliminate redundant procedures, all of which should benefit the country’s mining industry.

The plan laid out by the administration proposes fast-track mechanisms for permit approvals as well as tax incentives for the reinvestment of profits from mining projects.

Amid this shifting policy environment and Peru’s renewed push to accelerate investment, attention is turning to junior explorers advancing discoveries and drill programs across the country.

• [Editor:Alakay]