In July 2025, Peru’s central bank issued a warning that ongoing mining-related protests could shave at least 0.2 percentage points off the country’s monthly GDP growth. The warning comes amid escalating road blockades and demonstrations led by informal miners in regions such as Cusco and Apurímac. These groups are reacting to the government’s recent decision to remove over 50,000 participants from the REINFO formalization registry—a move intended to crack down on illegal mining but perceived by many as abrupt and exclusionary. The protests have disrupted logistics for major copper exporters like MMG’s Las Bambas and Hudbay’s Constancia, both of which rely on uninterrupted road access to move concentrates to port facilities.
This episode highlights once again the fragility of Peru’s mining sector when the social license to operate (SLO) is not consistently maintained across all layers of the extractive economy. While large-scale, formal mining companies generally hold permits and maintain formal SLO mechanisms with surrounding communities, the state’s engagement with informal and artisanal miners remains uneven. The REINFO cancellations, although legally justified, lacked adequate prior consultation or transitional support. As a result, miners who view their livelihoods as under threat have resorted to direct action—underscoring how top-down enforcement without stakeholder dialogue can trigger sector-wide instability.
For Peru, one of the world’s top copper exporters, the economic implications are significant. The mining sector contributes nearly 10% to national GDP and over half of export revenues. Disruptions to copper supply chains not only hurt macroeconomic indicators but also risk eroding investor confidence in a country that depends heavily on mineral extraction for growth. Moving forward, restoring social trust and institutional credibility will be critical. This includes not only rethinking how formalization policies are implemented but also recognizing that a durable SLO requires inclusive dialogue with all actors—especially those operating at the margins of legality but at the center of local economies.