Peru is preparing the approval of 134 mining projects valued at roughly $6 billion, an ambitious push to stimulate formal investment and reaffirm the country’s position as the world’s second-largest copper producer. Government forecasts suggest that formal small-scale mining could generate more than $5 billion in annual sales by the end of 2025, while $4.7 billion in medium and large projects are expected to break ground in 2026. Officials frame this surge as a way to restore investor confidence and strengthen state revenues amid global demand for copper and gold.
Yet, this formal-sector expansion takes place against a backdrop of mounting tension with informal miners. More than 50,000 artisanal operators have been excluded from the formalization process due to non-compliance with new requirements, leaving entire communities outside the legal framework. Their exclusion fuels grievances, especially in regions where informal mining sustains livelihoods and where state enforcement is viewed as punitive rather than supportive. This widening divide threatens to undermine the legitimacy of the government’s reform agenda.
The contrast between bold promises of future investment and the alienation of thousands of small miners underscores the fragility of social license in Peru’s mining sector. The government’s ability to harmonize economic ambition with inclusive pathways for informality will determine whether the country sustains stability. Without credible integration of informal actors, the investment boom risks being overshadowed by social conflict, eroding trust in the institutions that regulate Peru’s most strategic industry.
Issue Profile – Peru Formal Mining Expansion
Lead Actor: Government of Peru, President Dina Boluarte
Focus: $6 billion in new project approvals; formal mining sales projections
Update (Aug 2025): Approval drive announced while informal miners face exclusion
Strategic Significance: Balancing large-scale investment with inclusion to preserve social license