Title: The Determinants of Social Conflicts in Mining Production in Peru Author/Institution: Raúl Castellares – Peru Economics Working Paper Publication Year: 2011
Research Focus
Castellares’ study investigates the root causes of social conflicts linked to mining in Peru, drawing on quantitative analysis of protest data and mining production records. The research emphasizes that conflicts are not random but are systematically associated with the location and intensity of mining activity, as well as with broader governance and institutional factors. By combining economic modeling with social conflict data, the paper provides empirical evidence for what many observers have long noted qualitatively: that mining expansion in Peru is closely tied to patterns of social unrest.
Key Findings
The analysis reveals that conflicts are most prevalent in areas with high mining output but weak governance capacity. Factors such as ineffective distribution of mining revenues, environmental degradation, and lack of trust in state institutions amplify tensions. Importantly, the study highlights that the mere presence of mining operations is not enough to generate conflict; it is the interaction between resource extraction, local expectations, and institutional weaknesses that fuels disputes. In regions where consultation is absent or environmental concerns are ignored; the probability of protest is significantly higher.
Implications
For policymakers and companies, the findings underscore the necessity of strengthening local governance, transparency, and community engagement to prevent conflict. The paper suggests that redistributing resource revenues more effectively and investing in public services can mitigate tensions. For industry leaders, the lesson is clear: sustainable mining in Peru requires moving beyond compliance toward genuine partnerships with communities. Castellares’ research provides a framework for anticipating conflict risks, making it highly relevant for both analysts and decision-makers working on License to Operate (LTO) strategies.