Regulatory Context and Reform Agenda
As of early October 2025, the government of Peru has entered into an active legislative debate over major reforms to its mining-concession framework, provoking concern among large-scale producers and exploration companies. Historically, Peru granted long-term exploration and exploitation rights—often spanning decades—to major mining firms to underpin multi-billion-dollar developments. However, renewed political and social pressure—driven by illegal mining proliferation, idle concessions, and demands from small-scale operators—has pushed Congress to consider sweeping changes: shorter concession durations, “use-it-or-lose-it” clauses for under-utilised ground, and pathways for artisanal miners to access territory previously held by majors.
Economic Implications and Licence to Operate Risks
For multinationals accustomed to the long-lead nature of mining, the proposed reforms raise red flags. Shortening concession terms from 30–40 years to 10 or 15 years could undermine investment models built on long pay-back periods, increase regulatory uncertainty and weaken contractual tenure. Meanwhile, major producers argue that exploring, permitting, constructing and operating a large mine in Peru typically spans four decades; thus, accelerated regimes risk making formal large-scale mining less viable. As one industry adviser put it: the reform push is “nonsense that will ultimately disincentivise large-scale formal mining investment.” Moreover, the reform debate is occurring amid rising illegal mining, smuggling and community conflict—factors that further erode the perceived social licence to operate (LTO) for many concession holders.
Outlook and Stakeholder Strategy
The outcome of the reform saga will shape Peru’s mining attractiveness and investor confidence going forward. If Congress adopts stricter controls and shorter tenures without offering compensatory stability guarantees, mining capital could shift to alternate jurisdictions. On the other hand, if reform is carefully calibrated—offering formalisation pathways for artisanal miners, maintaining exploration security for majors, and enhancing governance and community engagement—it could strengthen the country’s LTO framework. Moving ahead, companies operating in Peru must heighten their focus on tenure defence, regulatory horizon-scanning and proactive stakeholder engagement. In this environment, tenure certainty and social licence may no longer be assumed—they must be actively managed.