This working paper critically examines Peru’s recent mining boom through the lens of the modern resource curse, arguing that while copper exports rose to record levels, institutional bottlenecks and informal sector expansion have limited developmental benefits. The analysis traces how current natural resource policies—institutional reform, formalization efforts, royalty structures, foreign investment incentives, and environmental regulation—interact with deep-rooted governance challenges. The authors contend that without stronger state capacity and inclusive oversight, Peru risks repeating historical patterns where extractive wealth leads to social tension, corruption, and uneven distribution.
One of the paper’s central contributions is its exploration of how informal gold mining—now a large share of national exports—creates fiscal leakages, environmental degradation, and health crises. While formal mines provide economic benefits through taxes and infrastructure, the informal sector operates largely outside government visibility. Combined with “tramitomanía”—the excess of bureaucratic red tape—this undermines Peru’s ability to translate mineral windfalls into broad-based development. The study draws on regional case comparisons and stakeholder interviews to show how current policies are outpaced by sector expansion and contested land claims.
Regarding social license to operate, the paper underscores that trust in mining governance cannot be taken for granted. It argues that formalization initiatives like REINFO need to be complemented by participatory design, transparency, and responsiveness to local priorities. Otherwise, social contracts weaken, leading to cycles of protest and regulatory volatility. In the context of forecasts such as Las Bambas ascending to top national copper producer, this work highlights that technical success alone will not ensure long-term legitimacy—unless it is paired with institutional reform, streamlined permitting, and real dialogue with miners and communities across Peru’s diverse regions.