Peru — Tía María Copper Project Deep-rooted Community Opposition in the Tambo Valley Puts Social Licence at Stake

A Decade of Resistance in the Andes
The US$1.8 billion Tía María copper mine, operated by Southern Copper Corporation and located in Peru’s Arequipa region, recently received final government approval around late October 2025 after more than a decade of delays. The project is designed to produce approximately 120,000 tonnes of copper per year over 20 years. Yet longstanding resistance by farmers and local residents in the Tambo Valley has persisted, rooted in concerns about water use, environmental impact, and livelihood disruption—especially in a region where agriculture and irrigated lands are vital.

Failure to Build Trust Amid Regulatory Breakthrough
Although the regulatory clearance signals a major milestone for Peru’s mining sector, it comes at a risk: local stakeholders remain unconvinced that the benefits will offset the costs. Community leaders point to broken promises from earlier phases and limited transparency regarding compensation and environmental monitoring. Without meaningful and tangible engagement, the social-licence deficit could prompt renewed protests, operational delays, or further reputational harm—undermining both the project’s economic potential and Peru’s broader mining-investment narrative.

Implications for Peru’s Mining Strategy and Local Empowerment
For Peru, advancing Tía María remains central to achieving its copper-production targets amid the global energy transition. However, the project now serves as a litmus test: can large-scale mining be launched in contested territories while aligning with principles of community consent, environmental safeguards and inclusive benefit-sharing? The outcome will likely influence investor confidence and set precedent for how Peru negotiates complex social dynamics in its mining frontier.