A Warning Against Paralysis
Former Minister of Economy and Finance Luis Carranza has issued a stark reminder of the economic costs of delayed decision-making in Peru’s extractive sector. Speaking at the XI INGEPET 2025 conference in Lima, Carranza emphasized that major mining projects such as Tía María—ready for development since 2011—have been trapped in political indecision for over fifteen years. He warned that the accumulation of over US $50 billion in paralyzed investments has eroded investor confidence and deprived the country of much-needed employment and fiscal revenue.
Mining and Hydrocarbons as Dual Engines of Growth
Carranza described formal mining and hydrocarbons as Peru’s “two fundamental pillars” for sustained prosperity. Mining, he noted, generates not only tax revenue but also strong linkages across supply chains, energizing local industries and services. He underscored that the country’s Amazonian reserves—holding 99 % of its natural gas and 75 % of proven oil—remain underdeveloped assets capable of driving regional industrialization if supported by a more competitive regulatory framework.
Restoring Competitiveness and Credibility
According to Carranza, the excess of bureaucracy and the inefficiency of public institutions have cost Peru both time and credibility. He called for regulatory simplification, coherent incentives for small-scale formalization, and renewed political will to unlock stalled projects. The entry of global actors such as Chevron, he added, should serve as a signal that Peru can still attract long-term energy and mining investment. For Carranza, the path forward is clear: the country must recover its leadership in natural- resource management, transforming potential into productivity and trust into growth.