on Friday called on domestic and foreign businesspeople to invest in the Peruvian mining sector, as he indicated that the Government will guarantee such investments and projects.
During his closing speech at
Perumin 35 Mining Convention, the Cabinet chief reminded attendees that a social market economy is in place and remarked that much more will be done by the State to cut red tape so as to carry out exploration activities with greater promptness and ease.
"Let domestic and foreign investors be fully confident that their investments in Peru are safe. Trust Peru and the Government that guarantees your investments in this country," he expressed.
The high-ranking official indicated that this social market economy also establishes the presence of the State as much as necessary, in order for the economic activity to develop freely, "but respecting workers' rights, the environment, and that taxes are paid."
"Peruvians must be aware that taxes do not belong to the person who generates income but to the State; that means to all Peruvians, because the needs of the most vulnerable (citizens) will be met thanks to these resources," he noted.
The Cabinet chief pointed out that Peru's economic growth had been historically and essentially based on mining activities since during the past 10 years this sector had contributed approximately 10% to GDP and accounted for almost 60% of exports.
"Besides, currently for each direct job in mining (sector), eight indirect jobs are generated, among other activities; during the month of August 2022 alone, the sector reported more than 240,000 workers, thus exceeding 5.9% of the 2021 annual average," he added.
Conflicts
Moreover, the
Prime Minister indicated that social conflict level in areas of mining activities has been significant and latent —having a considerable economic and social impact.
"Social conflicts have cost around 2.3 percentage points of growth in the mining-metal sector, that means more than S/20.080 billion (over US$5.064 billion)," he indicated, adding that said situation is due to the fact that economic wealth achieved by mining activities had not generated well-being in the surrounding communities.
In this regard, the Cabinet chief explained that this situation requires modifying the terms in which the stakeholders relate, changing attitudes and behaviors, "seeking new social agreements and clear rules of the game through permanent dialogue."
"Only this way can we recover that social legitimacy and generate better conditions for the development of mining investments," he added.