Peru: Tia Maria mining project economic impact to be seen after works begin

01:14 | Lima, Jul. 13.

Peru's Central Reserve Bank (BCR) has affirmed the economic impact of Tia Maria mining project (Arequipa region) will be noted after construction works begin, which should be carried out within a peaceful social context.

"If that happens, and the works start, that would be an upward factor for our projection, as we had said there are also downward risk factors," BCR Economic Studies Central Manager Adrian Armas expressed. 

According to the official, the execution of the copper project would generate formal jobs, as well as boost the nation's and Arequipa region's economy

"It (the project) will generate 3,000 jobs, and its exports will amount to US$700 million once it is complete. Besides, it will have an impact on business confidence," he added. 

"Likewise, for investors, it is a sign that our country can carry out these projects when there is good communication with local communities," the BCR representative said. 

On the other hand, Armas explained BCR does not include investment projects in the forecast for Peruvian economy, unless the corresponding execution has started.

Tia Maria

Peruvian President Martin Vizcarra on Wednesday expressed his administration's willingness for dialogue to resolve differences over the project, which Southern Peru Copper Corporation expects to develop in Islay Province (Arequipa region).

However, Executive Branch spokespersons warned that —even though the license has been issued— this does not mean the mining company can begin operations. It needs to earn —through dialogue— a social license first.

For its part, the mining company committed itself not to start operations before setting up a dialogue space to resolve social concerns.


Published: 7/13/2019