Fujimori's Pro-Mining Stance in Peru Risks Social Unrest, Study Finds

A plan by Peru's President-elect Keiko Fujimori to accelerate mining investments could trigger new social unrest, according to a study from the Observatory of Mining Conflicts in Peru. The report, released Wednesday, suggests that a push to revive long-stalled projects may face significant opposition from local communities, creating a volatile environment for the incoming administration.

A Looming Conflict

The study highlights a critical political dynamic: most of Peru's primary mining regions voted against Fujimori in the recent election. This raises the risk of heightened tensions if her government aggressively promotes projects in areas where residents fear environmental damage and feel they have not received adequate economic benefits from resource extraction.

Peru, the world's third-largest copper producer, has a pipeline of approximately $64 billion in planned mining investments. According to the country's ombudsman, there are nearly 200 active social conflicts nationwide, with 64 directly linked to mining and environmental disputes.

Fujimori's Economic Agenda

Fujimori, who is set to take office on July 28, has campaigned on a platform of economic revival centered on the mining sector, which accounts for over 60% of the country's exports. Her proposals to spur investment include:

Ad

• A fast-track approval system for new projects.
• The implementation of new tax incentives for mining companies.
• A promise to direct 40% of mining revenue to local communities to address their concerns.

Potential Flashpoints for Investors

The report identifies several specific projects that could become centers of conflict. David Velazco, an environmental advocate with the local nonprofit Fedepaz, pointed to Southern Copper's $1.8 billion Tia Maria copper project, which is approved to begin operations in 2027, as a potential flashpoint.

Velazco also cited the Rio Blanco copper project, operated by China-based Zijin, as another area of possible conflict. The potential for protests and project delays represents a significant operational risk for mining companies and investors with exposure to the region.