Peru’s mining sector is struggling with political instability and complex regulations, resulting in a decreased appeal to investors. Recent analysis shows a concerning decline in attractiveness for mining exploration investments, with Peru dropping 25 positions in rankings over six years.
The frequent government changes and lack of a long-term mining policy create uncertainty, discouraging stability-seeking investors. Additionally, Peru’s mineral resources have lost their shine compared to other countries with higher-grade deposits.
The upcoming pre-election period in 2025 and elections in 2026 are unlikely to improve the situation, further deterring investors. Security concerns in mining areas and persistent regulatory issues add to the risk perception.
Efforts to streamline processes through a Digital Mining Single Window have had limited success, with bureaucratic hurdles remaining. While some regulatory changes have sped up processes, Peru still lags behind in permit processing times.
The mining sector awaits full implementation of the VUD to simplify and accelerate the permitting process. Addressing these challenges is crucial for Peru to regain a competitive edge in the global mining industry.